Tees Valley Mayor Ben Houchen has outlined plans to explore the creation of a regional wealth fund designed to capture and redistribute tax revenues from multi-billion-pound industrial redevelopments.

Over the next decade, a series of infrastructure projects are forecast to generate hundreds of millions of pounds in local tax revenues for Teesside, Darlington, and Hartlepool. The proposed fund aims to manage this rising tax income while balancing the repayment of public loans provided by the Tees Valley Combined Authority to clear the former Redcar steelworks site, now known as Teesworks.

Under existing agreements, the Teesworks site alone is projected to generate nearly £90 million per year in business rates (local commercial property taxes) by 2030. This revenue will be split equally between the South Tees Development Corporation and Redcar and Cleveland Borough Council. Current major tenants driving this valuation include South Korean offshore wind manufacturing firm SeAH Wind and Net Zero Teesside, a commercial-scale gas-fired power plant equipped with carbon capture capabilities.

Mayor Houchen confirmed to the authority’s Overview and Scrutiny Committee that his objective is to establish a governance structure that could eventually transfer funding allocation responsibilities to a dedicated regional body.

Mayor Houchen said: “This was always part of the plan. From day one, we always said that if we cleaned up the site, attracted investment and brought back good-quality jobs, it would create long-term benefits for local people.

"We are on the cusp of a once-in-a-generation opportunity to transform our region as these major developments come to fruition. With significant investments on the horizon, it’s vital we start planning now to ensure that money is used in a way that delivers real, lasting benefits for people across Teesside, Darlington and Hartlepool.

“Creating a Wealth Fund would allow us to invest in our communities, support better public services, and make sure the success we are building at Teesworks and beyond is shared fairly across the region.”

The projected figures do not account for additional income from pending tenant and investor agreements currently being negotiated for the industrial zone.

Mayor Houchen added: “We’re now beginning to reap the rewards of our hard work to bring investment and jobs to Teesside, and this is the start of a really important process to decide how this money is best used to deliver for the whole of our region. This is just the beginning. As more investors move onto site and more jobs are created, even more money will come back into our local economy. Teesworks is proving that our plan is working. We’re bringing industry back, creating jobs, attracting global investment and making sure local people feel the benefits.”