BUDGET BREAKTHROUGH
£337m finally on way for new Metro trains and £600m North of Tyne devolution deal done
AFTER months of talks, the North of Tyne devolution deal is finally to go ahead.
Chancellor Philip Hammond announced in the Budget that the arrangement, worth an initial £600m, will be officially launched this week.
Newcastle, North Tyneside and Northumberland will come together to form a new authority which will include an elected mayor.
The three councils decided to go it alone after negotiations for an authority encompassing all seven North East councils collapsed last year.
As well as £600m over 30 years, the government say the deal will include “powers over important economic levers including planning and skills.”
The full details will be revealed tomorrow but it represents the biggest shake-up to local government in the North East for decades.
A joint statement from Nick Forbes, leader of Newcastle City Council, Norma Redfearn, elected mayor for North Tyneside, and Peter Jackson, leader of Northumberland County Council, welcomed the news.
They said: “We are pleased to confirm we have agreed a devolution deal for the North of Tyne with Government. This new, unprecedented devolution of powers and funding offers a once in a lifetime opportunity for the North of Tyne area.
“We have been working with Government since the beginning of the year to agree a deal that builds on our strong track record of creating jobs and nurturing world-leading businesses.
“We have also negotiated for powers that will allow us to help our people develop new skills, improve their job prospects, access more and better homes, and live in an area that is well-connected, vibrant and thriving.
“This deal will streamline decision making on important issues that affect our growth and prosperity, and give us the power locally to decide how we drive economic growth and create confident and skilled communities.
“It comes with a new, directly elected mayor who will provide a strong voice for the area and ensure that we play an active role on a national and international level.
“We are excited to share our ambitious vision for the North of Tyne in full when Government ministers visit the area on Friday to officially launch the deal.”
The region’s business community also backed the move in a statement.
Speaking on behalf of the CBI North East, the North East England Chamber of Commerce, the Federation of Small Businesses, the Entrepreneurs Forum and EEF – The Manufacturers Organisation, said: “Devolving greater powers to the people of the North East is fundamental to business, government and wider society driving forward our economic growth.
“The North of Tyne deal offers a real opportunity to rekindle the pioneering flame here in the North East to improve our skills base, our local infrastructure and create new jobs throughout the region.
“This will only be achieved by a unique partnership between the Government, local authorities and business, and so it falls on all of us to make a success of the new deal.”