Economy and Infrastructure

24.01.19

Tees Valley votes in favour of mayor Houchen’s airport purchase as £588m investment plan approved

The five local authority leaders in Tees Valley and mayor Ben Houchen have officially approved a £588m investment plan for the region, giving the go-ahead for Houchen’s bid to bring its local airport back into public ownership.

Houchen’s £40m transformation of Durham Tees Valley Airport, previously described as “risky” and a “vanity project” by local leaders, means the airport will no longer face closure in 2021 as the mayor had warned.

The Labour leaders of the five councils unanimously voted in support of the proposals, which will see a total of £588m spent between 2019 and 2029, which Tees Valley Combined Authority said will lead to the creation of 16,800 jobs and an additional £1.5bn to the area’s economic output.

Using money devolved to the authority, the investment plan sets out strategies and investments to transform the local economy - such as a growth fund of £50m to improve and revitalise towns, and £20m for a transformational project in each of the five boroughs.

Tees Valley’s 10-year plan will use nearly £150m to support business growth and unlock sites for development, including the purchase of the South Tees Development Corporation site.

This will see the combined authority purchase 89% of shareholding in Durham Tees Valley Airport and an adjacent piece of land with planning permission for 350 homes from the owners Peel Group.

Mayor Houchen said Teesside was taking back control of its own destiny, stating: “This is a truly the start of a new era, everyone should go away from here with a more positive outlook for the Tees Valley.”

Speaking to Northern Echo, Houchen added: “We’ve now finally convinced the leaders that this is the right thing to do, that we’ve served our airport and now we’ve got that long 10-year vision to put it into practice and make sure that airport is the big success we all know it can be.”

The local authority leaders have been far from supportive during Houchen’s campaign, with Middlesbrough mayor David Budd calling the airport project “the single biggest risk the combined authority has, and which will not be a source of project for many years.”

Sue Jeffrey said the business deal for an airport reportedly losing £2m a year “set alarm bells ringing,” but earlier this week it emerged that all of the council leaders were ready to vote in support of the plans.

Peel Group welcomed the vote a week after it warned the airport’s future was “extremely uncertain” past 2021, and stated that it would continue working with the mayor and Tees Valley Combined Authority to ensure a smooth transition.

Comments

There are no comments. Why not be the first?

Add your comment

 

public sector executive tv

more videos >

latest public sector news

Sponsored roundabouts policy earns Bradford Council £128k a year

14/08/2019Sponsored roundabouts policy earns Bradford Council £128k a year

Bradford Council’s policy of allowing businesses to pay for sponsorships of roundabouts and grass verges has seen the local authority bring... more >
Council-owned solar farm generates £1.2m for frontline services

14/08/2019Council-owned solar farm generates £1.2m for frontline services

West Suffolk Council, through its local authority-owned solar farm, has raised more than £1.2m in funds to support frontline services in th... more >
TechnologyOne: Setting the foundation for shared service success

14/08/2019TechnologyOne: Setting the foundation for shared service success

Anwen Robinson, UK Operating Officer at TechnologyOne - an enterprise SaaS company - explains why adopting an enterprise vision is key ... more >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this... read more >

last word

The importance of openness after Grenfell

The importance of openness after Grenfell

Following the recent Grenfell Tower tragedy, Lord Porter, chairman of the LGA, argues that if the public are going to have faith in the safety testing process then everything must be out in the o... more > more last word articles >
Growing in confidence: Meeting the targets of Apprenticeship Levy

15/08/2019Growing in confidence: Meeting the targets of Apprenticeship Levy

Debbie Rayfield, corporate apprenticeship manager at Sefton Council, discusses her role within the council’s Apprenticeship Team and the challenges that can be faced meeting the targets of ... more >
Sponsored roundabouts policy earns Bradford Council £128k a year

14/08/2019Sponsored roundabouts policy earns Bradford Council £128k a year

Bradford Council’s policy of allowing businesses to pay for sponsorships of roundabouts and grass verges has seen the local authority bring in £128,000 a year. With business adve... more >

the raven's daily blog

New rules to change the future of Social Value

05/06/2019New rules to change the future of Social Value

The government has announced the introduction of new rules to change the future of social value and make the way housing developers stump up the money for infrastructure both simpler and more transparent. These regulatory changes are designed to help achieve its ambition to deliver 300,000 extra homes per year by the mid-2020s.  ... more >
read more blog posts from 'the raven' >

comment

Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Being on the receiving end of some “thanks” can make communit... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues that community-led initiatives are a productive way of helping to solve... more >
Aberdeen's green transport fleet attracting international attention

19/06/2019Aberdeen's green transport fleet attracting international attention

Aberdeen City Council’s hydrogen spokesperson, councillor Philip Bell, highlights the Granite City’s determination to play a leading ... more >
A fifth of public sector workers have never received a thank you from the people they serve

13/06/2019A fifth of public sector workers have never received a thank you from the people they serve

A fifth of the country’s public sector workers say they have NEVER received a ‘thank you’ for doing their job as Public Service... more >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need to invest in technology to help make better use of their resources. Bu... more >
Digital innovation in the public sector: The future is now

17/12/2018Digital innovation in the public sector: The future is now

One of the public sector’s key technology partners has recently welcomed a new member to its team. Matt Spencer, O2’s head of public ... more >
New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

05/11/2018New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

The new chief executive of one of the new unitary authorities in Dorset has outlined his approach to culture and work with employees, arguing tha... more >
Keeping the momentum of the Northern Powerhouse

15/10/2018Keeping the momentum of the Northern Powerhouse

On 6 September, the biggest decision-makers of the north joined forces to celebrate and debate how to drive innovation and improvement through th... more >

public sector focus

View all News