James Brokenshire announces locations of UK’s first Manufacturing Zones in the East Midlands

Four projects, involved in the space industry, food sector, and the development of HS2, will form the new and innovative East Midlands Manufacturing Zones

James Brokenshire

• £500,000 funding will support economic growth and new jobs in the Midlands Engine
• Space, food and drink, and advanced manufacturing sectors will be boosted
• Areas benefitting from new Manufacturing Zone status are located across the East Midlands from Lincolnshire to Leicester

Four projects, involved in the space industry, food sector, and the development of HS2, will form the new and innovative East Midlands Manufacturing Zones, Communities Secretary Rt Hon James Brokenshire MP announced today (3 January 2019).

Melton Mowbray, Space Park Leicester, and areas across North Derbyshire and Greater Lincolnshire will together benefit from a total of £500,000 funding to develop their plans.

The investment builds on existing strengths in space, food and advanced manufacturing across the region, helping these important sectors to flourish and boost economic growth and jobs in the Midlands Engine.

The East Midlands Manufacturing Zones aim to reduce planning restrictions to allow land to be used more productively and provide certainty for business investment.

The announcement comes as the Secretary of State, who is also the government’s Midlands Engine Champion, visits organisations across the East Midlands today to hear how they are contributing to a thriving region at the heart of the UK’s economic success.

Communities Secretary Rt Hon James Brokenshire said:

"Manufacturing, innovation and trade are at the heart of the East Midlands economy, so it is the perfect place for the UK’s first Manufacturing Zones.

"This is another example of how the government’s is delivering for the Midlands with our modern Industrial Strategy backing local businesses and building on local strengths."

The government’s Midlands Engine strategy is supporting the East Midlands to realise its huge potential. Initiatives including over £1.9 billion of funding from the Local Growth Fund and an investment of £20 million in the Midlands Skills Challenge to boost people’s employment prospects are enabling businesses to create more jobs, export more goods and services and grow their productivity. Since 2010 unemployment has fallen 38% and there are 64,500 more small businesses.

The East Midlands has also received sustained investment in recent years, including more than £400 million for the strategic road network, more than £60 million to tackle congestion and improve local transport, and £10 million for the brand-new Ilkeston Station.

The Secretary of State is making the announcement in the East Midlands today with visits to Derby city council’s rough sleeping accommodation, the East Midlands Airport, Norton Motorcycles and the National Space Centre.

Further information

In the Budget on 22 November 2017, the Chancellor announced an East Midlands Manufacturing Zone pilot, with a budget of £500,000 in 2018 to 2019.

Background on places forming the new East Midlands Manufacturing Zones:

Melton Mowbray – £75,000

The Leicester and Leicestershire Local Enterprise partnership will create a Manufacturing Zone (MAZ) in and around Melton Mowbray. Three locations on the edge of the town, together with a centrally located site have been identified as suitable locations for a distinctive food and drink focused manufacturing zone.

The MAZ would help to sustain and grow food and drink manufacturing by providing an attractive portfolio of land combined and support for demand analysis and feasibility work such as master planning.

University of Leicester, Low Cost Access to Space – £50,000

The funding will support the design of the Low-Cost Access to Space facility, part of the planned Space Park Leicester, to ensure it is attractive and accessible to space focussed manufacturers in the area and meets their business needs.

The UK has a powerful innovative and growing Space sector with a turnover of £11.8 billion and GDP of £5.1 billion annually, forecast to be worth £40 billion by 2030. The government recognises that Space is both a strategic asset and an enormous opportunity and is targeting growth to share in the £400 billion global market from 6.5% to 10% by 2030 – a growth which will create and sustain an estimated 100,000 new jobs.

Manufacturing Zone status will build on The Space Park Leicester’s Enterprise Zone and Space-based Science Park status.

Greater Lincolnshire Enterprise Partnership – £155,000

The funding will accelerate the development of the food and advanced manufacturing industries across Lincolnshire and the South Humber Industrial Investment Programme area (Holbeach, Central Lincolnshire, North East Lincolnshire) with investment supporting projects to improve transport and utilities infrastructure.

The food sector in Greater Lincolnshire is valued at £3.5 billion with a particular strength in pre-prepared food. There are 75 large UK/international companies and 4,000 SMEs in the area.

The Northern Derbyshire Manufacturing Zone – £220,000

The funding will support the D2N2 Local Enterprise Partnership to develop the Northern Derbyshire Manufacturing Zone which aims accelerate development on 6 sites across 3 local authorities in northern Derbyshire (Bolsover, North East Derbyshire and Chesterfield). They all have a recognised manufacturing heritage and presence to enable the area to benefit from potential investment associated with the development and maintenance of HS2.

The North Derbyshire Manufacturing Zone aims to provide greater certainty on planning issues to unlock investment for growth by manufacturing businesses in the zone, ensuring more productive land-use and boosting investment and productivity in the area.