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Chronicle Live
Chronicle Live
National
Daniel Holland & James Robinson

Labour unrest as top councillors speak out against £3bn North East devolution deal

Top Labour figures in two North East counties have aired major worries about a proposed £3bn devolution deal for the region.

Opposition councillors in both County Durham and Northumberland have spoken out over the proposal to unite up to seven council areas under a new North East mayor from 2024. The long-awaited deal is known to be close to completion, but the latest unrest will stir memories of the acrimonious collapse of a previous North East devolution package that fell apart at the eleventh hour in 2016 amid political disagreements between the region’s warring Labour administrations.

Talks between council officials and civil servants have been happening behind the scenes for months over a new deal worth more than £3bn over 30 years, that could create more than 17,000 jobs and hand local leaders decision-making power over crucial issues including transport. The plan had been to create a new mayoral combined authority covering Newcastle, North Tyneside, Northumberland, Gateshead, Sunderland, and South Tyneside – but the Chronicle revealed earlier this month that County Durham had been offered the chance to join and given a deadline of mid-October to decide.

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