The growth of the region is dependent, in part, on the successful regeneration of all its urban centres - this will attract new business and investment, creating jobs and building homes in the most accessible locations from major employers and small businesses alike, and complementing our wider growth plans for high streets, business parks and the rural and coastal economy across North East England.
At its cabinet meeting in September 2025 the North East Combined Authority agreed a new way accelerate the creation of new business, new attractions, new homes and new communities in Newcastle and Gateshead through a fully collaborative approach, led by the CA in close partnership with local authority leadership.
This tests a new approach whereby new Mayoral Development Zones will bring strategic focus, improved public and private sector collaboration and new financial and delivery tools unlocked by devolution to defined urban geographies across the region.
The inaugural Mayoral Development Zone will cover Newcastle and Gateshead - with further zones to follow across the region, subject to co-design and local agreement. These are anticipated to be major urban areas with propositions highlighted in the Local Growth Plan and of a strategic scale.
The new zone will include several sites on both sides of the River Tyne and the neighbourhoods immediately surrounding them, in the central areas of Newcastle and Gateshead. This includes Forth Yards, recently subject to landmark funding which could see 2,500 new homes built, Gateshead Quays, and several other sites clearly identified in the North East Devolution Deal, Trailblazer Deal and Investment Prospectus as strategically important to the region.
By bringing this whole area together, the North East CA aims to speed up the transformation local people need to see and to create economic and social benefits that will last generations. The involvement of the North East CA will:
- Enable the development of a shared vision for the Newcastle-Gateshead Mayoral Development Zone;
Provide leadership and foster collaboration between national, regional and local government and the private sector; - Give the option to designate the area as a Mayoral Development Area, and the option to establish a Mayoral Development Corporation, to accelerate and manage development; and
- Enable the strategic sites to be grouped, providing scale for investors and developers to invest with confidence in the area.
This has potential to be the boldest and most ambitious Mayoral development initiative in the country.
The Zone will be shaped by the principles and objectives of the North East Local Growth Plan (LGP); providing pace and focus to the development of several of the strategic sites contained in the LGP. It will also be informed by the region’s emerging Spatial Development Strategy, aimed at shaping a long-term spatial vision for the region, driving regional economic growth, improving public services, and enhancing local accountability. Its governance will be transparent and robust.
The announcement of funding for Forth Yards, the ongoing work in relation to Gateshead Quays, anticipated development announcements from private sector partners, and the benefits to be delivered by a joined-up approach mean that now is the time to develop a coherent strategy, leadership and governance.
The strategy will:
- Bring together key local, regional and national partners as noted above, under the leadership of the Mayor, ensuring effective partnership working, and alignment with the North East CA’s missions as set out in the Local Growth Plan;
- Build upon the robust foundation of previous joint policy work, strategic planning and the successful delivery of major projects;
- Define the vision and narrative for the development and regeneration of the Newcastle-Gateshead Mayoral Development Zone, recognising its dynamic character and the opportunity it presents to support and enhance the Local Growth Plan and Spatial Development Strategy, through adapting to emerging growth sectors, evolving societal trends including city centre living, and a strong market for investment into cities.
- Articulate the associated pipeline of major, transformational schemes and develop a detailed understanding of development sites to inform delivery planning; and
- Outline potential approaches to funding and financing the regeneration, leveraging private sector and pension scheme investment as well as funding announcements made in the Spending Review, and offer clarity to stakeholders and investors.
- Ensure that the Local Transport Plan objectives are considered and delivered alongside any wider regeneration schemes.
Read the press release here.
