The long awaited North East devolution deal has finally been announced. After months of negotiation, on 28 December 2022, Michael Gove, the Levelling Up Secretary, outlined plans for a £1.4bn deal which will bring the region's seven local authorities together with an elected mayor. The plans still need to be ratified by the local authorities, but if approved, a new Mayor will be elected next year.
What it means for the North East, is that decisions that will have a significant impact on the region’s two million residents will be taken a lot closer to home, with more direct accountability, a more strategic vision for the future, and with local people having a greater say in how things are run.
At NE1, we were among the first to celebrate the news and to offer our support. We recognise that the proposed deal is great news for Newcastle and for the whole of the North East. Having guaranteed budgets in the local coffers, a directly elected Mayor providing vision and leadership, and accountability to the electorate, signals a brave new world for the whole area.
What is also clear is that we stand to benefit not just from the headline figure of £48 million a year, but from other funding and investment that devolution will bring, unlocking further financial opportunities from central Government. It will also allow the North East to behave in a more strategic way, planning long-term projects, and tackling issues that can benefit the whole region.
Taking control of the £48 million per year investment fund, will also give the devolved Mayor the chance to invest in the North East, drive growth and push forward a long-term vision. For too long our economic growth has been stymied by short term-ism, with annual budget reviews impeding the ability of local authorities to plan for the longer term.
With the prospect of increased funding and more say in our own future, Newcastle and the wider region is in a fantastic position to capitalise on this opportunity. In all my 14 years at NE1, I have never known a time when there has been such a high level of public and private sector investment in the city and across the region. It is truly unprecedented. I’m confident that the combined authority will super-charge further investment and growth which will, in turn, result in significant additional private sector investment and jobs.
Newcastle’s skyline is living proof of the investment and transformation that is already happening. New buildings are going up at a rate of knots in the Helix, and on Pilgrim Street. The first occupants are scheduled to move into Bank House at the south end of Pilgrim Street in April, demonstrating that change is happening, and at pace.
We have a winning proposition as a city and as a region, a hugely compelling offer that continues to attract businesses to relocate here, HMRC and Home Group being prime examples. Both have chosen Newcastle city centre for their headquarters, a sign that we are successfully creating the right environment to attract and retain talent in the city and the region.
Devolution provides the opportunity to accelerate this transformation. It will also help focus on skills and employability, two recurrent issues for business. The combined authority will be given new powers to shape local skills provision to ensure that it meets the needs of the local economy.
At the heart of the challenge is how to inspire young people into jobs, training and education to fulfil the wealth of career opportunities available locally. Tragically, too many of our young people don’t feel that the region can provide the career opportunities they are looking for. We need to demonstrate that this is not the case, by engaging with young people earlier in their educational journey and opening their eyes to the wealth of career opportunities on offer in the region.
Our schools do a fantastic job highlighting further education opportunities but we need to be far better at showing alternative routes into employment and training. Many city employers in legal, accounting, architectural and financial sectors offer apprenticeship routes, which provide opportunities for young people to earn while they learn. Our NE1 CAN programme works to bridge the gap between young people and employers, and raise aspirations in young people, making them aware of the many different careers and career paths, but their work is a drop in the ocean. Devolution and the ability to set the skills agenda, coupled with closer links and integration with education, provides the perfect opportunity to tackle the issue regionwide.
Another major issue on the devolution agenda is transport with new powers given to the devolved authority to improve local transport provision and integration. A fantastic example of this are the plans for the re-opening of the Leamside Line railway line. If realised, this could generate an additional £90m per annum boost to the local economy.
Devolution will also provide new powers and funding to increase housing opportunities, with an additional £17.4m allocated to support building new homes on brownfield land. As a former industrialised city and region, brownfield land is something we have in abundance.
The deal has yet to be ratified by the seven local authorities but already people recognise the enormous benefits devolution could deliver. Just as Rome wasn’t built in a day, the new combined authority will not be the panacea for all the region’s woes overnight. Rather, it provides the best possible opportunity for the region to come together, act collectively and strategically, to address many longstanding issues that Westminster has so far failed to resolve. The opportunity is clear, so too must be our resolve to grasp it, and make it work.