Eddisons’ Local Lens: Newcastle upon Tyne

Newcastle traces its origins to 122 AD as a Roman fort along Hadrian’s Wall, originally named ‘Pons Aelius’, meaning ‘Aelius’ Bridge’. The city gained its current name during the Norman period when William the Conqueror’s son, Robert Curthose, ordered the construction of a ‘new castle’ in 1080, leading to the name ‘Novum Castellum’—Newcastle.         

Throughout the Medieval Ages, Newcastle held strategic significance during conflicts with Scotland. Its castle was reconstructed in stone under Henry II, and city walls were built during Henry III’s reign, establishing the town as a key community, particularly as the wool trade thrived.

By the 16th century, Newcastle emerged as a major commercial hub, becoming the primary port for exporting North Eastern coal to London. Favourable royal policies stunted the growth of surrounding towns like Sunderland, initiating a longstanding rivalry.

During the Industrial Revolution, Newcastle was known as one of the most industrious and financially significant regions in the UK, becoming a powerhouse heavy engineering, particularly in shipbuilding and the development of railway systems, as well as continuing with coal mining.

The city's industrial prominence attracted an influx of people, growing from approximately 28,000 in 1820 to 215,000 by 1900, earning city status in 1882 before eventually experiencing a decline in heavy industry during the early 20th century.

Having long been recognised as the hub of North East England, Newcastle has evolved beyond its industrial roots. Today, the inner city’s urban economy is worth £9.9 billion, building on the city’s legacy of technological and engineering excellence.

With over £30 billion worth of investment opportunities in the area and16,000 acres of developable land, Newcastle provides extensive venture opportunities for investors while simultaneously supporting businesses with a wide range of funding solutions, ranking as the eighth best environment for start-ups in the UK.

This is further supported by a £4.2 billion devolution agreement in the North East, which includes a £1.4 billion investment fund providing £48 million annually.

A strong culture of collaboration through public and private institutions underpins the economy, with the two universities contributing significantly to the city’s sectoral strengths in research and innovation, especially in medical advancements. 

In fact, the North East is becoming a powerhouse for innovation, boasting the largest concentration of STEM students in the UK outside of London when combining Newcastle, Northumbria, and Durham universities. This creates a strong pool of talented employees, with Newcastle University ranking 5th for the highest graduate retention rate in England.

The multiple innovation hubs and collaboration centres in the city, including Newcastle Helix, The UK Nation Innovation Centre for Ageing, and The National Innovation Centre for Data, have strong academic ties to the universities, providing access to expertise and resources to drive development.

The digital and technology industries are also major economic drivers, following an increasing presence of major companies, such as Newcastle-born FTSE 100 member Sage Group PLC, Ubisoft, and Accenture, leading to strengths in gaming, e-commerce, and software development.