County Durham to get more money and jobs in North East devolution

Residents will be given the power to directly elect a Mayor of the North East at an election in May 2024 if the process is approved following a local consultation. 

The Durham County Council report, due to discussed by councillors on Wednesday, reveals how the recently announced LA7 deal is the best for residents and businesses.

The size and scale of the proposed region, which is home to two million people and stretches from Berwick to Barnard Castle, will create the largest combined authority in England.  

Cllr Amanda Hopgood, leader of Durham County Council, said: “The proposed deal would see a significant shift of powers, funding and responsibility from central government to our region.

"Working alongside our colleagues in the other authorities, it would allow us to pursue our ambitions for the growth of our area and the wider region, which can only benefit everyone who lives in County Durham and the wider north east.”

Read more: £1.4bn devolution deal for North East includes County Durham

However, the announcement has not been welcomed by all political parties in County Durham. Earlier this month, Labour failed in an attempt to convince councillors to back its preferred option of a single county deal.

Labour fears the proposed deal would short-change the county and would be a ‘missed opportunity’. Yet financial forecasts provided by the council suggest otherwise.

County Durham will receive £4m more when combined with other North East authorities compared to the £9m it would have got if it signed a county deal, the council says. Overall, the LA7 deal is £120m more than could be achieved within a standalone deal.

Economic estimates suggest that 6,500 new jobs could be created in County Durham within a LA7 deal, 2,000 more than in a county deal. It is estimated that the LA7 deal will attract £1.34bn private sector investment into the county, some £400m more than that estimated in a county deal. More investment to support housing development is also available enabling 730 more homes to be built.

The North East of England could become the latest region to have a directly elected mayor (Image: The Northern Echo)

Durham County Council was previously considering its own single-county deal instead of joining a region-wide body, but the report says that such an arrangement would require the election of a county mayor and was not possible under the same agreement.

Labour leader Cllr Carl Marshall said: “A county deal, which Labour fought for, would have meant all investment could have been directly targeted at helping our communities.

“Cllrs Hopgood and Bell … were incapable of securing a deal for Durham and have sold our communities down the river, having failed to secure commitment for a single penny to be spent in our county.”

Read next: 

• County Durham residents could face 5% council tax rise in bid to cut huge deficit
• Voter ID under fire amid worries County Durham residents could be excluded
• How County Durham could benefit from £500m boost to improve cycle routes

What else could the LA7 provide?

• New powers to improve and better integrate local transport, including the ability to introduce bus franchising
• Devolution of six adult education functions and the core adult education budget, as well as input into the new local skills improvement plans
• New powers to drive the regeneration of the area and to build more affordable homes, including compulsory purchase powers and the ability to establish mayoral development corporations
• Cabinet members will decide whether to agree that the ‘minded to’ LA7 devolution deal represents the best option for County Durham residents and businesses on Wednesday.