Local leaders in large parts of the East Midlands will be given new powers to improve transport, boost skills training and build more attractive and affordable homes through an historic, first of a kind county devolution deal signed with the government.
Levelling Up Secretary Greg Clark will sign the deal with Derbyshire and Derby, Nottinghamshire and Nottingham, which will see the area appoint a directly elected mayor, responsible for delivering local priorities, backed by a new £38 million per year investment fund, totalling £1.14 billion over 30 years.
The deal delivers on a commitment made in the government’s Levelling Up white paper published early this year to shift in powers and resources away from Whitehall to local communities.
In addition to the agreed funding being under local control rather than control from Whitehall, a new Mayoral Combined County Authority will be created, with 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 also 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.
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.
“Taking decisions out of Whitehall and putting them back in the hands of local people is foundational to levelling up and this deal does that.”
The new East Midlands Combined County Authority will also be granted control of over £17 million 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 £18 million has been agreed to support housing priorities and drive Net Zero Ambitions into the area.
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 billion 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.
“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.
“There is 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.”
This will be the first ever Mayoral Combined County Authority, a new model of devolution provided for in the Levelling Up and Regeneration Bill. Implementation of this deal is dependent on Parliamentary approval of the Bill and necessary secondary legislation, as well as a public consultation.
This marks another important milestone in the government’s commitment to ensure that every area in England that wants a devolution deal can get one by 2030, as promised in the Levelling Up white paper published earlier this year.
New powers will help to improve local skills which will meet the specific needs of the local economy, helping to boost the region financially. In addition, there will be greater powers to drive regeneration creating more affordable housing for local people, making the area a more desirable place to live, work and visit.
East Midlands Chamber Chief Executive Scott Knowles said: “Our region is home to a wide range of fantastic businesses, from large industrial powerhouses to innovative university spin-outs, and everything in between.
“What they now need is the political apparatus that removes obstacles to decision-making, enhances our ability to attract investment and ultimately creates a more business-friendly environment.
“The announcement of a devolution deal for Derbyshire and Nottinghamshire provides a huge opportunity in this respect. It will help these counties to take strides forward in productivity and innovation, enabling firms to drive the economic growth that creates jobs and wealth locally.
“For too long, our region has lagged behind when it comes to being backed by central Government, with our recent analysis in partnership with East Midlands Councils highlighting how the region ranked either bottom or near the bottom for spending on transport, health, education, social protection and economic affairs.
“It’s reassuring to know many of these themes are covered by the East Midlands MCCA and that businesses will be represented within its governance structure. Following today’s announcement, it’s essential Government remains open to additional proposals for innovative structures that enable Leicester and Leicestershire to also optimise investment from the centre for local deployment.
“This is an exciting time for our region and we look forward to hearing more about how our local political system evolves to not only close the present funding gaps and imbalances, but drives the growth that allow all those who live, work and play in the East Midlands to prosper.”
