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Budget 2017: Redcar Steelworks and Metro get funding

South Tees Development Corporation Aerial view of the Redcar siteSouth Tees Development Corporation
The Redcar steelworks closed in 2015

Chancellor Philip Hammond has pledged £337m for new trains on the Tyne and Wear Metro.

In his latest budget speech, he also allocated £123m for cleaning up the Redcar steelworks site.

But Redcar's Labour MP Anna Turley said only £5m of that was new with the rest having been previously pledged.

Mr Hammond also promised £59m to Conservative Tees Valley mayor Ben Houchen for transport projects.

Mr Houchen said the Redcar fund "will pave the way for investment from some of the 60 private companies which have already expressed serious interest" in the site.

Ms Turley said the funding was "welcome" but amounted to the "previously announced basic maintenance funding for keeping the site safe".

She feared the announcement will not "create new jobs" or "attract investment" and was "disappointed" the government is not "investing further to unlock jobs".

Tyne and Wear Metro People in Metro control roomTyne and Wear Metro
The Tyne and Wear Metro was visited by Rail Minister Paul Maynard as it was awarded £337m in the budget

With regards the £59m for transport, Mr Houchen said he would use it to improve the "quality, frequency and reliability" of bus and rail services across the Tees Valley.

He said: "The current public transport system for the Tees Valley is nowhere near good enough."

Nexus, which operates the Metro, said it hopes to have its new fleet of 84 trains starting to be in use by 2021.

Ms Turley and Mr Houchen traded barbs about the funding announcement on Twitter:

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Jonathan Walker of the North East England Chamber of Commerce said the new trains were "a matter of priority".

Mr Hammond also announced a North of Tyne Devolution deal which would see the area given £600m over 30 years if local councils agreed to create such an authority.

A North of Tyne mayor would be elected in 2019 if Newcastle, North Tyneside and Northumberland agreed.

Other north east funding announced included £4m to improve flood defences in Northumberland and £21m to create a "tech hub" in Newcastle.