Liverpool strikes first ‘city deal’

Author: Dan Drillsma-Milgrom, LGC   |  

Cities minister Greg Clark has confirmed that Liverpool will be the first council to strike a ‘city deal’ following the city council’s decision to move to the elected mayoral system.

Councillors voted at an extraordinary council meeting on Tuesday night by 62 votes to three to change the council’s constitution and hold an election for a mayor on 3 May. There were 12 abstentions.

In a written ministerial statement also published on Tuesday, cities minister Greg Clark confirmed the government had approved a series of proposals that would constitute a ‘city deal’. While Liverpool City Council insisted the deal was not dependent on the city having a mayor, the proposals make frequent reference to the post of elected mayor.

The proposals are:
To designate an enterprise zone covering the ‘city fringe buffer zone’ and central business district subject to clearance of the business case by the Treasury and agreement from the local enterprise partnership. The government also recognises the city’s plans to develop a further five ‘mayoral development zones’
To create a ‘mayoral investment board’ to oversee economic and housing strategy and the Homes and Communities Agency’s land assets
For the Department for Work & Pensions to work with the city to develop welfare pilots to deliver a localised programme of support for people leaving the Work Programme
A secondary school investment plan funded by the council to build up to 12 new secondary schools including at least six academies
The release of a further £75m from the Department for Communities & Local Government for economic development initiatives – subject to the Treasury clearing business cases – that will contribute to a £130m “single investment pot” of public and private funds
Confirmation that the city’s move to the mayoral model and creation of a ‘mayoral development corporation’ satisfied the government’s requirement for cities to demonstrate strong, accountable leadership

Mr Clark said the government recognised the proposals were “an ambitious package aimed at driving growth in Liverpool”. On the plans to move to the mayoral model, he said: “This is an historic day for the people of Liverpool that will enhance the standing of this proud city both in Britain and on the world stage.

“When elected, Liverpool’s mayor will provide the city with the strong, visible leadership that it deserves. This is an historic opportunity for Liverpool to build a prosperous future and achieve its full potential. Liverpool is showing the way forward.”

Nominations for the position of mayor close on 4 April.
Birmingham City Council’s former corporate director of governance, Dr Mirza Ahmad, has dropped further strong hints that he would like to run as mayor. Commenting on the debate as to whether the city should have an elected mayor or not, he said: “It’s a big “yes” from me. Birmingham should have a directly elected Mayor. More to follow over coming days”. Dr Ahmad previously hinted there would be “strong” ethnic minority candidates for the job but said “it is all about timing”.

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