A proposed £1.4bn devolution deal in the North East will provide investment in adult education, public transport and affordable housing
Levelling up secretary Michael Gove has announced a deal promising devolution investment in North East England, which will empower a new elected mayor with powers and funding to bolster the region.
The £1.4bn devolution deal would cover Northumberland, Newcastle, North Tyneside, Gateshead, South Tyneside, Sunderland, and County Durham under a new mayor of North East. The mayor would be elected by residents of these areas, approximately 2 million in number.
The deal will provide 30 years of funding for affordable housing and public transport development
Longer term planning will be facilitated by a guaranteed £1.4bn over the next 30 years towards the new North East Mayoral Combined Authority (MCA).
There will be a funding pot available to help place based regeneration across the region, offering half a billion pounds to upgrade public transport through a new City Region Sustainable Transport Settlement and further funding to provide immediate support to build new affordable homes on brownfield sites.
Education and skills
The deal provides the region with powers to better improve local skills through full devolution of the Adult Education budget and a greater say over the Local Skills Improvement Plan, which brings together local businesses, colleges, and training providers to identify the skills needed to support local growth
Housing and regeneration
The North East will receive £17.4m to support and accelerate the building of new homes on brownfield land, as well as £20m to level up and kick start regeneration, delivering new affordable homes and green economic growth across the region.
Transport
A new City Region Sustainable Transport Settlement with government will give the North East control of up to £563m to help shape and improve local rail services across the region, as well as the ability to introduce bus franchising.
Bringing more autonomy and development to the North East
Lucy Winskell OBE, Chair North East Local Enterprise Partnership, said:
“This devolution deal is a hugely positive move for the region and marks a step change in our levelling up journey. The region has come together and is committed to seeing the North East succeed.
“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 critically, to compete where we have strengths on a national, sectoral and global stage, and most importantly to do this in partnership.
“As things progress, the North East LEP will come together with the new mayoral combined authority, allowing for a co-ordinated approach with one strong voice and a laser focus on delivery of everything this proud region and its diverse communities need to thrive.”
The deal is awaiting parlimentary approval
The new North East MCA will replace the existing North of Tyne MCA and Mayor, as well as the non-mayoral North East Combined Authority.
This will bring the region together and provide a more strategic economic geography, which encompasses the whole Tyne and Wear region, as well as Northumberland and Durham. These changes are subject to the statutory processes, including local consultation and Parliamentary approval.
If the proposed devolution investment deal goes ahead, the election for the new mayor of North East will take place in May 2024.
