North East devolution 'may create more than 17,000 jobs'

A devolution deal to unite North East councils and elect a regional mayor could be worth more than £3bn in government funding, it has emerged.

A document seen by the Local Democracy Reporting Service revealed a deal could also create 17,000 jobs.

The proposal is to create a combined authority of Gateshead, Sunderland, South Tyneside, Newcastle, North Tyneside and Northumberland.

A previous deal failed in 2016 amid a political split.

This led to Newcastle, North Tyneside, and Northumberland forming the North of Tyne Combined Authority (NTCA).

However, the LDRS said a package to mend the divide between the councils either side of the River Tyne and hold a mayoral election in May 2024 was edging closer to being agreed.

County Durham would be excluded from the deal because it is pursuing a single-county devolution deal instead of joining a region-wide body.

A presentation being given by local authority chief executives to councillors, a copy of which has been seen by the LDRS, revealed the draft deal was "stable enough" to discuss with council leaders before negotiations with government officials begin. 

The £3bn-plus settlement would include the "full suite of powers" already available to mayors in other parts of England.

This would include the ability to bring bus services back into public control and set cheaper ticket fares and a £900m transport funding package up to 2027.

It is hoped the deal would create 17,516 new jobs, build 2,627 new homes and provide "major steps" towards the North East reaching net zero emissions, according to the LDRS.

The deal could also see the new mayor's role merged with that of the Northumbria Police and Crime Commissioner, as both would cover the same geography.

Included in the draft proposals is an investment fund of £35m per year, a yearly £44m budget for adult education and skills, and commitments to regenerate brownfield housing sites and high streets across the region.

If local council leaders agreed on the deal there would be a public consultation and a full council vote in each area.

A parliamentary order would then be required to formally establish the new body.

A NTCA spokesman said: "We have collectively set out our expectations for government to match our ambition to make a difference for our residents, communities and economy and where each local authority, combined authority and all stakeholders can see clear benefit for their place.

"We are seeking a proposal from government which contributes to the recovery of the region following the Covid-19 pandemic.

"We expect discussions will continue but at this stage nothing has been agreed."

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