Budget wins and the questions left hanging for North East

Chancellor Rachel Reeves today (Wednesday, October 30) revealed Labour’s first budget in 14 years as the party battles to “rebuild Britain” and plug a “black hole” in public finances. 

In the North East, the budget saw £25 million allocated to the Crown Works Studio film works site in Sunderland, and confirmation that Hartlepool primary school St Helen’s would be rebuilt.

Chancellor of the Exchequer Rachel Reeves (Image: Jordan Pettitt)

The North East Combined Authority will also soon benefit from a single flexible pot of funding in 2026 to 2027, with mayor Kim McGuinness saying the integrated settlement means she can “invest in the priorities that matter”. 

Shortly after the announcement, £20 million funding was confirmed for both Billingham and Hartlepool town centres. 

While many praised the budget, others hit out at the lack of projects for the North East and "massive tax rises" - with Stockton West MP Matt Vickers taking aim at the Government over "broken promises".

Here, we round up the benefits to the region announced in the budget - and the projects left with a question mark hanging.

Here’s what’s coming for the North East: 

Crown Works

CGI image of Crown Works in Sunderland (Image: Newsquest)

Plans to build the £450 million film studio in Sunderland, on the banks of the River Wear, were described as “transformational” for the region earlier this year. 

The proposals were approved by Sunderland City Council in March - and today £25 million was allocated to remediate the site, with 8,000 jobs in the pipeline. 

School rebuilding

St Helen's Primary School in Hartlepool (Image: GOOGLE)

Ms Reeves today promised £1.4 billion to rebuild more than 500 schools, as well as £2.1 billion for school maintenance.

This includes more than £1.4 billion to rebuild 500 schools "in the greatest need" - which includes St Helen’s Primary School, in Hartlepool. 

Mrs Jo Heaton OBE, Chief Executive of Northern Lights which runs St Helen's in Hartlepool said the school was “delighted” to get the investment. 

Green energy

The Tees Green Hydrogen project
Plans were today unveiled for 11 new green hydrogen projects across England - one of which will include EDF Renewables Tees Green Hydrogen. 

Middlesbrough South and East Cleveland MP Luke Myer said it was "fantastic news" for the region, promising "new, high-quality jobs and local investment".

Here’s where question marks remain following the budget:

Inheritance for farms

Concerns were voiced by farmers

Major concerns were voiced for the future of family farms after major changes to inheritance tax were announced today.

From April 2026, the first £1m of combined business and agricultural assets will continue to attract no inheritance tax at all, but for assets over £1m, inheritance tax will apply with 50% relief, at an effective rate of 20%.

NFU president Tom Bradshaw said the budget "not only threatens family farms, but also makes producing food more expensive".

RAAC schools

St Leonard's School was just one site embroiled in the crisis (Image: Stuart Boulton)

The Government today committed to providing £2.1 billion more to improve school maintenance, including dealing with those hit by crumbling RAAC. 

However, no schools in the North East were named. 

Hitachi

The Echo's Keep Hitachi On Track Campaign (Image: SARAH CALDECOTT)

The Northern Echo has long campaigned for the Government to step in and save the Hitachi plant in Newton Aycliffe, after its future was left hanging in the balance. 

At the time, transport secretary Louise Haigh said it could be safeguarded with a “simple stroke of a pen” - however, its future was not secured in today’s budget. 

Hospices

Teesside Hospice in Middlesbrough (Image: SARAH CALDECOTT)

The hospice sector remains at a crisis point facing “unsustainable” financial pressures - and yet, it did not get a mention in today’s budget. 

While Ms Reeves announced a £22.6 billion increase in the day-to-day health budget at the NHS, and a £3.1 billion boost to capital funds, hospices weren't discussed.

Teesside Hospice chief executive Mike Thornicroft previously said influx of cash from the Government was required to ensure that hospices are viable - otherwise it would be “failing the people of the country”. 

A66 dualling

The A66 (Image: NORTHERN ECHO)

While Ms Reeves announced a £500 million increase in road maintenance budgets next year, the A66 dualling programme did not get the green-light.

Work on upgrading the 50-mile stretch between Scotch Corner and Penrith to a full dual carriageway was expected to start in 2025, after being approved by the previous Government.

While Prime Minister Keir Starmer today said talks were set to continue, it wasn’t the confirmation the North East was hoping for. 

Leamside line

The Leamside Line (Image: PA MEDIA)

Restoring the Leamside Line, which runs from Pelaw in Gateshead to Tursdale in County Durham and has been closed since the 1960s, has been an ambition for years. 

However, the project, which would allow for an extension of the Tyne and Wear Metro to Washington, has never come to fruition. 

And today’s budget didn’t shine any light on the project. 

Northern Link Road

Plans for the Northern Link Road

Ahead of the budget, there were fears the Tees Valley Combined Authority’s £978 million transport plan would not be entirely fulfilled.

The single biggest funding allowance from this is the £250 million Darlington Northern Link Road, which aims to provide a better link between the A66 and A1(M). 

However, the fears were not put to bed today, and the future of the project remains unconfirmed.

Shotley Bridge Hospital

Shotley Bridge Hospital (Image: The Northern Echo)

Ms Reeves today announced that the Government would be “moving swiftly to rebuild hospitals wholly or primarily built with RAAC” or which are in build.

£1 billion was allocated to upgrading NHS buildings which are in “disrepair” - however, Shotley Bridge Hospital, which was previously identified as needing a rebuild by 2030 under the Conservatives, was not named. 

The future of the project still remains in doubt following a Labour review of the scheme, first announced in July. 

Further information on these projects may be confirmed in the near future.