Member News
A transformative package of proposals to create 2,000 skilled jobs, regenerate key town centre sites and help Tees Valley become a global powerhouse in digital and creative industries has been agreed.
The region was selected as the location for an Investment Zone in 2023 and has now been allocated the first £80million as part of an overall £160million investment.
The zone will increase inward investment, productivity and jobs in digital, creative and technology sectors while supporting the growth of world-leading companies in two cluster areas of Middlesbrough and Hartlepool.
It is primed to create more than 2,000 jobs and unlock a further £175million of investment in the next decade.
Tees Valley Combined Authority Cabinet voted on Friday (March 28) to accept the Tees Valley Investment Zone into the TVCA Investment Plan with a confirmed allocation of £80m.
The proposals include:
Redeveloping House of Fraser in Middlesbrough into a high-quality business and innovation space for the digital sector – £10m indicative allocation
Redevelopment of the Marks & Spencer building in Middlesbrough to support digital and creative sector growth - £3m indicative allocation
Expansion of the Northern Studios in Hartlepool to support the creative industries growth – £15m indicative allocation
Funding to develop and support improvements to digital capability and capacity in the key IZ cluster areas of Middlesbrough and Hartlepool – £3.5m allocation
A total of £29million will be invested in business support to help key sector businesses grow while a further £11.6m will fund research and innovation.
An additional £2.6million will be spent tackling crime in cluster areas, which can be a key barrier to economic growth and private sector investment.
Tees Valley Mayor Ben Houchen said: “Teesside is now at the centre of the UK’s creative and digital sectors, renowned for its growing excellence in areas such as gaming, film production and AI.
“We take pride in being home to global leaders in these fields, showcasing the region’s innovative spirit and potential.
“This Investment Zone is a huge step in enabling us to accelerate growth in the digital and creative sectors. This initiative will ignite our ambitions and provide resources to expand this industry, and position Teesside as a global leader.
“This promises well-paid jobs in cutting-edge industries, allowing people to build careers close to home. By retaining local talent, we’ll drive economic growth and secure a brighter future for Teesside, Darlington and Hartlepool.”
Councillor Brenda Harrison, Leader of Hartlepool Borough Council and Combined Authority Cabinet Member for Culture, said: “The Council welcomes this Investment Zone funding to further support our ambitions to grow Hartlepool.
“As part of our biggest ever capital investment programme – currently over £150m on over 30 projects – this additional investment is very much welcomed into the development of the £18.5m Screen Industries Production Village being delivered by the Council.
“It will enable the studios to expand, creating over 130 new jobs and bringing flexible spaces and support services to the film and TV industry in the heart of our town centre.”
Middlesbrough Mayor and TVCA Cabinet Member Chris Cooke said: “The Investment Zone funding should speed up plans to bring the House of Fraser and M&S buildings back to life.
“Both sites have stood empty for too long, and we need businesses and footfall on that key stretch of Linthorpe Road as soon as possible.
“Middlesbrough has led the way regionally on digital for many years and the focus on that sector is absolutely right.
“This money can help support jobs and local families and give our town centre a boost.
“On top of recent successful openings in the town centre, it gives us a chance to build some momentum.
“The fact there’s extra funding for safety projects is crucial too. We want people to be able to come to a welcoming environment and feel safe.”
The UK Government has worked with TVCA, Teesside University and other local partners to co-develop the Investment Zone. This includes agreeing priority development sites and specific interventions to drive cluster growth.
Investment Zone status will also allow Business Rates to be retained for dedicated sites in Middlesbrough and Hartlepool, split 50:50 between the local authority and TVCA, which can then be reinvested locally.
Tees Valley Business Board will provide oversight on the development and delivery of the proposals to engage with businesses and ensure the Investment Zone is business-led.
Siobhan McArdle, Chair of the Business Board, said: “This Investment Zone will provide crucial support to businesses across the Tees Valley and build on our strength in our Digital, Createch, Medtech and Greentech sectors.
“We want innovation to be at the heart of our economic growth and this Investment Zones enables us to lead the way in developing these strategically important clusters.”
Teesside University will act as the ‘knowledge anchor’, building on its reputation as a catalyst for economic growth by driving innovation through its industry-focussed research and establishing key collaborations across academia and the public and private sectors.
Professor Stephen Cummings, Pro Vice-Chancellor (Research and Knowledge Exchange) at Teesside University, said: “As a university whose core mission is to transform lives and economies we are delighted at this Tees Valley Investment Zone announcement.
“Teesside University has played a key role in developing and supporting the region’s thriving digital and creative sectors through industry-applied research and skills development.
“Many of the businesses that form the bedrock of this sector are founded and staffed by our graduates and we look forward to working with our partners to ensure this economic success story continues to grow and prosper.”
