Tees Valley approves Investment Zone capital programme with hubs in Middlesbrough and Hartlepool

Tees Valley Combined Authority (TVCA) has approved the capital programme for its £160m Investment Zone, including a digital and creative hub in Middlesbrough and a creative production hub in Hartlepool due for completion in 2029.

The Tees Valley Mayor and Cabinet members signed off the programme at their latest Cabinet meeting, TVCA said on 12 October. The Middlesbrough Digital and Creative Enterprise and Innovation Hub is estimated to cost £7m to £10m, with £3m to £5m for the Hartlepool Creative Production Hub.

A further £3m to £5m would equip both sites with shared technology infrastructure and equipment. TVCA said final costs are subject to the approval of business cases.

Tees Valley Mayor Ben Houchen said: "Successful digital and creative economies need the right mix of infrastructure, investment and talent."

The two hubs

Element	Estimated cost
Middlesbrough Digital and Creative Enterprise and Innovation Hub	£7m to £10m
Hartlepool Creative Production Hub	£3m to £5m
Shared technology infrastructure and equipment	£3m to £5m

According to TVCA, an independent review of the Investment Zone's plans found that Tees Valley has strengths in digital, creative and research activity but needs further investment in space, facilities and infrastructure to help businesses grow, innovate and commercialise ideas.

The Middlesbrough hub will focus on business growth, innovation and commercialisation, building on the town's Boho digital cluster. TVCA's own page on the Boho Zone says it has housed hundreds of digital tech companies and two accelerator programmes, and that its newest building, Boho X, is a 60,000 sq ft office completed in June 2023 and occupied by games developer Double Eleven.

The Hartlepool hub will support creative production, creator economy businesses and production supply chains through specialist facilities and shared equipment, complementing the Northern Studios and Production Village in the town.

Chris Cooke, Middlesbrough Mayor and TVCA Cabinet Member for Finance, Organisational Improvement and Business Growth, said: "The proposed Digital & Creative Enterprise Hub will help growing companies access the space, facilities and support they need to develop new products, attract investment and create more opportunities for local people."

Hartlepool studios

Hartlepool Borough Council said in September 2025 that a £33.5m expansion of film and television production facilities in the town was under way. The council-led scheme, funded by the UK Government and the Tees Valley Investment Zone, includes repurposing nine disused buildings into pre- and post-production spaces.

Funding background

The government announced the Tees Valley Investment Zone on 6 March 2024, with £160m to be invested over ten years. Government policy gives Investment Zones in Great Britain up to £160m over 10 years, according to the Ministry of Housing, Communities and Local Government's Industrial Strategy Zones Action Plan, published on 23 June 2025. That plan lists the Tees Valley Investment Zone alongside Teesside Freeport, with clean energy industries and digitally-enabled creative industries as the sectors.

TVCA Cabinet voted on 28 March 2025 to accept the Investment Zone with a confirmed first allocation of £80m, running through to 2029. TVCA said £29m of that would go to business support. In April 2025 it listed indicative capital allocations including £10m for redeveloping House of Fraser in Middlesbrough and £15m for expanding Northern Studios in Hartlepool.

TVCA describes the zone as the UK's only Investment Zone dedicated to the digital and creative sectors, led by the combined authority in partnership with Teesside University. It says the region's digital sector is the fastest growing in the UK outside London.

The capital programme approval follows the Innovation Voucher programme, announced on 17 September 2026, which will invest £1.5m to help digital and creative businesses test, build, pilot and scale up projects into 2027. TVCA said the programme drew 155 expressions of interest.

TVCA expects the Investment Zone to help create more than 2,000 jobs and potentially unlock £175m of investment over the next decade. Business cases for the two hubs are still to be approved, with completion scheduled for 2029.