The agreement, which was announced on Wednesday and would reportedly generate £1.4 billion over the next 30 years, has been hailed as a “major step” by local officials.
As part of a new £1.4bn devolution deal, the North East of England may become the newest region to have a directly elected mayor.
Michael Gove, the Secretary of State for Levelling Up, stated that the new agreement would grant residents of Northumberland, Newcastle, and Sunderland additional authority over skills, transportation, and housing.
In addition, a new mayor would be directly chosen, with elections proposed to take place in May 2024 following a consultation period.
The agreement, which was announced on Wednesday and would reportedly generate £1.4 billion over the next 30 years, has been hailed as a “major step” by local officials.
In addition, the region has been allocated £17.4 million to support the construction of new dwellings on brownfield land and £20 million for redevelopment projects.
Under the city region’s sustainable transport settlement, the new North East Mayoral Combined Authority would also grant local leaders power over up to $563 million to improve local train services.
Mr. Gove referred to the agreement as “historic”
“Devolution is all about allowing regional leaders to determine what is in their people’s and businesses’ best interests,” he said.
“A new mayor will ensure that local objectives in the North East are at the center of decision-making, while our billion-pound funding boost will offer the financial certainty needed to level up the region immediately and for the foreseeable future.”
Local leaders and mayors from across the North East, including South Tyneside Council leader Tracey Dixon and Northumberland County Council leader Glen Sanderson, said in a joint statement, “This is a big step towards obtaining critical decision-making powers and investment for our area.
This would enable us to make decisions based on local needs and spend intelligently on projects that will benefit all residents, communities, and the local economy.
Before a final decision is reached, all councils and combined authorities must study the facts and conduct a public consultation.
“We are glad to have successfully negotiated a proposed agreement that will help us achieve our goals for this region.
This is a significant juncture in our journey, and we will now engage with interested parties to carry the deal to the next phase.
Lucy Winskell, chair of the North East Local Enterprise Partnership, added, “The development heralds new funding and decision-making powers that will unlock the creation of more and better jobs, allow us to seize new opportunities, address issues that are holding us back, and most importantly, compete where we have strengths on a national, sectoral, and global stage, and do so in partnership.”
However, Labour’s shadow minister for leveling up, Alex Norris, accused the government of lacking ambition for the North East.
“Many North Easterners will welcome a greater voice and authority in their region. However, it appears that ministers have already reneged on their initial pledge of £3 billion in extra cash for the North East.
“Britain’s enormous potential is being stifled by the Tory government’s lack of ambition for the country, which is cherry-picking regions for devolution accords, shortchanging communities on prior pledges, and holding back meaningful powers and investment at the center.”