A Labour mayor has pleaded for “stability” in central government to finally push through a devolution deal worth more than £3bn to the North East.
Liz Truss’ resignation on Thursday, after a short and chaotic premiership in 10 Downing Street, and the impending selection of a new Prime Minister presents the latest potential stumbling block to long-running talks over the devolution package coming to fruition. If a deal can be struck in time, a mayor could be elected in May 2024 to govern a new combined authority covering Newcastle, Gateshead, Northumberland, North Tyneside, South Tyneside, and Sunderland – and possibly Durham too, after the county’s leadership announced last week that they wanted to join the alliance.
The proposals would bring a raft of decision-making powers and new funding to the region and have been close to being signed off since the closing weeks of Boris Johnson’s reign. With the latest upheaval in Westminster set to see responsibility for finally sealing the devolution deal pass to yet another set of ministers, local officials are now left waiting to see who takes charge next and what their priorities will be – with Mr Johnson, Rishi Sunak, and Penny Mordaunt touted as the contenders for PM.
Read More: Labour demands end to 'Tory horror show' as calls for general election grow after Liz Truss quits
North of Tyne mayor Jamie Driscoll told the Local Democracy Reporting Service that he believes the government is “still keen” to get the long-awaited agreement over the line, but admitted "it’s never done until it’s done". The Labour mayor said: “Some stability in central government would be welcome for lots of reasons. I’ve become pretty adept at dealing with Westminster chaos – I’ve worked with seven different local government ministers under five different chancellors to get this draft deal ready to go.
“The money’s allocated in the departmental budgets. Government tell me they’re still keen. We’re still talking to civil servants every day. The Treasury’s own Gateway Review on our value for money has said how remarkably well the North of Tyne has performed.
“And the new PM will need some good news to announce. So it’s never done until it’s done, but it will bring well paid jobs, investment and improved transport to the North East, which is a win for everyone.”
A previous devolution deal that would have covered all seven of the North East council areas broke down in 2016 amid political rows between the region’s Labour-run councils. Newcastle, North Tyneside, and Northumberland subsequently broke away to form their own North of Tyne Combined Authority (NTCA), for which Mr Driscoll was elected mayor in 2019.
The new draft devolution deal, which has been subject to months of negotiations between Whitehall and local council officials, would be worth more than £3bn in government funding over 30 years. It includes a £35m per year investment fund, a £900m transport funding package up to 2027, a yearly £44m budget for adult education and skills, and crucial decision-making powers including the ability to bring bus services back into public control.
Durham’s bid to try and join the agreement has sparked new doubt in recent days, with leaders of the other six councils involved known to be split over whether to let the county in. It is understood that there have been concerns about making eleventh hour changes to a deal that was so close to being agreed, particularly with the uncertainty at the heart of the government, while Labour MPs and opposition councillors in Durham have been vocal in their opposition to the idea of an ‘LA7’ deal.
Mr Driscoll has been among the Labour figures demanding a general election be called, but he warned that “turkeys don’t vote for Christmas, so there’s a long to-do list” in the North East for the next Tory leader. He added: “The mini-budget reaffirmed the delivery of Northern Powerhouse Rail in full, which includes reopening the Leamside Line. That will allow us to bring Washington onto the mainline rail network, complete the Wearside Loop for the Metro, and create the capacity to improve train services throughout the North East.
“We also need the powers to integrate our buses with the rest of the transport system and have joined-up ticketing, especially in rural areas – that’s in the devo deal. Ultimately, though, we need to reverse austerity. You can’t have a prosperous country when millions of people are dependent on foodbanks.”
Read More:
- 'Unwelcome' fare hike for bus passengers as major operator Go North East announces new ticket prices
- Staff working with refugees accused of 'wanting to just clock off' after damning Newcastle hotel probe
- New Grey Street vision unveiled – as council confirms plans to remove bollards and axe parking spaces
- Newcastle city centre bar granted later closing time after vowing to avoid student bar crawls
- MP warns that new Newcastle leisure centre plans 'undermined' by government chaos as costs rise to £26m
