As part of their Investment in Productive Places campaign, colleagues at The Productivity Institute (TPI) selected South Tyneside as one of their case studies. Their research provides a valuable external perspective on the strengths and challenges shaping our local area. We have summarised some of the key insights below, with reflections on what they mean for South Tyneside.
You can also find the main report here: Framing a place-based investment strategy for South Tyneside – The Productivity Institute and explore the new interactive data dashboard here: TPI Local Authority Capitals Dashboard
A borough shaped by pride – but facing deep‑rooted challenges
The research reflects what many of us already know: South Tyneside is a place defined by its people – strong community spirit, fairness, and resilience. But it also reinforces the scale of the challenges we face. Productivity falls behind regional and national averages, and wider issues such as health inequalities, lower skill levels, and economic inactivity create further obstacles to the borough’s ambitions.
Understanding our assets through a ‘capitals’ lens
The study set out to answer a big question: How can we unlock the borough’s potential?
The answer lies in a bold, place-based approach – investing not just in roads and buildings, but in people, ideas, and relationships.
The study applied a capitals framework, examining seven types of assets: physical, human, social, financial, intangible, institutional, and natural. This gives us a rounded picture of where South Tyneside has existing strengths and where investment is needed most.
Themes which stand out include:
- Physical and economic assets: South Tyneside’s economy has strong foundations in advanced manufacturing and clean energy. The Port of Tyne and the Dogger Bank wind farm are world-class assets that could power a new era of growth.
- Financial capital: The borough has high business formation rates and entrepreneurial activity.
- Social capital: Our biggest strength remains our people – resilience, volunteering, strong community networks, and a collaborative mindset.
These strengths provide solid foundations for future growth.
But the barriers are significant and persistent
TPI’s analysis also shows where action is needed. Productivity growth has been slow for more than a decade. Health outcomes are poor, and too many residents are locked out of good jobs because of illness or lack of skills. Businesses face infrastructure constraints – from limited commercial space to transport restraints. And short-term funding cycles make it harder to sustainably address complex social challenges.
These findings reflect the lived experience of many of our communities and organisations.
What this means for South Tyneside
The research reinforces the importance of long-term, place-based investment. From our perspective, several priorities emerge:
- Investing in people
Improving health, strengthening skills, and ensuring residents can access good-quality, secure work. - Creating the conditions for business growth
Strengthening infrastructure, connectivity, and the availability of space for growing firms. - Shifting towards long-term, relational approaches
Tackling deep-rooted issues requires programmes built on stability, trust, and shared outcomes – rather than short-term cycles. - Telling South Tyneside’s story more confidently
We have real strengths. Presenting a clear, compelling narrative about the borough’s assets and capabilities is vital for securing investment and influencing national policy.
Looking ahead
What comes through strongly in TPI’s work – and in our own local insight – is that South Tyneside is positioned to turn challenge into success. We have committed partners, a strong sense of place, and a clear ambition for more inclusive, sustainable growth. By continuing to work together and take a long-term view, we can turn our potential into real progress for our communities.