THE first £15million of a plan to devolve power to the Tees Valley was transferred today (Thursday, Sept 29).

Northern Powerhouse Minister Andrew Percy announced the first stage of the devolution process, which will see £450million spending power come to the area over the next 30 years.

Business leaders in the region welcomed the deal, saying it increased local employer confidence to grow and invest.

The cash is part of the deal signed last October and the Tees Valley Combined Authority will be tasked with how to spend the money.

This new authority was created in April, comprises five councils from across the area, and will be chaired by the region's first-ever directly-elected mayor, with elections due to take place in May 2017.

Middlesbrough Mayor David Budd, chairman of Tees Valley Combined Authority said: “The Tees Valley has ambitious plans to create jobs and grow the local economy. Devolution gives us the opportunity to deliver locally-led initiatives to transform our economy – far more effectively than decisions made behind a desk in Whitehall.

“We will invest it in local priorities which give people the skills they need, and the jobs our region needs for a successful future. We will continue our dialogue with Government to secure further commitments, and to become a flagship for successful devolution.”

The deal means decisions will be made locally on transport, including local bus budgets, adult skills and training and driving forward regeneration projects.

Business leaders welcomed the announcement of the first transfer of £15million.

Nigel Mills, chairman of the Entrepreneurs' Forum, which represents more than 300 North-East businesses with a combined annual turnover of £2.3billion and 22,000 employees, said: "This progress with the devolution deal will give local entrepreneurs the confidence to grow their business and create much-needed jobs."

Chris McDonald, chief executive officer of the Materials Processing Institute, said: "Receiving the first payment towards implementing the region's long-term ambitions is a momentous occasion, which will underpin the capacity of the area to realise its potential, capitalising on our centuries of expertise."

Steve Grant, managing director of TTE Technical Training Group, said that a skilled workforce was essential to the future economic and social prosperity of Tees Valley, and called the move "an excellent vote of confidence in the area".

Northern Powerhouse Minister Andrew Percy said: "With powers over transport, training and regeneration all coming back into Teessiders’ hands, local people will also now have the chance to head to the polls and vote for a powerful new Mayor to put them into practice."

Nine areas across the country will see devolved powers, eight of which with directly-elected mayors.