There are significant doubts over whether County Durham will be allowed to join a huge North East devolution deal, as talks start over the prospect of expanding a multi-billion pound government offer.
County council bosses announced last Friday that they wanted to be part of an agreement which would see a new mayor elected in 2024 to govern a massive combined authority stretching across Northumberland, Tyneside, Wearside, and Durham. But a devolution package for the entire ‘LA7’ area is far from a done deal and requires the support of the six other councils involved, who one MP claims were “blindsided” by Durham’s proclamation last week.
The Local Democracy Reporting Service understands that opinion is split among leaders in Newcastle, Gateshead, Northumberland, North Tyneside, South Tyneside, and Sunderland as to whether Durham should be allowed into the delicately-poised pact at the eleventh hour – with a devolution deal for the other six councils having been close to completion for some weeks.
Read More: County Durham wants to join North East devolution deal – but could yet be blocked by other councils
There are thought to be fears that complicating negotiations at this stage could risk jeopardising the draft deal currently on the table for the six, particularly given the turmoil in Liz Truss’ government and the expectation that big public spending cuts will soon be announced. The six councils will now seek confirmation from the government over exactly how the funding on offer in their proposed devolution deal would be uplifted if Durham were to join.
That draft deal, which has been subject to months of negotiations, would be worth more than £3bn in government funding over 30 years. It includes a £35m per year investment fund, a £900m transport funding package up to 2027, a yearly £44m budget for adult education and skills, and crucial decision-making powers including the ability to bring bus services back into public control.
In a joint statement, the leaders of Newcastle, Gateshead, Northumberland, North Tyneside, South Tyneside, and Sunderland councils said on Monday: “We have been in talks with Government for some time over a new devolution deal which can make a difference for all our communities. At all times we have been seeking a deal that matches our ambition, where each local authority and combined authority can see the clear benefits for residents.
“Our current position is one where we have a deal on the table from Government which we’d like to take for consideration by our councils and communities. Any discussions with government or neighbouring authorities to expand this deal would be entered into with the best interests of our residents and businesses in mind.”
For the Labour-run Tyne and Wear councils, the Durham question also presents an internal party political dilemma. Pursuing an LA7 deal would mean siding with the Lib Dem, Tory, and independent coalition that has run Durham Council since 2021, whereas the county’s Labour councillors and MPs have been strident in their opposition to the idea.
In a letter to Lib Dem council leader Amanda Hopgood, North Durham MP Kevan Jones claimed that Parliamentary representatives and the region’s other council leaders had been “blindsided” by the announcement on Friday.
Demanding to know why coalition had reversed its previous stance of pursuing a single-county devolution deal, he said:“I find it unacceptable that you have taken such a major step without any consultation with the county’s MPs or the public. I think you should publicly explain why your strongly held views have changed and also publish the financial implications and governance structure behind these proposals.”
City of Durham MP Mary Foy also called the decision an “incredible U-turn” and demanded “complete transparency” from the council as to why it was taken. Coun Hopgood said on Friday that a region-wide deal “makes good political and practical sense” and would mean “adding volume to a louder North East voice”.
She added: “After careful consideration of the options available to us as a county, we have informed the Secretary of State that, in principle, we would like Durham to join the LA6 deal to create a region-wide devolution deal across all seven authorities. However, this is subject to further discussion with the LA6 authorities and government.”
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