Chancellor George Osborne has confirmed that devolved housing and planning powers are to be given to two areas in the north-east as part of the Northern Powerhouse drive.

The devolution deals are for a new Tees Valley Combined Authority, and the North East Combined Authority.

Both areas will be able to have directly elected mayors from 2017.

The North East Combined Authority is made up of seven local councils, while the Tees Valley Combined Authority is made up of five.

Osborne said: “Rebalancing our economy and giving local leaders the power to manage their own affairs is a key part of our long-term plan.”