Mayor outlines plans for regional Wealth Fund

A regeneration boss is proposing a new wealth fund to help channel the proceeds of major developments into communities across the Tees Valley.

Tees Valley mayor Ben Houchen has outlined proposals to investigate the creation of a regional Wealth Fund, which could help manage and distribute rising tax revenues generated by large-scale investments across Teesside, Darlington and Hartlepool.

The proposal comes as a series of large-scale developments are expected to generate hundreds of millions of pounds in tax income over the next decade, creating what the mayor has described as a significant opportunity to support public services and long-term economic growth.

Speaking at a meeting of the Tees Valley Combined Authority’s Overview and Scrutiny Committee, the mayor said work should begin now to determine how future revenues are allocated and governed.

Mayor Houchen said: “This was always part of the plan.

“From day one, we always said that if we cleaned up the site, attracted investment and brought back good-quality jobs, it would create long-term benefits for local people.

"We are on the cusp of a once-in-a-generation opportunity to transform our region as these major developments come to fruition. 

“With significant investments on the horizon, it’s vital we start planning now to ensure that money is used in a way that delivers real, lasting benefits for people across Teesside, Darlington and Hartlepool.

“Creating a Wealth Fund would allow us to invest in our communities, support better public services, and make sure the success we are building at Teesworks and beyond is shared fairly across the region.”

Under existing arrangements, business rates generated at Teesworks are expected to reach almost £90 million a year by 2030. 

Income from the site is currently shared equally between the South Tees Development Corporation and Redcar and Cleveland Borough Council.

The projected revenue is being driven by major occupiers at the site, including offshore wind manufacturer SeAH Wind and Net Zero Teesside, which is developing a gas-fired power station with carbon capture technology.

Under the proposals, the Wealth Fund could eventually take responsibility for allocating funds that currently flow through the South Tees Development Corporation, with the aim of maximising benefits across the wider Tees Valley.

The plans also take into account the ongoing repayment of loans provided by Tees Valley Combined Authority to help clear and prepare the former Redcar steelworks site for redevelopment.

Additional tax revenues generated by future tenants and investors are expected to increase the overall value of the fund further.

Mayor Houchen added: “We’re now beginning to reap the rewards of our hard work to bring investment and jobs to Teesside, and this is the start of a really important process to decide how this money is best used to deliver for the whole of our region.

“This is just the beginning. 

“As more investors move onto site and more jobs are created, even more money will come back into our local economy. 

“Teesworks is proving that our plan is working. 

“We’re bringing industry back, creating jobs, attracting global investment and making sure local people feel the benefits.”

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