‘City deals’ give more power to eight British cities

England’s core cities – Newcastle, Leeds, Birmingham, Nottingham, Sheffield, Bristol, Liverpool and Manchester – have all struck city deals with central government in a partnership that could be modelled throughout the country.

Each city has been given an amount, taken from the relevant Whitehall department’s national budget, which the council can invest in growth and infrastructure directly. But before the money is handed over, cities have to demonstrate “strong, accountable leadership”, either through an elected mayor, like Liverpool and Bristol, or working in partnership with the surrounding regions and local authorities.

‘Dramatic power shift’

Deputy Prime Minister Nick Clegg said the city deals were “groundbreaking” and signalled “a dramatic power shift, freeing cities from Whitehall control”.

“Over the coming months, we are transferring more and more power from Whitehall to these cities,” he added. “They are the economic powerhouses of England – so it makes sense that the cities decide for themselves how to boost their local economies.”

The hope is that the city deals will create 170,000 jobs and 37,000 apprenticeships over 20 years. Ministers hope it will also generate £8.2bn in infastructure.

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‘Direct access’

Cities currently have to appeal to central government for investment in big projects – a process that can take years. But the city deal will allow cities to make their own decisions and the money to follow them through. For example Birmingham, Bristol, Leeds and Sheffield will have devolved transport budgets, and Bristol, Manchester, Leeds, Newcastle and Nottingham will set up their own apprenticeship hubs.

Last year, there were seven engineering jobs for every young person gaining an engineering qualification in Sheffield. At the same time, every two young people that gained a hair and beauty qualification in the city were competing for just one job. This deal means we can change all that. Julie Dore, Sheffield city council leader

In return, each city has signed up a series of pledges. Leeds – and the surrounding local authorities, which are signed up the city deal – has promised to increase the number of businesses exporting goods from 2,000 to 2,800. Liverpool has promised to build 12 new schools and build 5,000 new or refurbished homes.

Liverpool and Manchester have already set their city deals in motion, helped in Liverpool’s case with the election of Joe Anderson as mayor in May, which allowed central government to devolve power to a democratically elected authority.

A city council spokesman told Channel 4 News that the benefits of devolved power, and a central figurehead, were already starting to show: “Last week, Joe Anderson had a conversation with Grant Shapps MP [minister for housing] in Liverpool – you would never normally get that kind of direct access.”

Localism

Councillor Julie Dore, leader of Sheffield City Council said the deal would allow the council to make a bigger difference in the community: “Last year, there were seven engineering jobs for every young person gaining an engineering qualification in Sheffield. At the same time, every two young people that gained a hair and beauty qualification in the city were competing for just one job.

“This deal means we can change all that by making the skills system work for our economy, for our communities and for our businesses.”

Cities Minister Greg Clark said the city deals were a “watershed moment” in Whitehall handing power to a local level.

“These landmark agreements will unlock the huge potential of our cities by harnessing their unique strengths to drive the growth Britain needs,” he said.

“Our major cities have seized the opportunity to take control of their economic destiny and will now reap the benefits of new financial freedoms and investment opportunities available to them.”