The Tees Valley Mayor and Combined Authority have approved plans to invest £7.5million into Tees Advanced Manufacturing Park (TAMP) alongside the recent commitment from Middlesbrough Council.
This is the first time the Tees Valley Combined Authority will be using new borrowing powers agreed by the Chancellor.
The Combined Authority’s Cabinet agreed the use of its new borrowing powers to secure the £7.5million investment.
The money will be used to remediate the land and for infrastructure works to help enable the development of high-quality commercial accommodation, co-funded by Middlesbrough Borough Council. The Combined Authority’s investment will be refunded from business rates paid in the designated Enterprise Zone by the new companies attracted to the site.
The pioneering £22.46million Manufacturing Park plan aims to attract state-of-the-art manufacturing firms seeking premises in the region, with work set to begin in the new year. The site is already home to the TWI Technology Centre, one of the UK’s foremost industrial research organisations.
Alongside the funding from the Combined Authority, Middlesbrough Borough Council will put around £12.5million into the scheme.
Ben Houchen, Tees Valley Mayor, said: “When these innovative borrowing powers are devolved from Government, the Combined Authority will be able to help fund a huge new asset for the region, recovering the investment from business rates paid on the site, and retained locally as a result of our Enterprise Zone status.
“This fantastic development will draw in and retain new and exciting businesses from around the globe.
“It provides a chance to aid economic growth and drive forward skilled employment opportunities in the town and wider Tees Valley area.”
Dave Budd, Mayor of Middlesbrough, said: “I welcome the new investment commitment from Tees Valley Combined Authority in our scheme, which has taken a lot of work to bring together.
“It is a great example of new powers being used to bring investment into the area and secure our economic future.
“I am pleased that a strong partnership between Middlesbrough Council and Tees Valley Combined Authority is making these pioneering plans a reality. It demonstrates that the Tees Advanced Manufacturing Park is an asset for the whole of the Tees Valley, and of national significance.”