The North East mayor has called for a “fundamental shift” in power away from London, setting out a series of demands aimed at giving the region greater control over housing, jobs and economic growth.
In a letter to newly appointed Chancellor John Healey, Kim McGuinness urged the Government to deliver reforms that would help reverse “decades of industrial change and underinvestment” across the region.
The move follows Prime Minister Andy Burnham‘s pledge to hand significantly greater powers to metro mayors, alongside the launch of the new No. 10 North office in Manchester to drive devolution.
The mayor’s intervention follows last week’s National Economic Council meeting at No.10 North in Manchester, where she sat alongside Chancellor John Healey. Ms McGuinness said the new office represented “real substance” behind the Government’s ambition to move decision-making away from Westminster and into England’s regions.
In her letter to Mr Healey this week, she calls for:
- A “place-based participation deal” for the North East, bringing together employment support, 16–19 education, careers services, and relevant health and growth funding.
- A review of the relationship between mayors and arm’s-length bodies like Homes England, with a presumption of “devolution by default”; Faster devolution of housing retrofit funding and powers.
- Firmer rules requiring a dedicated percentage of supply chain investment from new offshore wind farms to be made directly in the North East.
Ms McGuinness said the changes represented “a once-in-a-generation opportunity” to redesign the relationship between Whitehall and local regions. She argued that fiscal devolution should not simply allow wealthier parts of the country to retain more of the growth they generate, but instead provide a fair funding settlement that reflects the challenges faced by regions such as the North East.
“The North East is well placed to drive growth, but we are starting from a different position to many parts of the country after decades of industrial change and underinvestment,” she said.
However, Colin Ferguson, leader of Newcastle City Council, warned that simply transferring more powers to metro mayors risked creating another layer of centralisation. He argued that local councils also needed greater financial freedom, pointing to Newcastle’s budget reductions of more than £400 million since 2010.
Cllr Ferguson argued that simply transferring more responsibilities from Whitehall to metro mayors would not amount to meaningful devolution unless councils themselves received greater powers and resources. “He talks a good game about devolution, but that needs to not just go to southern places like Manchester,” he said.
He added that concentrating powers with regional mayors risked merely “changing who we need to go cap in hand to” rather than giving local authorities the freedom to make decisions for their own communities.
Responding to the concerns, Ms McGuinness said she supported increased funding for local authorities and did not believe additional powers for mayors should come at councils’ expense. She added that while strategic decisions should be made at a regional level, many responsibilities should continue to sit with local councils.
The debate comes as the Government prepares its wider programme of devolution reforms, with regional leaders pushing for greater control over transport, housing, employment and investment.
