Budget 2009: Leeds city-region unveiled

YORKSHIRE was today named as a pilot area for the Government’s city-region scheme which will give the region new controls on areas including housing, regeneration, transport and economic development.

Chancellor Alistair Darling named Leeds and Manchester as the two pilot city-regions in today’s Budget, as predicted on TheBusinessDesk.com earlier today.

The scheme will effectively give the region more power over spending.

Mr Darling said the London-style city-region pilot schemes would be complemented by the establishment of a £750m investment fund providing financial support focusing on emerging technologies such as digital and biotechnology.

The Government said its decision was based on “the vital role that the Leeds city-region plays in contributing to the national and regional economy”.

“The Government will work closely with Leeds city-region to agree the key economic and policy priorities that will be crucial in delivering future growth,” it said.

Full details of the pilot arrangements are yet to be agreed but Communities and Local Government Secretary Hazel Blears will oversee the pilot.

Tom Riordan, chief executive at Yorkshire Forward, said: “We welcome the announcement by the Chancellor of the Leeds city-region pilot and believe it heralds and exciting step forward in our region.

“We have been working across the region to support the development of city region partnerships for some time, and have structured our own investment boundaries to complement those of the city regions.  We will continue to work with these partnerships, so that they too can grow.

“Yorkshire Forward will now look to work with Leeds city-region partnership to understand how their investment priorities can be enhanced by the priorities already laid out in our own investment plans, which have been developed in partnership with the local authorities.”

Nimble Thompson, regional chairman of the Institute of Directors in Yorkshire, said: “This is a tremendous coup for the region and the councils involved and we must view it as an extremely positive development.

“Hopefully this will give Yorkshire more clout when it comes to important issues, such as transport, that affect businesses in the region.”

Reacting to the announcement, Leeds Financial Services Initiative’s chief executive Howard Kew said he was “very pleased” about the decision.

Mr Kew said: “The financial services industry in Leeds city region is a major contributor to the regional economy with an output of £12.9bn and employing around 240,000 people. 

“To have more local control over funding for things like skills and innovation will be important for maintaining the industry’s competitiveness, jobs and the position of Leeds city-region as the leading centre for financial services outside London.

“The group of Councils have put forward a good piece of work on the document which they presented (to the Government).

“Talking to people I wasn’t too optimistic this decision would be made. I’d like to see more about what this means for business.

“There’s more work to be done with it but I’m looking forward to see how it develops.”

The existing Leeds City Region Partnership, which takes in 11 local authorities whose aim is to work together in areas such as transport, housing and planning, has previously accepted the Government’s invitation to bid to become one of its forerunner city regions.

The Leeds City Region Partnership is seeing authorities work together to rebuild confidence during the recession and grow the region’s economy.

The partnership has devised a Leeds City Region Forerunner Plan which comprises a set of four proposals which could change the way local government operates, enabling city region authorities working with partners to minimise the impact of the downturn and accelerate the city region’s economic recovery.