Councils take next step to devolution

NORTH OF TYNE BODY COMES A STEP CLOSER

Reporter A North of the Tyne breakaway has moved one step closer as Tyneside councils vote to move towards leaving the North East Combined Authority.

Newcastle and North Tyneside’s council cabinets last night approved a withdrawal from the group (NECA), which is currently responsible for some transport and economic issues across the region.

Northumberland County Council, also a NECA member, was set to vote on the same decision today.

It follows the signing of a landmark devolution deal with the Government in November, which agreed the three authorities were “minded to” set up their own more independent partnership with an elected mayor and a raft of new powers.

The current combined authority contains Gateshead, South Tyneside, Durham and Sunderland councils, who were part of early talks for North East devolution which collapsed.

They would continue to make up NECA if the three northern authorities do leave.

The move will trigger a formal public consultation on the move, which will start this week and is set to come to an end at the start of February.

Depending on the outcome of that consultation, as well as agreement from the Government, Newcastle’s council cabinet were told the new Northern combined authority would be set up around summer 2018.

As part of the devolution deal, the North of the Tyne authorities would be headed up by an elected mayor.

He or she would also have influence on a national level in issues such as Brexit.

On the creation of the new authority, an interim mayor would be appointed, holding some - but not all - of the powers of an elected mayor, with elections for a full mayor likely to be held in May 2019.

The deal is set to give the councils direct control of money for housing, improving education and schemes for business improvement and job creation.

Nick Forbes, leader of Newcastle City Council, told his cabinet yesterday: “I think this is an extremely good first deal.

“It represents a very encouraging step forward for the region and I think it is a great opportunity for us to start shaping our future.”

According to reports seen by the cabinets, the new authority would continue to “collaborate” with the smaller NECA through a proposed joint transport committee and the North East Local Enterprise Partnership, which will be maintained.

The report argues the new £600m devolution deal will benefit the southern authorities as well.

It is estimated 25% of the predicted 10,000 jobs created by the agreement will be taken up by residents of the authorities outside the deal.