North East leaders sign devolution deal that sees creation of new mayor

A £1.4 billion devolution deal including Northumberland, Newcastle, North Tyneside, Gateshead, South Tyneside, Sunderland, and County Durham. Credit: PA/ITV

A £1.4 billion deal that will create a new mayor in the North East has been signed.

Levelling Up secretary Michael Gove and North East leaders signed the agreement on Friday 27 January.

The deal includes £1.4 billion of funding for the region over a period of three decades, with the new regionally-elected mayor handed powers over areas including transport, skills and housing.

The North East Mayoral Combined Authority (MCA) will bring together Northumberland, Newcastle, North Tyneside, Gateshead, South Tyneside, Sunderland, and County Durham.

What we know so far about the devolution deal:

What does the devolution deal include?

  • A promised £1.4 billion in government funding delivered over the next 30 years.

  • Fresh powers over the adult education budget and a greater say over the local skills improvement plan.

  • A promise of £17.4 million to support the building new homes on brownfield land, plus £20 million for regeneration projects.

  • Local leaders would also be given control of up to £563 million to improve local rail services.

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When will the new mayor be elected?

It is expected that elections for the role of mayor would take place in May 2024.

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Mr Gove said: “Devolution is all about letting leaders who live and breathe the region decide what is in their best interests, for their people and for their businesses.

“A new mayor will ensure local priorities in the North East are at the heart of decision-making, while our billion-pound funding boost will provide the financial certainty needed to level up the area right now and for years to come.”

In a joint statement, local leaders and mayors across the North East welcomed the news, and said: “This is a significant step towards securing important decision-making powers and investment for our region.

"This would allow us to make decisions that reflect local needs and invest wisely into projects that will make a difference for all our residents, communities and local economy.

“We are pleased that we have successfully negotiated a proposed deal which is a step towards reaching our ambition for this region.”

The new MCA will replace both the North of Tyne Combined Authority and the North East Combined Authority (NECA).

The North of Tyne body was created in 2018, covering only Northumberland, North Tyneside and Newcastle - with elected mayor, Labour's Jamie Driscoll.

The deal will not affect the Tees Valley Combined Authority, which brings together five council areas - Middlesbrough, Stockton, Hartlepool, Darlington and Redcar and Cleveland - with a directly-elected mayor, Conservative Ben Houchen.

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