What next for North East devolution deal?
2022 came to a close with a huge piece of long-awaited news for the North East that is set to have an enormous impact on our region for decades to come.
Confirmation last week that a £4.2bn devolution deal has at last been agreed between seven local councils and the Government marked a crucial step in bringing vast new money and decision-making powers to the region, after years of political wrangling.
But while the deal has been agreed in principle, it is not done yet and there remains work to do if the election of a new North East mayor is to be held as planned in 2024.
The next step in the process will see all seven councils involved in the deal agree to launch a public consultation on it at cabinet meetings due to be held this month.
Newcastle, North Tyneside, Northumberland, South Tyneside, Gateshead, Sunderland, and County Durham are all part of the multi-billion pound agreement, after a late twist over the last few months that saw Durham jump on board with negotiations that had initially involved the other six.
The North East public will then have eight weeks to have their say on the deal during the public consultation, which is planned to start by the end of this month so that it can be completed before local authorities go into their pre-local elections period.
While the two million residents affected by what would be a major reorganisation of the region’s political landscape will be able to share their views on the devolution deal, there will be no vote on whether or not to accept it.
This is not like the 2004 devolution referendum that was held in the North East, in which 77.9% of voters said no to the idea of creating a regional assembly.
Once the eight-week consultation ends, the cabinets of the seven councils will meet separately again to agree to submit a summary of the public responses to the Government.
Once that is done, it will be down to the Government to get the deal on the Parliamentary timetable later this year so that it can be debated and signed off in the House of Commons.
Approval from Parliament will then pave the way for the North East Mayoral Combined Authority (MCA) to be formally established and for the election of a North East mayor to be scheduled for May 2024.
The new MCA will replace both the North of Tyne Combined Authority and the North East Combined Authority (NECA).
The North of Tyne body came into being in 2018 when Newcastle, Northumberland, and North Tyneside broke away from their four neighbours to the south to secure their own devolution deal.Â
That split came after a previous devolution deal for the region collapsed at the eleventh hour in 2016 amid political disagreements in the North East’s Labour-dominated establishment.
Gateshead, Durham, Sunderland, and South Tyneside were then left as members of NECA, which has no devolution deal or mayor.
This year will also see candidates for the new mayor’s role start to emerge.
North of Tyne mayor Jamie Driscoll has already made clear that he will seek Labour’s nomination for the top job.
His main rival for Labour’s selection is expected to be another former Newcastle councillor, the Northumbria Police and Crime Commissioner Kim McGuinness.
Businessman Charlie Hoult, who stood for the Conservatives at the 2019 North of Tyne election, has already ruled himself out of the running this time.
Tory Tees Valley mayor Ben Houchen has also rejected the idea of throwing his hat into the ring.
The value of the North East devolution deal is being put at £4.2bn and has been touted as the most generous per head in England.
It includes a £1.4bn investment fund to be delivered over 30 years, an indicative £60m a year budget for adult education and skills, and the power to bring the region’s bus network back into public control.
The MCA will not replace any local councils, which will all still exist and have responsibility for the same services they currently do.