The North East has enjoyed a flurry of upbeat headlines this summer. Foreign direct investment (FDI) projects rose by 11 % last year and Newcastle broke into the UK’s first division of investment destinations. Yet dig beneath those headlines and the picture turns stark: the number of jobs created by FDI collapsed by 35 % in 2024 – the steepest fall of any UK region.
That divergence – more projects, fewer jobs – signals a deeper risk; we are chasing volume without securing value. If we keep ticking off ribbon-cuttings while local supply chains, skills, and wages stagnate, the region could end up busier but poorer.
When I led Newcastle City Council and held the Economy brief for the North East Combined Authority, we began drafting what would have been the UK’s first regional industrial strategy. Built on hard data and with amazing input from industry leaders, it mapped clusters, capability gaps, and priority sites for low-carbon manufacturing, advanced life sciences and digital innovation. Crucially, it placed inward investment inside that ecosystem, not on top of it.
That work stalled when successive national “growth plans” repurposed councils as delivery arms for centrally chosen sectors. The result is today’s mismatch between headline numbers and lasting benefit.
I believe what we currently have are national policies and local choices.
Two big-ticket announcements last month offer a fresh opening
- Modern Industrial Strategy (23 June 2025)
A 10-year plan that singles out eight high-growth “IS-8” sectors, pledges £86 billion for R&D and promises electricity-price relief of up to 25 % for 7,000 energy-intensive firms.
- 10-Year Infrastructure Strategy (19 June 2025)
A £725 billion pipeline combining transport, energy, digital and social infrastructure with a mandatory “digital-first” design rule.
Both strategies are welcome. Neither, by itself, will guarantee the North East more and better jobs. That depends on how purposefully we act.
Five moves the region should make – now
- Finish – and publish – our own investment strategy.
Pick up the paused regional industrial strategy and hard-wire it to the IS-8 sectors that actually map onto our strengths: offshore clean-energy engineering, precision medicines, immersive digital and advanced manufacturing across the region.
- Adopt a value-added scorecard.
Report annually on supply-chain spend, local R&D licences, apprenticeships, SME engagement and re-investment commitments. Make those metrics public so investors and residents can judge whether projects are lifting productivity or just inflating press releases.
- Curate, don’t chase, FDI projects.
Prioritise prospects that deepen local clusters or unlock infrastructure – such as grid-ready sites that can exploit the Industrial Strategy’s energy-cost relief, or data-rich manufacturers that justify the Infrastructure Strategy’s full-fibre upgrades.
- Re-boot after-care.
Every landed investor should have an assigned officer charged with brokering university links, skills-provider programmes, and supply-chain introductions. Track promises against the scorecard; intervene early when milestones slip.
- Lead the national rollout.
Use devolved powers to secure pilots – in grid-connection acceleration, AI testbeds or retrofit finance – that place North East firms at the front of the queue. The new National Infrastructure & Service Transformation Authority (NISTA) was set up to deal with partners ready to move at pace; let’s be one of them.
At 70.4 %, our employment rate lags the UK average by almost five points, while economic inactivity tops 25 %. Unless we translate today’s national momentum into locally grounded growth, that gap will widen. A smarter, value-driven approach would:
- lock in lower energy costs for manufacturers clustered around Blyth, Sunderland, and the River Tyne;
- embed gigabit-speed digital connectivity alongside every new rail or road upgrade;
- channel the Strategy’s £1.2 billion annual skills boost into school-to-college pathways for advanced manufacturing, clean energy, and life sciences;
- and keep global investors anchored here for the long haul.
Lasting value for the next hundred years
The North East has spent too long accepting “any-job-is-a-good-job” investment. We can – and must – be choosier. With national policy finally aligned behind re-industrialisation, the region has a once-in-a-generation chance to raise wages, resilience, and pride. This is not a call for caution. It’s a call for conviction. A test of stewardship. A model for devolved leadership, local agency, and self-determination.
Our next century demands the same spirit that our industrial heritage was built on, with vision and resilience. As the UK embarks on a national renewal plan, let the North East stand not behind, but beside it – leading with local purpose, regional intelligence, and strategic agency. Let’s finish the job. Not just capture projects – but create enduring value for communities across the North East. Let us show what devolved leadership can achieve. Let the North East lead the way.
