THE North-East’s devolution D-Day looked to have been dramatically postponed tonight (Wednesday), after two more councils refused to sign up to the Chancellor’s flagship offer.

Seven North-East councils had been expected to thrash out a final decision on Chancellor George Osborne’s Boris Johnson-style “metro mayor” package tomorrow (Thursday, March 24).

But after Gateshead threw the process into chaos by rejecting the offer outright on Tuesday (March 23), today (Wednesday) both Durham and Sunderland voted to postpone their decisions until further details are confirmed.

Now when the seven councils meet together tomorrow afternoon (Thursday), under the banner of the North East Combined Authority (Neca), they are expected to follow suit and demand more time.

That request is understood to have grudging agreement of the Government, which is focused on the EU referendum, its under-fire Budget and devolution deals for other regions.

Durham County Council leader Simon Henig said the Government had failed to deliver “fair funding” for hard-up North-East town halls or say whether the new North-East mayor would be able to levy taxes; and if the deal went ahead without safeguards it would be setting the region up to fail.

“This needs to be the right decision for the North-East. We need to take the time to get it right,” he said.

His deputy, Alan Napier, said no-one of “sane mind” would sign up until they knew what was going on.

But Newcastle, North Tyneside and Northumberland councils have already backed the deal.

The seventh and final council involved, South Tyneside, will discuss it tomorrow morning (Thursday).

Sunderland City Council leader Paul Watson said his cabinet had given its unqualified support for the principle of devolution and was “minded” to support the proposals, but added: “We will, in the extra time that has been granted by Government, be seeking further clarification on some details before a decision in the week beginning Monday 9 May.”

Conservative businessman Jeremy Middleton, the only person to publicly declare his candidacy for mayor, warned the region risked being left behind. “This delay shows the impact Labour infighting is having on the devolution process,” he added.

The package on offer would see powers over economic development, skills, transport, housing and planning, plus a £30m-a-year investment fund, handed to a North-East mayor to be elected in May 2017.

A Government spokesman said: “The government is making huge progress towards rebalancing Britain’s economy and empowering local areas through the devolution of powers and resources away from Whitehall.

“This is a bottom up process and if any local authority in the end decides it no longer wants to be part of it then we will continue to work with those local partners who do, in order to make this historic opportunity for the North East a reality.” 

Neca will meet at Durham’s County Hall tomorrow (Thursday) at 2.30pm.

A similar devolution package for the Tees Valley, carrying a £15m-a-year investment fund, has already been backed by its five councils, Darlington, Stockton, Middlesbrough, Hartlepool and Redcar and Cleveland.