Exclusive:Angela Rayner confirms mayoral deal for Hull and East Yorkshire saying region's 'devolution jigsaw' is complete

It will give local leaders the power over areas such as transport, adult education and housing, which Labour hopes will help boost growth.

It means that from next May, the whole of Yorkshire and the Humber will have devolved powers.

Ms Rayner, the Deputy Prime Minister, told the Yorkshire Post: “Today is a major day in Yorkshire’s already rich history, as we complete the final piece of the devolution jigsaw to ensure every corner of God’s own country benefits from devolution. 

“We believe those with skin in the game should be at the heart of decisions about their local area, and it’s fantastic that Hull and East Yorkshire will join the rest of Yorkshire at the table as we work to unleash this area’s true potential. 

“This is only the first step of our major ambition to drive forward our devolution revolution, and ensure we empower more communities and strengthen the existing powers of our brilliant mayors.” 

The initial agreement, first signed by Michael Gove in 2023, will provide £400 million worth of funding over a 30-year period, as well as £20 million of capital funding to drive regeneration.

It is subject to Parliamentary approval, although that is expected to be a formality.

Originally local leaders pushed for a pan-Yorkshire mayor covering the whole of the region, although this was blocked by the government.

South Yorkshire became the first mayoralty in 2018, with West Yorkshire following in 2021 and York and North Yorkshire earlier this year.

Now Hull and the East Riding will complete the set in May 2025.

Sir Ed Davey previously told this paper that the Liberal Democrats will be targeting it to win their first metro mayor.

The party’s Hull City Council leader Coun Mike Ross said “it’s clear we’re best placed to win this election”. 

He explained: “After years of being left out in the cold on devolution, the people of Hull and East Riding can now get the fair deal they deserve. 

“This is a big step forward in unlocking huge investment into the city, achieved by the two local councils working together. 

“This devolution deal was backed by residents and businesses right across our communities. I look forward to seeing it becoming a reality, including the mayoral election next May.”

While Coun Anne Handley, the Tory leader of the East Riding of Yorkshire Council, added: “This will be a fantastic opportunity to unlock investment for the region and improve strategic collaboration between Hull and East Yorkshire council areas.

“The mayoralty will provide a strong voice for the East Yorkshire region and support communities and local businesses.”

Labour sees devolution as a way of driving growth and reducing regional inequalities.

It’s pledged to give greater transport and planning powers to the metro mayors to boost the local economies and increase housing.

In particular, Yorkshire’s current combined authorities believe having greater planning oversight around large infrastructure projects will help speed up house building.

Ms Rayner, who is also the local government secretary, is bringing forward an English Devolution Bill to hand out greater powers to the combined authorities.

Earlier in the year, West Yorkshire Mayor Tracy Brabin announced plans for a tram system connecting Leeds and Bradford, as well as bringing buses back under public control.

She said it felt like a “new dawn” in the government’s relations with the regions.