Our end-of-year round-up of the North East business scene traditionally begins with a view on the state of the economy 鈥 not always happily in recent years.
It has been some time since we could give a particularly positive outlook and this year is no different. 12 months ago we slightly optimistically described the economic picture as 鈥渕ixed鈥 and that assessment might just 鈥 but only just 鈥 work again.
There are some positives to be had, if you look hard enough. Unemployment in the North East and inflation are both relatively low, and wages being higher than inflation means people should be feeling better off.
As the CBI noted, July鈥檚 decisive General Election result has brought a level of political stability after the previous administration somehow managed to get through three Prime Ministers, five Chancellors and five Business Secretaries in one parliamentary term.
Nobody would sensibly think that good times would have followed immediately after the election, given the state of the public finances and widespread problems in public services.
Labour decided not to sugarcoat those challenges, despite warnings that the downbeat tone adopted by Ministers helped reduce business confidence. But it was October鈥檚 Budget that brought the most unwelcome news for many businesses, notably the decision to increase employers鈥 National Insurance contributions and a significant increase in the National Living Wage.
The CBI this week said the 鈥渆conomy is headed for the worst of all worlds鈥 and Chancellor Rachel Reeves had to admit that challenges on the economy are 鈥渉uge鈥 after new figures showed that 海角视频 production essentially flatlined in the third quarter of the year.
The North East is not immune to any of those challenges, though there have small signs of some greater resilience in this part of the country. The normally upbeat Entrepreneurs鈥 Forum found that 57% of members polled were more pessimistic for their own business and only 6% felt that the Budget would help growth.
But the North East Chamber of Commerce鈥檚 most recently quarterly survey reported increasing 海角视频 sales and a big jump in the number of companies seeing growth in exports. Recent surveys by both NatWest and Lloyds provided a mix of both positive and negative sentiments. If this year鈥檚 national election did not bring an immediate upturn in the country鈥檚 economic fortunes, the North East鈥檚 first region-wide mayoral vote was more impactful.
The election of Labour鈥檚 Kim McGuinness and a cabinet that has representation from all three main political parties have shown that devolution can bring decisions to boost the region鈥檚 economy closer to home. Projects approved during the year included a 拢17m boost for the North East鈥檚 rural economy, a similar sum to back green energy and progress on key housing schemes. Policies to provide lower bus fares and reduce child poverty 鈥 while not directly affecting businesses 鈥 will be broadly welcomed nonetheless.
There have been positives too at an individual company level and in promising developments planned for the region.
The Crown Works film studios plan in Sunderland won financial backing from the Government and has secured broad support from around the region with promises to bring thousands of jobs and major film and TV productions to the North East.
That was not the only boost for the region鈥檚 cultural sector, with entertainment giants Warners Brother saying they will create a 鈥渨orld class鈥 music studio in Newcastle and New Writing North providing a number of positive developments for the region鈥檚 publishing sector.
In Northumberland, it was announced that American investment firm Blackstone and its data centre subsidiary QTS had reached agreement with Northumberland County Council to build a series of data centres on land at Cambois that had previously been earmarked for the Britishvolt battery site.
Though the plans will bring hundreds of jobs rather than the thousands envisaged by Britishvolt, the fact that these plans are likely to actually come to fruition 鈥 creating key infrastructure for the region鈥檚 digital economy and a 拢110m jobs fund for the council 鈥 was broadly welcomed.
It was a good year for Greggs, which opened its 2,500th shop and overtook McDonalds as the country鈥檚 leading breakfast outlet, and for County Durham technology firm Filtronic, which secured investment from Elon Musk鈥檚 SpaceX firm. 2024 proved trickier for Nissan, which announced major job losses globally and had to lobby the Government (successfully so far, it would seem) to relax some of the guidelines around the zero emissions vehicles mandate.
Housebuilder Bellway saw continuing falls in sales as the housing market struggled to recover and Virgin Money, which had taken over Northern Rock in 2011, was itself acquired by Nationwide, returning it to the mutual sector. There was sad news towards the end of the year as much-loved music store JG Windows closed in Newcastle city centre.
Businesses big and small will be hoping Labour鈥檚 bet on raising tax revenues to fix public services can filter down to their bottom lines.
How quickly and successfully that happens could be the big story of 2025.
