Press release

Tees Valley City Deal to boost local growth

David Cameron announces agreement of Tees Valley City Deal to make the most of the area’s local strengths to create jobs and boost growth.

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government


The City Deal has been agreed with local authorities and Tees Valley Unlimited, the Local Enterprise Partnership, and will boost the process industries on Teesside, supporting the creation of 3,500 jobs and unlocking £28 million of private sector investment.

The deal will see the Tees Valley become a global pioneer in carbon capture and storage, with a business model that will not only see investment in the area but also reduce industrial carbon emissions.

£28 million of private sector investment will see the development of an innovative waste heat network, where waste heat from Tees Valley’s industries will be used to heat businesses, homes, hospitals and local authority buildings. This will see a saving of 10 to 15% on businesses’ energy bills, and reduce carbon emissions even further.

Local businesses will benefit from the Tees Valley Business Growth Hub, which will give them a single access point for local and national business support. In particular, the Local Enterprise Partnership has identified that Tees Valley entrepreneurs would benefit from advice on using cutting edge technology, how to diversify into multiple commercial sectors and how to break into the export market.

In addition to this, the government has agreed to work with Tees Valley to examine how the application of planning rules and legislation might be streamlined in order to provide the kind of planning certainty that industry needs. Discussions will be completed by June 2014.

Prime Minister David Cameron said:

My message to the North East is clear - as our economy turns a corner I want to see our great Northern towns and cities right at the heart of the recovery.

This new City Deal for the Tees Valley will mean a huge boost for local jobs and help build on more than 12,000 new businesses started in the North East since 2010. It will also give the area greater power and freedoms, allowing local people to take more decisions on the economy for themselves.

There’s a long way to go, but step by step, inch by inch, we are fighting for a recovery for all.

The Deputy Prime Minister, Nick Clegg, said:

This City Deal marks the beginning of a new era of growth and prosperity in the Tees Valley. It finds innovative new ways to make the most of the industrial heartland of Teesside, and really puts the power in the hands of local people who know best what skills are needed and how to make sure young people are prepared to take advantage of the opportunities that economic growth will bring.

Greg Clark, Minister for Cities, said:

I am delighted that the Prime Minister is announcing the agreement of the Tees Valley City Deal today. Anyone who knows Teesside, as I do, knows that the industrial strengths of the area are world-beating in what are growing global markets – in process industries, energy and engineering. This deal – put to the government by Teesside’s businesses – builds on those strengths by creating networks that link existing and new businesses, reducing costs and increasing the competitiveness of the cluster.

City Deals

The first wave of City Deals, agreed with the 8 core cities, were finalised in September 2012.

In October 2012, the Government invited 20 cities and their wider areas to negotiate for the second wave of City Deals.

Published 13 December 2013