Bid made for low-tax investment zones in Northumberland and North Tyneside

The Government announced plans last month to set up areas across England where businesses will benefit from tax breaks and relaxed planning regulations.

The North of Tyne Combined Authority (NTCA) was named among the bodies keen on being involved in the scheme and has now revealed two vast bids.

One of the proposed low-tax zones would run along the length of the Northumberland Line railway, which is due to reopen to passenger services next year.

Council leaders have recently spoken of their hopes to kickstart a £130m regeneration of the towns served by the route, which will run between Ashington and Newcastle Central Station.

The second investment zone proposal is for an “Arc of Energy Innovation” focused on creating jobs in the renewable energy industry.

NTCA officials confirmed that this zone would be made up of a series of separate sites across the region – including Royal Quays in North Shields and industrial sites along the banks of the Tyne, the Newcastle International Airport Business Park, Blyth Energy Central, and Lynefield Park in Lynemouth.

North of Tyne mayor Jamie Driscoll had warned last month that the investment zone plan could simply displace jobs from one area to another.

But he said on Tuesday: “We’ve been working hard to create a greener, fairer, more prosperous region. And we’re achieving it.

“We’ve made it clear to Government that Investment Zones must support our work. So that’s why our proposal builds on our existing plans. Plans to help businesses grow, attract investment, and access land for new homes and commercial use. We want to take full advantage of sustainable transport systems and our growing green industries.”

The NTCA claimed that the low-tax zones would create “23,000 more job opportunities in the region and 8,000 new homes”.

James Young, chief strategy and compliance officer at JDR Cable Systems, said the tax breaks would allow the company to boost investment at its sites at the Northumberland Energy Park and East Sleekburn.

He said: “Existing developments and future phases would offer the potential for new product lines and more production capability to assist the UK in securing its energy supply from low carbon energy sources in the decades to come.”