Sunderland leaders approved next steps for North East devolution deal

Sunderland City Council this week played its part as the last local authority in the region to make progress towards a £4.2 billion devolution deal that will see a regional mayor elected next May.

The proposals would bring a range of new powers and funding to the region, with local leaders stating the move would improve transport, housing, jobs and investment in the North East.

At the latest meeting of Sunderland City Council’s Labour cabinet on November 9, 2023, councillors agreed to consent to the making of a statutory order which would bring in the North East Mayoral Combined Authority.

The order involves abolishing the existing North East Combined Authority and North of Tyne Combined Authority and replacing them with the single body which encompasses seven council areas in the region.

Sunderland City Council is the last local authority of seven to give final approval to the devolution deal, paving the way for expected government approval and an election next year.

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

Councillor Graeme Miller, leader of Sunderland City Council, said it was considered that the new mayoral combined authority would “unlock significant benefits for the region and its people”.

Cllr Miller continued: “The devolution deal would enable access to £4.2 billion of funding over a 30-year deal cycle, together with devolved powers to better shape skills provision, housing, regeneration and planning, transport, arts and culture, heritage and sport, digital connectivity, clean energy and public service reform”.

During the cabinet meeting at City Hall, Lib Dem opposition councillor Ciaran Morrissey questioned the level of public support for the new deal.

Cllr Morrissey said: “The experience of devolution that we have had so far hasn’t been beneficial and has been centred on Newcastle.

“The people of Sunderland were never asked to approve this devolution deal.

“It really ought to be noted that this is something that has been sent to us by Central Government that our local government leaders have been asked to agree on behalf of Central Government, rather than it being a grassroots movement or something that the people in this region have wanted or asked for”.

Patrick Melia, Sunderland City Council’s chief executive, said the current devolution deal had been subject to “robust public consultation” with the business sector, universities, the health sector and the wider public.

The senior council officer also denied the deal had been “imposed” on the region and said it would make a “real difference” to the economy of the North East.

He added: “There was overwhelming support through that public consultation which lasted for several months on the deal, so there has been public consultation.

“It hasn’t been imposed on the region by government, the leaders of the local authorities have negotiated the deal on behalf of the region, and negotiated more money per head of capita than any other devolution deal done in this country.

“So it’s been done for the right reasons to bring more funding to the region and to create jobs, employment opportunities and make a real difference to the economy of the North East”.

The establishment of the new combined authority is not expected to impact core statutory services councils are responsible for delivering, with the new body taking new decision-making powers coming down from Central Government.

Sunderland City Council’s chief executive, in consultation with the council leader, is expected to issue the local authority’s formal consent to the Secretary of State when requested and “take all other steps necessary to implement” the proposals.

The £4.2 billion devolution package includes a £48 million per year investment fund to be delivered over 30 years, a £60 million per year adult education and skills budget, and the power to bring local bus services into public control.

Council reports state it is anticipated the Secretary of State will issue his request for the councils and combined authorities to consent to the making of the order in December, 2023, or January, 2024.

Should it progress as expected through Parliament early next year, an election will be held in May, 2024, to choose who the new mayor of the North East will be.

The first attempt at uniting the area’s seven councils under a mayor fell apart in 2016, with Gateshead, Durham, Sunderland, and South Tyneside pulling out of that original devolution deal.

This led Newcastle, North Tyneside, and Northumberland to negotiate their own deal with the government and form the North of Tyne Combined Authority (NTCA) in 2018.

Both the NTCA and non-mayoral North East Combined Authority will be abolished under the new deal.

Following the election for the new North East mayor next year, the new combined authority is expected to come into existence.