North East Businesses Welcome New Devolution Settlement as a Step Change for the Region
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North East England Chamber of Commerce, Confederation of British Industry and Federation of Small Businesses have jointly welcomed the new devolution settlement for the north of the region.
The expanded settlement, covering the seven local authorities across Northumberland, County Durham and Tyne and Wear, is expected to create 24,000 extra jobs, deliver 70,000 courses per year to give people the skills they need to get good jobs, and leverage £5billion of private sector investment.
The region’s three business leadership organisations have come together to celebrate this important milestone in the region’s devolution journey.
John McCabe, Chief Executive, North East England Chamber of Commerce, said: “Leaders from across Northumberland, Tyne and Wear and County Durham have worked tirelessly to get this settlement over the line. Throughout the business community there has been unwavering support for the advantages we know stronger devolution brings – the freedom to build projects, programmes and partnerships which truly deliver for the North East.
“County Durham’s inclusion is very warmly welcomed, we know the region will benefit hugely from this. It demonstrates bold, visionary leadership.
“Congratulations to everyone involved so far – this marks a real step change in opportunity and ambition for the region.”
Sarah Glendinning, North East Director, Confederation of British Industry, said: “The business community is clear about the benefits devolution has already brought to the region – from accelerating our green industries to improving business diversity and resilience. But we know more needs to be done, and now is the time to be bold.
“Today’s economic environment is a tough one but giving the region more powers can boost business confidence, unleash fresh creativity and dynamism, and unlock private investment needed to grow the North East’s visibility on the world stage. Our members have supported discussions every step of the way. They now stand ready to help make the North East an exemplar of ambitious, long-term collaboration between the public, private and voluntary sectors.”
Reshma Begum, North East Development Manager, Federation of Small Businesses, said: “Businesses of all sizes and across all sectors are clear on the benefits and opportunities devolution will have on the region. In the current challenging economic climate, giving local leaders the powers to decide our direction and act based on the needs of local people will increase business and consumer confidence, allowing the North East to unlock our potential and achieve our ambitions. New powers, resources and momentum will support SMEs and sole traders, which we know are central to thriving people and places, making the North East the ideal place to start and grow a business. The announcement is great news for the whole region, our businesses and our communities.”
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.
A public consultation will take place from early 2023 on the new arrangements, and 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.
Download our devolution member briefing document here.