THE Government is expected to announce devolution deals for the North-East and the Tees Valley on Friday with the region set to get two elected mayors.

A source close to the Tees Valley bid said they were expecting ministers to arrive at the Stockton headquarters of Tees Valley Unlimited local enterprise partnership to sign off on the agreement on Friday.

It is understood they will then travel north to announce that an agreement has been reached with the North-East over a separate devolution deal.

A source close to the Tees Valley devolution bid said: "We are expecting a significant additional pot of money towards the economic growth and that cash should be given a cautious welcome."

It is understood this will amount to more than £400m over 30 years, which equates to around £15m a year.

Sources suggest this total compares favourably to the devolution deal agreed recently by Sheffield, which is set to receive around £30m a year but has a population of around three times that of the Tees Valley.

However, it is understood the Tees Valley made the agreement with the Government before the collapse of the Redcar steel plant, meaning the area faces much bigger challenges than expected.

North East Combined Authority leaders are believed to have agreed an £1.5bn devolution deal, which equates to around £30m a year from the Treasury.

The announcements follow weeks of negotiations between the Government and political leaders in the region.

It is understood there have been considerable reservations among local leaders about the move to elected mayors.

However, Central Government has insisted that any devolution deal, which could unlock millions of pounds of funding and give the region more control over housing, skills and transport, must be led by a powerful mayor.

Stockton North MP Alex Cunningham said he had not seen the details and he was disappointed that, along with other Teesside MPs, he had not been able to speak to Ministers ahead of the annoucement.

He added: “I’m also disappointed that there is to be an elected mayor because local people haven’t elected for an elected mayor.

“Having said that I understand why local councillors want the additional spending powers that are being offered as part of the deal.

“I hope that it’s real money that is being offered and it doesn’t end up being a pig in a poke, with the elected mayor getting the blame for Government funding cuts.”

Last week, members of the North East Combined Authority, which represents seven of the region’s councils including Durham County Council, said they had agreed to start the next round of talks with Westminster.

Simon Henig, leader of Durham County Council and chair of the North East Combined Authority, said: “Talks today on a devolution offer from Government have been going well.

“Reaching a deal takes time, but leaders have all agreed to move forward to the next stage of negotiations and are all determined to reach an agreement that is good for the North East”.

He added: “Leaders will continue to seek further consultation with the public and other stakeholders and acceptable outcomes to the spending review and legislation currently before Parliament.”

Earlier in the week Ministers were told the North East did want a "Geordie Boris" imposed on them during a debate on the Cities and Local Government Devolution Bill, which sets out plans to hand powers to regions, including the ability to have an elected mayor.

Ronnie Campbell, Labour MP for Blyth Valley, said: "In the North-East of England it seems as though you are imposing a mayor on the leaders and the feeling in the North-East is that they don't want the Geordie Boris.

"If it is all about democracy and sharing democracy why are you imposing the mayor on us?"

But the Communities Secretary Greg Clark repeatedly stressed that there would be no imposition.

He said the bill contains "no ability" for the Government to impose a mayor on an area like the North East.

More to follow.