Newcastle and Gateshead hold steady on inward investment despite tougher market
Newcastle and Gateshead continued to attract inward investment during the 2025/26 financial year, with more than 30 companies establishing operations across the two neighbouring cities despite a more challenging global business environment.
According to the latest figures from Invest Newcastle, 31 companies chose to locate in Newcastle and Gateshead during the year, while a further 12 existing businesses expanded their operations. Together, the projects are expected to create 1,619 new jobs and safeguard a further 611 positions.
The investment activity is projected to contribute around £110.8 million in gross value added (GVA) to the local economy, reflecting a level of performance broadly in line with historic averages despite continued economic uncertainty and increased competition for mobile investment.
The figures include a mix of international investors, businesses relocating from elsewhere in the UK and companies consolidating their operations within the Newcastle-Gateshead urban core. Invest Newcastle said many firms were drawn by the area’s skilled workforce, growing innovation ecosystem and availability of high-quality commercial space.
Investment continued to span a diverse range of sectors, reinforcing the region’s strategy of building on strengths in technology, life sciences, energy, advanced manufacturing and professional services. The area has increasingly positioned itself as a hub for research-led businesses and companies supporting the UK’s energy transition, while also developing clusters in creative industries and digital technologies.
The results come as UK cities face heightened competition for investment amid slower global growth, rising financing costs and geopolitical uncertainty. Against that backdrop, maintaining investment levels has been viewed by regional leaders as a sign of resilience.
Looking ahead, Invest Newcastle, a partnership led by Newcastle City Council and Gateshead Council alongside Experience North East England, said it would continue promoting the region internationally while supporting companies looking to establish or expand their presence in the North East.
Jenny Hartley MBE, Assistant Director of Capital Investment and Growth at Newcastle City Council, said the results demonstrated the continued appeal of Newcastle and Gateshead to investors despite a more competitive market. She highlighted the area’s strengths in talent, innovation and collaboration as key factors underpinning continued business confidence.
