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Devolution: North East business reaction to region-defining decision

After a decision on North East Devolution was deferred back in March, The North East Combined Authority (NECA) has today moved ahead with plans to empower the region by voting to accept a devolution deal by 6 to 1.

Meeting at Durham Civic Centre, Gateshead again found itself in the minority opposing the deal, with Leader Mick Henry citing the Government’s offer as not being good enough.

However, leaders from Newcastle, North Tyneside, South Tyneside, Northumberland, Durham and Sunderland all backed calls for the region to make its own decisions and proceed to gain independence from Whitehall.

As well as the authority receiving £30m a year over the next 30 years from the government and having control over further investment, plans to put a North East mayor in place, although still in their nascent stage, are set to soon evolve from concept to reality.

Following the latest developments, Bdaily brings you reaction from North East business leaders.

Reaction

Stephen Purvis, Chairman of Policy North, the North East’s dedicated Think Tank and Group CEO of SGP Technology

“It is fantastic news that the region is moving ahead with plans for increased powers and more investment.

“For too long the North East has been left behind, not just behind London but increasingly behind places like Manchester who have embraced devolution.

“Any further delays in securing this devolution deal risk jobs, growth and business investment, now is the time for the North East’s Council’s to deliver on their devolution promise.”

Don’t miss Stephen’s Northern Powerhouse views in full here.

Jacqui Miller MBE, Director of Cramlington-based Miller International and Policy North advisory board member

“There is widespread support for the devolution agenda from the North East business community. They want local leaders to get on with delivering long term growth and a strong single directly elected Mayor will be able to do just that.

“We now have a unique opportunity to improve our region with a North East mayor sitting at the top table fighting for whats right for our people and our region.”

Jeremy Middleton, the only candidate to put himself forward to be the North East Mayor so far

“This is a big step in the right direction for the North East. It is the start of a long journey that will hopefully see a whole host of decisions and budgets devolved from Westminster to a local level. In Manchester they have already got far more than their original deal promised, including local control of the health and social care budget.

“Now the decision has been made, it is time for politicians, business people, and North East residents of all viewpoints to put age-old party political divisions aside and do the best for our region.

“For too long we have been left behind while other areas of the country prosper and forced to accept whatever deal Whitehall thought best for us, now we have an opportunity to stand tall and bring real prosperity to the area.

“We now get a chance to choose who makes these devolved decisions for us. There is nothing democratic about the current system, where internal Labour Party committees decide who leads the North East. Who picked Simon Henig to be the leader of the Combined Authority? We didn’t!

“No wonder people don’t feel their vote changes anything. With one vote people will get a chance to choose who leads. The mayor will be an individual who can take decisions, for which they can be held to account.”

Graham Robb, Regional Chairman of the Institute of Directors North East

“The business community will be jumping for joy at this news. It is fantastic to see the local authorities and the Government have worked together to settle on a positive deal for the North East.”

Liz Mayes, EEF North East Region Director

“This is a welcome development which will enable the North East to keep moving forward with devolution to help support our growth. It will allow us to find tailor made solutions to our economic challenges and give us greater flexibility to seize opportunities to boost our progress.

“We are a unique and special region, with manufacturing remaining a key strength and this deal will be welcomed by our members. EEF will be working closely with the business community and other key stakeholders to ensure the widest possible benefit for manufacturing and the wider North East economy.”

Today is a momentous day for the North East with local leaders backing a deal that has the power to transform the region’s economy - Greg Clark, Secretary of State for Communities and Local Government

Sean Bullick, chief executive of NE1, Newcastle’s Business Improvement District (BID)

“We’re hugely supportive of any opportunity to boost the region’s economy. It may not be perfect, but it is the only deal in town, and we are delighted that most of our local authorities have seized it.

“We’d urge Gateshead to think again though. With every authority in the region backing the deal, it would be stronger, we would be stronger, and the region would be stronger, particularly in the face it presents nationally and internationally.”

James Ramsbotham, Chief Executive, North East Chamber of Commerce

“It is very positive to see the North East Combined Authority pressing ahead with a devolution deal, just as the Tees Valley is. The North East has huge assets including our export record, energy expertise and world class sectors such as subsea and automotive. Our economy, however, is still performing below its potential and it is clear we need to do things differently. Devolution is an important part of that.

“This deal will allow us to tailor policies in areas like skills and infrastructure investment to the economic condition of the North East. We need to harness all the expertise in the region to make a success of this, and we will be working with our elected representatives in the months ahead to ensure the business community can make a strong and positive contribution.”

Ted Salmon, FSB North East Regional Chairman

“Smaller businesses across the North East will be delighted that the North East Combined Authority are pressing ahead with a devolution deal. Our members will now be looking for the deal to match the ambitions of smaller businesses across the region.

“This deal is a great start to doing just that and ensures the region will be at the forefront of rebalancing the national economy.

“The North East now has a unique opportunity to ensure that this deal delivers a more tailored approach on areas including business support, skills and infrastructure. We look forward to working with the Combined Authority and the North East LEP to ensure that this deal helps the region continue to be the best place in the world to start and grow a business.”

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