Radical changes to way North East is run

Nov 26 2008 by Adrian Pearson, The Journal

THE North East is to undergo a radical shake-up in the way it is run as the Government prepares to hand over new economic powers to city leaders.

Regeneration bosses at One North East have been told to work with council bosses and produce a grand plan overseeing all aspects of the region’s economic growth, covering everything from transport to energy and housing.

A local authority leaders’ board will be set up to bring together council heads who will decide on key funding decisions.

Councils will also be asked to form economic improvement boards which will have a legal duty to co-ordinate efforts to beat the credit crunch.

The measures are included in the final version of the Sub National Review (SNR), in which the Government previously announced its decision to scrap the North East Assembly.

Unlike earlier draft proposals, the SNR will not hand over money from the development agency to North councils. Instead elected leaders will be told to help make long-term, strategic decisions which benefit the entire region.

In effect, the leaders’ board and development agency will form a super-quango ruling over decisions such as where to build business parks and how many new homes should be built.

The review also proposes new legally-recognised powers for the so-called Tyne and Wear city region. This would officially be recognised as another decision-making power in the North East, instead of the partnership agreement currently in place.

Newcastle Council leader John Shipley said the move would be welcomed by most council bosses.

“Without a doubt this is a step in the right direction. It brings clarity to the region and gives us the change to address the issues holding us back.”

One North East chairman Margaret Fay said: “Significant activity has already taken place in the region in the development of existing economic and spatial strategies, and we will ensure that we build on this and our existing strong working relationships with local authorities, the business community and others.

“The outcome of this review presents a real opportunity for the region, for if there was ever a time for partners at every level to work more closely together to agree investments and funding, it is now.”

Mick Henry, head of the Association of North East Councils, is to meet with Ms Fay to agree the next steps in the review process.

Some councillors have privately voiced speculation that the association may not have much of a future now the same council heads will be meeting together in an official capacity.

Page 2: Analysis by Will Green