NEW devolution deals for County Durham and the North East have been welcomed by council leaders.

The government's Levelling Up White Paper published on Wednesday identifies County Durham as one of nine areas selected to take forward proposals for devolved powers.

It will also be invited to agree a Mayoral Combined Authority deal at a later date, meaning the county could have a metro mayor.

The Northern Echo understands the authority hopes to strengthen powers over employment, but is not interested in having a directly-elected mayor.

The devolution deal is expected to be completed by 2022. 

Durham County Council said it will now work with the Government, as well as businesses and residents, to establish how devolution would work for the area.

Read more: Devolution deal could give County Durham more powers on local issues

Cllr Amanda Hopgood, leader of the council, said: "We have worked extremely hard with government to set out why County Durham needs a devolution deal and how this will help us to invest in our local communities going forward. 

"It is fantastic news that County Durham has been selected as one of the nine areas to be taken forward for a deal. We have clearly set out a strong and compelling argument to get to this point and we look forward to further discussions with government on how a deal will work for us. 

"The last two years have been a challenge for everyone, but with more local control over economic regeneration, housing, infrastructure and resources, we can look to the future with confidence and optimism.

The Northern Echo: Teesside towns have kjoined together as part of the Tees Valley Combined Authority, formed in 2017Teesside towns have kjoined together as part of the Tees Valley Combined Authority, formed in 2017

Read more: What's really at stake with Durham's City of Culture bid

"Devolving powers and resources to a local level makes sense - as a large unitary council we are well-placed to maximise all of the resources available to us - and we look forward to working with our partners and stakeholders on how we can join up our services and resources as part of a devolution deal. 

"I can assure everyone that we will be working extremely hard to secure the best possible devolution deal for County Durham and we will set out next steps once we have had further discussions with government."

Labour MP for North Durham Kevan Jones asked Levelling Up Secretary Michael Gove if the devolution deal will replace the £224m per year County Durham has lost since 2010. But Mr Gove took aim at the previous Labour administration, accusing it of "significant maladministration and the waste of resources".

An expanded Mayoral Combined Authority deal for the North East is also planned as well as the creation of a similar deal for North Yorkshire and York.

The Tees Valley and North of Tyne combined authorities currently cater for large areas of the North East but County Durham, Gateshead, Sunderland and South Tyneside do not have access to devolved powers.

Read more: North East areas missing out on millions after funding cuts

North of Tyne Labour mayor Jamie Driscoll has long flirted with the opportunity to unite with other North East authorities. He said: "The Government position to expand the Mayoral Combined Authority for the North East is good news – we’re all the same conurbation. And it puts transport funding on the table.The Northern Echo: North of Tyne Labour mayor Jamie DriscollNorth of Tyne Labour mayor Jamie Driscoll (Image: Contributor)

"To be a good deal for the North East, it will have to increase our existing North of Tyne funds pro-rata"

But he asked Government for more money to be able to deliver more investment to key local issues. 

A joint statement from City of York Council leader Cllr Keith Aspden and Cllr Carl Les, leader of the new North Yorkshire Council, welcomed the white paper’s emphasis on devolution.

“Devolution can unlock significant, long-term, investment for this region, driving growth and contributing to a stronger Northern economy. It has the potential to bring improvements to areas such as public transport, infrastructure, support for businesses, education and skills, benefitting the people who live and work here.

"We hope to see York and North Yorkshire taken forward as the first city-region rural powerhouse to make devolution a reality.”

Keep up to date with all the latest news on our website, or follow us on Facebook, Twitter and Instagram.

You can also follow our dedicated County Durham Facebook page for all the latest in the area by clicking here.

For all the top news updates from right across the region straight to your inbox, sign up to our newsletter here.

Have you got a story for us? Contact our newsdesk on newsdesk@nne.co.uk or contact 01325 505054