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Sajid Javid: devolution deal 'off the table' for the north-east of England Sajid Javid: devolution deal 'off the table' for north-east of England
(35 minutes later)
George Osborne’s northern powerhouse legacy has been thrown into doubt after the government pulled the plug on devolution in the north-east of England. George Osborne’s northern powerhouse legacy has been thrown into doubt after the government pulled the plug on devolution in the north-east of England. Sajid Javid, the communities secretary, said the multimillion-pound deal was “off the table” after council leaders failed to agree on whether to accept devolved powers in their current form.
Sajid Javid, the communities secretary, said the multimillion-pound deal was “off the table” after council leaders failed to agree on whether to accept devolved powers in their current form. On Tuesday, council leaders were split by a single vote on whether to accept a deal that would include a raft of new powers and £30m a year in return for establishing an elected mayor.
On Tuesday council leaders were split by a single vote on whether to accept a deal that would include a raft of new powers and £30m a year in return for establishing an elected mayor. The announcement is a blow to Osborne’s northern powerhouse vision, with the north-east now cast out of the devolution agenda and two other swaths of northern England – North Yorkshire and West Yorkshire – yet to agree deals with the government.
The announcement is a blow to Osborne’s northern powerhouse vision, with the north-east now cast out of the devolution agenda and two other swathes of northern England – North Yorkshire and West Yorkshire – yet to agree deals with the government. Javid said he was disappointed that council leaders could not agree to proceed with this “ambitious and far-reaching” devolution deal. He added: “It is with regret that we have therefore withdrawn the legislation that would have brought this deal to life, which means local people will miss out on over £1bn of investment, and new powers on transport, planning and skills.
Javid said he was disappointed that council leaders could not agree to proceed with this “ambitious and far-reaching” devolution deal. “Handing power back to northerners is a key part of our plans to build a northern powerhouse, and our focus now will be on working to secure a new agreement for residents in those areas committed to progressing with devolution.”
He added: “It is with regret that we have therefore withdrawn the legislation that would have brought this deal to life, which means local people will miss out on over £1bn of investment, and new powers on transport, planning and skills. While devolution plans have progressed in Manchester, Sheffield and Teesside, the proposals have been fraught with difficulty in the north-east. In May, Gateshead voted against supporting the devolution deal because of concerns about funding and its future. On Tuesday Newcastle, Northumberland and North Tyneside all voted to move forward with the devolution plans, but Sunderland, Durham, South Tyneside and Gateshead voted against.
“Handing power back to northerners is a key part of our plans to build a northern powerhouse and our focus now will be on working to secure a new agreement for residents in those areas committed to progressing with devolution.”
While devolution plans have progressed in Manchester, Sheffield and Teesside, the proposals have been fraught with difficulty in the north-east. In May, Gateshead voted against supporting the devolution deal because of concerns about funding and its future.
On Tuesday Newcastle, Northumberland and North Tyneside all voted to move forward with the devolution plans, but Sunderland, Durham, South Tyneside and Gateshead voted against.
Council leaders who voted against the deal argued that they had not had sufficient assurances from Theresa May’s government about hundreds of millions of pounds of EU funding pledged before the Brexit vote on 23 June.Council leaders who voted against the deal argued that they had not had sufficient assurances from Theresa May’s government about hundreds of millions of pounds of EU funding pledged before the Brexit vote on 23 June.
There were also concerns about increasing council tax to pay for a new directly elected mayor, which has proved to be most controversial condition of the devolution arrangements agreed by Osborne and a series of “metro” regions, including the West Midlands, Greater Manchester and the Liverpool city region. The regions will elect mayors in May 2017.There were also concerns about increasing council tax to pay for a new directly elected mayor, which has proved to be most controversial condition of the devolution arrangements agreed by Osborne and a series of “metro” regions, including the West Midlands, Greater Manchester and the Liverpool city region. The regions will elect mayors in May 2017.
Ross Smith, of the North-East Chamber of Commerce, said: “We’re at a loss to understand why, after a year of negotiations, it’s not been possible to strike a deal. Ross Smith, of the North-East Chamber of Commerce, said: “We’re at a loss to understand why, after a year of negotiations, it’s not been possible to strike a deal. It’s extremely disappointing and bad news for the north-east and UK economy. We sincerely hope something can be salvaged and will play whatever part we can to help.
“It’s extremely disappointing and bad news for the north-east and UK economy. We sincerely hope something can be salvaged and will play whatever part we can to help.
“It’s positive that a deal is going forward in Tees Valley though, and we look forward to continuing our constructive relationship with the combined authority there as that’s implemented.”“It’s positive that a deal is going forward in Tees Valley though, and we look forward to continuing our constructive relationship with the combined authority there as that’s implemented.”
Alexandra Jones, chief executive of the thinktank Centre for Cities, said Newcastle could break away from its north-east neighbours and seek a “Newcastle city region” devolution deal similar to the Liverpool model.Alexandra Jones, chief executive of the thinktank Centre for Cities, said Newcastle could break away from its north-east neighbours and seek a “Newcastle city region” devolution deal similar to the Liverpool model.
She added: “It is disappointing that the devolution deal for the north-east will definitely not go ahead as planned, as it had the potential to boost the region’s long-term economic prospects.She added: “It is disappointing that the devolution deal for the north-east will definitely not go ahead as planned, as it had the potential to boost the region’s long-term economic prospects.
“But this should not signal the end of devolution in the north-east, and Sajid Javid has left the door open for powers to be devolved on a different basis to areas within the region.“But this should not signal the end of devolution in the north-east, and Sajid Javid has left the door open for powers to be devolved on a different basis to areas within the region.
“While that it is very unlikely to happen in time for May 2017, when the original deal was due to come into place, national and local leaders should now work together to explore different options, and to ensure that devolution in the north-east does not come to a standstill.”“While that it is very unlikely to happen in time for May 2017, when the original deal was due to come into place, national and local leaders should now work together to explore different options, and to ensure that devolution in the north-east does not come to a standstill.”
Paul Watson, the leader of the group of seven north-east councils, said it was “very disappointing that the government has chosen to end current discussions over north-east devolution in this way”.
He said that each council had repeatedly stated their commitment to devolution and added: “Although we were not able to reach a majority agreement to proceed to public consultation at this present time, we have reaffirmed our commitment to working together with the government to achieve the right devolution deal for our region.
“Leaders in the north-east will continue to fight for our region, to build our economy and create jobs and investment.”