The government has facilitated a £500 million train-building agreement, safeguarding the future of Hitachi’s Newton Aycliffe manufacturing site and protecting hundreds of jobs in the

Northeast of England.

A Collaborative effort to boost the Northeast

The partnership between FirstGroup, Angel Trains, and Hitachi will see the construction of 14 state-of-the-art trains to be used across the UK’s rail network. This deal not only secures vital jobs in the industrial heartlands of the Northeast but also improves rail services for passengers nationwide.

This announcement is a testament to the government’s focus on creating a favorable economic climate, which has attracted substantial business investment and fostered confidence in UK industries.

Government commitment to industry and jobs

The Prime Minister and Transport Secretary visited the Newton Aycliffe plant to celebrate the deal and engage directly with workers. This visit highlighted the government’s commitment to ensuring the Northeast remains integral to the nation’s industrial success. Local leaders, including Northeast Mayor Kim McGuinness and MP Alan Strickland, have also supported the initiative.

The Prime Minister reaffirmed his dedication to raising living standards and strengthening the UK’s industrial base.

The Prime Minister, Keir Starmer, said:

“Our Plan for Change has set out ambitious milestones that will deliver real improvement in people’s lives – raising living standards across the country.

That means taking grown-up approach to business and using the heft of Government to solve problems, not create them. Getting people in the room to have the hard conversations which have been ducked for years.

That approach is paying off. Not only has it saved jobs, but it has given business the certainty and stability they need to thrive.

Today’s announcement is a case in point. We helped secure a deal that will help protect hundreds of jobs, keep this business ticking, and improve rail services.  

I made a promise to the workforce of the Newton Aycliffe factory and today, I’m delivering on that promise”. 

Supporting British Railways and manufacturing

The agreement includes the delivery of 14 new five-car Hitachi class 80X trains (totaling 70 carriages), with an expected rollout in late 2027. The deal also includes options for an additional 13 five-car trains, contingent on FirstGroup’s future project approvals.

This investment symbolizes a renewed commitment to British rail manufacturing, ensuring that UK-built trains remain competitive and world-class. It also provides a robust pipeline of orders, offering new opportunities for rolling stock manufacturers nationwide.

A broader vision for the nation

The deal aligns with the Prime Minister’s recently unveiled "Plan for Change," which aims to improve lives by addressing key challenges. The plan includes:

-Building 1.5 million new homes.

-Reducing hospital backlogs.

-Reintroducing 13,000 police officers to the streets.

- Providing every child with the best start in life.

A new era of industrial collaboration

The government’s hands-on approach to solving longstanding challenges has attracted over £60 billion in inward investment, fostering optimism across industries. This rail deal exemplifies the benefits of a proactive and cooperative industrial strategy.

With the government’s support, the Newton Aycliffe plant is poised to remain a cornerstone of the UK’s rail industry, ensuring that the region’s workers and communities are part of a bright, sustainable future. This announcement is not just about trains but about reaffirming confidence in Britain’s capacity to lead in global manufacturing.

Transport Secretary Heidi Alexander said:

“This Government is determined to rebuild our broken railways – which includes taking action to create a stable investment environment for our critical UK rail manufacturers.

This deal will bring significant benefits to the North East, and we’re committed to working closely with the entire sector so that it can continue to support jobs and growth across the country and help deliver a railway fit for the 21st century”.

North East Mayor Kim McGuinness said:

“Immediately after the General Election I wrote to the Prime Minister with a set of asks to back the North East. Hitachi was top of that list.

Six months on, together, we have delivered for the region. Today shows the power of what we can achieve when we stand together, and that our great North East has bright days ahead of us. We have a government on our side, and working with me to make the North East the home of real opportunity”.

Graham Sutherland, FirstGroup Chief Executive Officer, said:

“The introduction of our new service between London and Carmarthen, and the extra capacity on Lumo and Hull Trains, will significantly increase our open access portfolio over the next few years, with further expansion possible should our recent applications be successful.

The new trains, to be manufactured for us in County Durham by Hitachi, will support UK manufacturing and offer customers more choice as they consider affordable, environmentally friendly modes of travel in the future, and we are pleased to be taking them forward.

We know that growth and innovation are key for the future of the railway sector and are committed to working with government and all our partners to provide competitive, sustainable and improved services.

Successful open access services can provide new connections, add capacity, support local businesses and suppliers, secure jobs and help to drive social mobility and future economic growth”.

Jim Brewin, Chief Director of UK & Ireland at Hitachi Rail, stated:

“This contract is a positive step forward, and just recognition for the hard work and patience of our teams across the Hitachi Rail UK business over recent years.

We look forward to once again delivering for Hull Trains and Lumo passengers who will benefit further from our award-winning British built trains.

Equally, we owe a debt of thanks to the Northeast Mayor Kim McGuiness and other local MPs who have worked tirelessly in support of this private sector investment”.

Malcolm Brown, CEO of Angel Trains, said:

“This is a major milestone for the UK rail industry. In less than three months we have delivered over £270m of investment that will bring millions more passengers onto the rail network, connect key regional centres across the UK, secure crucial manufacturing jobs and breathe new life into local economies.

This is the first announcement of its kind in six years but our ambitions don’t stop here - this milestone represents the beginning of a new and exciting journey, which will see Angel Trains play a leading role in the green transition of our rail infrastructure”. Photo by [2], Wikimedia commons.