Government and upper-tier councils agree £1.1bn East Midlands deal adopting “first of a kind” devolution model

The Department for Levelling Up, Housing and Communities has agreed a devolution deal with four upper-tier East Midlands councils that will see the establishment of the first Mayoral Combined County Authority.

The Government described the deal with Derbyshire and Derby, Nottinghamshire and Nottingham as “historic” and “first of a kind”.

It insisted that although the model for a Mayoral Combined County Authority includes upper tier local authorities only, “both the government and the upper tier councils place high importance on working with the 15 district and borough councils across the region to ensure their voices are represented”.

The new institutional model is subject to Royal Assent of the provisions within the Levelling Up and Regeneration Bill – the model was first introduced in the Levelling Up and Regeneration Bill which is currently progressing through Parliament.

The Department said there is a statutory process which includes consultation by the councils of their detailed proposals, ratification by the councils and Parliamentary approval to secondary legislation establishing a combined county authority with the powers outlined.

It is hoped that, subject to Parliamentary agreement, the first mayoral election could take place in May 2024.

The deal will see the devolution of new powers to improve transport, boost skills training and build more attractive and affordable homes.

The directly elected mayor will be backed by a new £38m per year investment fund, totalling £1.14 bn over 30 years.

The Mayoral Combined County Authority will have control over the core adult education budget, to boost skills in the region, as well as the ability to increase control over transport infrastructure.

The new mayor will be granted powers to drive regeneration, with compulsory purchase powers and the ability to designate Mayoral development areas and establish Mayoral Development Corporations to promote growth and build new homes.

The new authority will also be granted control of more than £17m of additional funding for the building of new homes on brownfield land in 2024/25, subject to sufficient eligible projects for funding being identified, and a further £18m has been agreed to support housing priorities and drive Net Zero Ambitions into the area.

Levelling up Secretary Greg Clark said: “The East Midlands is renowned for its economic dynamism and it has the potential to lead the Britain’s economy of the future. For a long time I have believed that the East Midlands should have the powers and devolved budgets that other areas in Britain have been benefitting from and I am thrilled to be able to bring that about in Derby, Derbyshire, Nottingham and Nottinghamshire.

“I am impressed by the way councils in the region have come together to agree the first deal of this kind in the country, which will benefit residents in all of the great cities, towns and villages across the area of Derbyshire and Nottinghamshire.”

In a joint statement, Ben Bradley MP, Leader of Nottinghamshire County Council, Barry Lewis, Leader of Derbyshire County Council, Chris Poulter, Leader of Derby City Council, and David Mellen, Leader of Nottingham City Council, said: “We welcome the £1.14 bn devolution deal from the government on offer for our region. It’s fantastic news.

“We want to make the most of every penny so this can be used to make a real difference to people’s lives.”

The statement added: “As Leaders, we have all fought for a fairer share for our cities and counties, and a bigger voice for our area, to give us the clout and the influence we deserve, and to help us live up to our full potential.

“This deal would help make that a reality, creating more and better jobs through greater investment in our area, with increased economic growth, better transport, housing, skills training, and an enhanced greener environment, as we move towards being carbon neutral. These are what we all want to see, and we will work together for the common good of the East Midlands.

“We haven’t always had the same level of funding or influence as other areas, which has held us back. This is a golden opportunity to change that and put the power to do so in our own hands.”

The Leaders cautioned that there was “a lot still to be agreed, and this is the beginning of the journey, not the end. We’re determined to build on this deal over time, as other areas have done.”