A devolution deal to reunite councils on opposite sides of the Tyne and elect a new North East mayor will be worth more than £3bn, it can be revealed.
Fresh details have emerged of the new funding and powers that look set to be handed to the region, if local leaders and the government can finally shake hands on a long-awaited agreement. A document seen by the Chronicle confirms that the proposed deal would deliver more than £3bn of government funding over 30 years and could generate more than 17,000 jobs.
Negotiations have been taking place for months over a move that would see a regional mayor elected to govern a new combined authority covering Gateshead, Sunderland, South Tyneside, Newcastle, North Tyneside and Northumberland. County Durham would be excluded from the deal as things stand, as it has been pursuing its own single-county devolution deal instead of joining a region-wide body.
Read More: North East leaders 'weeks away' from agreeing devolution deal to reunite the region
A previous bid for a North East devolution deal collapsed dramatically in 2016 amid a political split, after which Newcastle, North Tyneside, and Northumberland broke away to form their own North of Tyne Combined Authority (NTCA) for which Jamie Driscoll was elected as Labour mayor. But a package to mend the divide between the councils either side of the Tyne and hold a mayoral election in May 2024 is edging closer to being agreed.
A presentation being given by local authority chief executives to councillors, a copy of which has been seen by the Chronicle, reveals that the draft deal is now “stable enough” to discuss with council leaders and “stands up to the tests and major red lines” set before the negotiations with government officials began.
The £3bn-plus settlement would include the “full suite of powers” already available to mayors in other parts of England that boast more substantial devolution deals than are currently held by the North of Tyne. That would include the ability to bring bus services back into public control and set their ticket fares at cheaper levels, a £900m transport funding package up to 2027, and the ability to set up mayoral development corporations.
It is hoped that the deal would create 17,516 new jobs, build 2,627 new homes, provide “major steps” towards the North East reaching net zero emissions, and leverage a further £3.7bn of investment from the private sector.
The deal could also see the new mayor’s role merged with that of the Northumbria Police and Crime Commissioner, as both would cover the same geography, potentially setting up a rumoured contest between Mr Driscoll and PCC Kim McGuinness to secure Labour’s nomination for the top post.
The presentation also promises “strong collaboration” with Durham and “appropriate checks to protect the ‘sovereignty’ of each constituent authority”, with some councils having expressed concerns in the past about ceding power to a mayor.
Included in the draft proposals is an investment fund of £35m per year, a yearly £44m budget for adult education and skills, and commitments to regenerate brownfield housing sites and high streets across the region. However, the document adds that there remain questions over a possible ‘Green Freeport’, some “key regional Levelling Up bids”, and the retrofitting of housing to slash energy costs.
It also discusses commitments to work towards improving capacity on the A19 and on the East Coast Main Line and a “recognition” that the government would have to offer more funding for major rail projects such as extending the Tyne and Wear Metro and reopening the Leamside Line.
If local council leaders agree privately to the deal, it would then be subject to a public consultation and a full council vote in each area. After that, a Parliamentary order would then be required to formally establish the new body.
A NTCA spokesman said: “We have collectively set out our expectations for Government to match our ambition to make a difference for our residents, communities and economy and where each Local Authority, Combined Authority and all stakeholders can see clear benefit for their place.
“We are seeking a proposal from Government which contributes to the recovery of the region following the Covid-19 pandemic. We expect discussions will continue to take place but at this stage, nothing has been agreed.”
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