The North East of England is preparing for significant economic change, with the announcement on the 28th December 2022  of a potential new devolution deal, which would see the  transfer of new funds and powers for the development of skills, transport, and housing to local leaders of the region.

Seven of the North East Local Authority areas are included as part of the proposed deal. These areas are Newcastle, Northumberland, North Tyneside, Gateshead, South Tyneside, Sunderland, and Durham. If approved, following consultation with local residents across the region, the deal will ensure a new Mayor of the North East is elected in 2024.

With the deal in place, over £1.4 billion would be guaranteed to the North East Mayoral Combined Authority (‘MCA’) over a 30-year period, allowing the new Mayor and local Councils to plan for the future, unlocking benefits from the devolution deal for all residents in the region.

The MCA’s devolution will see the local government using its new funds to: 

• Dedicate over half a billion pounds towards the improvement of public transport from a new City Region Sustainable Transport Settlement; 
• Provide funding to aid the development of new affordable homes on brownfield sites; 
• Furthermore, a funding pot will be available to help with place-based regeneration across the region.

Michael Gove, Levelling Up Secretary said: “A new mayor will ensure local priorities in the North East are at the heart of decision-making, while our billion-pound funding boost will provide the financial certainty needed to level up the area right now and for years to come.” 

The deal would see Government funding spent at a local level. The MCA and seven local Councils, along with their residents, would be able to prioritise and plan for the future needs of their areas. 

If you have a brownfield site in the North East, that may benefit from potential future devolution support, we can advise on possible development opportunities, and understand whether you may be eligible for any support once it becomes available. Alternatively, if you have a site in an area undergoing significant change, or an area that requires regeneration, please contact us to review your development opportunities, and possible support the devolution may provide for your project.