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The Strategic Economic Plan

A summary of the North East Strategic Economic Plan published in the autumn of 2023

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Introduction

The North East Strategic Economic Plan (SEP) was a plan to grow and develop the region’s economy that was central to the work of the North East Local Enterprise Partnership (LEP). It was an evidence-based response to long-term economic challenges and opportunities that identified by the North East Independent Economic Review in 2013.

Detailed tables of key indicators were updated each year as part of the Our Economy event. This page summarises progress at the time of Our Economy 2023 in the autumn of that year. Statistics about the six SEP key targets have been updated since that date.

The Strategic Economic Plan was initially published in 2014, for a ten-year period and aimed to demonstrate how the LEP would drive forward a modern, diverse and entrepreneurial economy that was agile in the face of change and that would deliver economic benefit to residents and businesses across every part of the region. The Plan was refreshed and updated as the economy and the environment in which the LEP operated changed and as the region's economic base developed.

The Plan was a shared plan – the LEP worked with partners from across the region - there was a shared commitment that the more and better jobs created should deliver a more productive, competitive, resilient and inclusive economy for all.

The Plan’s ambition was to increase the number of jobs in the North East by 100,000 between 2014 and 2024, with 70% of these being better jobs. Explore the evidence from autumn 2023 below. This was data that underpinned the SEP and the LEP's programmes of delivery. To read more about the SEP, please click here. 

Progress against SEP targets

Six headline targets measured progress of the SEP. Two of these related to the creation of more and better jobs and the other four focussed on closing the gap in economic performance between the North East and England (excluding London). 

 

More and better jobs

Increase employment by 100,000 by 2024. 70% of additional employment from 2014 will be in managerial, professional, associate professional and technical occupations

Closing the employment rate gap

Completely close the gap between the North East and England excluding London in the working age employment rate by 2024

Reducing the economic activity rate gap

Reduce the gap between the North East and England excluding London in the working age economic activity rate by 50% by 2024.

Reducing the private sector employment density gap

Reduce the gap between the North East and England excluding London in private sector employment per head by 50% by 2024

Reducing the productivity gap

Reduce the gap between the North East and England excluding London in GVA per hour worked by 50% by 2024

Find Strategic Economic Plan target data

Tables of Key Indicators

Indicators that provide measurements of progress in the North East LEP area's economy are shown in tables in the tabs below. These show the latest available data in autumn 2023 for these datasets.

In particular, at that time, population totals quoted or used to calculate rates were mid-2020 estimates. Although 2021 Census totals had been released, mid year estimates prior to that date had not been retrospectively revised to take account of new information from the Census, so a consistent time series was used. Additionally, some other datasets are not annual, most notably those relating to employer skills requirements and business innovation.

Where possible, these indicators were for the North East LEP area (the LEP covered the same area as the new Mayoral Combined Authority). However, sometimes only regional data was available, where the North East region also includes Tees Valley. Similarly, our default national comparison is England excluding London but sometimes, England, Great Britain or the UK is used.

Economic Performance

The most recent key indicators for economic performance in the North East show that, since 2014:

  • GDP, GDP per head and productivity have all increased;
  • The proportion of the population that is working age (16 to 64) has decreased;
  • The working age economic activity rate has risen slightly;
  • the unemployment rate has fallen. 

The North East's trends in productivity and unemployment in this period have been better than the national equivalents but this has not been true for the economic activity rate or GDP per head.

Business Growth

The most recent key indicators measuring business growth performance in the North East show that, since 2014:

  • The number of businesses per head has increased;
  • The business birth rate has not changed, while the death rate has increased;
  • The business survival rate has fallen, as has the proportion of high growth businesses;
  • The percentage of scaling start ups has not changed but the percentage of scaling survivors has increased;
  • The values of goods and services exports per adult have both increased.

The North East's trends in businesses per head, business birth rates and percentage of scaling survivors in this period have been better than the national equivalents. This has not been true for any of the other indicators.

Innovation

The most recent key indicators measuring innovation performance in the North East show that, since 2014:

  • The percentages of businesses that are innovation active or involved in product, process or wider innovation have all decreased;
  • Rates of business expenditure on R&D and employment in R&D per head have both increased;
  • Higher education expenditure per head on R&D has fallen but Government expenditure has increased;
  • In total, R&D expenditure as a percentage of GVA has risen;
  • The percentages of people employed as professionals and associate professionals in science, research, engineering and technology have both increased;
  • The rate of patents granted per head has also increased.

The North East's trends in businesses involved in wider innovation, business R&D expenditure and employment, total R&D spend as a percentage of GVA, employment as STEM associate professionals and patent rates have all been better than the national equivalents. This has not been true for the other indicators.

Skills and employment

The most recent key indicators measuring employment and skills performance in the North East show that, since 2014:

  • The working age (16 to 64) employment density has increased;
  • The proportion of the population that is working age has decreased;
  • The working age employment and economic activity rates have both increased;
  • The proportion of working age people with degree level qualifications has increased, while the proportion with no qualifications has decreased;
  • The percentage of vacancies that are skills shortage vacancies has grown but the percentage of employers with skills gaps has fallen;
  • The working age economic activity rate and the unemployment rates for working age, younger and older workers have all decreased;
  • Average full-time employee pay has increased.

The North East's trends in the proportion of employers with skills gaps, the working age and older workers unemployment rates, and full-time employee pay have been better than the national equivalents. This has not been true for any of the other indicators.

Transport

The most recent key indicators measuring transport performance in the North East show that, since 2014:

  • Public spending on transport per head has increased;
  • Metro passenger journeys per head and passenger miles have both decreased;
  • Bus passenger journeys per head and vehicle miles have both decreased;
  • The volume of freight per head has also decreased.

Trends in passenger transport journeys and freight reflect the impact of the Covid-19 pandemic. The North East's trends in public spending on transport, metro (light rail) passenger journeys and miles and bus vehicle miles have all been better than the national equivalents. This has not been true for the other two indicators.

Investment and infrastructure

The most recent key indicators measuring aspects of the infrastructure in the North East show that, since 2014:

  • The rate of new dwellings has increased;
  • Business floorspace per head has decreased and its rateable value per sq.m has barely changed;
  • The rate of major development planning application approvals has decreased;
  • On average, the proportions of premises with superfast broadband and of indoor premises with comprehensive 4G mobile coverage within North East local authority areas have increased.

Despite not increasing significantly, the North East's business floorspace trends have both been better than the national equivalents. This has not been true for trends in additional dwellings or major development approval rates. It is not possible to compare North East broadband and mobile data trends with national equivalents.

Evaluation 

Monitoring and evaluation was embedded across the North East LEP’s activities. The ambition was to use monitoring and evaluation to demonstrate the impact and effectiveness of interventions and to provide a solid evidence base for future decision making by everyone engaged in local economic development within the North East.

Interim Evaluation of the North East Strategic Economic Plan

Find out more

Interim evaluation of Local Growth Fund and Enterprise Zone programmes

Find out more

The North East Growth Hub Evaluation

Find out more

Programmes of delivery

There were five LEP programmes of delivery which covered initiatives and projects that aimed to deliver the ambitions of the Plan. These included business growth; innovation; transport connectivity; skills, employment, inclusion and progress and investment and infrastructure. Each programme used data and evidence to inform delivery.

Businesses

Explore the evidence

Innovation

Explore the evidence

Employment and skills

Explore the evidence

Infrastructure and investment

Explore the evidence

Transport

Explore the evidence

Areas of Strategic Importance

These are clusters and industries which were identified as having the most potential to drive the Plan’s ambitions and targets. The ambitions particularly included delivery of growth in the North East economy, higher quality jobs and productivity. The ambition was that these would, in turn, strengthen North East competitiveness and long-term sustainability. These areas included Energy; Health and Life Sciences; Digital Tech; Advanced Manufacturing; and Knowledge Intensive Business Services. Detailed evidence baseswere developed to support some of these areas of strategic importance.

Digital Tech

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Advanced Manufacturing

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