East Midlands local economy to be levelled up with historic billion pound devolution deal

• Historic devolution deal agreed with Derbyshire and Derby, Nottinghamshire and Nottingham with directly elected mayor
• Powers and budgets will be devolved from central government to the East Midlands through a new Mayoral Combined County Authority
• More than £1 billion investment fund over 30 years to help boost employment, families, and schools in the area

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 a historic, first of a kind county devolution dealsigned with the government today.

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.

Further information

This will be the first ever Mayoral Combined County Authority, a new model of devolution that includes upper tier local authorities only. Both the government and the upper tier councils place high importance on working with the 15 district and borough councils across the region to ensure their voices are represented.

This new institutional model is subject to Royal Assent of the provisions within the Levelling Up and Regeneration Bill – the model was first introduced in the Levelling Up and Regeneration Bill which is currently progressing through Parliament.

There is a statutory process which includes consultation by the councils of their detailed proposals, ratification by the councils and Parliamentary approval to secondary legislation establishing a combined county authority with the powers outlined. It is hoped that, subject to Parliamentary agreement the first mayoral election could take place in May 2024.