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Six cities agree devolution deals

Six of England’s biggest cities outside of London have signed deals with the Government to pass down powers over finance, transport and education.

Birmingham, Bristol, Leeds, Newcastle, Nottingham and Sheffield have all signed the so-called city deals, joining Manchester and Liverpool in the core-cities group.

Most of the six new cities have agreed to form combined authorities, which would link city councils with other neighbouring councils in the region, while Bristol voted to implement a directly-elected mayoral system.

Deputy prime minister Nick Clegg said: “These groundbreaking deals signal a dramatic power shift, freeing cities from Whitehall control.

Decentralisation minister Greg Clark said plans for a further wave of city deals with medium-sized cities would soon be forthcoming, adding: “City deals represent a watershed moment in the government’s revolution to hand power down from Whitehall to the local level.

Rhian Kelly, CBI Director for Business Environment said: “Our cities are true hubs of economic activity, and these deals will give them real powers and resources which, if implemented well, will help them to stimulate private sector growth.

“Giving cities greater financial freedom will help them encourage investment in critical infrastructure, particularly through tax increment financing schemes.

“The ability to pool disparate funding streams and take control of transport budgets will enable them to take a more strategic view and help to align resources with local priorities.

“Enabling greater influence for businesses on training will help them to plug skills gaps, and hire people who can deliver what their customers need.

“Measures in the city deals to provide local skills brokerage are especially helpful to smaller firms, who may not have the resources to set up their own schemes.

“Manchester has shown what can be achieved with collaboration between local authorities and strong business engagement.

“Leeds, Sheffield and Newcastle will have the chance of similar success with their Combined Authorities, provided strong governance is in place.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .