By Kris Jepson
The £600m North of the Tyne devolution deal pledged in the Autumn Budget by the Chancellor, Philip Hammond, has divided politicians in the North East region.
The deal will provide three local authorities from the North East Combined Authority (NECA), Newcastle City Council, North Tyneside and Northumberland County Council, with £20m a year in extra government funding from 2019 and more devolved powers through an elected Mayor.
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The decision came after the other four NECA councils south of the Tyne, Sunderland, Gateshead, South Tyneside and Durham County Council rejected a devolution deal last year.
The three leaders who struck the devolution deal released a statement welcoming the news.
The Conservative Northumberland politician, Guy Opperman, who represents Hexham, told ITV News he thinks the four councils south of the Tyne have made a mistake by not agreeing to the Government's devolution deal.
Gateshead Council Leader Martin Gannon claims the money that is being offered is not new money.
He told ITV News the devolved funds will come from the billions of pounds worth of cuts the Government has made to local government budgets since austerity began in 2010.
Business leaders in the region say in the current climate any extra funding is better than no funding at all.
The North East England Chamber of Commerce told ITV News this devolution deal will help the whole region.