North-East devolution a step closer to reality after deal for elected mayor is agreed

The only dissenting vote was from Gateshead Council, but its outgoing leader Cllr Mick Henry pledged to keep open dialogue with Government and has not closed the door on the deal.

Today’s decision by the North East Combined Authority (Neca) Leadership Board, meeting at Durham County Hall, follows detailed negotiations with Whitehall and paves the way for election of the region's first mayor in May 2017.

Simon Henig

Neca chairman Cllr Simon Henig said: “We feel that we are now in a position to move to the next stage of the devolution process, which will be the creation of a mayoral combined authority for the North-East.

“Through this process we have built some very positive relationships, particularly with the business sector, and I believe there has been a real meeting of minds in terms of the priorities for our region, in terms of investment and particularly around transport.

“There is still work to do in terms of continuing dialogue with Government but this decision will enable important decisions affecting our region to be made locally instead of in London.”

Durham, Sunderland, Newcastle, North Tyneside, South Tyneside and Northumberland councils threw their weight behind moving forward to next stages of the deal, including a second order, to be laid in October.

The package on offer would give the region some powers over economic development and and skills, transport, housing, and planning, with the region getting £30m a year over the next 30 years and control over other investment.

Cllr Mick Henry

Cllr Henry said: “We support genuine devolution in the North-East, but we feel the current offer from Government is not good enough.

“However we will continue in open dialogue with the Government and with neighbouring authorities and local partners to make sure of the best possible outcomes for Gateshead and the North-East.”

North East Chamber of Commerce chief executive James Ramsbotham said: “It is very positive to see the North East Combined Authority pressing ahead with a devolution deal, just as the Tees Valley is.

“This deal will allow us to tailor policies in areas like skills and infrastructure investment to the economic condition of the North-East."

Millionaire businessman Jeremy Middleton, who became the first person to declare himself a mayoral candidate, said: “This is a big step in the right direction for the North-East.

"It is the start of a long journey that will hopefully see a whole host of decisions and budgets devolved from Westminster to a local level.”