A DEVOLUTION deal for people living north of the River Tyne will create 10,000 jobs and boost the local economy by £1.1 billion, the Treasury has claimed.

Newcastle, North Tyneside and Northumberland will benefit from £600 million of new Government investment to spend on local priorities to boost growth after the area agreed to a historic devolution agreement.

Details were unveiled today by Treasury Minister Andrew Jones, who visited the region, and was joined by the Northern Powerhouse Minister Jake Berry and local leaders.

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The 815,000 people living in the local authority areas will vote for a new directly-elected mayor who will have new powers in housing, planning and skills.

Setting the budget on Wednesday, Chancellor Philip Hammond said the deal will generate huge rewards for the area and attract £2.1 billion in private investment.

Northern Powerhouse Minister, Jake Berry, said: “This ground-breaking, multi-million pound deal truly passes power to the people, and is a pivotal moment for the Northern Powerhouse.

“With a strong voice in a new mayor, a new Wear crossing and the globally-significant Great Exhibition of the North, this is a new golden era creating jobs, growth and prosperity for the resurgent North-East.”

As well as receiving devolved powers, the North of Tyne area will also get:

• Full control over the adult education budget

• An Inclusive Growth Board to coordinate skills and employment

• Collaboration with government to boost trade and investment, digital infrastructure and rural growth across the area

The Chancellor’s Budget also revealed the area will benefit from a further £337 million of Government investment in the Tyne and Wear Metro to replace its 40-year-old trains with a new fleet.

Exchequer Secretary to the Treasury, Andrew Jones, said: “This Government is delivering for the North East.

“We have been clear in our commitment to ensure that opportunity is shared across the country as we create an economy fit for the future.

“Today represents a big step in achieving this, giving the people of the North of the Tyne a bigger voice and greater power over their future.

“This historic deal, including £600 million of government investment is yet another example of how we are backing the North.

“It will bolster the local economy in the North of Tyne and generate thousands of new jobs.

“This deal comes on top of a Budget that delivers brand new trains for the Tyne and Wear Metro, freezes fuel duty for the eighth year running and supports business with a cut in business rates.”

The ministers were joined in Newcastle by the Mayor of North Tyneside, Norma Redfearn, leader of Northumberland County Council, Cllr Peter Jackson and leader of Newcastle City Council, Cllr Nick Forbes.

Cllr Nick Forbes said: “The devolution deal we have negotiated is our region’s next step towards creating a North-East economy with above average wages and below average unemployment.

“We now have a real opportunity for our region to come together and turn our ambition for more and better jobs into reality.

“Newcastle is already home to national centres of excellence, and this deal builds on our strengths as we look to confirm our place at the heart of modern Britain.”

The three councils decided to go it alone after negotiations for an authority encompassing all seven North-East councils, including Durham, Gateshead, South Tyneside and Sunderland, collapsed last year.

It is understood the three authorities will remain part of the North-East Combined Authority (NECA) despite the landmark devolution arrangement.

A statement issued by NECA said: “Our ambition to provide the best possible conditions to boost growth across the North-East remains.

“All local authorities across the region will continue to work together to create more jobs, investment and increase living standards, ensuring the North-East is an excellent location to do business, live and prosper.”

Durham County Councillor Carl Marshall, portfolio holder for economic regeneration, said: “I would need to fully understand the detail but Durham is committed to working with all of the Northern Local Authorities both North and South of the region to support business and growth throughout the region.

“It is my opinion that we all continue to work together to bring about investment in strategic transport projects such as the resilience on the east coast mainline and improvements to the A1 and A19 corridors to improve connectivity between the north, south, east and west of the country.”