Five publicly owned sites in the North East have been identified as suitable for the creation of new defence enterprise zones, according to a report by the Adam Smith Institute (ASI). The sites are Blaydon Quarry, Newburn Riverside, High Hanning, Quarrington Hill, and High Pittington.
Report proposes reindustrialisation plan
The ASI report sets out a comprehensive plan to reindustrialise Britain, arguing that using these sites for defence manufacturing would strengthen national security. Enterprise Zones are designated areas aimed at stimulating economic growth, offering incentives for businesses to establish or expand operations.
The ASI says each enterprise zone would be served by one large 'anchor tenant' – a multinational defence firm that would kickstart manufacturing and stimulate supply chain growth without displacing existing regional players.
Defence as ideal anchor sector
The think tank states: "Defence is the ideal anchor sector because it is insulated from low-wage overseas competition, recycles tax relief through procurement, and enjoys strong public backing, with 69% of voters supporting a local defence employer."
The North East is considered especially well-placed, combining England's lowest land prices and employment rates, an existing 110,000-strong manufacturing workforce, and a proud industrial heritage. The report aims to recreate the successes of the Nissan Sunderland project, which at its peak directly employed 7,000 workers and invested billions into the local economy.
Local leaders respond
Mitchell Palmer, Economist at the ASI, said: "Our proposal – to focus first on defence manufacturing in the North-East of England – kills three birds with one stone. First, it elevates a struggling region of the country; second, it pilots possible nationwide reform; and, third, it allows Britain to better protect herself. It is worth immediate consideration by the new PM, Chancellor, and Defence Secretary."
Cllr Nick Allan, leader of Gateshead Council, said: "Gateshead Council are eager to pursue this potential." He noted that establishing a centre of production for the technological aspect of defence could achieve objectives including direct employment, business development, and high-level apprenticeships. He has asked the economic development team to conduct an initial scoping exercise on the Blaydon Quarry site.
Cllr Chris Eynon, leader of Sunderland City Council, called the idea "very innovative" to supercharge the manufacturing base and support the UK defence industry. Kyle Genner, Reform UK Durham County Council Cabinet Member, said the proposal presents "a new blueprint for local regeneration done right."
