An elected mayor for an area north of the River Tyne will gain powers to set up development corporations to lead regeneration.
The government said in the Autumn Budget this week that it had reached a devolution deal with an elected mayor covering Newcastle, North Tyneside and Northumberland, with a press release containing more detail issued this morning.
A detailed devolution document will come in the new year, but a Treasury spokeswoman said mayoral powers were not expected to include spatial planning or any direct powers on housing outside development corporation areas.
No decisions have been taken on where the corporations would be established, but the mayor would be able to exercise compulsory purchase powers within them.
The deal is the only surviving part of one terminated earlier this year for North East England. Councils south of the Tyne pulled out of the proposed deal, partly because of objections to the creation of an elected mayoralty.
According to the Treasury, the devolution deal would increase the local economy by £1.1bn and create 10,000 new jobs.
Once elected, the mayor will also gain control of adult education budget, an ‘inclusive growth board’ to co-ordinate skills and employment and will work with the government on trade and investment, digital infrastructure and rural growth.
There will also be £337m of investment in the Tyne & Wear Metro system’s trains.