A BUSINESS bank, a new car parts factory and a washing machine production line are among the North-East projects promised a share of a £120m payout announced today that could support 30,000 jobs.

Amid the celebrations were fears that the failure of Durham Tees Valley Airport to secure money from the latest round of the government’s flagship growth fund threatens the future of one of the region’s key transport links.

Last night, Prime Minister David Cameron came under fire for turning his back on an airport he described last year as “vital.”

Airport bosses said they were determined to press ahead with plans for a massive freight operation, despite failing with a bid for £5.9m from the Regional Growth Fund.

As debate raged over the future of the airport, the region emerged as one of the big winners from the scheme.

The 29 successful North- East projects were the largest number from any UK region, and the £120m funding was second only to the amount won by the West Midlands.

The successful North-East bids include:

  • £30m to develop a regionwide fund to create at least 2,300 jobs over ten years;
  • £5m to develop Tees Valley to attract overseas investors.
  • £10m for an innovative business loan scheme.
  • £1m for Ebac in Newton Aycliffe to become the only UK washing machine builder.

The funding also means that automotive supplier Nifco, in Eaglescliffe, near Stockton, and Caterpillar, in Peterlee, east Durham, will expand, Tees Valley chemical process firms, such as Sabic Petrochemicals, and Chemoxy International will grow and recruit new workers and PD Ports will expand Teesport to handle steel shipments from the SSI plant.

Previous rounds of the fund have been criticised for failing to reach the frontline quickly enough. Deputy Prime Minister Nick Clegg, who will visit Nifco today, told The Northern Echo: “I am keen to nail the deeply misleading and outright false claims levelled against the fund.

“It is worth £2.5bn across the country and is helping to create tens of thousands of jobs in the North-East.”