The North East could gain significant investments and powers through the proposed formation of a new mayoral combined authority.

The devolution deal with the Government is expected to provide £4.2 billion of added investment to the region over the next three decades.

The cabinets of the region's seven local authorities involved in the North East deal - County Durham, Gateshead, Newcastle, North Tyneside, Northumberland, South Tyneside, and Sunderland - are set to discuss the plan in the coming weeks.

The cabinets will be asked to give consent for an order to be made in Parliament to abolish the existing North of Tyne Combined Authority (NTCA) and North East Combined Authority (NECA) and for them to be replaced with the new North East Mayoral Combined Authority.

The NTCA and NECA will also be asked to take this decision.

In a joint statement, the council leaders said: “We are incredibly proud of the deal we have agreed that we believe will help the North East realise its full potential.

“The feedback from residents, businesses and other stakeholders across the region has been very positive, and we look forward to taking this opportunity to improve the lives of the two million people who are proud to call the North East of England their home.

“This is an important step towards our vision of establishing a new combined authority that gives the North East control over its own future and we look forward to working with Government to achieve that outcome for our region.

“We remain ambitious to secure even more for our region and we are already in negotiations with government on a trailblazer deal for even more investment.”

The deal was agreed with the government in December 2022.

The £4.2bn package also includes an investment fund of £1.4bn, plus funding for education and skills, transport, housing and regeneration.

It is predicted to create an extra 24,000 jobs in the region, and unlock an additional £5 billion in private sector investment.

Once the Chief Executives of the seven councils approve the proposed order post the cabinet meetings, the government can proceed with the order.

This is expected to take place in early 2024, with elections to appoint a new elected mayor for the North East in the May.