Cllr Simon Henig, chair of the North East Combined Authority, said: “Clearly it is disappointing that there was no mention in the Chancellor’s budget speech of devolution for the North East.
“However, having had very positive talks with the Secretary of State in the last fortnight, we remain in a strong position to push the case for a devolution deal that will help to grow our economy and create jobs for local people.
“It is important that we take the time to get this right and agree a deal which brings maximum benefit to business and residents.
“As part of our detailed discussions we will consider appropriate models of governance, taking into account the unique and diverse aspects of our area.
“It is important to acknowledge that what is appropriate for some city regions may not be the best solution for other areas. This is demonstrated by the announcement of a devolution deal for Cornwall with no mention of an elected mayor.
“We will continue to seek the best possible arrangements for the North East and look forward to further positive discussions with government in the coming weeks.”