Cabinet Office starts legal process for North East combined authority

The Cabinet Office is reported to have begun the legal process to create a combined authority for the North East.

The move follows a Government consultation on the proposed authority run between November 2013 and January 2014.

Proposals had been drawn up by the seven councils in the LA7 Leadership Board – Durham, Gateshead, Newcastle, North Tyneside, Northumberland, South Tyneside and Sunderland – and backed by the North East Local Enterprise Partnership.

The combined authority will replace the Tyne and Wear Integrated Transport Authority and have responsibility for strategic transport, economic development and regeneration across the area.

Cllr Simon Henig, chair of the North East Leadership Board, told the BBC that the Cabinet Office decision was an "important and exciting moment in our history".

He said: "Working together is the best way to promote jobs and growth and to secure devolution of funding, powers and responsibilities from the government.

"This is all about playing to our strengths and uniting to ensure the brightest possible prospects for our residents and our businesses."

The Cabinet Office move has been welcomed by the North East Chamber of Commerce.

Chief executive James Ramsbotham said: “The North East business community recognises the importance of regional unity in our aims, economic priorities and ambition as the Government made it clear that resources and policy flexibility will only be devolved on the basis of effective governance arrangements beyond local authority boundaries.

“As such, it is fantastic to learn that Cabinet Office has begun the process that will see the creation of a Combined Authority, which will oversee strategic issues including transport, skills, inward investment and spatial planning.”

He added: “Our LA7 local authority leaders must be applauded for resolving the issues that had threatened to derail plans for the Combined Authority. The councils’ actions will ensure that the North East LEP area is on an even footing with the likes of Greater Manchester (which is already benefiting) and several other English city regions that are planning to do the same.

“With the right structures in place this area can maximise its significant competitive advantages and continue to set the pace nationally for economic growth, as it has done over the past few years.”

Orders were last month laid in Parliament for the Liverpool City Region combined authority.