Labour politicians have been accused of ‘outright deception’ after saying the government is withholding transport money from County Durham.

North of Tyne mayor Jamie Driscoll has waded in on a clash between political leaders ahead of the forthcoming North East devolution deal. 

Earlier this week, County Durham Labour leader Cllr Carl Marshall and Labour mayoral candidate Kim McGuinness accused the current Joint Administration in charge of the local authority of signing a deal which, they say, would leave the region worse off compared to neighbouring authorities. 

The pair say the coalition joined the devolution deal ‘too late’ when the money - an extra £147m - was already allocated to the other six councils. 

Responding to the comments, Mr Driscoll said: ”This is 100 per cent untrue, and they know it is untrue. This goes beyond spin, it is outright deception.” 

Durham was originally part of the early talks over a potential North East devolution deal in 2020, but then chose to negotiate its own county deal in 2021. Despite being invited back to join the other authorities the Labour leader then launched a campaign to stop Durham joining the LA7 in 2022 despite the government’s warning it would not get transport money. 

However, the opposition party’s plan was rejected in 2023 after the Conservative, Liberal Democrat and Independent coalition in charge of Durham County Council voted to join the other six North East authorities. 

Mr Driscoll has now alleged cllr Marshall approached neighbouring Labour council leaders asking them to block Durham joining the LA7 deal. “He even told council leaders that Durham County Council would reject the deal, because independents would vote with him,” Driscoll added. 

But the former Labour member and now Independent candidate said it was him who persuaded government ministers to leave the door open for County Durham. 

The North of Tyne mayor said: “After Carl Marshall’s campaign, I had a hell of a battle with the Labour council leaders to persuade them to let Durham back in. In the end it was agreed that Durham could join, but the other Labour leaders insisted that Durham should not get part of the first £475 million of transport money. 

“After that, Durham gets its full share of all future transport investment – including all the new money coming from the cancellation of the HS2 northern leg. 

“This only applies to capital investment. Durham still gets its share of bus revenue support and pothole money from day one.

“Durham County Council was absolutely right to join with the rest of the North East. Without it they would be getting no new transport money at any time.” 

And in an attack on his rival Kim McGuinness, current Police and Crime Commissioner of Northumbria Police, he added: “In the North East we’re sick of Westminster politicians lying to us. Now we’re being deceived by a Mayoral candidate parachuted in by London Labour HQ. No wonder trust in politicians is so low.” 

Labour members insist the wording of the devolution deal shows Durham will not get access to the initial transport funding and the party is calling on the government for more support. 

And cllr Marshall hit back at Mr Driscoll’s comments. “He claims we deceived people about County Durham being excluded from the first round of City Region Sustainable Transport Settlements (CRSTS), and in the next breath admits County Durham won’t get any of the initial transport money,” cllr Marshall said.

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“So, how has anyone been deceived? It’s exactly as I warned.

“The bottom line here is that, just like the Government he claims to oppose, Jamie is misleading the people of the North East. County Durham will not receive any of the initial transport investment secured via the CRSTS, for anyone to claim otherwise is simply untrue.”

The Department for Transport said County Durham will benefit further from the next round of City Region Sustainable Transport Settlements funding, with £685m extra redirected from HS2 to the future North East Mayoral Combined Authority.