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The North East Chamber of Commerce have reacted to the news that plans for a devolution deal covering the North East are now off the table.
The announcement was made by Communities Secretary Sajid Javid.
They say it's 'bad news' for the North East economy.
“We’re at a loss to understand why, after a year of negotiations, it has not been possible to strike a deal. It’s extremely disappointing and bad news for the North East and UK economy. We sincerely hope something can be salvaged and will play whatever part we can to help. It’s positive that a deal is going forward in Tees Valley though and we look forward to continuing our constructive relationship with the combined authority there as that’s implemented.”
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The North East Chamber of Commerce has said they're surprised that "after more than a year of negotiations, politicians are unable to come up with a devolution deal for the north east of England.
It comes after today's news that devolution deals are officially 'off the table'.
Northern Powerhouse Minister, Andrew Percy, has been reacting to the news that the North East devolution deal has been taken off the table.Read the full story ›
Communities Secretary Sajid Javid has confirmed that plans for a devolution deal covering the North East are now off the table.
Speaking in response to the government's decision Cllr Paul Watson, chair of the North East Combined Authority says it is a "very disappointing" decision:
“It is very disappointing that the Government has chosen to end current discussions over North East devolution in this way.
Throughout this process, all of the seven council leaders in the North East have repeatedly and clearly stated their commitment to devolution and to creating a stronger regional economy.
And, although we were not able to reach a majority agreement to proceed to public consultation at this present time, we have reaffirmed our commitment to working together with the Government to achieve the right devolution deal for our region.
Leaders in the North East will continue to fight for our region, to build our economy and create jobs and investment.”
Communities Secretary Sajid Javid has confirmed that plans for a devolution deal covering the North East are now off the table.Read the full story ›
The Tees Valley Combined Authority have confirmed their support for regional mayors and devolution after their north east counterparts voted to reject the government's devolution deal.
The Tees Valley Combined Authority is made up of five local authorities: Darlington, Hartlepool, Middlesbrough, Redcar and Cleveland and Stockton. They've voted to approve the government's devolution offer.
Yesterday the North East Combined Authority rejected the deal after a split vote between the seven councils which make up the body.
A spokesperson for Tees Valley Combined Authority said they would be pushing for further progress:
“The Order creating a Mayoral Combined Authority for the Tees Valley has been approved by parliament. A further consultation on the powers and governance arrangements was conducted over the summer, and the responses are now being compiled.
The Tees Valley councils have demonstrated over many years their commitment to a strong partnership for growth and jobs. We expect Ministers to deliver on their commitments to devolution and will continue to push for further progress.”
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The North East's devolution deal is in doubt after a split vote between the seven councils which make up the North East Combined Authority.
Newcastle, Northumberland and North Tyneside all voted to move forward but Sunderland, Durham, South Tyneside, Gateshead voted against.
Paul Watson, chairman of the North East Combined Authority (NECA), said although the split was disappointing, the councils would work together towards a satisfactory outcome for the region.
Each of the seven councils which make up the North East Combined Authority has always made clear that they support the principle of devolution for the North East.
Following the outcome of the EU referendum and the subsequent changes within Government, council leaders have been equally clear that to move forward, the new Government must provide assurances regarding the terms of the region’s devolution deal.
Extensive discussions and negotiations have taken place with Government and within the region over recent months but unfortunately, despite our best efforts, it has not been possible to reach an agreement which all of the seven local authorities feel able to support.
Although this is disappointing we will continue to work together with Government to achieve our ambition of a stronger regional economy with improved opportunities for residents and businesses.”
Devolution would mean £30 million a year for the new devolved authority to spend - with powers over things like transport, skills and housing - and a mayor, due to be directly elected for the first time in May 2017.
A Department for Communities and Local Government spokesman said: “It is disappointing that some North East councils have been unwilling to support this deal, which would certainly have benefitted local people. “If councils in the region wish to discuss devolution proposals further, our door remains open.”