Julie ElliottLabour has today expressed its concern at the finding of a new report from Ernst & Young showing a drop in the level of inward investment being attracted into the North East region from foreign companies.

The report found in 2012 there was a drop of investment going to the English regions with now just 24% of inward investment going to the regions, well behind the level invested in London.  The measured used to illustrate foreign investors impressions of the regions showing a large drop in how the North East was perceived as a place to invest in. 

Commenting on the report, Julie Elliott, Labour MP for Sunderland Central said:

 “This demonstrates again how wrong the Tory-led government were to close Regional Development Agencies like One North East.

"One North East was providing an effective voice for the region internationally and was able to give the confidence and support needed to foreign companies who were interested in coming to the region. We know from Nissan, how important foreign direct investment is for the future of our local economy. These alarming figures show that the government’s new strategy for inward investment isn’t working for the North East.

“The solution to this problem lies in giving the region the power and it needs to address this issue. The government needs to think again quite urgently, respond to the NEvolution campaign and give the region the real decision-making responsibilities and resources it needs to grow.”

Shadow Minister for Regional Growth Gordon Marsden MP said:

“With our economy flat-lining we urgently need action to boost jobs and growth.  This new research underlines the government’s failure to get growth going across the regions and rebalance the economy. Ministers abolished the Regional Development Agencies in a chaotic way without putting in place a proper replacement and have failed to give Local Enterprise Partnerships the support and powers they need to drive local growth.

“The Tory-led government’s flagship policy, the Regional Growth Fund, has been mired in delay and confusion as winners have been left waiting – in some cases for more than a year – for their money. Labour has consistently pressed ministers to properly empower LEPs, and we are currently consulting businesses across the country on plans for regional and local banks to help small firms get the finance they need.”



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