Chancellor backs North with £1.7bn boost for stalled city-centre projects in Newcastle and Gateshead
The Chancellor is set to unveil up to £1.7bn of investment across the North today, with funding aimed at unlocking delayed city-centre developments and driving regeneration in key urban areas, including Newcastle and Gateshead.
The package will support jobs and development across the Northern Growth Corridor, with projects identified in Newcastle and Gateshead Quays, Leeds South Bank, Liverpool Central, Manchester Victoria North, and Sheffield City Centre and Innovation Spine.
Ministers say the funding could create new housing and career opportunities within a short commute for around nine million people, as part of wider efforts to strengthen regional economies.
Chancellor of the Exchequer Rachel Reeves said: “I want every part of Britain to do well. That’s why we’re going for growth all across the country, not just in a few places, because I want everyone to be able to succeed no matter what their parents do, where they grow up, or where they choose to settle down.
“Our economic plan is the right one. By bringing back stability in our public finances, boosting investment in our infrastructure and driving reform, we’re building a stronger more secure economy.”
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The plans are the next step in government’s Northern Growth strategy following £45bn Northern Powerhouse Rail announcement on 14 January, the biggest travel upgrade in the North in a generation, which was accompanied by a diagnosis of how Government can support the north beyond transport, across housing, culture, skills, business support, and devolution.
The government’s active approach will tackle Britain’s geographic imbalances head on, making the most of emerging successes in places like Manchester and Leeds so more great towns like Stockport and Warrington feel real benefits.
Kim McGuinness, Mayor of the North East said: “We’re investing record amounts in our cities to create new jobs, build neighbourhoods where people will want to live and work and re-ignite local pride. In the North East this includes building a new film studios in Sunderland, a new arena in Gateshead and thousands of new homes in Newcastle.
“Today’s news of £120m more from the Government for the North East’s cities is a huge boost to our ambition as we deliver some of the country’s most exciting urban development projects.”
The investment is designed to give metro mayors the financial backing and flexibility to push through barriers that have slowed major regeneration schemes. These include housing developments, office space, and transport-linked infrastructure projects intended to unlock growth in city centres.
Under what has been described as a “just enough” public funding model, the £1.7bn is expected to leverage significantly larger sums from private investors. Officials believe this will give local leaders greater certainty to plan and accelerate large-scale projects.
In the North East, the Mayor will have access to £120m of new funding to support job creation and development, including schemes at Newcastle and Gateshead Quays. Leaders say the investment could help bring forward regeneration plans in the area and create new employment opportunities.
Elsewhere, West Yorkshire will receive £145m to support developments such as Leeds South Bank, while South Yorkshire is set for £85m, including funding for the Don Valley Corridor and Sheffield Innovation Spine. Greater Manchester will gain £175m for projects including Victoria North, and the Liverpool City Region will receive £95m, with a focus on Liverpool Central.
The plans form part of the Northern Growth Corridor strategy, which prioritises investment in towns and cities that have historically been overlooked, with the aim of building a stronger and more balanced UK economy.
In a speech at the Mais Lecture later today, the Chancellor is also expected to outline ambitions to harness artificial intelligence and deepen economic ties with the European Union as part of a broader growth strategy.