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.
Read More: Labour unrest as top councillors speak out against £3bn North East devolution deal
But Durham Labour chief Carl Marshall has called on the county’s Lib Dem, Tory, and independent coalition leadership to reject that offer to join their northern neighbours in the pact and instead go it alone, claiming that an authority stretching from the Scottish Borders to Barnard Castle would simply be too big to manage. Ministers had previously announced that Durham would be among the first areas in England to be offered a single-county devolution deal, but progress on that has since stalled.
Coun Marshall said that Durham’s Labour councillors “fully support” the other six councils working on their deal, but do not want to be governed by “a mayor sat in Newcastle”. He added: “I think it’s great that Tyne and Wear are in talks to get a proper mayor.
"But I think a patch that would cover Berwick to Barnard Castle is too big, and a mayor for all of that would inevitably overlook some of us. I’m a big advocate of devolution. We need to take power out of the hands of officials in London and bring it back to the North. But a one-size fits all approach will never work.”
Durham Council’s leadership declined to say whether or not it plans to join in the North East deal, with leader Amanda Hopgood confirming talks with the Government are ongoing and that she hoped “to be able to announce the outcome of these discussions soon”.
North of Tyne mayor Jamie Driscoll urged Durham to join the deal, saying the seven council areas had proven through Covid that they are “stronger together as a region”. He added: “We work together successfully and I would like to see us unite because we are stronger together than if we are divided.”
Meanwhile in Northumberland, Labour’s opposition leader Scott Dickinson has warned he too is unconvinced by the deal, accusing the Government of an “infuriating” lack of detail over what funding and powers are on offer. He said: "I've been a supporter of devolution but the information shared doesn't convince me that it's something we should proceed with.
"The devil will be in the detail and until we see more detail, it is a bit difficult to understand or trust what is being presented to the North East. We have a history of being ripped off. I think the councils should proceed, it is just whether we trust the Government to provide a deal that's good for the North East."
Coun Dickinson said he worried that the incoming Liz Truss administration, which has seen Simon Clarke appointed as new levelling up secretary, “might have new ideas” to its predecessor about what to give the North East.
Independent councillor Georgina Hill, an opponent of the deal which created the North of Tyne mayor in 2018, also has reservations. She told the Chronicle: “ If it is the only access to big funding, then you need to consider it - but in the absence of any detail I can't support it."
Responding to the concerns of opposition members, a spokesman for Northumberland Conservatives said: "Discussions have been taking place for a long period of time between leaders and also representatives of the local authorities concerned including the North of Tyne Mayor. It will be understood that the vast majority of those are members of the Labour Party.
"We are not at a decision making stage. Local briefings have been carried out with the leaders of other political groups, while others are about to take place.
"We feel that it is totally right that all members are provided with an update at full council and we are keen to do that. The decision making process is clearly set out. We are not in receipt of detailed information from the Government but we are happy to provide an update, as are the other local authorities."
The Department for Levelling Up, Housing and Communities said that negotiations over new devolution deals in England are “rapidly progressing with the aim of announcing more deals in 2022”. A spokesperson added: “We want to see more areas with a high-profile, directly elected leader who will be accountable to local people and able to deliver for their communities.”
It is thought that the new proposed devolution deal would grant the North East the power to bring bus services back into public control and set their ticket fares at cheaper levels, a £900m transport funding package up to 2027, an investment fund of £35m per year, a yearly £44m budget for adult education and skills, and “major steps” towards the North East reaching net zero emissions. However, bringing Durham into the deal would derail the prospect of the new mayor’s role being merged with the Northumbria Police and Crime Commissioner, as the two would no longer cover the same geography.
Read More:
- Climate change row as Newcastle City Council accused of being 'too slow' in race to reach net zero by 2030
- Council promises action over 'shameful' Newcastle child poverty, but rejects school uniform plea
- £130m push for new jobs and homes as leaders bid to kickstart Northumberland Line regeneration boost
- Nestlé under fire for not halting production at Newcastle factory during Queen's funeral
- Historic building on Newcastle Quayside to be transformed into 'luxury' hotel and restaurant
