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National
Graeme Whitfield

North East business leaders welcome news of regional devolution deal

Business groups in the North East have welcomed a devolution deal that will give the region more say over issues including skills and transport.

Leaders of the North East England Chamber of Commerce, the CBI and the Federation of Small Businesses have welcomed the announcement of a £4bn deal that will cover Tyne and Wear, Northumberland and County Durham. The deal - which will extend the current arrangements in the North of Tyne, and which has been touted as the most generous in the country - aims to create 24,000 extra jobs, deliver 70,000 courses each year and leverage £5bn of private sector investment.

If approved, the North East Mayoral Combined Authority (MCA) would be given a £1.4bn investment fund to be delivered over 30 years, control of up to £563m to improve the North East’s rail services, £17.4m for housing schemes, and a further £20m for regeneration projects. Local leaders would also have the power to bring the North East’s bus network back into public hands and full control over the areas’ £60m-a-year adult education and skills budget, while the deal is also expected to include the creation of a ‘green superport’.

Read more: what the North East devolution deal means for people in the region

John McCabe, chief executive of the North East England Chamber of Commerce, said: “Leaders from across Northumberland, Tyne and Wear and County Durham have worked tirelessly to get this settlement over the line. Throughout the business community there has been unwavering support for the advantages we know stronger devolution brings – the freedom to build projects, programmes and partnerships which truly deliver for the North East.

“County Durham’s inclusion is very warmly welcomed, we know the region will benefit hugely from this. It demonstrates bold, visionary leadership. Congratulations to everyone involved so far – this marks a real step change in opportunity and ambition for the region.”

Sarah Glendinning, North East director of the CBI, said: “The business community is clear about the benefits devolution has already brought to the region – from accelerating our green industries to improving business diversity and resilience. But we know more needs to be done, and now is the time to be bold.

“Today’s economic environment is a tough one but giving the region more powers can boost business confidence, unleash fresh creativity and dynamism, and unlock private investment needed to grow the North East’s visibility on the world stage. Our members have supported discussions every step of the way. They now stand ready to help make the North East an exemplar of ambitious, long-term collaboration between the public, private and voluntary sectors.”

And Reshma Begum, North East development manager at the Federation of Small Businesses, said: “Businesses of all sizes and across all sectors are clear on the benefits and opportunities devolution will have on the region.

“In the current challenging economic climate, giving local leaders the powers to decide our direction and act based on the needs of local people will increase business and consumer confidence, allowing the North East to unlock our potential and achieve our ambitions. New powers, resources and momentum will support SMEs and sole traders, which we know are central to thriving people and places, making the North East the ideal place to start and grow a business. The announcement is great news for the whole region, our businesses and our communities.”

And Sarah Green, chief executive fficer of NewcastleGateshead Initiative (NGI) said: “The announcement of a North East devolution deal is a pivotal moment for our region, representing significant funding but critically giving us additional powers to make decisions about how we invest to best meet local needs. This deal is an acknowledgement of the confidence Government has in our region’s ability to unlock growth and will enable us to invest in critical infrastructure, skills and future jobs.

“As a destination and investment organisation, these delegated decision-making powers will open more doors for investment, help promote our region internationally, develop the skills to enable an inclusive economy and build on our strategic sector strengths, attracting businesses and creating jobs and opportunity for all.”

The devolution deal is likely to see the North East LEP - the body tasked with growing the region’s economy - subsumed by the new mayoral authority.

North East LEP chair Lucy Winskell said the agreement was “hugely positive move for the region” and LEP chief executive Helen Golightly has said that “myself and Lucy remain committed to ensure that businesses have an opportunity to contribute to the consultation, with a view to there being a strong voice of business in the new governance structures that will unfold over the next 16 months”.

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