A ‘minded to’ devolution deal with the North of Tyne authorities will see an elected mayor for the area placed in charge of devolved infrastructure funding from 2019.
Once a consultation process is complete and all seven constituent authorities of the existing North East Combined Authority consent to the deal, the minded-to deal will become a binding agreement and the new combined authority will be established with elections.
The new combined authority would cover the 815,000 people living in Newcastle, North Tyneside and Northumberland.
While all seven North East councils would have to support the plans, four have previously rejected devolution when a previous devolution deal was shelved in 2016 after Sunderland, Durham, Gateshead and South Tyneside councils opted out.
The potential deal will see £600m of investment in the region over 30 years and create a new mayor elected in 2019 with powers over planning and skills.
The Budget last week also revealed that the area would be handed £337m from the National Productivity Investment Fund to replace the Tyne & Wear Metro’s nearly 40-year-old rolling stock with modern energy-efficient trains.
The North of Tyne area will also get:
- full control over the adult education budget
- an Inclusive Growth Board to coordinate skills and employment
- collaboration with government to boost trade and investment, digital infrastructure and rural growth across the area
The Government estimates the deal will boost the local economy by £1.1bin, creating 10,000 new jobs and attracting £2.1bn in private investment.
Northern Powerhouse minister Jake Berry said: 'With a strong voice in a new mayor, a new Wear crossing and the globally-significant Great Exhibition of the North, this is a new golden era creating jobs, growth and prosperity for the resurgent North East.'
Norma Redfearn, elected mayor for North Tyneside said: 'We will be able to invest in our infrastructure to support existing businesses and attract new ones, and make the North of Tyne an even better place to live.
'It’s vital that the North of Tyne has a strong voice as the country makes important decisions about its future. This deal gives us a seat at the table with other mayors, where we can fight for the needs of our residents.'
Cllr Peter Jackson, leader of Northumberland County Council, said: 'In particular, we have been asking government to help us significantly improve the educational attainment in our schools and I am delighted that we have been given the opportunity to introduce an Education Improvement Challenge for the area. This will be the first outside London.
The Government said it will commit to review 'business cases brought forward for further investment in areas where the North of Tyne hosts nationally or regionally significant innovation assets science and research strengths – including in offshore and energy, digital (including data, 5G and Building Information Modelling), culture and creative industries, and life sciences and ageing'.
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