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Inward Investment Programme Evaluation Report

A summary of the Inward Investment Programme Evaluation Report conducted by Wavehill

Evaluation
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This evaluation summarises the delivery, performance and early impacts of the North East Combined Authority’s (previously the North of Tyne Combined Authority) Inward Investment Programme. The programme aimed to attract new business investment, stimulate economic growth and support job creation across the North East, with a particular focus on priority sectors and strengthening the region’s inward investment capacity.

The independent evaluation, conducted by Wavehill, draws on programme monitoring data, stakeholder and business consultations, and economic analysis to assess programme design, delivery, outcomes and value for money. It reports gross economic impacts and qualitative evidence of additionality, recognising that longer‑term impacts will continue to emerge as supported businesses scale.

Key statistics

1,042

jobs created to date

The programme has supported the creation of 1,042 gross jobs, equivalent to 73% of contracted job targets, with further recruitment expected as live projects continue to scale.

£50.9m

gross GVA generated

Gross economic impact is estimated at £50.9m using a conservative one‑year employment assumption, rising to £191.7m when accounting for job‑years delivered to date.

£2.7k

cost per job created

The programme has delivered good emerging value for money, with an estimated £2,700 public cost per job created to date, comparing favourably with national benchmarks.

4/6

Medium additionality

Four of six businesses consulted reported they would have invested outside the North East without programme support, indicating the programme materially influenced investment location and timing decisions.

Overarching summary

 

The evaluation finds that the Inward Investment Programme was a credible and strategically necessary intervention designed to strengthen the North East’s ability to attract inward investment, stimulate growth and support job creation, building on the original NTCA Inward Investment Fund and operating on a pan‑regional basis from 2024. It targeted priority sectors (including advanced manufacturing, digital technology, life sciences, offshore energy and pharmaceuticals) and combined two core mechanisms: capital grants linked to job creation and a Capacity Fund to strengthen Investment Promotion Agency delivery through sector‑specialist roles and coordinated promotion.

In terms of delivery and performance, the evaluation reports mixed progress against contracted outputs and spend profiles, driven by uneven delivery across the portfolio and wider economic conditions. As of Q4 2025, £2.83m (35%) of £8.19m contracted grant funding had been drawn down (equivalent to 37% of the spend originally profiled to have been drawn down by this stage), and the programme had created 1,042 jobs, equivalent to 73% of contracted job targets (and just over half of the overall fund objective to generate 2,000 jobs). The evaluation highlights that a small number of projects account for a large share of delivery, with some exceeding targets while others remain behind profile, alongside one instance of liquidation that materially affected spend and output performance.

Despite these delivery challenges, the evaluation concludes that early outcomes and impacts are meaningful and expected to grow as remaining projects continue recruiting. The report therefore presents gross economic impacts (rather than net additional impacts), explaining that net estimation would be speculative given the small number of supported firms, response limitations and variable data quality. Within those constraints, gross impacts are described as significant: estimated gross GVA ranges from £50.9m (conservative one‑year employment assumption) to £191.7m (job‑years approach), and the programme has generated 4,494 gross job‑years to date. Overall, the evaluation judges that the programme demonstrates good emerging value for money, including a reported cost per gross job created to date of approximately £2,700 and consultation evidence of medium additionality. 

 

Headline findings

A credible inward investment intervention in a challenging market

The programme strengthened the North East’s competitiveness for inward investment by providing financial incentives and enhanced sector‑specialist capacity, helping to close a long‑standing competitive gap.

Economic impacts are significant and expected to grow

While job creation is currently below contracted targets, gross GVA impacts are already substantial and will increase as live projects progress and employment is sustained over time.

Job quality compares favourably to regional benchmarks

Over half of jobs created fall within professional and associate professional occupations, exceeding the North East average, though a high share of customer‑service roles reflects the types of investments secured.

Cluster and ecosystem impacts are emerging but modest

The programme has anchored several specialist firms and supported early innovation and partnership activity, particularly in digital and advanced manufacturing, but wider cluster impacts remain at an early stage.

Delivery against targets

Delivery against targets has been mixed. A small number of projects have exceeded expectations, while others remain behind profile due to labour‑market constraints, sector‑specific downturns, phased recruitment models and one instance of non‑delivery. Several projects remain live, with further delivery expected beyond the evaluation period.

Economic Impact Achieved

The programme has generated substantial early economic impacts and good emerging value for money. While net impacts cannot yet be robustly estimated, the balance of qualitative and quantitative evidence indicates that the programme has made a meaningful contribution to job creation and economic activity, with further impacts expected as supported businesses continue to scale.

Conclusions


The evaluation concludes that the Inward Investment Programme was a necessary and credible intervention, strengthening the North East’s ability to compete for mobile investment following the loss of earlier regional mechanisms. The combined use of grant funding and enhanced Investment Promotion Agency capacity addressed a clear market gap and improved the region’s investment proposition during a period of economic uncertainty.

Delivery against contracted targets has been mixed, reflecting external labour‑market constraints, sector‑specific downturns and phased recruitment models rather than weaknesses in programme design or governance. Despite this, the programme has generated significant early economic value, supporting over 1,000 jobs to date and delivering substantial gross GVA. Evidence also indicates medium additionality, with grant support influencing both the location and timing of investment decisions. While cluster‑level impacts are still emerging, the programme has laid credible foundations for longer‑term ecosystem development and demonstrates good emerging value for money.

 Recommendations

The evaluation recommends retaining the core strengths of the programme, particularly the combination of financial incentives with sector‑specialist promotion and strong partnership working across regional bodies. Sector specialists were consistently identified as critical to improving investor engagement and credibility and should remain central to future delivery.

Future programmes should be designed with greater flexibility, recognising changing investment patterns, smaller‑scale growth models and evolving labour‑market conditions. This includes revisiting grant thresholds and introducing more graduated funding options, alongside maintaining robust but more proportionate application, appraisal and monitoring processes.

The evaluation also highlights the importance of stronger data capture and performance management, particularly around lead generation and conversion, to support learning and continuous improvement. Finally, a follow‑up evaluation 1–2 years post‑delivery is recommended to assess job persistence, supply‑chain effects and longer‑term value for money once impacts have fully matured.

Key findings

The Inward Investment Programme was designed to help attract new businesses to the North East, support job creation and strengthen the region’s economy. By offering financial support alongside specialist investment promotion, the programme helped the region compete for business investment at a time of economic uncertainty.

The evaluation shows that the programme has already delivered positive results. Over 1,000 jobs have been created so far, generating significant economic value for the region, with further growth expected as supported businesses continue to expand. Many businesses reported that the funding influenced their decision to invest in the North East rather than elsewhere.

While some projects have taken longer than expected to deliver jobs—largely due to labour‑market challenges and wider economic conditions—the programme is judged to offer good value for money and to have strengthened the North East’s ability to attract inward investment in the future.

What the Evaluation Tells Us Works


The evaluation shows that combining financial incentives with sector‑specialist promotion improves the credibility of the regional offer and strengthens investor engagement. Dedicated specialist roles helped translate regional assets into compelling propositions and supported conversion from interest to investment.

It also highlights the importance of flexibility in programme design, particularly in responding to changing investment patterns, labour‑market conditions and sectoral volatility. Rigid assumptions around scale and pace of job creation were less well suited to post‑pandemic investment realities.

Strong partnership working across IPAs and regional bodies emerged as a key success factor, particularly following the transition to a pan‑regional NECA model, which reduced duplication and improved coordination.

Interested in finding out more? Download the Executive Summary