Tees Valley signs historic City Deal

A historic ‘City Deal’ for Tees Valley has been signed by the Minister for Cities Greg Clark and Tees Valley Unlimited.

The Local Enterprise Partnership for Darlington, Hartlepool, Middlesbrough, Redcar & Cleveland and Stockton on Tees, has worked alongside local authority and private sector partners to create the Tees Valley City Deal.

This secures £12 million allocated directly as a result of the City Deal itself and a further £22 million worth of programmes announced during the City Deal negotiation process.

The Tees Valley City Deal builds upon Tees Valley’s strengths in the processing, energy and materials sectors and new emerging industries.

It will achieve this by providing an attractive environment for investment in such sectors while increasing the integration and efficiency of the existing company base.

The Tees Valley City Deal will safeguard key industries supporting manufacturing companies within the UK, sustain employment and create a solid base for future economic growth.

Greg Clark, minister for Cities, said: “I was delighted to be back on Teesside to sign the Tees Valley City Deal. It is an important breakthrough for the whole area.

“By connecting industrial plants north and south of the Tees, the City Deal will allow the by-products of one process to be the inputs for others. This gives the Tees Valley a big advantage over the competition. The deal also offers support to new and growing businesses to help them achieve their potential.”

Stephen Catchpole, TVU managing director, said: “City Deal is an important part of Tees Valley’s economic development jigsaw.

“It gives greater control over our economic destiny by enhancing TVU’s ability to attract private investment, boost skills and create jobs.

“By empowering Tees Valley to influence Government policies to meet specific needs in the area, it will complement other economic initiatives already being delivered by TVU, its stakeholders and partners.

“It also will enable Tees Valley to capitalise on emerging markets, innovation and new green technologies.”

City Deal status will bring substantial investment to the area from various Government departments and also lead to more innovative and pioneering schemes to help drive the economic ambitions of TVU, its partners and stakeholders.

Tees Valley Unlimited predicts that the City Deal will deliver:

• 3,500 supply chain or indirect jobs
• The safeguarding of 800 existing Tees Valley jobs
• More than £10 million of private sector investment in the industrial infrastructure and workforce of Tees Valley.

The Tees Valley City Deal has three areas of focus:

• providing the conditions to enable increased investment in the processing, chemicals and new green technology industries
• taking industrial carbon capture and storage (CCS) forward for Tees Valley and the UK as a whole
• creating new business and civic benefits from waste industrial heat. To deliver the Tees Valley City Deal,

Tees Valley Unlimited and partners will:

• work with Government to expand and enhance the planning certainty for investors at three key sites (Billingham, North Tees and South Tees)
• complete feasibility works and identify the best option to take forward an industrial carbon capture and storage network
• complete technical studies to enable the development of two waste industrial heat networks These activities are complemented by
• the completion of a Low Carbon Action Plan
• Tees Valley to be designated as an area recognised for green technologies and UKTI to support this status
• An enhanced Tees Valley Business Support programme
• A Tees Valley skills and apprenticeship programme
• Development of an innovation and commercialisation hub joint venture.

Councillor Bill Dixon, Leader of Darlington Borough Council, said: “City Deal will add to TVU and its stakeholders’ ability to deliver the economic objectives for the area. It will help support the area’s key industries and growing and emerging sectors and help attract further investment and encourage the creation of new jobs.”

Councillor Christopher Akers-Belcher, Leader of Hartlepool Borough Council, said: “Local councils have worked extremely hard along with the business community and other key organisations to win City Deal status for Tees Valley.

“This area has a long and proud industrial heritage and City Deal will provide an opportunity to further enhance economic prospects; creating jobs and prosperity for local people.”

Middlesbrough Mayor Ray Mallon said: “The City Deal is not a silver bullet to solve all of the economic issues facing the Tees area, but it is a step in the right direction in assisting us in dealing with the skills agenda which is of paramount importance in ensuring we have the necessary workforce to progress the area’s economy for the future.”

Councillor George Dunning, Leader of Redcar and Cleveland Borough Council, said: “The official signing of the City Deal agreement marks a significant milestone in an initiative that will bring benefits to all five Tees Valley boroughs and help strengthen their economic positions in the UK and overseas.”

Councillor Bob Cook, Leader of Stockton Borough Council said: “City Deal is great news for Tees Valley as it enables important decisions to be made locally through power devolved to the area. It also aids the delivery of economic strategies allied with new pioneering ways of economic development.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →