'Landmark' devolution deal signed to grant the North East with £1.4bn

A landmark devolution deal has been signed in North East England today by Levelling Up Secretary Michael Gove and eight local leaders in the region (27 January 2022).

The devolution deal will transfer new powers to local leaders in the North East to deliver skills, transport and housing, supported by £1.4bn of funding. The Levelling Up Secretary, the Mayor of North Tyne and representatives from all seven local authorities covering the region signed the deal in a historic ceremony at the Baltic Centre for Contemporary Art in Gateshead.

In the deal, the government guarantees the new North East Mayoral Combined Authority (MCA) more than £1.4bn 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.

This will support the leadership of the Mayor of Tees Valley, which has already revived Teesside International Airport, created a new freeport and established a free school with leading educationalists.

The signing continues the government’s devolution revolution with England moving closer to being 50 per cent covered by bespoke regional devolution deals. What’s more, the new agreement reaffirms the government’s commitment in the Levelling Up white paper to offer a devolution deal to any area that wants one by 2030.

A local consultation on the deal is now open and if approved, people across Northumberland, Newcastle, North Tyneside, Gateshead, South Tyneside, Sunderland, and County Durham will be given the power to elect directly a Mayor of the North East.

Levelling up secretary Michael Gove said: “I am proud to sign this historic devolution deal for the North East today, which will give local leaders the flexibility and freedom they need to tackle the most pressing issues affecting the day-to-day lives of people in the area.

“Levelling up the North East remains an absolute priority for the government, and I look forward to working closely with local leaders to unlock fresh opportunities that create tangible benefits for people right across the region.”

Building on existing collaboration across the region and with central government, the new North East Mayoral Combined Authority will replace the existing North of Tyne MCA and Mayor, as well as the non-mayoral North East Combined Authority. This will bring the region together and provide a more strategic economic geography, which encompasses the whole Tyne and Wear region, as well as Northumberland and Durham.

These changes are subject to the statutory processes, including local consultation and Parliamentary approval. The deal is being published today to allow necessary governance steps to proceed and will be signed in in the early new year.

The North East deal 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 and agreed devolution deals with 8 of the 11 areas that were prioritised for devolution.

By Mark Adair – Correspondent, Bdaily