Member Article

North East leaders welcome government’s devolution deal

Chancellor George Osborne is set to confirm long awaited devolution deals for the North East, which will see two mayors elected in the region to have control over key issues including taxation and transport.

One mayor will oversee the North East Combined Authority, serving Newcastle, Sunderland Durham, Gateshead, North Tyneside, Northumberland and South Tyneside..

The other will oversee the Tees Valley Combined Authority, which includes Darlington, Hartlepool, Middlesbrough, Redcar and Cleveland, and Stockton on Tees.

The North East Combined Authority is to receive receive £30m a year over the next 30 years, a total of £900m, to create an Investment Fund. The aim will be to bring in private sector investment to pay for new infrastructure, such as transport improvements.

The deal for the Tees Valley is worth £450m over 30 years, equivalent to an additional £15m per year, and provides for the transfer of significant powers for employment and skills, transport, planning and investment from central government to the Tees Valley.

North East reaction:

Paul Woolston, North East LEP Chair, said:

“We warmly welcome the historic devolution deal which represents a huge opportunity for the North East to chart its own course for economic growth and success.

“The government has given our region an unprecedented opportunity which we intend to seize working with our partners across the North East.

“The devolution deal represents an important day in the region’s economic history and demonstrates the scale of the North East’s ambition for growth and prosperity.

“We are also delighted to see that the government recognises the need for the North East Local Enterprise Partnership to have a key role and powers as part of the region’s devolution deal.

“A lot of hard work still needs to be done to ensure that business and the North East LEP play a central role in the delivery of the region’s strategic economic plan.

“Drawing on the world-class knowledge, acumen and experience of our business community is crucial to ensure the North East makes the very most of this devolution of powers and spending.

“The LEP will continue to provide a strong voice for the business community and it is important that it is positioned so that the new mayor has access to a business-led resource with appropriate powers.

“We will embrace the changing role of the LEP which will focus on providing leadership and driving forward on innovation, business support, access to finance and enterprise zones.

“We will continue to work with partners to improve skills needed to deliver growth.”

Chair of the Shadow Combined Authority and Leader of Redcar and Cleveland Borough Council Sue Jeffrey said:

“I’m pleased that the Government has put a devolution deal on the table and if it is agreed by all the Tees Valley councils, there is no doubt it will enable us to do more locally to strengthen our economy and secure a more sustainable future for the Tees Valley.

“Over the coming months we will be speaking to local residents and businesses about what the proposals mean for them. But we must not lose sight of the fact that while this is good news, there is still an immediate need to focus on actions to help the shock to our borough and our people which has been caused by the current crisis at SSI.”

Paul Booth, chair of Tees Valley Unlimited, the Local Enterprise Partnership for Tees Valley, said:

“This places Tees Valley at the vanguard of devolution and gives the area greater powers, greater freedoms and greater resources.

“The plans also would augment the area’s ability to optimise its economic assets, embrace new and emerging technologies and make sure that future generations of workers have skills and knowledge relevant to employers.”

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