The North East of England is set to benefit from a major economic boost, with £1.87bn in newly unlocked investment and thousands of jobs either created or protected, according to the latest Annual Performance Report from the North East Mayoral Strategic Authority.
The report outlines the first year of progress under North East Mayor Kim McGuinness, detailing how devolved powers are being used to drive economic growth, improve transport and tackle social challenges across the region.
Transport savings and connectivity improvements
A key focus has been transport reform, with the Mayor’s Fares initiative delivering 100 million cheaper journeys across bus, Metro, local rail and ferry services. The scheme has also supported vulnerable groups, including young people leaving care who have received free travel passes.
Alongside this, investment in greener transport is accelerating. The report confirms that 95 new electric buses are now operating across the region, supported by 32 additional electric vehicle charge points.
Infrastructure improvements remain a priority, with progress on extending the Metro to Washington, plans to re-open the Leamside Line, and £10.9m secured to complete Northumberland Park Station on the Northumberland Line.
Jobs, skills and inclusive growth
Economic development has been another major area of delivery. The authority reports the creation of 1,900 new jobs, alongside 600 roles safeguarded. A further 68,000 residents have received support to access formal qualifications, helping to strengthen the region’s skills base for future growth.
The region is also positioning itself at the forefront of emerging industries. The UK’s first AI Growth Zone has been launched in the North East, with expectations it will create more than 5,000 new jobs and attract £30bn of private investment over time.
Meanwhile, a new £104m investment package aims to strengthen the creative sector, including support for Crownworks studios and the development of a new arena at Gateshead Quays.
Supporting businesses and communities
The report highlights targeted support for local businesses, including the launch of a £70m North East Fund. So far, £7m has already been invested across 21 businesses.
In addition, 121 SMEs and voluntary, community and social enterprises have received help to reduce energy costs, while more than 3,000 households have benefited from energy-saving advice and home improvements.
Housing and regeneration programmes are also progressing, with over 4,000 homes set to be unlocked through brownfield development initiatives.
Tackling poverty and improving outcomes
Addressing inequality remains a core focus of the authority’s work. The first region-wide Child Poverty Action Plan has been introduced, backed by £28.6m in funding, alongside initiatives such as the delivery of 1,905 baby boxes to families across the North East.
The Mayor has also set out ambitions to create 25,000 green jobs by 2035 through a dedicated Green Jobs Plan, aligning economic growth with environmental sustainability.
Devolution driving regional progress
The report underscores how devolved powers are enabling the region to take greater control over its economic future and deliver place-based solutions.
North East MSA Chief Executive Dr Henry Kippin said:
“The Annual Performance Report is a great way to show clearly what has been delivered so far across the North East and how this work is benefitting local people and businesses. It also shows how devolution is giving the region greater ability to shape its own future, with powers and investment being used to change lives locally and accelerate growth for the whole of the UK.”
The report brings together progress across major programmes, including the Child Poverty Prevention Programme, the New Deal for North East Workers, and wider transport and housing initiatives. Collectively, these efforts aim to build stronger communities, improve connectivity and create better opportunities across the North East.
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