THE region's major towns were promised "home rule" under directly-elected mayors today, with new powers to tackle poverty and cut benefit bills.

Communities Secretary Eric Pickles promised the new-style town hall leaders - including in Middlesbrough and Hartlepool - a key role in tackling 'nuisance families' and getting the long-term jobless back to work.

He also toughened up his war on town hall 'fat cats', urging all chief executives earning more than £150,000 to take a five per cent pay cut - and those trousering above £200,000 to slash ten per cent off their pay.

The colourful Communities Secretary has pledged to introduce powerful elected mayors in England's 12 biggest cities, including Newcastle.

However, the extra powers would also be offered to towns which already have directly-elected leaders, including Middlesbrough (Ray Mallon) and Hartlepool (Stuart Drummond) - but only after a fresh mayoral vote.

Previously, the Tories have hinted the mayors will be 'Boris Johnson-style'

leaders, with responsibility for planning, skills, regeneration and, possibly, transport. But none of those issues were mentioned yesterday.

Instead, Mr Pickles spoke of mayor-led cities putting their own "funding and expertise" into private-sector-led welfare to work programmes, pooling their budgets with government funds.

And he said: "Mayors will be able to help design services specifically targeted at the hardest-to-help families.

"They will be able to add their own budgets - social services, care, housing, health improvement - to the national programmes. This will give mayors the power to change lives and help save money at the same time."

Council spending on early intervention for problem children and families could deliver £10 of savings for every pound spent, he said.

And he added: "I believe elected mayors in cities will be embraced by the public if they have real powers. It's time for home rule for our cities."

It is possible that Middlesbrough and Hartlepool could receive some of the financial rewards under the planned welfare-to-work 'payment-by-results'

system, although no commitment was given.

On the looming cuts, Mr Pickles urged town halls to "share services and work across boundaries" in order to protect front line services and avoid "slash and burn".

And, calling for chief executives to accept pay cuts, he told the conference: "Trust me, you will feel better for it - you'll be able to look your council workers in the eye."