County Durham would be “left behind” if it did not join a combined North East devolution deal, councillors have been told.
More money, greater powers, and better opportunities have been promised within a combined authority compared to an individual county deal, as Durham County Council cabinet members approved plans to join the recently announced LA7 devolution.
Residents will be given the power to directly elect a mayor for the region at an election in May 2024 if the process is approved following a local consultation.
Read more: Warning that North East has fallen 'seven years behind' since 2016 devolution deal collapse
A cabinet meeting on Wednesday heard how the election of a county mayor would not have been as financially beneficial and would have changed the current council structure.
County Durham will receive £4m more when combined with other North East authorities compared to the £9m it would have got if it signed a county deal, a council report says. Overall, the LA7 deal is £120m more than could be achieved within a standalone deal.
How will County Durham benefit from LA7 deal?
- 6,500 new jobs could be created in County Durham within a LA7 deal, 2,000 more than in a county deal.
- £1.34bn private sector investment into the county, some £400m more than that estimated in a county deal.
- Investment to support housing development enabling 730 more homes to be built.
The size and scale of the proposed region, which is home to two million people and stretches from Berwick to Barnard Castle, will create the largest combined authority in England.
“Doing nothing means we will be left behind other parts of the country,” council leader Amanda Hopgood told councillors. “We have a real opportunity to make decisions for our local communities here in our own region opposed to them being made in Whitehall. And crucially, funding to help us take forward important work across the economy, transport, skills, education, culture, and many other areas."
But Labour fears the proposed deal would short-change the county, would be a ‘missed opportunity’, and calls on the council to involve residents in its decision making.
Labour Leader, Cllr Carl Marshall, said: “This is one of the most significant changes to local government in generations. It is incumbent on the County Council to ensure the process is transparent, democratic, and that councillors and residents are fully aware of how much money has been secured for the county in the short, medium, and long term.
“Putting politics aside, such seismic change to the way the region is governed must have the backing of people in County Durham. Their voices must be heard.”
Cabinet members agreed to endorse the LA7 format and start a public consultation on the devolution deal.
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