As the debate about greater devolved powers for the North-East continues, SANDY ANDERSON, chairman of Tees Valley Unlimited, the Local Enterprise Partnership, explains why he believes it is right for councils to join forces in a combined authority

THE trend towards greater devolution of powers from Westminster to cities and regions is likely to continue whatever the outcome of the General Election with the major political parties publicly committed to this policy. The recent announcement about devolved powers to greater Manchester and discussions between Government and the Core Cities, including Newcastle, confirms that direction.

Here in the Tees Valley, the five local authorities have a long history of working together on economic development. About eight years ago, they established Tees Valley Unlimited (TVU), a partnership between the private sector and local government, specifically to address economic regeneration and TVU became the Local Enterprise Partnership (LEP) for the Tees Valley following the last election.

In those eight years, the councils have clearly shown that, in this respect, they are much greater than the sum of their parts.

TVU has a very good reputation with Government. In the last few years, it has worked with several major companies to secure £1.35bn in private sector capital investment supporting the creation of 3,170 new direct jobs and safeguarding a further 1,990.

In addition, more than 40 companies have been helped to secure £60m of Regional Growth Fund grant leading to a further £724m capital investment. Additional funding was also secured to fund the Tees Valley Jobs and Skills Investment Scheme and the innovative Tees Valley Catalyst Fund, but if we are to benefit from increased powers associated with devolution and further diversify our economy, it is clear that we need to respond to the direction Government has set and establish a "combined authority" which would work seamlessly with TVU.

This would be a statutory body giving Government the certainty of structure and accountability necessary to devolve more significant amounts of money and levels of decision making.

It does not mean that the local authorities would merge to create a county council. The local authorities would continue to exist in their own right delivering local services but uniting as the combined authority to concentrate on economic development, business investment, strategic transport and infrastructure and employment and skills.

The rest of the North-East, Sheffield, Greater Manchester, Liverpool and West Yorkshire have already established combined authorities, each with slightly different structures and functions but, unlike most of those, the Tees Valley Combined Authority will hold joint meetings with the Tees Valley Local Enterprise Partnership and its business representatives, while also sharing staff and resources.

We have been pleased to see that business leaders appreciate the advantages a combined authority will bring with the proposal receiving strong backing from the North-East Chamber of Commerce (NECC), the CBI, the Institute of Directors, and the FSB.

James Ramsbotham, chief executive of the NECC, has said: “A combined authority arrangement builds on a strong history of local authorities in Tees Valley working together, which is what businesses want to see. This development would help bring more resources and flexibility into the area to deliver the economic growth of which we know Tees Valley is capable. “

Graham Robb, chairman of the Institute of Directors in the North-East, has said: “We have heard about ‘devo-max’ in Scotland, this proposal is ‘devo-Tees’ and I am happy to welcome it because it promises business a role at the heart of decision-making from the very start. The Tees Valley LEP, TVU, was one of the first LEPs and is one of the most successful. This proposal appears to take the best from its formula and apply it on a wider basis.”

Alison Thain, chairman of the CBI in the North-East, has said: “Business will be pleased that this proposal prioritises economic development and does so in a way that makes the best of existing resources within a new statutory body that could be used to attract a greater share of Government funds to spend in Tees Valley.”

And Ted Salmon, FSB North-East Regional Chairman, said: “Small businesses across the Tees Valley want to see a coherent and long-term plan to help grow the local economy. We welcome the creation of the proposed Combined Authority which should help achieve this delivering jobs and increasing investment across the Tees Valley.”

The Tees Valley already contributes more than £11bn to the UK economy and the experience of the last few years has shown that we can do much more by building on our existing strengths, diversifying our industrial and business base and by exploiting opportunities in new technologies such as industrial biotechnology and low carbon processing.

We have set ourselves the ambitious target of creating 25,000 jobs by 2022 but, with growth now clearly evident, we are convinced that a combined authority, with its emphasis on local decision making, will help make that target achievable and that we can take a more optimistic view of the future.