Region aiming to divide and conquer
Sep 7 2010 by Adrian Pearson, The Journal
THE Government is today considering bids to divide the region into five competing economic groups.
In the biggest shake-up in regional governance in more than a decade, city leaders will set up five Local Enterprise Partnerships to bid for cash from the Government’s £1bn regional growth fund.
The submissions come as development bosses prepare for budget cuts which will next year wipe tens of millions of pounds from the North East’s economy.
And as the coalition Government continues with a regional revamp, Newcastle Central MP Chi Onwurah has contacted Business Secretary Vince Cable, warning him not to go back on a promise to keep decision-making powers in the region.
Yesterday council leaders split into new groups in Newcastle and Gateshead, Northumberland and North Tyneside, Sunderland and South Tyneside, the Tees Valley and a single body covering Durham.
These will be offered extra housing and transport powers if their bids are successful. In exchange they will have to work with business leaders to see how to grow the local economy and support small businesses.
The Newcastle and Gateshead bid for a local enterprise partnership will come under particular Government scrutiny with both civil servants and council officers recognising the way Tyneside’s economy still underpins regional growth.
Gateshead council leader Mick Henry said he believed the partnership would have enough weight to compete against the likes of Manchester and Leeds.
“We are the economic hub for the whole region and this is the chance to prove that,” Mr Henry said.
Newcastle council leader David Faulkner said there had originally been hopes that the region would form one local enterprise partnership.
These hopes were dashed when the five Teesside councils decided to only work with their local businesses and scupper plans for a new North East body.
But, Mr Faulkner said, the 12 councils would all be asking Government ministers to give the go-ahead to a new regional agency as well as the five local enterprise partnerships.
If approved the local enterprise partnerships would lead efforts to regenerate Newcastle and Gateshead while the regional body, the North East Economic Partnership, would hopefully bring in international investment and support major businesses.
