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Economic Benefits

Economic Benefits  

 

Middle Farm has the potential to provide significant economic opportunities for the local area and Northumberland.  Middle Farm proposes a mix of employment, housing, and leisure opportunities within the same community, which would allow residents and workers to live and work in or close to a business village.

 

The employment zone has the potential to attract a range of different businesses to the area including research and development, life sciences, manufacturing, which will in turn create thousands of new jobs for people. It will also encourage the growth and development of the Northumberland economy. 

 

By having housing and employment within the same community, it will make Middle Farm an ideal location for small and medium-sized businesses and new startup companies. The proposed employment area will allow businesses to cluster together, which will help them grow, develop, and share expertise. The close proximity to the hospital, for example, is likely to attract life sciences and research and development to this location and help these businesses grow and evolve. 

 

There is a need for commercial development in this location. The demand for commercial space remains robust due to a lack of supply of sites of all sizes. Increased activity from e-commerce and companies nearshoring or offshoring, and the number of inward investments enquires to the region has increased. This means that the market remains in a favourable position with good demand and limited supply, and limited new development and new speculative development coming forward.  

 

Middle Farm is perfectly positioned to capitalise on the growth of the the major economic boost provided by the Northumberland rail line, and the potential associated with the growing manufacturing sector in Northumberland. There remains potential associated with the Recharge Industries Gigaplant site, despite delays to funding, and JDR Cables are currently building an offshore wind farm cable supply factory nearby in Cambois, which is expected to open in 2024.

 

This site has the space, connectivity and potential to host other manufacturing facilities to support these uses.  Other existing employment hubs within the region are also accessible from the site, including the Northumberland Business Park West. The accessibility to these hubs will encourage new employment opportunities to be located in Cramlington as well as providing new job opportunities for future residents.

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*The construction cost has been estimated using BCIS Online tool and is exclusive of external works, contingencies, supporting infrastructure fees, VAT, finance charges etc. (Accessed: 04/04/2023) This cost only accounts for the housing and employment floorspace, therefore the construction cost will likely be higher taking into account all components of the Proposed Development.

 

**GVA, or gross value added, is the measure of the value of goods and services produced in an area, sector or industry.

 

***Where future benefits are calculated over a 10-year time frame, they have been discounted to produce a present value.

 

****Based on average Council Tax for band D properties in the local area of the settlement of £2,277.11 in 2023/24.

Construction Benefits
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£425 million

Estimated construction

investment over

15-year build programme*

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566 JOBS PER ANNUM

Direct construction roles

and indirect/induced jobs

supported during build phase

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£383 MILLION GVA**

Economic output contribution from jobs supported by activities at the site over 15-years (present value)***

Benefits on Benefits
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£720 million

Estimated contribution to

economic output over a 10-year period (present value)

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1,930

Economically active and

employed residents estimated

to live in the new housing

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£10 million

Estimated first occupation expenditure

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£4.6 million

Estimated annual increase in Council Tax revenue****

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£23 million

Additional annual household

expenditure retained in

Northumberland

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1,395

Gross full-time equivalent

jobs supported on-site by the

commercial floorspace

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44%

Of employed residents estimated to be working in higher value / higher income occupations

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