York and North Yorkshire will elect a mayor and receive £540m of government investment over 30 years in a landmark devolution deal to be signed on Monday.
The deal will create a new combined authority across the region headed by a directly elected mayor, who will have the power to spend the money on local priorities such as transport, education and housing.
It is the first city and rural region to see devolution on the scale enjoyed by city regions such as South and West Yorkshire, according to the Department for Levelling. The launch of the plan coincides with Yorkshire Day.
Level Secretary Greg Clark, who will sign the deal with North Yorkshire County Council and City of York leaders, said: “Yorkshire Day 2022 is historic. It marks the return of powers and resources to London for much of history[al] Cavalcade North
“Raising the standard, driving prosperity and opportunity in all parts of Britain, is best done when people locally can shape the future of their area. This deal is a big step in that direction.”
Residents will elect a mayor in May 2024 if the proposed agreement comes true.
The plans aim to tackle regional inequalities not only by bridging the national north-south divide, but also by helping to address economic differences between urban and rural areas.
Chief Secretary to the Treasury Simon Clarke said: “Local leaders are best placed to know what their communities need, so I am delighted that the people of York and North Yorkshire can directly elect a Mayor to deliver their priorities.”
Leader of North Yorkshire County Council, Carl Les, said: “The opportunity to bring a huge amount of decision-making powers as well as bringing in millions of pounds of investment for North Yorkshire is a great opportunity to shape the future of the county for many years to come.
“Whether it’s improving skills and education, bringing more investment to the region or helping to improve transport links and provide much-needed affordable housing, the deal will allow us to take much greater control of our own destinies.”
City of York council leader Keith Aspden added: “Given its importance, I would encourage everyone in the city to take the opportunity to see the details of this proposed deal, which could secure dozens of millions of government funding annually to support the local economy, invest in local businesses, drive innovation, particularly around initiatives like BioYorkshire, and help improve the lives of our residents.”
He said a public consultation was still being considered, with businesses and residents being invited to have their say on the details of the deal if agreed.
The Confederation of British Industry welcomed the announcement. Regional Director Beckie Hart said she “has long believed that local leaders, supported by the private sector and wider stakeholders, are best placed to recognize and act on the strengths and needs of development of an area”.
The deal is the first of 13 transfer deals named in February’s Leveling Up white paper, which detailed plans to create better opportunities outside the south-east of England.