Member Article

The questions we need to ask following the collapse of North East devolution

When the DCLG took the North East’s the devolution deal off the table last week, an outcry of ‘missed opportunity’ ensued from large parts of the region’s business community.

The North East Chamber of Commerce issued a passionate letter to Sajid Javid, mayoral candidate Jeremy Middleton suspended his campaign and many of us in the region were left (as ever) to wonder - where does the region go from here?

Javid’s statement

After four of the seven North East Combined Authority councils decided to suspend devolution plans, fearing a lack of post-Brexit government funding, the government responded by withdrawing its offer altogether.

Javid said: “Local leaders in the North East Combined Authority have made a clear decision not to proceed with this ambitious and far-reaching devolution deal for their region - while I am disappointed, it is a decision I respect and so that deal is now off the table.

“It is with regret that we have therefore withdrawn the legislation that would have brought this deal to life, which means local people will miss out on over £1 billion of investment, and new powers on transport, planning, and skills.

“Handing power back to Northerners is a key part of our plans to build a Northern Powerhouse and our focus now will be on working to secure a new agreement for residents in those areas committed to progressing with devolution.”

Response

As previously stated, uproar ensued from large parts of the region’s business community.

Ross Smith, Director of Policy at the North East England Chamber of Commerce,was at a loss to understand why, after a year of negotiations, it has not been possible to strike a deal.

He said: “It’s extremely disappointing and bad news for the North East and UK economy. We sincerely hope something can be salvaged and will play whatever part we can to help.

Simon Hanson, North East Development Manager, FSB echoed feelings, saying: “It is hugely disappointing that the North East has missed out on the opportunity to get more powers and funding to grow our economy.

“After a year of negotiating smaller businesses will be at a loss to understand why a deal hasn’t been possible.”

The burning questions

So what do we take from what’s happened? Is this it for North East devolution? Perhaps not.

Javid’s comments actually leave much to the imagination:

“Handing power back to Northerners is a key part of our plans to build a Northern Powerhouse and our focus now will be on working to secure a new agreement for residents in those areas committed to progressing with devolution.”

Has the Communities and Local Government Secretary left the door open for those willing to strike a devolution deal in the North East? Could he be referring to Newcastle, North Tyneside and Northumberland councils, which were willing to agree to a deal?

Or perhaps Javid, when talking about the Northern Powerhouse, was referring to other Northern cities and combined authorities who are progressing with devolution? Could he be piercing enough to close the door on the North East altogether?

Whether you subscribe to the optimistic or pessimistic outlook here, a lack of clarity still persists. The only thing for sure is that we need answers - and quickly.

Have your say

Where do you see the future of the North East lying, amid the current regime? If not devolution, what alternatives exist for the future of the North East economy? Is there a chance of pro-devolutioners being offered a new deal?

We want to hear from you.

Comment below or email our Editor Jamie at jamie.hardesty@bdaily.co.uk.