Our long-term plan for the North East

Issue: On 27 February, the Chancellor announced a six-point long-term economic plan for the North East.

• Our long-term economic plan, and vision of a Northern Powerhouse, is already delivering for the North East, with the area growing and creating jobs. There are now 45,000 more people with the security of work since 2010 – giving more people the security and self-respect that comes with a real job and a regular wage.

• We are determined to go further and will keep working through our plan to secure a brighter future for hardworking people across the North East by making the most of the region’s strengths in science, chemicals, manufacturing and exports, as well as ensuring we have world-class infrastructure and backing business to create more jobs.

• This plan aims to deliver 50,000 new jobs and boost the North East’s growth by another £6 billion – helping secure a better future for the North East and the whole of Britain.

Our long-term economic plan for the North East aims to:

• Raise the long term growth rate of the North East to at least the forecast long term growth rate of the whole UK by building a Northern Powerhouse – adding an extra £6 billion to the North East economy in real terms by 2030, equivalent to over £2,000 per person.

• Create 50,000 new jobs in the North East by backing the core strengths of the local economy like chemical innovation and exports.

• Deliver £4.5 billion investment in transport in the North East, the largest in a generation, including £2.7 billion for the Intercity Express Programme, developing plans for 140mph trains from Newcastle to York which, combined with a potential HS3 scheme, could cut journeys between Newcastle and Manchester by up to a quarter, improved services and new trains on northern rail routes, and £1 billion for roads in the North East, enabling transformational upgrades to the A1. This also includes a new review into support for regional airports like Newcastle and Durham Tees Valley that could be affected by Air Passenger Duty devolution.

• Build on the North East’s strengths in science, chemicals, manufacturing and exports, by increasing government support for inward investment and trade, backing the chemicals industry through new proposals from the Centre for Process Innovation, extending the successful Tees Valley Energy Enterprise Zone and establishing a new health science UTC in Newcastle promoting science and IT skills.

• Boost tourism and the rural economy in the North East to attract an additional 150,000 overseas visitors each year with new investment for Lindisfarne Castle, Hadrian’s Wall and the Captain Cook Museum.

• Devolve greater powers to the great cities and counties of the North East – by continuing work with the North East combined authority on devolution proposals and agreeing in principle to a skills devolution with the Tees Valley combined authority once it has been formed.

Key Political Points

• The number of people without a job increased by 50,000 in Labour’s last term. In February-April 2005 there were 71,000 people unemployed in the North East, compared to 121,000 in February-April 2010.

• Nearly 45,000 more people in work since 2010 in the North East.