Devolution deal ‘a massive boost’ for the region
A NEW ‘trailblazer’ deal for the North East has been hailed as a massive boost for the region, but critics have accused Jeremy Hunt of a huge missed opportunity in his Budget.
The Chancellor confirmed on Wednesday that the region will get deeper powers under an upgraded devolution deal, ahead of the election of the first ever North East mayor in May.
That agreement, which Mr Hunt said would be worth more than £100m, is expected to result in the new Crown Works film studios being built on Sunderland’s riverside.
Some £10m is also due to be invested into a ‘health innovation zone’ in Newcastle, while the incoming mayor and their combined authority will be given greater freedom over housing and regeneration plans across Northumberland, Durham, and Tyne and Wear.
John McCabe, chief executive of the North East Chamber of Commerce, said the confirmation of the Crown Works project marked a “huge moment for the North East’s creative industries and for the region’s business landscape”.
He added: “The announcement of a trailblazer devolution deal for our new North East Mayoral Combined Authority is a massive boost for the region.
“It will be warmly welcomed by our members and demonstrates the Government’s belief in the North East to get the job done.
“This deeper, broader deal worth £4.2bn demonstrates the best of the North East in action – collaboration across geography, business and politics to deliver for everyone in our region.”
Northern Powerhouse Partnership chief executive Henri Murison hopes the ‘trailblazer’, versions of which have previously been agreed with Greater Manchester and the West Midlands, will “mark the beginning of the end for our overly centralised state”.
But he expressed concerns that the Chancellor, who also announced a 2p cut to National Insurance and the end of the non-dom tax system, had not delivered the support needed for cashstrapped local councils.
He added: “The situation facing local government is dire and cutting personal taxes leaves no scope for a much-needed injection of funding.
“This means that our local property tax system – including council tax – will shoulder more and more of a burden.” A six-month extension to the Household Support Fund will have offered some comfort to local authorities fearful about the disappearance of money that had been used to provide things such as free school meal vouchers and cost-of-living support for struggling families.
Michele Deans, interim chair of the North East Child Poverty Commission, said that was an “immediate relief”.
But, she warned that the Budget “brought us no closer to the joined-up, ambitious, long-term Government plan to tackle unacceptably high levels of child poverty that our region, and the rest of the country, so desperately need”.
She added: “This makes the additional funding announced today through the new North East ‘trailblazer’ devolution deal even more important for babies, children and young people in the northern part of our region – and it is vital that the new North East combined authority and mayor ensure this funding is used to reduce levels of poverty and hardship for families, both immediately and longer-term.’
Jamie Driscoll, the independent North of Tyne mayor, welcomed the announcement, which is set to give the region “more influence over how central government policy affects our region on housing, energy and biodiversity”.
But Mr Driscoll, who is standing to be the North East mayor, claimed there had been a “huge missed opportunity” to help “crumbling” public services, saying: “We need a wealth tax, and extra devolved powers to incentivise investment.”
Guy Renner-Thompson, the Conservatives’ mayoral candidate, said the ‘trailblazer’ was “fantastic news” that “puts us up there with Manchester and London” in terms of devolved regional power.
Labour candidate Kim McGuinness, currently the Northumbria Police and Crime Commissioner, agreed that the agreement was a “big step forward for our region” that put the North East “finally on an even footing” with Manchester.
However, she raised concerns about the early release of £58m of maintenance funding for the Tyne and Wear Metro being only a “short-term stopgap” and “firmer assurances” being needed about how much funding will ultimately be awarded to make sure the Crown Works Studios become a reality.