SEVEN North-East councils want to create a “combined authority”. So what does this mean for their neighbours to the south? Mark Tallentire reports.

IN the world of local government, money may be tight – but acronyms abound.

The seven local authorities (LAs), otherwise known as the LA7, which make up the North East (NE) Local Enterprise Partnership (LEP), which succeeded One North East (ONE) – the now-defunct regional development agency (RDA), following a policy missive from the Department for Communities and Local Government (DCLG), are looking at creating a Combined Authority (CA).

Straightforward so far, right?

Well, the CA, covering Durham, Sunderland, South and North Tyneside, Gateshead, Newcastle and Northumberland, would have powers over transport – overtaking and expanding the work of Tyne and Wear’s Integrated Transport Authority (ITA); economic growth – with aim of boosting Gross Domestic Product (GDP); and skills – in the hope of cutting the number of young people Not in Employment, Education or Training (NEETs).

Still with me?

So, the question emerges: if CAs are such a good idea, why aren’t all LEPs getting one?

Well, the Tees Valley just might.

Tees Valley Unlimited (TVU), which covers Darlington, Stockton, Middlesbrough, Hartlepool and Redcar and Cleveland, will consider all options carefully, managing director Stephen Catchpole says.

There are various alternative arrangements which could be adopted, he argues, such as a Public Private Partnership (PPP) – yes, sorry, another acronym – or a company limited by guarantee; but it’s too early to say which TVU will choose.

Why? Well, because the Government included Newcastle on its eight-strong list for the first wave of “City Deals”, which Deputy Prime Minister (DPM) Nick Clegg said would “free regions from the Whitehall leash”, placing more powers in the hands of local decision makers.

The Tees Valley, as well as Sunderland, is shortlisted for the second wave.

Mr Catchpole hopes the deal will be clinched this autumn, with the creation of 9,500 apprenticeships a year by 2022 said to be among the benefits.

While the NE LEP’s CA could be up and running in April 2014, even if TVU adopts the same structure it won’t come into effect until a year later.

But other elements could be implemented before then and the five boroughs are already working well together, Mr Catchpole insists.

“I think we can objectively show success,” he adds, whether that’s through bids to the Regional Growth Fund (you guessed it: RGF) or the Enterprise Zone (EZ).

TVU and the NE LEP meet every three months and have worked together on matters as diverse as devolution, rail franchises, European funding and the Hitachi train factory planned for Newton Aycliffe, Mr Catchpole says.

And looking south, TVU has collaborated with the North Yorkshire and East Riding (NYEP) LEP on issues such as tourism and Sirus Minerals’ plans for Europe’s largest potash mine in the North York Moors National Park.

Critics of the LEPs, including Sedgefield MP Phil Wilson, have called for a return of a ONE-type structure, with one unified body speaking for and representing the whole of the North-East.

But Mr Catchpole denies there are tensions between the two northern LEPs, saying he can’t think of a single issue the two have “fallen out” over.

“As with anything, we have different views and different emphases but I can’t think of an issue where we’ve fallen out at all,” he says.

“There is robust conversation but that’s because we’re trying to do the best for the area.

“The view that one single body can do everything is not supportable. My view is: we get the best of both worlds.”

THE LA7 councils’ cabinets will debate the combined authority proposals at simultaneous meetings on Monday (June 24).