New devolution deal will be 'good news for North East', says Sunderland council leader

Councillor Graeme Miller, leader of Sunderland City Council, said the “substantial” funds coming as part of the £4.2billion North East devolution deal, which will see a regional mayor elected next May, will allow the region to take more “ownership” over key issues.

The proposals will establish a new North East Mayoral Combined Authority, while the existing North of Tyne Combined Authority and North East Combined Authority (NECA) would cease to operate.

Speaking at the latest meeting of NECA’s economic development and digital advisory board at South Shields Town Hall, Cllr Miller said the new body will be able to provide greater support for residents and businesses.

It came as he called for greater focus from the Government to “get on with the key things that matter” such as tackling inflation and supporting economic growth.

Cllr Miller added: “How do they actually work with the Bank of England to build that inflation target down more quickly so that our businesses and our residents start to see light at the end of the tunnel with what is a huge cost pressure for them?

“The good news is we are getting closer to having the mayoral combined authority.

“We’ll start to have a bit of ownership over some of these things but we’re not there yet.”

Concerns were also raised at the meeting around growing national speculation that the Birmingham to Manchester leg of the high speed rail project HS2 could be scrapped due to rising costs.

Cllr Miller said: “Whilst I was always sceptical of the benefits of HS2, or whether we’ll see it [in my lifetime].

“But the business community are genuinely deeply worried about the impact that will have [if the Government axes that part of the project].”

This came after a presentation from officers noted most recent business reports and feedback from local authorities in the area suggested the economy continues to be impacted by high inflation and energy costs.

Cllr Miller added while the new combined North East body, covering Northumberland to County Durham, will provide huge benefits, they will have to be careful about “expectation management”.

He continued: “We’ve got to take into account the needs of Northumberland, we’ve got to take into account the needs of West Durham and the North of Durham.

“I want the mayor, whoever it is, to be down in London four days a week, like the MPs, working on what we’ve agreed as a collective is necessary to make this union successful and that is what the leaders have said.”

The seven North East councils involved in the devolution deal are Sunderland, Newcastle, South Tyneside, North Tyneside, Gateshead, Northumberland and County Durham.

Council officers previously outlined how a further devolution update will come before the seven local authority cabinets around “December time” for final agreement before it is laid before Parliament to allow it to come into force May 2024.

The devolution package includes a £48million per year investment fund to be delivered over 30 years, a £60million per year adult education and skills budget, and the power to bring local bus services into public control.