Liverpool welcomes “city deal”

THE Government has formally offered Liverpool a “City Deal” – giving it substantial new powers such as the control of resources to encourage investment and growth.

It comes as the City Council prepares to vote tonight (Tuesday 7 February) on changing its constitution to have a directly elected mayor.

The change in governance arrangements would offer the government the clear accountability and influence required to justify the devolution of the new powers.

The deal will create a single investment fund of new and existing public and private money, initially worth £130m, but with the potential to grow to £500m - £1bn.

Having a single pot of money, which includes £75million of new government money, gives the City Council direct control over the use of resources and reduces the red tape relating to economic development in the city.

A letter to the City Council from Minister for Decentralisation and Cities Greg Clark and a statement to Parliament confirms that the mayor’s new powers and responsibilities under the deal would be:

·       The establishment of the first Mayoral Development Corporation outside London, supported by a Local Finance for Growth package. This includes:

• - a new Enterprise Zone for North Liverpool and the Central Business District which would offer incentives for companies to set up business in Liverpool and encourage existing city-based business to grow; and

• - the potential to capture the entire benefit of any growth in business rates from the Enterprise Zone for use in five other key economic areas of the city – North Liverpool, the Knowledge Quarter in the city centre, Stonebridge Cross, the Eastern Approaches and Speke-Garston (referred to as Mayoral Development Zones);

·       Acting as the chair of a new investment board which would bring together all of the City’s assets such as land, commercial and residential buildings including assets formerly owned by the North West Development Agency (NWDA);

·       Developing a new approach to welfare reform in Liverpool which includes investment in specific skills which match the jobs that are available in the city.

Council Leader Joe Anderson said: “This is a new deal for Liverpool. It’s great news. It’s the culmination of four months of tough negotiations with government.

“For the first time in decades, we are being given the chance for power to be returned to the city from Whitehall. It is a huge moment for Liverpool.

“The deal is bespoke to us.  It gives us direct control over our destiny and brings with it new investment in the future of Liverpool and the people of Liverpool.

“The City will have the first Mayoral Development Corporation outside of London, a new Enterprise Zone, and five Mayoral Development Zones. These have the potential to raise over £500 million to build a new kind of environment for businesses to flourish whatever their size. That’s good news for jobs, and the future prosperity of the people of Liverpool.

“The government has made it clear that they want ‘strong, accountable leadership’. I agree with them. That is why at tonight’s special council meeting I will be arguing for us to change our constitution now, rather than following the referendum route for an elected mayor. The deal and a mayoral model are the right thing for Liverpool. We can’t wait for 12 to 18 months to get started.

“We need to grasp the competitive advantage now to put us ahead of other cities and we need to get on with transforming our city.”

Electing a mayor is an option that has been open to Liverpool City Council since the Local Government Act 2000, but the city deal makes moving to this model a priority for the first time due to the additional powers and control of resources.

Up to eleven of England’s largest cities are holding a referendum on 3 May to decide whether to elect a mayor, following their mandate in the Localism Act. Those that decide to do so will hold elections in November.

The Elected Mayor would be in power for a period of four years and would select their Cabinet from the city’s 90 councillors.

The extraordinary council meeting to consider the change is being held at 5pm today, 7 February, at Liverpool Town Hall.

Read the details of the city deal here: http://councillors.liverpool.gov.uk/mgConvert2PDF.aspx?ID=90610