Member Article

Devolution deals: Reactions from across the North East and Tees Valley

Following the Government’s confirmation that The North East and the Tees Valley will both receive extra powers in return for having a directly-elected mayor, we bring you a roundup of reactions to the devolution deals from across the region.

Councillor Bill Dixon, Leader of Darlington Borough Council said:

“This marks a significant step in a process which in time will bring key decision making powers and budgetary control to the Tees Valley. I am particularly pleased to see the commitment from Government to strategic transport improvement which will benefit the Tees Valley.”

Councillor Christopher Akers-Belcher, Leader of Hartlepool Council, said:

“Devolution gives us a tremendous opportunity over the coming years to negotiate substantial funds from central Government above and beyond what we would normally receive. It will also enable us to accelerate the growth of our local economy, safeguarding existing jobs and creating many new ones, and it places Hartlepool in prime position to secure a replacement for its existing power station which alone generates £40m a year for the local economy.”

Middlesbrough Mayor Dave Budd said:

“The Tees Valley authorities have a long tradition of working closely together in the best interests for the area as a whole, and we share a collective understanding of what is needed to support and improve our economy and communities.

“We therefore welcome this opportunity for Whitehall resources to be devolved to the area and for local people to make the decisions on how and where they are spent.

“It will give us a much greater say in our own destiny, and strengthen our ability to compete on equal terms with other city regions both at home and abroad.”

Leader of Stockton-on-Tees Borough Council, Councillor Bob Cook, said:

“The Tees Valley local authorities already work effectively together and with a devolution deal we can do even more to help deliver our key priority of economic growth. If this deal is formally agreed by all of the Tees Valley councils we will be in a stronger position to attract investment, support business development and in doing so create more employment opportunities.”

In response to the North East and Tees Valley devolution deals announced today, Bill MacLeod, PwC’s North East senior partner, said:

“These are great deals for the North East and Tees Valley, and they are further commitment from the government to decentralise decision-making powers out of Whitehall.

“Decentralisation is critical to rebalancing the UK’s economy. Too much centralisation leads to unbalanced growth and creates economic issues of its own, as has been demonstrated by the ongoing growth in London and the South East, while the North has lagged behind.

“These devolution deals are therefore a great step towards addressing this issue and will give responsibility to businesses, LEPs and the community to invest in the region. They will enable local decisions to be made about where money can be best put to use, and reduce bureaucracy that often delays projects from happening at the time when they are most needed.

“They are also an indication that there could be more deals announced in the Spending Review next month, but it is clear that local authorities need to provide robust accountable leadership in order for power to be devolved, with elected mayors a non-negotiable factor.”

North East and Tees Valley, Nigel Mills, Chairman of the Entrepreneurs’ Forum, said:

“We have seen from our own research that devolved powers for the North East are wanted by the overwhelming majority of businesses in the region, so today’s news of deals is very welcome.

“Now, we must ensure that this agreement is utilised to its maximum potential and it is vital that business has a strong voice in directing areas such as housing, planning, transport, employment, education and skills. These are the key areas that business believes must benefit from this deal and there is a passion to be engaged and an enthusiasm to use this deal to make the North East a stronger, more prosperous region.”

Simon Hanson, FSB North East Development Manager, said:

“We’re delighted to see the North East Combined Authority Leaders agree this historic deal for the region which will help deliver economic growth across the area.

“This is a unique opportunity for the North East to work together across many areas to help create the conditions for growth. Small businesses will be at the heart of this economic growth and it’s right that the implementation of the deal matches the needs and ambitions that they have to be successful in delivery.

“We look forward to continuing to work in partnership with those taking it forward on issues like economic development, skills and public service reform to help deliver this deal which will help transform the region’s economy.”

Rhian Kelly, CBI Director of Business Environment policy, said:

“These deals are an exciting milestone in the drive to create new centres of private sector growth across the country.

“Granting powers to local authorities with bold economic plans and the ability to deliver on the ground is the right approach, so we look forward to getting more deals agreed.

“To ensure people feel the full benefit, business must be involved at an early stage, so we encourage local leaders to work in partnership with firms to make this vision a reality.

“The Government is right to make further devolution dependent on meaningful engagement between business and local authorities.”

On the Tees Valley Deal, Alison Thain, CBI North East Chair, said:

“It is heartening to see that the Tees Valley plan will build on the area’s strengths in green energy, chemical and process industries, helping drive productivity and economic competitiveness through local expertise.”

On the NECA Deal, Alison Thain added:

“Size of ambition is a major part of the Northern Powerhouse, and the NECA Deal shows a commitment from leaders to drive forward the north east economy, positioning the region as a crucial part of the Northern Powerhouse.

“North east business looks forward to working with local and national government to ensure successful implementation.”

Jeremy Middleton said:

“This is a fantastic deal for the North East that will firmly link the region to the Northern Powerhouse. Now it is vital that we ensure the role and powers of the mayor are such that he or she can deliver the maximum impact for the good of our economy. It must not be a token position, or one which is simply there to maintain the status quo. A North East mayor must be a powerful leader that can bring growth and prosperity to the region.

“Devolution will mark a huge change for the North East and will ensure local votes can have an even more significant impact on the future of the region. The Combined Authority and the Government should be congratulated for reaching this game-changing agreement, which marks a new and positive chapter in the political and economic story of the North East.”

Labour MP for Middlesbrough South and East Cleveland, Tom Blenkinsop, said:

“It has to be remembered that councils over the past 5 years and for the foreseeable future will have faced an unprecedented level of cuts by the Tories that has severely diminished the services local authorities have been able to provide for local people. So, the devolution deal signed today should acknowledge that tens of millions of pounds have already been lost from Teesside communities.

“Inevitably there are pluses and minuses to the devolution deal. A newly formed Tees Valley Investment Fund that will have an allocation of £15m per year is welcome, but you have to put this alongside the cuts I’ve already mentioned and question ‘what will £15m be worth in 30 years’ time?’

“Any claims that this deal has magically created a ‘Northern Powerhouse’ need to be tempered. Particularly in light of the Government’s failure to support steelmaking on Teesside.

“Obviously I have concerns around the Government’s insistence that a Mayor has to be part of any deal and I would like to see the details of any autonomous powers they may have, but I do welcome that the Mayor will also be required to consult the Tees Valley Cabinet – made up of local authority leaders - on his or her strategies, which it may reject if three of the five members agree to do so.

“With a lot of reservations I do welcome the deal in principle. I recognise that, for the area to have any clout on the national stage, it requires local authorities working together on key projects for the area such as creating more jobs, developing skills for our young people and major infrastructure projects.”

Charlie Hoult, tech entrepreneur and MD of business park Hoults Yard, said:

“Devolution? Let’s get to work! As a team. Across business and politics. Suspicion on both sides must be cast aside. And fast!

“The region’s economy is on fire - our politicians must cheer on employers and entrepreneurs to keep stoking the flames!

“Hug a boss - you won’t find a selfish monster. You will find burning passion for the region’s kids, for better education, wider wealth and greater fairness.

“We need to find a mayor who can thrill us, punch through parochial debate and make devo count for generations to come! Bring it on!”

Graham Robb, Chairman of the Institute of Directors (IoD) in the North East, said:

“I welcome these deals as a massive positive step for the North East and Tees Valley. What is on the table here is more significant than the Regional Development Agency of the 1990s or the Urban Corporations of the 1980s.

“Now, we want to see how these deals are legislated for and that business is fully involved with driving this agenda forward. The new powers and resources must be deployed in a way that adds to the wealth and prosperity of the region.”