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North East LEP recruiting for a new board member

Following Fiona Cruickshank’s decision to step down from the board of the North East Local Enterprise Partnership (NELEP), her place will be filled following a recruitment process to be carried out by Lorna Moran from Northern Recruitment Group.

Paul Woolston, chair of NELEP, said: “Fiona has been a fantastic board member, driving our rural network work and underpinning much of our initial communications strategy activity. She is a superb ambassador for the North East LEP area and we all wish her huge success in the future.”

Fiona Cruickshank has been a LEP board member for two years. She said: “It’s been a tremendously exciting experience to be part of the North East LEP from inception. My current commitments are escalating, meaning that it’s difficult to commit the time required to carry out extremely important work on behalf of the North East area as part of the LEP.

“I’m proud of the LEP’s achievements to date, and know that the board and its strong team of officers will continue to bring new investments and jobs to the area.”

North East LEP board members are appointed for an initial period of up to three years and can serve a maximum of six years. The recruitment process for a new board member will take into consideration the geography of the NELEP area, its key sectors and the different sizes of business operation to be reflected across its board membership. It is hoped that the new board member will be in place by autumn 2013.

Fiona Cruickshank is non-executive chair at SCM Pharma which she set up in 2004, and is a founder of Gabriel Investors and a strategic advisory board member of BioNow. In 2010, she was awarded an OBE for services to business in the North East.

Anyone interested in applying to be a board member of the North East LEP should contact Lorna Moran at NRG. Tel: 0191 260 4412, email : nelep@nrgplc.com.

Further information from Christine Holland, Holland PR & Marketing Ltd. Tel 01670 790246 or 07711 698246.

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Responding to the Spending Review and EU Allocation

Against the very tough backdrop of yesterday’s Spending Round there are many positive announcements in today’s detail on capital spending, energy policy and devolution alongside a strong settlement for the NE LEP in the allocation of EU structural and cohesion funds.

The early announcement of the strike price for offshore wind is extremely welcome; we eagerly await the industry’s reaction and the further details promised for July. Strike prices for other forms of renewable energy will also prompt investment in the area and create opportunities for North East firms, our Universities and NAREC.

Resolving road bottlenecks on the A19 at Testos and Silverlink, confirmation of major schemes on the A1 and the promise of work on the remainder of the Western Bypass and the road north of Newcastle are all hugely important to our connection to national markets. A longer term funding perspective on road and rail projects – which for the North East must include the speed, resilience and frequency of service on the East Coast Mainline – is also very welcome and will allow for better planning and a longer view for strategic infrastructure.

The Single Local Growth Fund has a number of inter-related funding lines within it and it is important that these are brought to bear alongside other key investments in, for example, flood defence.

Paul Woolston, Chair of NE LEP said “The strategic role of the LEP as a forum to bring together private and public perspectives on our investment needs and make the most of our new-found flexibility and freedoms has been thrown into the spotlight. Working seamlessly with the Combined Authority and the business community the will be central to our future success. We are in a great position to do this with so many great ideas from the Adonis Review and ever growing capacity and sure-footedness in our joint working. Alongside a good settlement for science there really is something in this for the North East.”

Commenting on the €539.6m allocated to the North East LEP for the next round of EU structural funds Cllr Mick Henry, Chair of the LA7, said: “This allocation provides us with a real chance to make huge inroads in some of the ambitions that we all have for the area. These funds will be directed towards world class innovation, market-lead access to finance for small and medium sized companies, sustainable growth and improving our skills and the efficiency of our labour markets to achieve more inclusive growth. We are already undertaking a wide ranging discussion with our communities, partners and stakeholders in the region about these funds and the allocation will give extra impetus to that debate.”

The LEP awaits more detail on these funding opportunities which has been promised to follow shortly. The also LEP remains keen to look at opportunities to deliver for the region through other, non-financial, levers such as better regulation, co-commissioning budgets that are not fully devolved or working with national government agencies to further develop and deliver industrial strategy.

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International innovation expert takes up key role at North East LEP

Eminent commercial innovator Professor Roy Sandbach has agreed to work with North East Local Enterprise Partnership as part of its drive to make this part of the UK an internationally recognised centre for innovation growth.

In his role Professor Sandbach will be mapping out the future of innovation networks that will reach from the North East across the globe. His work will underpin what Lord Adonis called “a bold manifesto for change” by focusing on the application of open innovation and smart specialisation principles across the North East LEP area.

Roy Sandbach is an internationally recognised name in innovation with over 30 years at Procter & Gamble, the global consumer products company and renowned innovation powerhouse. His innovation background stretches from invention, with a multi-million dollar US business to his name, through to many marketplace new product introductions. He has rich experience of P&G’s world-leading open innovation approach. He is currently the 10th David Goldman visiting Professor of Innovation & Enterprise at Newcastle University Business School.

He said: “I have spent much of my career working to create wealth through innovation in a major global organisation. Now I have the opportunity to put some of those skills to use for the benefit of my home region. I am convinced that there are huge opportunities to apply some collaborative open innovation principles and processes to the way we innovate here.

“We already have outstanding skills and capabilities within the region, with great innovative talent already built into our SMEs, our blue-chips and institutions. The North East LEP’s innovation panel will aim to enable these capabilities work better together, building innovative momentum.”

The work that Professor Sandbach is doing will be the foundation of an innovation eco-system that attracts new talent, fosters local business and sets an agenda for change and development that can be equally applied to advanced manufacturing, the creative industries, financial and business services as well as the co-production of public services.

Based on the principles of open innovation, Professor Sandbach will consider how to strengthen areas such as the contribution of applied research, specialist testing, prototyping and scale-up facilities, specialist accommodation and venture finance, as well as identifying gaps in the wider areas of business support, skills and infrastructure.

Professor Sandbach has some clear ideas of how he sees open innovation being put into practice to benefit the region.

“At this early stage, my vision for open innovation has four elements. First, to better and rigorously engage our businesses and universities with more major global players. Nearly all multinationals have a publicly stated open innovation strategy. We need to get them here in a truly co-ordinated way, encourage top-to-top dialogue and show them how our businesses, especially our SMEs, can solve their problems,” he said.

“Second, we have already established some brilliant examples of open innovation hubs in the region, we have a new one proposed for the subsea sector and I know that open, collaborative thinking is at the core of forward-thinking efforts in life sciences, design, automotive and beyond. Physical centres of innovation with unique facility, equipment or skill derived capability are, and will continue to be, beacons in the global innovation landscape. We need to listen to the needs of innovation centre and science park leaders and help them to build and re-apply further collaborative, open practices. The greater the sense of dynamic innovation in our centres of excellence, the more likely that the North East will be seen as a destination for innovation investment.

“Third, we need to build the best innovation networks in the world. Innovation is often matching ‘what’s possible’ with ‘what’s needed’. Great networks facilitate that link. We already have several outstanding networked systems in the region….and we are a region that has the kind of reasonable scale that makes networking easier. I would like the Innovation Panel to find ways to help all our networks to operate even better.

“Finally, we must offer great training in the concepts of innovation process and culture. We must challenge ourselves to create learning opportunities for business leaders in the North East to engage on these subjects here, inside the region. And this is not just about reaching out to innovation leaders and the R&D community. It is absolutely critical that these concepts are embedded in the thinking and vocabulary of other critical groups including public sector leaders, SME chief executives, leaders of educationand the financial sector. I am hoping that the prestigious university business schools in the LEP area will step forward and collaborate on this one.”

Professor Sandbach is currently listening to many innovation leaders across the North East, taking in their insights and advice. He added: “We are all after the same thing – more creative innovation, managed with efficiency and momentum. This will lead to more jobs and build the open innovation brand for the region. With the support of the whole business community and public bodies, I’m sure that we can make the rest of the world sit up and take notice.”

Will Hutton, chair of the Big Innovation Centre and a member of the North East Independent Economic Review team, welcomed the appointment of Roy Sandbach to the LEP’s innovation panel. He said: “Roy is exceptionally well versed in the benefits of open innovation, and is a first-rate appointment by the North East LEP.

“To drive the North East ahead in a highly competitive global environment, the area has to offer something distinctive, and it can do this through open innovation. This is vital to building the high value industries of the future. “

Paul Woolston, chair of the North East LEP said: “This fabulous offer from Roy Sandbach marks an exciting move for us, and underlines the breadth of talent and support for our Partnership. Roy’s commitment, energy and expertise will drive our innovation strategy which in turn will provide a route for us to compete on the world stage, create highly skilled jobs and involve local people in the area’s growth and success.”

Further information from Christine Holland, Holland PR & Marketing Ltd. Tel 01670 790246 or 07711 698246.

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Vince Cable meets North East LEP at Tallent Automotive

Hosted by North East Local Enterprise Partnership Board member David Land at Tallent Automotive’s Newton Aycliffe plant, Business Secretary Vince Cable met a cross section of the North East LEP Board and leaders in the fields of innovation and access to finance today, Monday 13 May.

Joining North East LEP Chair Paul Woolston and Deputy Chair Councillor Mick Henry were David Land, Gill Southern and Michael Bellamy from the North East LEP Board, Professor Roy Sandbach of Newcastle University’s Business School, Andrew Mitchell of North East Finance, Jane Robinson of Gateshead Council and LEP Director Edward Twiddy.

As part of a wide ranging discussion about the key themes in the recent Independent Economic Review led by Lord Adonis, Andrew Mitchell provided the Secretary of State with an update on the region’s Finance for Business scheme. Providing equity and loan finance to new and growing businesses, Mr Mitchell described the key role these funds have played and the importance of continuing this support to business and professional management of these evergreen funds.

Highlighting the open approach of the North East LEP to promoting and garnering the best ideas and talent from across the area, Dr Cable was briefed by Professor Sandbach on the opportunities for businesses nationally and internationally to take the very best of regional design and product innovation into market places as diverse as consumer goods, ICT and sub-sea exploration.

Summing up the meeting, Paul Woolston said he was delighted to see the partnership’s strategic leadership in action, and have the chance to emphasise the continued need to bring all talents together to realise our future potential.

He said: “Opportunities like this to accentuate the positives about our future plans are extremely valuable. We need to continue to build on the ownership that the North East LEP is demonstrating.

“Meeting the Secretary of State in a part of the region with a huge future ahead of it is testament to the broad based and well-balanced economy of the North East.”

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North East Independent Economic Review Launched

Lord Andrew Adonis revealed the contents of the North East Independent Economic Review report today (Thursday 11 April): the culmination of more than six months detailed work by Lord Adonis, chair of the NEIER and the economic review team, who have been working with North East private and public sector, universities, voluntary and community groups.

Creating more and better jobs for the NELEP economy is at the heart of the report’s agenda.

The report highlights five priorities in achieving that aim:

· Champion “North East International”, promoting the region at home and abroad as a magnet for trade, talent, tourism and inward investment.

· A doubling in the number of youth apprenticeships to tackle the evil of low skills and high youth unemployment, alongside higher school standards and an increase in the proportion going on to higher education.

· A North East Innovation Board charged with developing strong “innovation and growth clusters”, stimulating universities and their graduates, and existing companies and public institutions, to create and finance new high growth enterprises and jobs.

· Big improvements in transport infrastructure and services to overcome the relative national and international isolation of the North East and to improve connections within the North East so that people can get to and from work more easily and cheaply.

· The creation of stronger public institutions, including the location of key national institutions – such as the new British Business Bank – in the North East.

Among the proposals to be acted upon by the North East LEP, its partners and the government is the creation of three managed entities: North East International, Transport North East and Skills North East. The Combined Authority of all seven local authorities in the North East LEP area and NELEP would work in partnership to deliver these.

North East International builds on the North East LEP area’s UK-leading export success and international investment to produce an effective worldwide focus on the area’s trade, inward investment, talent and tourism. Through this managed, resourced entity, North East companies will be included in many more global export drives, driving forward the area as a serious player on the international stage in its key sectors.

Three Open Innovation and Growth Centres (Bionow, Neptune and AMAP) will be established, bringing together companies and angel investor networks to boost the commercialisation of innovation. Global giant Procter & Gamble, which has had a North East base for over 80 years, is a strong supporter of open innovation and aims to treble sales resulting from such research partnerships to $3bn by 2015. The centres will break down boundaries between companies to create new business opportunities across the North East area.

The proposed British Business Bank or a Regional Business Bank is one of the aims of the North East Finance and Investment Board which NELEP will establish to help business access finance more easily. It will also create a mechanism to help smaller, fast growing firms access the large chunks of funds they need to move forwards.

A commitment to smartcard ticketing across the NELEP area as good as or better than London’s Oyster is a key priority. Transport North East – ‘a single transport delivery agency’ will bring together airports, ports and public transport to improve connectivity and boost growth.

Comprehensive broadband connectivity across rural parts of Northumberland, Durham and Tyne and Wear is to be achieved by 2016.

Lord Andrew Adonis, chair of the North East Independent Economic Review, presented the recommendations of the review, alongside the economic review team of Heidi Mottram, CEO Northumbrian Water and member of the CBI’s national infrastructure panel; Will Hutton, chair of the Big Innovation Centre and principal of Hertford College, Oxford; Lord Don Curry, leading businessman and chair of NFU Mutual; Bridget Rosewell, economist and senior partner of Volterra Partners; and Jonathan Ruffer, chair of Ruffer LLP to an audience of business, public sector, MPs and university representatives.

Lord Adonis said: “The imperative for the North East is create more and better jobs – starting with a doubling of youth apprenticeships so that school-leavers are on the road to a job not the road to the dole. I strongly welcome the decision by the seven local councils to set up a Combined Authority focused on skills, transport and economic development.

“The Combined Authority should be set up next April, no later. Its immediate priorities should be youth apprenticeships, the introduction of smartcard ticketing – like London’s Oystercard – to make bus and metro travel easier and cheaper, and support for companies particularly in growth sectors like automotive manufacturing, marine services and life sciences.

“We need to keep more of our brightest and best graduates in the North East. There need to be more internships, scholarships and innovation centres to keep the best graduates here, engaged in new and growing companies.

“The task now is to agree on a plan and implement it. There is no time to lose. The North East has great strengths – in its people, its enterprises, its public institutions, and its natural, cultural, and so many other assets. There is huge capacity for success in the future, with will and leadership.”

Greg Clark, Financial Secretary to the Treasury, said: “I strongly welcome the North East Local Enterprise Partnership’s Independent Economic Review. The North East is on the rise: last year it had the biggest gain in private sector employment of any region in the United Kingdom and was one of the country’s magnets for foreign investment.

“This report lays out clearly the potential of the area to achieve more. In particular the proposed Combined Authority would massively strengthen the force wielded by the area as it competes nationally and internationally for good jobs.

“The Government has said that we will devolve resources and responsibility to places that can demonstrate credible and compelling economic leadership. This report shows how the North East can do that.

“It is an excellent basis for me to negotiate a Local Growth Deal in which the government, local businesses and civic leaders regardless of politics work together to make the North East attract and grow jobs and prosperity.”

Lord Michael Heseltine said: I very much welcome this report from the North East Independent Economic Review, chaired by Lord Adonis.

“It reflects the same hunger for local people to lead the regeneration of their economies that Sir Terry Leahy and I found on Merseyside and I was privileged to witness in like recent report by the Birmingham and Solihull Local Enterprise Partnership. The government now has a unique opportunity to unleash this energy across the 39 LEPs that make up the English economy. As the Prime Minister has said, “we are all in this together”!

Paul Woolston, chair of the North East LEP said: “The report and the exceptional commitment of the review team led by Lord Adonis have given us a route to to be more globally competitive, create more jobs, and ensure that all of the people in the North East have an opportunity to contribute to and benefit from economic growth.”

“The report provides the framework and creates the clear, cohesive strategy to propel long-term growth in the North East we need to channel future investment most effectively.”

A conference will be held in the summer to bring together the North East area’s businesses from all sectors, public sector, universities and voluntary organisations to give their response to the report. Lord Adonis and the economic review team will be at the event.

Further information from Christine Holland, Holland PR & Marketing Ltd. Tel 01670 790246 or 07711 698246.

Notes to editors:

In the Government’s Response to Lord Heseltine’s Report it said:

2.4 The Government wants every place to be able to fulfil its potential for growth, unleashing enterprise and bringing jobs and prosperity to communities. The first wave of City Deals has shown what places can do if Whitehall gives them control. Local areas will get new levers to help them do this, but they must also take responsibility for decisions, and look beyond narrow local authority boundaries to plan strategically over true functional economic geographies. They must innovate and take calculated risks based on their knowledge of how their local economy functions and where the opportunities for future growth lie.

2.5 The Government therefore proposes to devolve resource and responsibility to those places which can demonstrate credible and compelling economic leadership. Local areas will receive powers and budgets previously held nationally in order to pursue local priorities, and local leaders will take on accountability for economic outcomes. Funding and flexibility will reflect the quality of the strategic proposals put forward by LEPs, the commitment of local authorities to work more efficiently and effectively across the LEP area, as well as local need.

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Durham County Cricket Club Decision

The North East Local Enterprise Partnership Board has agreed to make available loan finance of up to £2.8m to support infrastructure projects at Durham County Cricket Club’s Chester-le-Street ground.

Whilst accessing the larger part of this rests on the club coming forward with a proposal for capital investment and loan repayment, the board agreed to release £1.2m from the LEP’s North East investment fund immediately as a loan to finance the completion of permanent seating at the cricket ground. The loan is expected to be repaid within seven years. The new seats will add to the capital value of the stadium as well as providing better seating and an undercroft area which can be developed to improve facilities and the retail offer at the ground.

Paul Woolston, chair of the North East LEP said: “We are delighted to announce that the North East LEP has allocated up to £2.8m from its investment fund in response to an application from Durham County Cricket Club.

“The initial £1.2m of funding means that new permanent seating can go ahead immediately at the Emirates Durham International Cricket Ground to complete the world-class stadium and facilities, confirming Durham as a first class location for international cricket. Durham is already recognised as the best and friendliest place to watch cricket in northern England. The stadium will now have a full complement of top quality seats in front of the magnificent backdrop of Lumley Castle.

“We look forward to the Ashes’ Test match this summer, and the other high profile international events which have already agreed to come to Durham between now and 2016. We need the ECB to demonstrate the same resolve that the LEP and Durham County Council have shown and now bring a full programme of the very best Test cricket to Durham right through to 2020 and beyond. Durham County Cricket Club is an important asset for the North East, and upgrading the Emirates Durham ICG stadium will attract global, national and local visitors to the area as part of the club’s business plan.

“The Partnership’s investment fund is worth nearly £60m. Just as we have been delighted to move quickly to get this finance in place so the new seats can be in place for the Ashes, so we want to get the LEP’s investment fund money to work right now in other ventures across the NE LEP area. We welcome enquiries from businesses and developers looking for loan finance to expand their operations, build new premises or undertake housing and industrial or commercial developments.”

Further information from Christine Holland, Holland PR & Marketing Ltd. Tel 01670 7790246 or 07711 698246

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House of Commons hosts North East Economic review talks

North East MPs, House of Lords members and North East LEP board members met at the House of Commons this week to discuss priorities for the North East Economic Review.

The Right Hon David Miliband MP hosted the meeting, which he summed up as “an open, visionary and practical conversation.”

Lord Andrew Adonis, chair of the North East Independent Economic Review, said that the North East has great strengths, two of which are its exporting of manufactured goods and its higher education sector, a net importer of talented people to the area. He also said he was a strong supporter of a combined authority in the North East LEP area, to be responsible for skills training, transport and economic development.

The group debated ideas including regional banks run by local businesspeople, smart specialisation, universities opening up their intellectual property to gain competitive advantage, open innovation clusters, broadband across the NELEP area, innovation scholarships, increased skills training, and stronger partnerships between private and public sectors and between businesses and universities to encourage economic growth.

The meeting also questioned how to build on the success of world leading companies in the area, and how to identify those sectors which can bring more internationally successful businesses to the North East LEP area.

The meeting brought together Lord Andrew Adonis, Lord Michael Bates, Lord Don Curry, Lord Brian Mackenzie, Lord John Shipley, Baroness Hilary Armstrong and the Bishop of Newcastle, the Rt Revd Martin Wharton. MPs included David Miliband, Alan Campbell, Ronnie Campbell, Julie Elliott, Mary Glindon, Helen Goodman, Sharon Hodgson, Catherine McKinnell, Guy Opperman and Phil Wilson.

The North East LEP was represented by both vice-chairmen, Andrew Hodgson and Councillor Mick Henry, chair of LA7, director Edward Twiddy and board members Councillor Jeff Reid of Northumberland County Council, Councillor Iain Malcolm of South Tyneside Council and Jane Robinson, chief executive of Gateshead Council.

Andrew Hodgson, vice-chair of the North East LEP and chief executive of SMD said: “The meeting was extremely valuable in bringing together people who are all strongly committed to the North East to discuss their views and concerns about its long-term growth.

“The aim of the review is to bring forward recommendations which will lay the foundation for a sustainable and robust economy across the North East LEP area. We’re delighted that the meeting was so well-attended, and to have heard contributions and ideas from those who represent many constituencies across the North East LEP area.”

The North East Independent Economic Review team will be publishing its recommendations later this Spring.

Further information from Christine Holland, Holland PR & Marketing Ltd. Tel 01670 790246 or 07711 698246.

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Senior appointment at North East LEP to develop region’s skills

A high-level appointment to promote the importance of developing skills in the region has been made by the North East Local Enterprise Partnership.

Michelle Duggan has joined the organisation as skills adviser, to bring renewed focus to the crucial issue of developing skills for people of all ages and professions in the North East, and to play a central role in creating the LEP’s Skills Action Plan.

Michelle has previously held key roles at the Government Office for the North East and regional development agency One Northeast, and joins the LEP from Durham County Council, where she was Principal Economic Development Officer.

She joins the North East LEP – a business-led organisation to stimulate economic growth in the North East – at a key time in the development of the Skills Action Plan, which is being created to set out a way to allow both the public and private sector build on and improve their commitment to developing skills in the region.

The plan will be created by the North East LEP in collaboration with employers, education and training providers and other key stakeholders. A strong relationship with all partners is essential for the Skills Action Plan to be a success.

Michelle said: “I am delighted to join the LEP and to help put the focus firmly on skills. The Skills Action Plan has the potential to be massively significant in helping to develop skills at every level, and absolutely critical to its success is having the right kind of business engagement. Through doing that, we can start to address the immediate needs of employers as well as the future needs of the economy.

“Skills at all levels are essential to the development of people, as well as economic performance. It is vital we develop the skills of the existing workforce, particularly in our key sectors as well as those of young people to ensure we do not have a skills gap once current workers leave their roles.

“I am looking forward to producing the Skills Action Plan and engaging with businesses across the North East, to ensure that we create something that has a positive impact on the skills of people in the region now and in the future.”

Edward Twiddy, director of the North East LEP, said: “We are very pleased to welcome Michelle to the team, someone who has a huge amount of experience and awareness of the importance of skills in growing economic performance.

“The Skills Action Plan is an important strategy and one we know will have a significant and positive impact on public and private sector organisations. We are committed to making skills an absolute priority and to effectively engaging with businesses, and are confident that Michelle will drive this forward with great success.”

Further information from Christine Holland, Holland PR & Marketing Ltd. Tel 01670 790246 or 07711 698246.

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City Deals – Paul Woolston

Paul Woolston, chair of the North East Local Enterprise Partnership said: “This is good news for the North East LEP’s city deals. We are already benefitting from the city deal led by Newcastle and Gateshead and we hope this will soon be joined by the Sunderland-led bid now that it has been shortlisted.

“We would then be the only LEP area in the UK with two city deals. The value of such investment is felt across a much wider area than the cities themselves. Each deal underpins the strength of public and private sector partnerships across the North East LEP area.

“This great news comes on the same day as Patrick McLoughlin, Secretary of State for Transport is in the area to see for himself the success of some of the world-leading companies in the transport sector located in the North East, in particular Nissan and the automotive supply chain around it.

“The visit has also given us the chance to update Patrick McLoughlin on the progress of the North East Economic review, led by Lord Adonis, which, like the city deals, brings together local authorities across the LEP area to plan and promote focused investment.

“Rail, road, air and sea transport from and within the NE LEP area have all featured in our update to the Secretary of State, and we hope that the recent progress on the A1 and some of the A19 junctions will not be the end of investment in this key part of our future economic success.”