North East named as automotive powerhouse in nearly £130m zero-emission vehicle funding

The North East is one of two regions highlighted in a nearly £130 million package of government and industry investment in zero-emission vehicle technology, which the government says will support more than 1,800 manufacturing jobs across the UK. The announcement names Gateshead and Crewe, and describes the North East and West Midlands as the UK's powerhouse regions for automotive manufacturing.

Almost £65 million of the total is government funding, matched by industry. The government says the money will help support flagship companies such as Turntide Technologies and Bentley. It follows £100 million of grant funding already being delivered to supply chain businesses in both regions to prepare them for the move to electric vehicles.

Nearly £50 million in government funding has been awarded to car firms and research and development partners to help them build and produce zero-emission vehicle technologies at scale. The government says this should also make electric vehicles cheaper for consumers. A further £17 million will go to nine connected and automated mobility projects, covering areas such as sensors, brake-by-wire systems, AI simulation, public transport, construction, airport operations and highways maintenance.

The funding comes through DRIVE35, a £4 billion programme running to 2035, which the government describes as its biggest investment in the UK car industry of the post-war era. It is delivered by the Department for Business, Innovation, Science and Trade through the Advanced Propulsion Centre UK, in partnership with Innovate UK.

Industry Minister Blair McDougall said: "This investment will secure skilled jobs, strengthen our manufacturing heartlands and help drive the reindustrialisation of Britain."