City Deal

Monday 17th March 2014 Written Statements

[The Minister of State, Cabinet Office (Greg Clark)]

Following the successful completion of the first wave of city deals in July 2012, with the “core cities” the Government committed to work with a further 20 cities and their wider areas to negotiate a second wave of city deals in October 2012.

I can today inform the House that the Government, businesses and civic leaders in Sunderland and South Tyneside have reached agreement on a city deal.

The Sunderland city deal, in partnership with South Tyneside, will support the future development of the new international advanced manufacturing park—a proposed 100 hectare development to the west of the Sunderland city centre that will house new automotive, logistics and offshore wind-manufacturing businesses. This development will build on the existing strengths of Sunderland and South Tyneside, supporting the vision for local economic growth as set out by the north-east local enterprise partnership and increasing private sector growth and employment.

The city deal also confirms the local and Government investment to construct the New Wear crossing, a key component of the Sunderland strategic transport corridor which will support the international advanced manufacturing park and the wider economic growth of Sunderland.

Alongside these agreements the city deal also includes local commitments to deliver the development of the former Vaux brewery site and to increase private sector investment in the skills of the local work force.

Through the development of the international advanced manufacturing park enabled by the city deal, Sunderland city council and South Tyneside council predict that, by 2027, 5,200 new jobs will be delivered. The New Wear crossing is predicted by the local authorities to enable up to 60,000 square metres of new commercial, office and housing development and create between 1,500 and 2,250 new jobs.