Major new powers being handed to two mayors elsewhere in England could be rolled out to the North East as soon as next year, it is hoped.
Chancellor Jeremy Hunt confirmed in his Spring Budget on Wednesday that “trailblazer” devolution deals had been agreed that will hand more control and more money to Greater Manchester's Andy Burnham and the West Midlands's Andy Street. The enhanced packages will include multi-year funding settlements, local authorities retaining 100% of their business rates, and more powers over housing and transport.
Mr Hunt said he planned to take that model to mayors across the country “over time” and the North East could be next in line. A £4.2bn devolution deal that will see a new mayor elected in May 2024 to cover all of Northumberland, Tyne and Wear, and County Durham already includes a commitment to negotiate “trailblazer” status for the region too.
North of Tyne mayor Jamie Driscoll told the Local Democracy Reporting Service that he expects the powers “as soon as we come together as the North East in May 2024”.
Mr Driscoll, who wants to be Labour’s candidate for the expanded mayoral job, added: “There are powers I would like, such as the power to regulate the private rented sector, so that our good landlords are not disadvantaged by unscrupulous landlords who want a race to the bottom. Like getting long term funding settlements, instead of ad-hoc levelling up bids. I have spoken to the Government about both of these things.”
Northumbria Police and Crime Commissioner Kim McGuinness, who is set to be Mr Driscoll’s main rival in the Labour selection race, called the Budget a “missed opportunity to end the child poverty we see in the UK” and said mayors must be “empowered to take the decisions that matter to their local residents”.
Wednesday’s Budget also confirmed that the future North East Mayoral Combined Authority area has been shortlisted as a location for one of the Government’s low-tax new investment zones.
In a joint statement, the leaders of the area’s seven councils said it was “excellent to see faith being put in our region to deliver for our communities”. They added: “We will be discussing the details of the zone with ministers to ensure it is an inclusive proposition for all residents.”
Mr Driscoll added that the Government had “listened to sense” after redrawing previous investment zone plans from Liz Truss’ administration, which were “half-baked” and had sparked concerns over workers’ rights and environmental standards.
Meanwhile, the Chancellor also confirmed that South Tyneside will be part of a £400m collection of new “Levelling Up Partnerships”.
Richard Holden, the Conservative MP for North West Durham, said: “For too long, investment has been too focused on London and the South East. I am delighted that, following the robust campaigning of MPs in our area, the Chancellor has announced the North East and Teesside are being considered for investment worth potentially billions of pounds. I will follow this closely and, along with the other measures announced, look forward to enjoying the tangible impact this budget will have on our towns and villages in North West Durham.”
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