NEWS COMMENT
DEVOLVED ‘ RESOLVED ’
Historic £ 1.4 billion devolution deal for North-East
The Levelling Up Secretary Michael Gove announced a landmark devolution deal for the North-East that will see a new elected mayor given fresh money and powers to level up the region .
New money and powers over skills , transport and housing will be devolved to local leaders in the North-East , it ’ s been claimed .
People across County Durham , Northumberland , Newcastle , North Tyneside , Gateshead , South Tyneside and Sunderland will also be given the power to directly elect a mayor of the North-East .
This person can act as a local champion who can help attract investment to the area and act as a powerful local voice in discussions with central government and other bodies .
The government will guarantee the new North-East Mayoral Combined Authority ( MCA ) more than £ 1.4 billion over the next 30 years which will enable the new mayor and the councils to plan for the long term , with certainty , and unlock the benefits of devolution for two million people living in the area .
The historic deal will also devolve the MCA control over the multi-million pound Adult Education budget so they can shape provision in a way that best suits the needs of local people .
Government officials also say it will give control to the region of over half a billion pounds to upgrade public transport through a new City Region Sustainable Transport Settlement ; and provide immediate support to build new affordable homes on brownfield sites .
There will also a funding pot available to help place based regeneration across the region .
The North-East is the sixth area to agree a devolution deal this year and means that government has now made devolution agreements with areas representing over seven million people since the Levelling Up White Paper was published last February .
The new deal also reaffirms the government ’ s commitment in the White Paper to offer a devolution deal to any area that wants one by 2030 .
Mr Gove said : “ I ’ m proud to have agreed a historic new devolution deal with the North- East that gives local leaders more power , more money , and an even greater say on how their areas are run .
“ Devolution is all about letting leaders who live and breathe the region decide what is in their best interests , for their people and for their businesses .
“ A new mayor will ensure local priorities in the North-East are at the heart of decisionmaking , while our billion-pound funding boost will provide the financial certainty needed to level up the area right now and for years to come .”
Local leaders and mayors across the whole North-East welcomed the news in a joint statement :
“ This is a significant step towards securing important decision-making powers and investment for our region .
“ This would allow us to make decisions that reflect local needs and invest wisely into projects that will make a difference for all our residents , communities and local economy .
“ There remains a process for all councils and combined authorities to consider the details and a public consultation before a final decision is made .
“ We are pleased that we have successfully negotiated a proposed deal which is a step towards reaching our ambition for this region . This is an important milestone in our journey and we will now engage with stakeholders to move the deal to the next stage .”
See pages 26-27 for an exclusive Aycliffe Business feature with reaction from local business owners and personalities .
EMPLOYEE SHARE INCENTIVES –
CHECK BEFORE YOU JUMP
Currently , there is a particular focus on recruitment and retention of employees for many businesses .
Providing incentives to employees can help retain and motivate key members of staff who have the skills to make your business succeed .
Various types of incentives can be given , with companies now , more and more frequently , offering employees shares in the business .
Employees can be offered shares either by way of an immediate allotment or by way of share options .
Share options provide an employee with an option to purchase certain shares in the company at a certain future time , for a certain price , and can be more tax effective for the employee than an immediate allotment .
Many considerations need to be taken into account when deciding to offer shares to an employee .
Recently , we have seen a number of instances whereby an employer has awarded shares to an employee , but there has been a lack of adequate supporting documentation .
The employee has , subsequently , left employment of the employer , in some instances to join a direct competitor , but remained a shareholder in the employer .
This can then become a very difficult scenario for the employer to negotiate .
It is therefore imperative that , before issuing any incentive shares , you ensure that your company ’ s regulatory documents , including its articles of association and any shareholder ’ s agreements , include provisions that adequately regulate the terms of ownership of employee shares .
If you are considering implementing a scheme , you should always speak to your trusted advisors in the first instance .
If you would like to discuss further , please feel free to contact us .
Sam Dixon Corporate / commercial lawyer , Jacksons Law Firm
The magazine for Aycliffe Business Park | 9