10 July 2026

New Local Skills Improvement Plan sets out employer-led roadmap for Tees Valley

A new employer-led plan to ensure Tees Valley has the workforce needed to take the region’s economy forward has today been published by the Chamber, working in partnership with Tees Valley Combined Authority.

The Tees Valley Local Skills Improvement Plan (LSIP) 2026-2029, funded by Skills England, sets out skills priorities identified by employers and outlines changes needed across education, training and business support to ensure local people can access the opportunities created by the region’s economic transformation.

Drawing on extensive engagement with employers across Tees Valley, the plan identifies the practical actions needed to better align post-16 education and training with employer demand.

The report focuses on six priority sectors that will underpin the region’s future growth: advanced manufacturing; bio and life sciences; chemical and process industries; clean energy; construction; digital and creative industries.

Alongside sector-specific recommendations, the LSIP identifies several cross-cutting priorities, including improving work readiness, increasing digital and AI capability, addressing skills and experience gaps, strengthening higher-level technical skills and making it easier for employers to engage with apprenticeships, placements and workforce development.

The publication comes at a pivotal moment for Tees Valley as major investments in clean energy, advanced manufacturing, industrial decarbonisation and innovation continue to reshape the regional economy.

With forecasts suggesting around 33,000 additional jobs could be created by 2035, the plan provides a framework for ensuring local skills provision keeps pace with employer demand and future investment.

Rachel Anderson, assistant director of policy at the Chamber, said: “This Local Skills Improvement Plan is shaped by the voice of Tees Valley employers. Businesses have been clear about both the opportunities ahead and the challenges they face in recruiting the skilled workforce they need to grow and thrive.

“With major investment transforming the Tees Valley economy, we have a real opportunity to create high-quality jobs and ensure local people can access the careers emerging across key growth sectors. Achieving that depends on a skills system that is employer-led, responsive and aligned with the needs of the regional economy – measures we outline in our Unlocking the North East Economy policy plan.

“The LSIP sets out a practical framework for collaboration between employers, education providers, universities, local authorities and partners. Continued partnership and employer leadership will be essential to deliver the actions identified, strengthen our talent pipeline and ensure Tees Valley has the workforce needed to drive long-term, sustainable economic growth.”

Tees Valley Mayor Ben Houchen said: “Our region is leading the way in delivering the industries that will power the UK's future – from clean energy and advanced manufacturing to digital innovation and life sciences. But our success depends on making sure local people have the skills needed to access the high-quality jobs being created right here on their doorstep.

“This plan ensures our education and training system keeps pace with the opportunities emerging across our region. By bringing businesses, educators and training providers together, we're building a workforce that meets the needs of industry today while preparing for the opportunities of tomorrow.

“As we continue to attract major investment and create thousands of new jobs, this plan will help ensure Teesside, Darlington and Hartlepool residents are first in line to benefit, giving employers the talent they need to grow and ensuring our region remains at the forefront of economic growth and innovation.”

We have developed the LSIP as the designated Employer Representative Body for Tees Valley. It has been produced through extensive engagement with employers, education providers, universities, local authorities, sector bodies and wider stakeholders.

The publication complements wider regional ambitions set out through Tees Valley’s economic and industrial strategies and aligns with national priorities around productivity, clean growth, advanced manufacturing, digital innovation and inclusive economic development.

To view the Tees Valley Local Skills Improvement Plan (LSIP) 2026-2029, click here.

Download image of Rachel Anderson, assistant director of policy at the North East Chamber of Commerce, here.

Download image of Tees Valley Mayor Ben Houchen here.

NOTES

  • The North East Chamber of Commerce is the designated Employer Representative Body (ERB) for the Tees Valley Local Skills Improvement Plan.
  • The Tees Valley Local Skills Improvement Plan 2026-2029 has been developed following extensive employer engagement across the region together with analysis of labour market intelligence and economic evidence.
  • The LSIP identifies employer priorities for post-16 education and skills provision between 2026 and 2029 and supports closer collaboration between employers, education providers, universities and public sector partners.