STORY
The Adam Smith Institute has called for five new defence focused enterprise zones to be established in the North East of England as part of proposals it says could increase manufacturing and encourage regional economic growth. The think tank has identified publicly owned sites at High Hanning, Quarrington Hill, High Pittington, Blaydon Quarry and Newburn Riverside as potential locations for the scheme.
Under the proposals, businesses operating within the zones would benefit from faster planning decisions, full factory write offs, zero rated business rates, lower employer National Insurance contributions and discounted electricity costs in areas with surplus energy. Each zone would be built around a large defence company acting as an anchor tenant, with the Institute arguing that this could encourage suppliers and other manufacturers to establish operations nearby. It said the North East already has a manufacturing workforce of around 110,000 and relatively low land costs.
The proposals have received support from a number of local political figures. Sunderland City Council leader Chris Eynon described the idea as an innovative way of strengthening manufacturing and the defence industry, while Gateshead Council leader Nick Allan said the authority was keen to explore the proposal and had asked its economic development team to carry out an initial assessment of the Blaydon Quarry site. Reform UK Durham County Council cabinet member Kyle Genner also backed the plans, saying they could provide long term employment and support industrial regeneration in County Durham.
Bluesky