News

Take control by electing Mayors Osborne tells cities

A new City Devolution Bill to be announced in the Queen’s Speech on 27 May will grant new local powers to cities across the country provided that they elect a mayor, Chancellor of the Exchequer George Osborne told an audience in Manchester yesterday.

“This law will pave the way for Greater Manchester – and, importantly, other cities as well, to take greater control and responsibility over all the key things that make a city work, from transport and housing to skills, and key public services like health and social care,” he said. “By the end of this year the legal framework will be set so that any city can proceed to implement a Mayoral devolution deal.”

Osborne also took the opportunity to announce a new appointment to the Treasury in economist Jim O’Neill who is former chair of the City Growth Commission, a move that was welcomed as a positive step.

However to be granted the new powers Osborne said that , like London and Manchester, cities must elect a Mayor. “It’s right people have a single point of accountability: someone they elect, who takes the decisions and carries the can. So with these new powers for cities must come new city-wide elected Mayors who work with local councils.”

Proposals for election of city wide mayors were rejected by nine UK cities in May 2012 including Birmingham, Manchester, Leeds and Newcastle. However it is expected that the new powers being offered will see some cities reconsidering their position. “Clearly if Manchester proves to be a success and the model is well received then other regions will need to consider how they could organize themselves to benefit,” said Marc Davies, chairman of ACE Northern Region and a director at consultant WYG.

In Manchester the Mayor will become the 11th member of the existing Greater Manchester Combined Authority. “Other cities can find the mayoral model that works for them. But it has to involve a city-wide elected executive mayor,” said Osborne. “It’s up to local people and their elected representatives on councils to decide whether they are interested in their communities taking part in this new revolution in city government. My door now is open to any other major city who‎ wants to take this bold step into the future,” he said.

Devolution of power on transport investment to local areas would be a key feature of the deal but this would raise challenges for procurement of major cross regional infrastructure said Davies. “At one level it is great that there will be more local control in individual cities, but at the larger scale such as HS3 having different authorities procuring it in parts clearly won’t work so whether there is opportunity for a body with overarching responsibility to deliver such projects could be looked at.”

Osborne also took the opportunity to announce a new appointment to the Treasury in economist Jim O’Neill who is former chair of the City Growth Commission, a move that was welcomed as a positive step. “Jim O'Neill’s appointment as the Commercial Secretary to the Treasury is encouraging news in terms of long-term infrastructure strategy and planning for devolution and the Northern Powerhouse,” said Jon Hart, infrastructure partner at Pinsent Masons.

O’Neill follows the appointment of north-east MP James Wharton who is now the Minister for the Northern Powerhouse in the Department for Communities and Local Government.

If you would like to contact Bernadette Ballantyne about this, or any other story, please email bernadette.ballantyne@infrastructure-intelligence.com:2016-1.