Development agency NewcastleGateshead Initiative (NGI) has hailed a successful year for regional inward investment which saw it secure £80m in capital investment.
NGI Ltd, whose work encapsulates inward investment and powering the visitor economy, has published accounts for the year ended March 31, in which it said it helped 33 new companies to invest in the region, bringing 1,000 new jobs to Newcastle and Gateshead. The organisation, based in The Common Room on Newcastle, works collaboratively as a bridge between more than 120 public and private sector partners, to “champion our offer on the world stage” while marketing key growth sectors as well as the tourism industry.
NGI posted turnover of £3.4m in the year, up from £2.09m, and also recorded a surplus of £202,000, up from £149,000. Its employee numbers also grew from 26 to 29.
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In the accounts, chairman John Marshall said: “All our work supports levelling up - creating opportunities for residents, supporting communities to thrive and making great places to live and work. We exist to benefit the people of NewcastleGateshead and the wider region, leaving a legacy and meeting the needs of future generations.
“We received ongoing support from Newcastle City Council and Gateshead Council of £1m as well as a significant sum from North of Tyne Combined Authority towards two projects to support inward investment sector development and three projects supporting the visitor economy and recovery of the tourism and hospitality sectors post-Covid. We continue to see an upward trend in the number of partners joining, further strengthening regional collaboration and support. Other private sector sponsorship income also increased as in-person events and conferences returned, with strong regional support for capital investment trade delegations including MIPIM and 海角视频 REiiF.
"We were also able to secure match funding from partners to support a VisitBritain funded Gateway project. A very significant development is the award from DCMS of £2.25m over three years, to becoming the first ever Destination Development Partnership in the 海角视频. This pilot will be a potential blueprint for the rest of England.”
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During the year, NGI said it created or safeguarded 1,350 new jobs, sourced 285 new investment projects and secured £5.6m North of Tyne Combined Authority grant funding for new investors.
New companies which announced plans for North East bases included US owned tech company Credera, creating 200 new jobs; Italian owned multinational defence company Leonardo, creating 200 new jobs; part of Japanese video games company SEGA Group, Creative Assembly North, creating 100 new jobs; French owned renewable energy company Lhyfe, creating 20 new jobs; and Canadian tech multinational CGI which is planning on creating 150 new jobs.
Mr Marshall’s report concludes: “With a £4.2bn devolution deal for the region, there has never been a more opportune time to highlight the growth and investment potential we have here in the North East. We have started 2023/24 strong, as the first DDP in England, 10,000 jobs in the pipeline for inward investment and a ten-year plan to create 25,000 new jobs within the visitor economy.
“We look forward to playing our part in creating a better place for residents. We could not make the impact we do without our national and international relationships, our region’s leadership, strategic input from our stakeholders, and of course our people.”
Following the publication of the accounts, Mr Marshall told Business Live: "NGI’s public and private sector partnership model has enabled a strong performance in 2022/23, including leading the successful regional bid for the first Visit England nationally funded £2.25m Destination Development Partnership, supporting an increased number of public-private delegations to international investment conferences as well as delivering significant projects for the North of Tyne Combined Authority.
“We would like to publicly thank the 140 private sector partners that invest in NGI, the 1,000 further businesses that work with us to promote the destination as a great place to live, visit and invest, and in particular our local authority funding partners, Newcastle and Gateshead Councils, who are incredibly supportive.
“2024 offers exciting opportunities for the region with a new Mayoral Combined Authority and significant new investments set to unleash the potential of Newcastle, Gateshead and the wider region.
“The NGI team are excited to play their part, together with partners, to build a vibrant, distinctive and competitive destination, attracting inward investment and supporting the development of the visitor economy.”