North East and Tees Valley strike historic devolution deals

He added: “It will also enable us to accelerate the growth of our local economy, safeguarding existing jobs and creating many new ones, and it places Hartlepool in prime position to secure a replacement for its existing power station, which alone generates £40m a year for the local economy”. “In certain areas… they are hoping to break up the powers of locally elected Labour local authorities in the hope that, if they have an elected mayor, they will either get an independent or someone who claims to be independent but is actually a member of the Conservative party”.

The region will be presided over by an elected mayor who will be a key figure in what is being called The Northern Powerhouse.

The North East Combined Authority, which comprises the councils of Durham, Gateshead, Newcastle, North Tyneside, Northumberland, South Tyneside and Sunderland, will receive a total of £30m a year over the next 30 years.

Simon Henig, leader of Durham County Council and chair of the North East Combined Authority, said: “Talks today on a devolution offer from Government have been going well”.

 The creation of an Employment and Skills Board to manage an overhaul of post-16 skills training and employment support in order to get more people into work, increase productivity, improve the life chances of young people and address the skill shortages experienced by North East employers.

A North East mayor must be a powerful leader that can bring growth and prosperity to the region.

The commission will look at the potential for integrating health services, including acute and primary care, community services, mental health services, social care and public health. This will include the creation of a North East Land Board to identify potentially suitable locations for housing or economic development and the devolution of a few statutory planning powers.

The agreement is a first step in a progressive process of devolution, which paves the way for opportunities for further devolved powers and responsibilities to the North East.

Chancellor George Osborne will hail the “unstoppable momentum” in the drive to strike devolution deals with cities and regions, as the North East today becomes the latest area to make a historic agreement with the Government to take on new powers.

The Tees Valley deal is worth £450m over 30 years, and provides for the transfer of significant powers for employment and skills, transport, planning and investment from Whitehall. A comprehensive review and redesign of the education, skills and employment support system is also planned.

In response to the announcements, Alexandra Jones, chief executive of think tank Centre for Cities, said investment funds included in these deals will enable local leaders to undertake “ambitious” infrastructure projects that will better connect people to jobs, and businesses to customers.

“[James Wharton, the minister for the northern powerhouse] should admit that he wants to impose an elected mayor on the north-east irrespective of what local people or local politicians want”.

“It will give us a much greater say in our own destiny, and strengthen our ability to compete on equal terms with other city regions both at home and overseas”.

A directly elected Tees Valley mayor would work alongside the leaders of the five local authorities in the combined authority.

On behalf of all of the NHS Clinical Commissioning Groups in the region, the North East and Cumbria CCG Forum welcomed the opportunity to explore improving health outcomes of patients and reducing health inequalities by considering greater integration, deeper collaboration and devolution across the North East Combined Authority area.