DRAFT SPEECH
NEWCASTLE - A WORKING CITY
Cllr Nick Forbes
Leader of Newcastle City Council
First can I say how thrilled I am to see you all here today, and
welcome you here to Newcastle’s Council Chamber.
Above all, I want to thank you, Newcastle’s business leaders
and entrepreneurs, for the work you do day-in-day-out to build
your business, for the critical contribution you make to
Newcastle’s civic life, to jobs and skills, to the fabric of this city,
and to the future of its citizens.
Newcastle has had so many fine examples of business leaders
over the centuries. And now, more than ever, this city and this
region needs leadership from the private sector. There’s no
denying the tough times we live in. The challenges facing
every business. The difficulties you face in raising finance, in
managing cash flow, in taking on new workers in such an
uncertain environment.
And in these difficult times, you might reasonably ask: what
difference can local government really make?
The Council doesn’t pretend it can directly create jobs. We
don’t have an open cheque book for grants. We can’t fund
large scale job creation or business support schemes. And
actually, in the modern business environment, I don’t think
that’s what you’re looking for from us.
What I think you do have the right to expect is a Council that
helps the city be open for business. You need us:
 to provide excellent services,
 to be proportionate in our regulatory regime,
 to be active in stimulating investment,
 to help attract new business and promote the city into
wider markets.
 to promote the skills of the workforce – particularly young
people taking their first step into the world of work.
But you will know that the Council itself is facing a great
challenge. You may have seen that we recently published our
draft budget for 2012 and beyond. We have had to make cuts
of over £30 million this year alone, with significant numbers
also lost from our neighbouring authorities. That in itself could
be an economic threat to the city. So all the more reason –
within these tighter financial limits – to do all we can as a
Council to improve our commitment to the Working City:
 A Fair Procurement Policy, responding to proposals from
the North East Chamber of Commerce to create more
opportunities for local business.
 An investment of £500k a year in Newcastle Futures,
matched with a contribution from Jobcentreplus, to help
more people into work and skills.
 New apprenticeships – not just for the Council itself, but to
support placements into SMEs.
 A new Business Winning Service, hosted by the
NewcastleGateshead Initiative, to promote the city
nationally and internationally.
 Our £1.7 million Enterprising Newcastle programme,
securing European funding to support new business
creation in the most deprived parts of the city – advised
and promoted by an “Entrepreneur in Residence”.
 The creation of a new Economic Development Unit within
the city council, bringing together our responsibilities for
the city, the region, and our links to business – able to
work across the council to ensure all our policies and
programmes work together to meet the needs of business.
But this event is not about the Council, it is about the future of
our City. The consultation document we’re publishing today
“Newcastle – A Working City” sets out our plans to attract
inward investment, to support innovation and science, to help
people gain skills. We demonstrate our commitment to take
forward our joint work with Gateshead and with the North East
Local Enterprise Partnership.
Some might be surprised by the optimistic tone of this
document. But I actually think now is exactly the time to be
looking to the future – and to keep optimistic about the
prospects for our city.
Economic problems knock confidence. And if we’re not careful
that becomes a self-fulfilling prophecy.… so let’s shout loudly
about every bit of good news on the economy. Confidence
about the future will help deliver the future this region deserves.
Despite the worst possible national and international economic
background – we have had some great recent successes:
 More than £80 million of investment on the North Bank of
the Tyne, generating 500 new jobs with many more in the
supply chain;
 The launch of the new Siemans Energy Services Training
Centre, bringing 1000 people a year to Newcastle to build
their skills in renewable energy.
 The success of NE1’s Alive After Five campaign.
 The opening of the Toffee Factory in the Ouseburn
 The successful establishment of Asian Business
Connexions
 The commitment from the Council, NE1 and Network Rail
to redesign Newcastle Central Station, creating a new
space for business, and a more confident gateway into the
region.
 Investment on the Science Central site, including the
successful bid to the Regional Growth Fund.
 Expansion plans from Newcastle Airport and Jet2.com.
 just this morning I visited Hoults Yard, a successful media
village connecting Newcastle to the world, through a range
of creative buisnesses and an associated cultural
programme
And, of course, the commitment that Virgin Money has made to
Newcastle, as the operational headquarters of an ambitious
growing business, with an excellent workforce, and with a
strong commitment to its local community.
So it’s with great pleasure that I welcome representatives of
Virgin Money, to Newcastle, and to the community of north east
businesses. And let me assure you that this Council, your
Council, will do whatever we can to ensure that you never – for
one second – regret the commitment you have made to this
city.
Of course, we also know that amongst the good news there’ve
been some disappointing announcements as well. The
decision by UK Asset Management to wind down its Newcastle
office - we’ll be working with colleagues in Sunderland Council
and the company, to secure as many jobs as we can for the
North East. And we’re also working with Carillion, to head off
the threat to their Energy Services business in Newcastle, as a
result of the government’s damaging proposal to reduce the
financial benefits of solar power installation.
All parts of the country will need to play a role in supporting
economic development and a resumption of growth. But I also
think Newcastle and the other core cities have a special
responsibility. If the economy of Newcastle fails, the region
fails. As the principle economic hub for the north east, we can
only secure a successful region if the city at its heart is thriving.
That’s why parochialism is such an enemy of prosperity, and
why I am committed to the closest possible cooperation with
our regional partners. As I said in my first major speech as
leader of this Council, the economy doesn’t exist within
administrative boundaries – there is an invisible thread which
ties us together. Every new investment and new job created in
Cramlington or Consett, Wallsend or Washington is a benefit to
the people of Newcastle – because it builds confidence in our
region as a great place to start and build a business.
Yesterday the Deputy Prime Minister made an important
speech which recognised the critical role of city leadership. I
agree with him that now is the time for the cities to step into the
prominent role that has often been promised, but never actually
delivered. As part of this, we are calling on Nick Clegg to move
forward – without delay - the proposal from Newcastle and
Gateshead for an accelerated development zone, secured
through funding flexibilities that allow for the long-term
investment we need. This is crucially important:
 In the long-term, to allow us more freedom to use the city’s
resources for investment in the city;
 In the medium-term, to invest ahead of recovery; and
 Immediately, to enable us to act with urgency to create the
economic stimulus we need to get some of the 10,000
unemployed people in Newcastle back intowork.
We welcome Government’s warm words about the
opportunities for Newcastle and we are ready, willing and able
to seize what is on offer for the benefit of our city and our
region.
As a Labour politician, you might expect that I don’t believe in
economic growth as an end in itself and I don’t believe that
economic growth is always a guarantee of social progress. I
recognise the threats that unconstrained growth can bring to
our environment, to social and family ties. And insecure jobs
with poverty pay can have just as damaging an impact as
unemployment. I know from the people I represent here in
inner city Newcastle the social effect of individuals trapped in a
cycle of periods in low paid, temporary work.
Long term economic change has had a profound impact on
people in this city. As traditional jobs were lost - it forever
ended long held ties that bonded communities together. The
response to this challenge has been hard fought and taken a
long time. As a child growing up in Weardale, in rural County
Durham, a trip to Newcastle was a rare treat. We would usually
come through three times a year – school uniform shopping,
Christmas shopping and to spend my birthday money. So I can
testify to the transformation this City has undergone since my
childhood. A stroll through the Sunday Quayside market is a
great reminder of how things have changed. Derelict
warehouses and gloomy spaces have been replaced by
vibrancy andbustling on both sides of the river.
The North East economy was growing faster than the national
average and we were closing the gap with the rest of the
country. We were confident and proud of what had been
achieved.
Then it came, an economic tsunami that has, and still is,
swirling around the world. All we had achieved seemed to be in
danger.
And that is why we are here today. We have to show again that
we can transform our economy and this time we have to do it
ourselves. We no longer have our RDA or the resources that
went with it. But I believe the key to our economic future is
gathered here in this room today. Whatever my political
differences might be with this Government - they have set us a
challenge and we will rise to that challenge.
And that is why I am fortunate to be Leader here in Newcastle,
a city which is big enough to feel exciting and dynamic with all
the cultural and social facilities you’d expect, and yet small
enough that we can and do work together.
When it comes to our economy it seems there is going to be
only one constant - and that is change.
At a time of great social, policy, institutional and economic
change, the places that will prosper are those that can respond.
And the City Council is in a unique place to enable Newcastle
to be that place, not directing, not necessarily leading, but by
bringing people together, by listening, by enabling. The
document you have is not the answer, it is the start of a
conversation. One I would implore you to get involved in. We
need to know how you got where you are, so we can ensure
the young people sat in classrooms across Newcastle as we
speak can do the same in the future.
Because it is not just their future that depends on it, it’s ours
too. This Council, this administration, is committed to making
Newcastle a working city. It is one of four priorities I have set
for the City. I ensured that economic development is within the
Leader’s portfolio and I am delighted to have my Deputy
Cabinet member here, Cllr Michael Johnson, with responsibility
for Skills, Business and Enterprise.
So I will fight for economic growth in this city because I know –
and Newcastle knows all too well – the devastating impact of
high unemployment on our social fabric – the wasted
opportunities and wasted lives.
I know that without the jobs created by the businesses
represented in this room, we’d be going backwards as a city.
Without jobs, investment and economic growth we fail in our
obligations to pass onto our children a better society than the
one we ourselves inherited.
You’ll say – I hope – that there’s more we can do. You’ll have
strong views on how the city as a whole can respond to the
economic challenges we face.
This is a Green paper – for consultation – and I look forward to
hearing your responses.
Our future is in our hands
And now it gives me great pleasure to introduce our keynote
speaker, a real champion of the North East, the Rt Hon David
Miliband MP