Nick Clegg is in Leeds today, to announce plans for a series of "City Deals" - extra new powers to boost growth in and around the Core Cities outside London - that's Birmingham, Manchester, Liverpool, Newcastle, Nottingham, Sheffield, Leeds and Bristol.
So far, the Coalition has set up Local Enterprise Partnerships (38 of them) and wants to see directly elected mayors in the 12 biggest cities outside London. But no major new powers have been on offer for LEPs or mayors, so neither has been taken very seriously.
Clegg's announcement today could change that. He will set out specific details about how the Government will devolve new powers to the eight Core City LEPs - but only if the LEPs promise a "step-change" in governance, and deliver "stronger and more accountable leadership". The Government would like to see directly elected mayors in Birmingham and other cities, but mayors are not essential to these City Deals. Instead, the Government will encourage each of the eight LEPs to come up with their own "tailored models" of stronger leadership.
The menu of possible new powers for LEPs include:
- Single capital pot, for local infrastructure (instead of lots of different funding streams)
- Fast-track access to tax increment financing, to deliver new infrastructure
- Business rate discounts for local businesses, and an incentive to pool business rates across a LEP
- Devolving local transport funding, and increasing LEPs' control over rail and bus services
- Devolving housing (Homes & Communities Agency) funding to LEPs
- City Skills Fund to tailor FE provision to local skills needs
Greater Manchester is the LEP that is most ready for these new powers - it already has a statutory Combined Authority in place, covering all ten authorities. Birmingham & Solihull LEP is not as firmed up, but Birmingham now has a real incentive to vote "yes" to a mayor in May's referendum. Liverpool might also go for an elected mayor.
The full details of these new City Deals will be published in a report from the Cities Policy Unit (based inside the Cabinet Office) called Unlocking Growth in Cities.
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