Cities Minister Greg Clark has confirmed that the Tees Valley's city deal bid will now go through to the next stage.
The next stage will work towards determining which powers can be transferred to a local level, in order to determine the detail before a final decision can be made.
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The threat level has been raised to critical by MI5's Counter-Terrorism Analysis Centre.
Prime Minister Theresa May announced the decision from Downing Street.
Newcastle Central Mosque is welcoming Muslims and non-Muslims alike this evening to stand in solidarity with the people of Manchester.