GOVERNMENT communities secretary Greg Clark has hailed the North-East's acceptance of a devolution deal as a “momentous event” in the history of the region.

But Gateshead Council - the only dissenting authority - remains adamant it is not good enough.

Mr Clark was reacting to a decision by six councils to back plans for a deal paving the way for the election of the region’s first mayor in May 2017.

He said: “Over the next 30 years, nearly a billion pounds of public money will be diverted from Whitehall to the North East Combined Authority.

“From 2017 you’ll elect the mayor of the North-East to lead that authority.

“It will be your choice to decide the person directly responsible for policies on transport, housing and skills.

“North-East voters, electing the mayor they want, to enact the policies designed and implemented in the North-East rather than Whitehall.”

But Gateshead Council deputy leader Martin Gannon said the deal was not good enough, adding: “The figure of £30m pound is quite arbitrary and it is not guaranteed for 30 years – no Government can do that.

“We are not against devolution. Many of us, including myself have campaigned for devolution. We feel we are fully capable and better equipped to manage the affairs of the region.

“Our issue is that the deal is not sufficient. Effectively we are getting functions devolved from central government, but with substantially reduced budgets.”

He added: “In terms of investment fund being made available we think that is inadequate – particularly when you consider that across the region in excess a £1bn has been reduced in funding year-on-year.

“If we are serious about having a Renaissance of the region, and Mr Clark is is committed to that, what we need is the resources to make that happen.”

Mr Clark said the mayor would oversee a consolidated transport budget, including franchised bus services and, through Rail North, franchised rail services, leading to smart, integrated ticketing across the North-East.

And the mayor will chair a land commission, to release land for development and housing, while work will begin on the integration of health and social care, to bridge the gap between hospital care and home care.

Mr Clark said: “It’s because I was born and raised in the North East that I’m proud. “This is the start of a completely new chapter for the region finally, in charge of its future.”

Durham, Sunderland, Newcastle, North Tyneside, South Tyneside and Northumberland councils have agreed to move to the next stages of the deal.