Chamber Supports Devolution Deal as Route to Greater Power for North East
Date published:
The North East England Chamber of Commerce has written to local authorities and the combined authority to call for a strong business voice at the heart of the new North East Mayoral Combined Authority (NEMCA).
The letter supports the consultation on the devolution deal for the North East and, through in depth engagement, identifies the priorities, needs and concerns of the region’s businesses.
In the submission, John McCabe, Chamber Chief Executive, noted that the business community of the North East has spoken with one voice in support of this new settlement.
John said: “Our members are clear that broader, deeper devolution in the North will benefit the whole of the region, through stronger institutions, greater collaboration, and more powers to drive stronger, fairer growth. On behalf of our membership, we are pleased to provide these comments in support of that shared goal.”
The expanded devolution settlement, covering the seven local authorities across Northumberland, County Durham and Tyne and Wear, offers a potential £4.2billion of investment, and is expected to create 17,500 extra jobs and leverage £3.7billion of private sector investment.
The Chamber’s devolution submission recognises the devolution deal as a strong start on the journey to ensuring that more decisions which impact the North East are made by local people who understand the region best. Strengthening local leadership will allow for more flexible and innovative responses to local need.
Recommendations from the Chamber for the new combined authority include a call for a strong business voice at the heart of new governance arrangements and a prioritisation of investment in transport and skills across the seven local authority (LA7) areas.
Chamber members recognise the LA7 as a coherent economic area. The creation of a combined authority from Northumberland to County Durham will enable more collaborative working across the region. Decisions must be made that benefit the North East in its entirety and reflect the unique characteristics of the region’s towns, cities, coastal and rural areas.
John added: “The devolution deal provides the opportunity for the North East to have control over the foundations of future growth, and businesses are committed to playing their role in driving this growth.
“Collaboration and communication with businesses and local people will enable the combined authority to understand the needs of communities, and Chamber members look forward to engaging with the new authority.”
The flexibility to meet local skills needs and decide priorities for the region is a significant opportunity for growth. The Chamber is currently working to understand what employers in the region need from the skills system and will deliver Local Skills Improvement Plans (LSIPs) in the current North of Tyne area and Tees Valley.
These LSIPs will show that investment in affordable, joined up transport infrastructure and partnerships with the private sector will connect people with opportunities and drive inclusive economic growth.
Thomas Lonsdale, Chamber Knowledge and Research Executive, said: “The opportunity for the region to take control of key decisions and the potential to take on more responsibilities going forward is an exciting opportunity for the North East.
“As a Chamber we know how vibrant, innovative, and resilient our business community is. Our members will grasp onto this opportunity to create a stronger, fairer North East and use it to make the region the best possible place to live, work and do business.
“We particularly welcome the focus on fairness, equality and inclusivity that underpins the deal and are committed to our role in furthering these objectives. Strong, vibrant, and resilient businesses are essential for thriving communities.
“In partnership with the combined authority and the seven local authorities, the deal offers the potential to share the benefits of growth and innovation, and reduce inequality throughout our region.”
Once established, the new authority, covering an area which is home to around two million people, will have the power to make decisions on areas such as transport, skills, housing, finance and economic development. The potential deal does not involve any changes to existing councils.
It is expected a Mayoral election would take place in May 2024 and a new authority formed.
The North of Tyne Combined Authority (NTCA), which was set up in 2019 covering Newcastle, North Tyneside and Northumberland, and the separate North East Combined Authority (NECA) covering Sunderland, South Tyneside, Gateshead and Durham would no longer exist.
Click here to view the Chamber’s devolution consultation response and letter of support.