The Prime Minister is visiting Teesside to announce the Tees Valley City Deal between the Government and the local area. It's set to support the creation of 3,500 jobs and the unlocking of 28 million pounds of private sector investment.
Chi Onwurah, MP for Newcastle Central, says the Government's City Deals are a welcome investment in the region but are insignificant in comparison to the amount cut from Newcastle City Council's annual budget.
While visiting a tea factory in Stockton, Prime Minister David Cameron said the City Deal announcement was a good blend.
He said: "It's a good blend because it blends what Central Government can do and what local authorities can do and what the business led local enterprise partnerships can do.
"So it brings everyone together. It means more jobs, it means more help for businesses - particularly small businesses - and I'm particularly enthusiastic about unlocking £28m investment into using the waste heat from industry to heat homes and businesses and other premises.
"This will potentially cut their bills making use of that waste heat.
The Prime Minister, David Cameron is on Teesside today announcing investment and new jobs. He said he wants North East towns and cities to be at the centre of the country's recovery.
"My message to the North East is clear - as our economy turns a corner I want to see our great Northern towns and cities right at the heart of the recovery.
"This new City Deal for the Tees Valley will mean a huge boost for local jobs and help build on more than 12,000 new businesses started in the North East since 2010. It will also give the area greater power and freedoms, allowing local people to take more decisions on the economy for themselves.
"There's a long way to go, but step by step, inch by inch, we are fighting for a recovery for all."