Use the defence sector to drive local regeneration and reindustrialise the North East of England, a free market think tank says.
A new report by the Adam Smith Institute calls for new defence enterprise zones to boost local economies modelled on Nissan Sunderland, which once employed 7,000 workers directly.
The report identifies five publicly owned sites – High Hanning, Quarrington Hill, High Pittington, Blaydon Quarry, and Newburn Riverside – as candidates for the zones.
The plan proposes fast-tracked planning under a single governing authority, alongside full factory write-offs, zero-rated business rates, reduced employer National Insurance, and discounted power.
Each zone would be anchored by a major defence firm, chosen for its insulation from low-wage competition and strong public support, with 69% backing a local defence employer.
The North East's low land prices, existing 110,000-strong manufacturing workforce, and industrial heritage make it well-suited to the scheme.
The report argues such zones attract new international investment rather than merely redistributing it domestically, offering both economic renewal and a boost to national security.
Local authority comments
Cllr Chris Eynon, Reform UK leader of Sunderland City Council, said: ‘This is a very innovative idea to help supercharge our manufacturing base along with supporting the UK defence industry within our Region. We need to have a more innovative approach to driving job creation in the North East and such plans as mentioned in the report are the exact type of outside the box approach that can be explored.’
Kyle Genner, Reform UK Durham County Council Cabinet Member for Neighbourhoods, Environment and Police Relations, said: ‘This proposal presents a new blueprint for local regeneration done right. By establishing a targeted Defence Enterprise Zone backed by streamlined fast-track planning and major anchor tenants, we can unlock the economic growth that local people have been missing and restore Country Durham as the beating heart of British industrial strength.’
