Eyes & Ears 27.06.25

It's what you've been missing (even if you don't realise it yet)

There are no photographs in Eyes & Ears this week. This is deliberate as I am conducting an experiment. I’m aware that my cunning plan may not suit everyone, and I’d be interested to hear your views on whether you miss the images or not.

Enable, produce, connect

It’s been a whirlwind week of Government announcements with significant implications for regions such as the North East - but not ideal for someone trying to distil news and events into a few short paragraphs.

The Treasury set things off with UK Infrastructure: A 10 Year Strategy, which set out the long-term economic, housing and social infrastructure growth plans.

Then came The UK’s Modern Industrial Strategy on Monday, a 10-year plan to increase business investment and grow the industries of the future.

Wednesday saw the publication of New Trade Strategy to Protect and Boost British Business, aimed at making the UK the most connected nation in the world while protecting vital industries from global threats and backing businesses to thrive.

In short: infrastructure enables, industry produces, and trade connects. Together, they’re meant to drive productivity, regional rebalancing, and long-term economic resilience. Sounds good, but time will tell.

QT columnist Arlen Pettitt reported on his Wor Room newsletter that he found the industrial strategy “underwhelming”.

“For the North East, there’s recognition of the region’s strength in some of the sectors we’d say are our focus - advanced manufacturing, clean energy, life sciences, and creative industries. But, is it ambitious enough? Is it tangible enough? Is it going to happen fast enough?

That’s better

There was another Government announcement that almost went under the radar this week yet it will have a massive impact on council budgets here in the North East.

Local Government Minister Jim McMahon announced a major overhaul of the council grants system that could redirect £2bn in local government funding from wealthier, predominantly southern councils to high‑need areas in the north.

The new formula will reflect current needs, delivery costs, and demand for services like social care. Multi-year settlements will be introduced to give councils more financial stability and, significantly, the time-consuming and expensive process of tendering for often small sums of money will be scrapped in favour of streamlined funding.

An eight-week consultation process has begun.

Definitely devo

Prime Minister Sir Keir Starmer has admitted that Labour were a bit wary of regional mayors but now want to “build them up because they give political representation on a scale that works for business”.

The PM was speaking at the British Chambers of Commerce conference and was responding to a question from NECC chief executive John McCabe, who asked how the Great North strategy becomes an initiative and not just another slogan.

Sir Keir said: “Those with skin in the game make the best decisions about their own communities. The difference between someone in Whitehall making a decision about the North East, and someone in the North East taking a decision about the North East, is massive. If you live, you work or you have a business in the North East you absolutely care about whether it’s the right decision.”

Jobs at risk

The Modern Industrial Strategy did not get off to the best of starts. Around 100 jobs could go as Saudi-owned Sabic confirmed the permanent closure of its Olefins 6 ‘cracker’ plant at the Wilton site in Redcar.

The announcement came on Wednesday following a strategic review of the facility’s competitiveness and long-term viability.

Tees Valley mayor Ben Houchen said the low-density polyethylene (LDPE) facility will continue to work, but he was aware of the uncertainty that families faced.

“This is incredibly concerning news and a devastating blow to our region. My organisation will stand ready to support those impacted by the decision – but it’s clear that support from local partners alone is not enough.”

Police called in

Newcastle City Council has contacted Northumbria Police following an internal investigation into “financial irregularities” within its transport department.

The Local Democracy Reporting Service (LDRS) reports that this comes at a time of political instability and uncertainty within the civic centre’s corridors of power.

Head of property Paul Stewart has left, director of workforce and inclusion Pam Perry is expected to leave later this summer and director of investment and growth, Michelle Percy, is on a period of leave.

Stats of shame

Older people in the North are more likely to be poorer, less healthy, physically inactive, lonely and in poor housing – resulting in millions of pounds of avoidable NHS costs.

In a new report from the Northern Health Science Alliance entitled Ageing in the North, researchers have catalogued an “alarming” range of disadvantages faced by older people living in the North, in areas such as health, life expectancy, housing, nutrition, employment, and social isolation.

The authors stress that this inequality is mainly driven by economic and social factors, and is “totally reversible” – as long as policymakers are bold enough to act.

Documents destroyed

Northumbria Police has admitted destroying documents relating to the 1984 Battle of Orgreave, which the Government has pledged will be the subject of an official inquiry.

The violence at the Orgreave coking plant in South Yorkshire is remembered as the landmark confrontation of the miners’ strike when around 8,000 strikers were met by 4,500 police officers from forces around the country.

A criminal prosecution of 95 miners collapsed a year later when it became clear police evidence was unreliable.

Blyth and Ashington MP Ian Lavery is furious that the evidence has been destroyed and raised the issue during business questions in the Commons yesterday.

Glass centre queries

Sunderland City Council has concerns about the accuracy of the estimated repair bill for the National Glass Centre and is to write to Sunderland University for more details about the decision to close the building next year.

Councillors also want to know how the university accounts for the Glass Centre's income and expenditure and will request all documents relating to the university's ownership of the site.

Connecting you

Around 1,000km of ultra-fast fibre optic cable will be installed along parts of the East Coast Main Line between King's Cross and Newcastle as part of the Department for Transport’s efforts to eliminate mobile signal blackspots on Britain’s major train routes.

Charity funds centre

The Sir Bobby Robson Foundation is to fund a £30m cancer research centre to be built next to the existing Northern Centre for Cancer Care at Newcastle’s Freeman Hospital.

Some £20m has already been raised and a fundraising campaign for the remainder will launch next year. The three-storey building will be called The Sir Bobby Robson Institute.

Redundancies avoided

There will be no compulsory redundancies at Newcastle University after the university announced it has achieved its £20m target of salary savings through a combination of voluntary severance, redeployments and a range of other measures.

It emerged yesterday, however, that the university has withdrawn a planning application for what would be the first new building on its Health Innovation Neighbourhood (HIN) on the site of the former General Hospital as it was “exploring different funding options”.

The HIN masterplan is due to see the old hospital grounds in the West End transformed into a new community combining research labs, health facilities, and 1,250 new homes.

Three new chairs

Mayor Ben Houchen has officially stepped down as chair of all three development corporations in Teesside, following government pressure.

South Tees will now be chaired by David Smith, former chief executive of the Energy Networks Association; Middlesbrough will be chaired by Tony Parkinson, the former chief executive of Middlesbrough Council; and Hartlepool will be chaired by Mark Robinson, a retail and regeneration expert who previously chaired the UK’s High Streets Task Force.

A quick word

The Royal Grammar School in Newcastle has been named Independent Senior School of the Year at the prestigious Tes Schools Awards 2025, the award coming as the school marks its 500th anniversary. Plans to house a world-class recording studio on Newcastle’s quayside took a significant step closer after the North East Combined Authority agreed to fund the scheme using money from the UK Shared Prosperity Fund. South Tyneside Council has reaffirmed plans to demolish a high-rise residential tower block at Durham Court in Hebburn. The outer gates at Tynemouth Priory and Castle will remain open to the public overnight for at least the rest of the summer following a two-week trial by English Heritage. Cedarwood Trust, which helps thousands of people a year who live in and around the Meadow Well estate in North Shields, is one of 12 charities selected for funding to help reduce food waste. A Newcastle University study has found that a low dose of aspirin can reduce the risk of cancer in patients with Lynch syndrome. Boutique hotel The Tempus, in the grounds of the Charlton Hall Estate, near Alnwick, can now accommodate up to 100 guests thanks to the addition of luxury yurts in the hotel grounds. NE1’s Screen on the Green activities at at Old Eldon Square has won Best Event at the Towns and City Management Industry awards. Mayor Kim McGuinness said the North East Combined Authority will put £2.5m towards the cost of demolishing the A167 Gateshead flyover. Gateshead Council has already set aside a budget of £18 million. New data from Newcastle City Council shows there was a “significant” 9% drop in air pollution in the city from 2023 to 2024. Data gathered by NGI shows that the three concerts by Sam Fender at St James’ Park generated £16.5m for the local economy. The November Club theatre company is not only moving to a new base near Alnwick Playhouse it has rebranded as Novo Theatre. A number of new Metro trains were temporarily withdrawn from service because of faults with heating, ventilation and air conditioning last weekend.

Deputy head guilty

Deputy head Claire Herbert, who worked at Red Rose Primary in Chester-le-Street, has avoided being banned from the profession after being found guilty of unacceptable professional conduct.

She slapped, bit and scratched a pupil during an argument which happened outside of school and involved alcohol, a Teaching Regulation Agency (TRA) panel heard.

Opening soon

Newcastle Building Society’s new flagship five-storey home in the centre of the city will open its doors for the first time on Monday July 7.

Chief executive Andrew Haigh said: “A historic building reimagined as a vibrant community hub, the work on Monument shows we’re wholly committed to the places where we are present by bringing together partners, charities, and civic and community leaders in a central space, reflecting our ambition as a place-based, purpose-led organisation.”

Be alert

The Regional Economic Crime Coordination Centre has issued a special warning about phone calls from people pretending to be police officers - with a high volume of calls made to residents in Hexham, Killingworth, Gateshead and Stockton in the past week.

The caller asks for help with an undercover fraud investigation. In some of the calls the scammer has claimed that the victim’s bank card had been fraudulently used.

Goal achieved

Greggs Foundation has hit its long-standing goal of supporting 1,000 school breakfast clubs across the UK. With new government backing, it’s now expanding into after-school and holiday support.

Pre-tax loss

HomeServe has reported a pre-tax loss despite sales of more than £1bn last year. The company was co-founded by Robert Harpin and North East entrepreneur Jeremy Middleton in 1993. Brookfield Asset Management took over the company in 2022 in a deal valuing the company at £4.1bn, earning Harpin and his wife a reported £500m.

Milestone reached

Sunderland-based wealth management firm Fairstone has chalked up a major milestone after signing its 100th partnership deal - and CEO Lee Hartley is already looking for number 101.

He said: “Reaching our 100th DBO (Downstream Buy Out) is a proud moment, not just for Fairstone, but for every partner firm that has trusted in our model. However, this is very much a staging post, and nowhere near a final destination.”

Business bites

A plan to create a hydrogen pipeline network across the North East, Yorkshire and Humber and into the East Midlands has secured £96m of funding from energy regulator Ofgem. Balfour Beatty has landed the £833m contract to build the world’s first gas-fired power station with carbon capture and storage at the Net Zero Teesside project. Latos has submitted plans to build a data centre in Stockton, creating 150 jobs, in a move they describe as a flagship example of their ‘compact yet capable’ model. All 31 jobs have been saved at steelwork specialist Armson Engineering. The Northumberland company was acquired out of administration by a new firm led by one of its directors. Air traffic controllers at Newcastle International Airport are to be balloted on potential industrial despite the airport saying it does not recognise the Prospect union. Ashington-based electronic assemblies maker Arian EMS is looking to create 30 jobs after being bought by CorpAcq. Ashington-based Flexible Engineered Solutions Holdings has been acquired by engineering company Hunting plc in a £50m deal. Newcastle-based BEL Valves has completed a six figure order for Norwegian multinational energy company Equinor. Hartlepool MP Jonathan Brash is hoping a decision will be made by early next year to bring new nuclear reactors to the town’s power station which is due to de decommissioned in March 2027.

1971 ad break

It’s request Friday on Eyes & Ears pop pickers and this one is especially for Lucy from Gosforth. I’d Like To Teach The World To Sing became the first ad jingle to transition to chart success, hitting the number one spot for the New Seekers in January 1972.

The Hilltop commercial showed all kinds of people standing together enjoying their bottle of Coke, showing that the brand is for anyone and everyone. It was a simple yet powerful message of unity and harmony, conveyed through a catchy tune and heart-warming visuals.

The origins of the song date back to a delayed flight at Shannon Airport in Dublin. A Coca Cola advertising executive witnessed fraying tempers but later saw people laughing and joking while drinking Coke. He picked up a napkin and wrote: “I'd like to buy the world a Coke.”

THE WIDER VIEW

What is a freeport?

Rishi Sunak was very keen on freeports. The new Labour government shows no sign of reigning back on them. This article from The Lead asks: What is a freeport and why are they so politically attractive?

Food for thought

Olive oil, pasta, couscous and rice are products that dropped in price, according to the latest monthly figures from the Office for National Statistics.

That’s the end of the good news. Food prices rose by 4.4% in the 12 months to May 2025 and there were big monthly jumps in the cost of butter (up 18.2%), chocolate (17.7%), beef (17%), coffee (13.9%) and lamb (11.2%).

Even staples like milk (5.9%), cereal (4.8%), and chicken (4.4%) saw notable increases.

Obviously

As Iran started firing missiles at a US air base in Qatar on Monday, oil traders responded with striking speed — not by buying, but by selling. Within seven minutes of the first launch, Brent crude, the international benchmark, began to slide. It took only 20 minutes for the losses to accelerate to 3%.

By 7.30pm, the price had fallen 7.2%, the sharpest daily drop in nearly three years. The speed of the sell-off in a market that typically surges at any sign of geopolitical strife caught many by surprise, reports the FT.

Even as civilians took cover and television channels broadcast images of missiles in the night sky, traders had already correctly concluded that the attacks would reduce.

“It is all orchestrated, we know the base is empty. I knew from June 18 that the base was empty,” said Jorge Montepeque, an oil analyst at Onyx Capital Group, in a text message just after the attack began. “We have watched this movie before.”