New money and powers over skills, transport and housing will be devolved to local leaders in the North East, the Levelling Up Secretary has announced today
If approved following a local consultation, people across Northumberland, Newcastle, North Tyneside, Gateshead, South Tyneside, Sunderland, and County Durham will also be given the power to directly elect a Mayor of the North East.
This person can act as a local champion who can help attract investment to the area and act as a powerful local voice in discussions with central government and other bodies.
The government will guarantee the new North East Mayoral Combined Authority (MCA) more than £1.4 billion over the next 30 years which will enable the new Mayor and the councils to plan for the long term, with certainty, and unlock the benefits of devolution for 2 million people living in the area.
The historic deal will also devolve the MCA control over the multi-million pound Adult Education budget so they can shape provision in a way that best suits the needs of local people; give control to the region of over half a billion pounds to upgrade public transport through a new City Region Sustainable Transport Settlement; and provide immediate support to build new affordable homes on brownfield sites. There will also a funding pot available to help place based regeneration across the region.
The North East is the sixth area to agree a devolution deal this year and means that government has now made devolution agreements with areas representing over 7 million people since the Levelling Up White Paper was published in February. The new deal also reaffirms the government’s commitment in the White Paper to offer a devolution deal to any area that wants one by 2030.
Levelling Up Secretary Michael Gove said:
I’m proud to have agreed a historic new devolution deal with the North East that gives local leaders more power, more money, and an even greater say on how their areas are run.
Devolution is all about letting leaders who live and breathe the region decide what is in their best interests, for their people and for their businesses.
A new mayor will ensure local priorities in the North East are at the heart of decision-making, while our billion-pound funding boost will provide the financial certainty needed to level up the area right now and for years to come.
Local leaders and mayors across the whole North East today welcomed the news in a joint statement:
This is a significant step towards securing important decision-making powers and investment for our region. This would allow us to make decisions that reflect local needs and invest wisely into projects that will make a difference for all our residents, communities and local economy.
There remains a process for all councils and combined authorities to consider the details and a public consultation before a final decision is made.
We are pleased that we have successfully negotiated a proposed deal which is a step towards reaching our ambition for this region. This is an important milestone in our journey and we will now engage with stakeholders to move the deal to the next stage.
