North East devolution deal 'off the table'
Communities Secretary confirms that it's a 'no deal' for the North East.
Communities Secretary Sajid Javid today confirmed that plans for a devolution deal covering the North East are now off the table.
It follows a local decision earlier this week not to progress with the agreement, which promised a guaranteed investment of over £1billion and would have devolved decisions over key issues including transport, skills and regeneration to a dedicated North East Combined Authority.
A Commons debate planned for Monday, to enable elections in 2017 for the first-ever directly elected North East Mayor, has now been cancelled and the legislation withdrawn.
Mr Javid said he was "very disappointed" that four local authority leaders – in Durham, Gateshead, Sunderland, and South Tyneside – voted against implementing the pro-jobs devolution deal, which would have brought real benefits to local residents, including:
· Guaranteed new funding of £900million - £30m per year for 30 years
· Multi-year transport budget and bus franchising powers
· Strategic planning powers and creation of North East Land Board
· Joint responsibility for an Employment and Skills board and devolved skills funding for adults aged over 19.
However, he said the local decision would be respected, and that the government stands ready to work with those local councils in the North-East that share its aim to boost jobs and opportunities.
Work also continues on a devolution deal for the Tees Valley, with residents there set to vote for their first directly-elected mayor in May 2017. This is alongside other ambitious deals already being taken forward elsewhere – with the clear expectation that they would include plans for directly-elected mayors.
Communities Secretary Sajid Javid said:
“Local leaders in the North East Combined Authority have made a clear decision not to proceed with this ambitious and far-reaching devolution deal for their region – while I am disappointed, it is a decision I respect and so that deal is now off the table.
“It is with regret that we have therefore withdrawn the legislation that would have brought this deal to life, which means local people will miss out on over £1billion of investment, and new powers on transport, planning, and skills.
“Handing power back to Northerners is a key part of our plans to build a Northern Powerhouse and our focus now will be on working to secure a new agreement for residents in those areas committed to progressing with devolution.”
Cllr Paul Watson, chair of the North East Combined Authority, said:
“It is very disappointing that the Government has chosen to end current discussions over North East devolution in this way.
“Throughout this process, all of the seven council leaders in the North East have repeatedly and clearly stated their commitment to devolution and to creating a stronger regional economy.
“And, although we were not able to reach a majority agreement to proceed to public consultation at this present time, we have reaffirmed our commitment to working together with the Government to achieve the right devolution deal for our region.
“Leaders in the North East will continue to fight for our region, to build our economy and create jobs and investment.”