‘Massive moment" as Greater Manchester agrees devolution deal

GREATER Manchester has agreed a major devolution deal with the Government for the transfer of powers covering transport, housing, planning and policing – under the remit of a directly-elected city mayor.

The new mayor will be elected in 2017 and the initiative is part of Chancellor George Osborne’s drive to create a Northern Powerhouse so cities like Liverpool, Manchester, Leeds and Sheffield can fulfil their economic potential and close the gap on London and the South East.

The new mayor would assume the powers currently held by the elected police and crime commissioner for Greater Manchester, a role held by the former MP Tony Lloyd.

The proposals also include devolving further powers to the Greater Manchester Combined Authority – which is made up of the 10 local authorities in the city region – including over support for business growth, skills and help to join up health and social care budgets.

In detail, the proposals include giving the Mayor of Greater Manchester:
Control of a £300m Housing Investment Fund;

Powers over strategic planning, including the power to create a statutory spatial framework for Greater Manchester. This will need to be approved by a unanimous vote of the Mayor’s Cabinet;

Responsibility for a devolved and consolidated transport budget, with a multi-year settlement to be agreed at the next Spending Review, and responsibility for franchised bus services (subject to consultation by Greater Manchester), and for integrated smart ticketing across all local modes of transport;

Control of the reformed earn-back deal, within the current envelope of £30m a year for 30 years – this will gives Greater Manchester the certainty they need to extend the Metrolink to Trafford Park;

Take on the role currently covered by the Police and Crime Commissioner.
 
Meanwhile, The Greater Manchester Combined Authority will gain:

Responsibility for securing integrated business support services, including through the Growth Accelerator, Manufacturing Advice Service and UK Trade and Investment (UKTI) Export Advice;
Control of the Apprenticeship Grant for Employers in Greater Manchester and power to re-shape and re-structure the Further Education (FE) provision within Greater Manchester;

Control of an expanded Working Well pilot, with central government funding linked to good performance up to a fixed DEL limit in return for risk-sharing;

Opportunity to be a joint commissioner with Department for Work and Pensions (DWP) for the next phase of the Work Programme;

The GMCA and Greater Manchester Clinical Commissioning Groups will be invited to develop a business plan for the integration of health and social care across Greater Manchester, based on control of existing health and social care budgets.

The government says it hopes that Manchester will be the first of many big cities to take advantage of greater devolution of powers.

Chancellor George Osborne said: “This is a massive moment for the north of England and our plan to build the Northern Powerhouse.

“After several months of private discussions with local representatives from all three parties, I have reached agreement with the civic leaders of Greater Manchester to create the first metro-wide elected mayor outside of London. This will give Mancunians a powerful voice and bring practical improvements for local people, with better transport links, an Oyster-style travelcard, and more investment in skills and the city’s economy.

“I want to talk to other cities who are keen to follow Manchester’s lead – every city is different, and no model of local power will be the same.

“The Northern Powerhouse is becoming a reality. We plan to make major investments in northern transport and science, now we have agreement on the first metro area Mayor.  This is what we’ve achieved in just a few months. Giving cities power is part of our long term economic plan to reduce the decades-old gap between north and south, London and the rest.”

Communities Secretary Eric Pickles described the deal as a “landmark agreement” and an “important step” in efforts to decentralise power.

Lord Peter Smith, chair of GMCA, said: “Make no mistake, this devolution settlement is a momentous moment for Greater Manchester. It gives us greater control over own destiny in several key areas and the ability to base decisions on local priorities and needs rather than on ‘one size fits all’ dictates from Westminster.

“This isn’t about taking powers from individual Greater Manchester authorities. It’s about powers coming down from central government to a more localised level.”

Sir Richard Leese, leader of Manchester city council and vice chair of GMCA, added: “Our ultimate ambition is for full devolution of all public spending in Greater Manchester, currently around £22bn a year, so that we either influence or control the whole amount.

“We recognise that this cannot happen overnight and there needs to be a staged approach based on evidence that devolution delivers increased economic growth and better public services. But today’s settlement is a huge move forwards and a road map for the future.”

The government will now prepare legislation to enable these changes with the potential for the Mayoral election to take place in 2017.