The North East of England is set to become the latest region to have a directly-elected mayor, as the government announced a new devolution deal for the region.
Levelling up secretary Michael Gove said a “historic” deal would bring fresh powers over skills, transport and housing to local leaders across Northumberland, Newcastle, Sunderland and elsewhere.
The devolution plan would see the introduction of a new directly elected mayor for the North East, with proposals for the first election to take place in May 2024 following a consultation process.
The government claimed that the deal would see a new North East Mayoral Combined Authority handed control of £1.4bn over the next 30 years.
Mr Gove said he was “proud” to have agreed a devolution deal “that gives local leaders more power, more money, and an even greater say on how their areas are run”.
He added: “Devolution is all about letting leaders who live and breathe the region decide what is in their best interests, for their people and for their businesses.”
The region has been promised £17.4m to support the building of new homes on brownfield land, as well as £20m for regeneration projects.
Under the new North East Mayoral Combined Authority, local leaders would also be given control of up to £563m to improve local rail services, under the city region sustainable transport settlement.
In a joint statement, local leaders – including South Tyneside Council leader Tracey Dixon and Northumberland County Council leader Glen Sanderson – said it was “a significant step” towards securing more decision-making powers and investment.
“This would allow us to make decisions that reflect local needs and invest wisely into projects that will make a difference for all our residents, communities and local economy,” they said.
But Alex Norris MP, Labour’s shadow levelling up minister said it appeared that government had “already rowed back on the original promise of £3bn in new funding as part of the deal for the north east”.
He accused the Tory government of “cherry picking the places for devolution deals, short changing communities on past promises and holding back the real powers and investment at the centre”.
“Labour will deliver the biggest ever transfer of power out from Westminster. Our plans will bring back good jobs, get the economy growing and give people real powers over the future for their communities in all parts of the country, not just some,” Mr Norris added.
The new North East Mayoral Combined Authority is set to replace the existing North of Tyne authority and mayor offices, as well as the region’s non-mayoral authority.
All councils and combined authorities in the North East will consider the details – and parliament will have to give approval – before a final decision is made.
Lucy Winskell, chair of the North East Local Enterprise Partnership, praised the deal struck by Mr Gove.
“The development heralds new funding and decision-making powers that will unlock the creation of more and better jobs, allow us to seize new opportunities, address issues that are holding us back,” she said.
