The extension of the North East enterprise zone on the River Tyne has been announced during a visit to the region from Chancellor George Osborne.
Approval of two local enterprise zone bids were approved by the Treasury earlier in August which could potentially add over 10,000 jobs to the area.
Plans were unveiled to expand the zone on the River Tyne from the current area of 120-hectares by a further 40-hectares of land dedicated to business growth and investment.
Mr Osborne visited engineering and fabrication specialists at Heeremas yard in Hartlepool on Tuesday, and announced the extension of the enterprise zone during a visit to Sunderland’s Vantec Europe new warehouse site on Wednesday.
Tax breaks were promised by the Chancellor for the new 40-hectare site on the condition that a local agreement could be decided within the next year.
Linda Arkley, Conservative mayor for North Tyneside and lobbyist for the enterprise zone, said: “I welcome today’s announcement that the government are to extend the North East Enterprise Zone.
“This is extremely good news for North Tyneside and for the region, and will enable us to build on the success we’ve already had in attracting new firms and investment to the area, helping us to secure further growth and jobs.”
The Government hopes to encourage investment in the area from home and overseas, as well as creating jobs for local people. Skeptics argue however that the scheme does not bring a boost to the economy.