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North East

The North East will benefit from schemes announced in the Spending Review:

Growth

• the creation of a UK-wide Green Investment Bank that will be funded by a £1 billion spending allocation and additional proceeds from the sale of Government-owned assets. The bank will encourage significant additional investment in green infrastructure – the North East has established a world leading offshore wind farm technology industry;
• a £5,000 incentive for the purchase of electric vehicles, coupled with the roll out of electric vehicle charging infrastructure – electric vehicle manufacturers in the North East may benefit from the introduction of these initiatives;
• the £1.4 billion Regional Growth Fund will support projects with significant prospects for sustainable private sector growth and provide support for people in areas which are currently dependent on the public sector;
• Local Enterprise Partnerships (LEPS) which will provide strategic leadership in areas and set out local economic priorities. LEPs will play a pivotal role in delivering the Government’s aim for an economy rebalanced towards the private sector;
• £530m of investment in broadband, benefiting a total of around 2 million households, including in some of the most remote areas of the UK; and
• Capital investment programmes in the North East will concentrate new investment on infrastructure underpinning economic growth, and maintaining existing public assets:
  • East coast – improvements to East Coast Main Line
  • Nexus – refurbish and upgrade the Tyne and Wear metro
  • enhancements to the Tees valley bus network

Fairness

• funding the increase in participation in education and training, benefiting 9 per cent of 16-18 year olds in the North East that are not in Education, Employment or Training;
• uprating of the Basic State Pension (BSP) by the highest of earning, prices or 2.5 per cent, from April 2011, benefiting around 500,000 people in the North East; and
• above indexation increases in the child tax credit, funded by savings from restricting child benefit entitlement for households with a high rate taxpayer, potentially benefiting over 190,000 families in the North East.

Public Service Reform

• a settlement for local government that radically increases local authorities’ freedom to manage their budgets, resulting in greater control over £7 billion of grants.

The Spending Review builds on the foundations for sustainable, balanced, private sector-led recovery set out in the Chancellor’s June Budget. The Budget announced a number of initiatives which will help build an economy that works for the North East.

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