THE region’s town halls would be handed new responsibilities over education, skills training and energy, under a Labour leadership contender’s plans.

Yvette Cooper will today (Thursday, July 2) seek to outflank her rivals - and David Cameron’s devolution drive – by pledging to go further than either in loosening Whitehall’s grip on power.

Speaking in Harrogate, the Shadow Home Secretary will also call for extra help for towns and rural areas, as well as big cities, to strike devolution deals.

In this region, the debate has focused on the powers sought by the North-East Combined Authority (NECA), stretching from County Durham to the Scottish border.

However, Darlington, Middlesbrough, Hartlepool, Stockton and Redcar also hope to join forces – the first act to achieving devolution, under Government rules.

Ms Cooper will tell the Local Government Association (LGA), that she wants devolution to combined authorities to include:

* Education – with responsibility for “driving up school standards” transferred from Whitehall.

* Skills training for 16-19 year olds in further education – currently controlled centrally by the Education Funding Agency.

* Energy – with help given to authorities to generate low-carbon energy and sell it on the market.

Ms Cooper will say: “We need sustainable investment and devolution for all parts of the country.

“And it needs to break new ground in devolving skills for younger people, powers on energy policy, skills and education standards.

"Most areas have not yet achieved real change despite years of rhetoric from the Chancellor – and many other areas have received a second class devolution deal purely because they won’t buy into elected mayors.”

Ms Cooper will also pledge to bring together Shadow Cabinet members and Labour local government leaders in policy making.

It follows a promise by Liz Kendall – another Labour leadership contender – for town halls to run back-to-work schemes, by scrapping the privately-organised Work Programme.

Meanwhile, in his speech to the LGA conference, Local Government Secretary Greg Clark will argue local areas have a “once in a lifetime opportunity to be masters of their own destiny”.

And he will tell council chiefs: “Those who are prepared to organise to be more effective and more efficient should be able to reap the rewards of that boldness.

“Take power now. Don’t let yourself, any longer, be ruled by someone else.”

Mr Clark is poised to meet with leaders of the NECA, where he will repeat Chancellor George Osborne’s message that they must accept a ‘metro mayor’ in order to win significant extra powers.

The rewards could be extensive powers over transport – including to run bus services – planning, housing, the police and to integrate health and social care budgets.