Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central and West)
Question to the Department for Science, Innovation & Technology:
To ask the Secretary of State for Science, Innovation and Technology, pursuant to WPQ 126560, whether Nscale will still be investing in the North East AI growth zone.
Answered by Kanishka Narayan - Parliamentary Under Secretary of State (Department for Science, Innovation and Technology)
The government continues to work closely with the Combined Authority and commercial partners regarding the delivery of the North East AI Growth Zone. Discussions with individual companies are commercially sensitive, and we will provide further updates in due course.
Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central and West)
Question to the Department for Science, Innovation & Technology:
To ask the Secretary of State for Science, Innovation and Technology, what steps her Department is taking to encourage (a) UK and (b) international technology firms to invest in AI and digital innovation clusters in the North East of England.
Answered by Kanishka Narayan - Parliamentary Under Secretary of State (Department for Science, Innovation and Technology)
The Government is committed to driving regional growth by attracting AI and digital investment across the UK, including in the North East of England. The North East AI Growth Zone will provide secure, dedicated compute infrastructure, supporting innovation and productivity and helping to unlock significant long‑term economic growth. The Zone has already attracted substantial private investment, including £10 billion from Blackstone.
Alongside this, we are investing up to £500 million through the Local Innovation Partnerships Fund to grow high‑potential innovation clusters in 17 regions across the UK. This includes £30 million for the North East, empowering local leaders to target R&D investment, attract private funding and create jobs.
Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central and West)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Housing, Communities and Local Government, how combined authorities are being supported to develop world‑class industrial clusters as part of local growth plans.
Answered by Miatta Fahnbulleh - Parliamentary Under-Secretary (Housing, Communities and Local Government)
Local Growth Plans are central to delivering growth and boosting living standards in every corner of the country. Government has worked directly in partnership with Mayoral Strategic Authorities to co-agree regional growth priorities, including ensuring this supports the growth of priority sectors in places to help inform and deliver the National Industrial Strategy alongside supporting local ambitions.
MHCLG is giving Mayoral Strategic Authorities the tools to support these clusters in a variety of ways with £2.6 billion of Investment Zone funding, new integrated settlements, £902 million Local Growth Funding, £500 million Mayoral Revolving Growth Funding, and £800 million City Densification Funding.
Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central and West)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what assessment he has made of the electricity demand of large‑scale data centres, in (1) the UK and (2) those located in the North East; and what plans exist to ensure adequate grid capacity to support future digital growth.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Department’s energy and emissions projections include growth in power demand from computing services like data centres. To ensure a comprehensive view of the system, the methodology projects at a broader sector level, not disaggregating specific estimates for data centres.
The Government is committed to ensuring electricity networks can meet rising electricity demand, including from data centres, by deploying new renewable and low-carbon generation in line with the Clean Power 2030 Action Plan. The Capacity Market ensures supply continuously meets demand, balancing cost and reliability to maintain adequate electricity security.
Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central and West)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what steps he is taking to ensure that new offshore wind developments deliver long‑term skilled jobs and supply‑chain opportunities for communities in the North East.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
The Government has set out a package of support for offshore wind supply chains and infrastructure of up to £1bn, including £300m from Great British Energy, £400m from The Crown Estate and £300m from industry. Allocation Round 7 secured a record 8.4GW of offshore wind capacity, supporting investment across the UK. This is already translating into local jobs and investment, including the recent offshore foundation fabrication contract at Smulders worth more than £60 million. The Crown Estate recently announced that their next seabed leasing round (Round 6) will be launched in 2027 and will focus on sites off the coast of the North East of England.
Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central and West)
Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, how Green Book appraisal criteria are used to assess investments in energy infrastructure in regions with high industrial and renewable potential, including the North East.
Answered by Michael Shanks - Minister of State (Department for Energy Security and Net Zero)
HM Treasury’s Green Book sets out the framework for assessing value for money for taxpayers across different policy proposals. It is applied consistently across all regions. However, it also uses place-based analysis to account for differences between towns, regions and countries, including areas such as the North East.
When assessing infrastructure proposals, officials consider the full range of societal costs and benefits, including upfront and operating costs, changes in energy use, and impacts on greenhouse gas emissions. These are quantified and monetised using the best available evidence and standardised assumptions, ensuring consistent and robust assessments for ministers.
Asked by: Chi Onwurah (Labour - Newcastle upon Tyne Central and West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps she is taking to ensure that national economic policy does not disproportionately impact the Oxford‑Cambridge growth corridor over regions with industrial, technology and energy capacity such as the North East.
Answered by James Murray - Chief Secretary to the Treasury
The Government’s economic strategy aims to spread growth across Britain, supporting all regions by investing in transport, housing, skills, and key industrial sectors. The Chancellor has repeatedly emphasised that regional growth, including in the North and North East, is central to her plans, highlighted by ongoing work on the Northern Growth Strategy. These measures are part of a place-based approach to boost the UK’s productive capacity and living standards, ensuring national policy promotes growth in every region rather than focusing on a single area.