Cities team up to new explore income streams

LEADERS from three of England’s biggest cities, Manchester, London and Birmingham, are joining forces to explore new ways for councils to raise  income.

City councils from Manchester and Birmingham and Westmister in London have assembled a panel of experts to sit on the review. which will be chaired by Sir Stuart Lipton, and includes Nick Raynsford MP, the former local government minister, Professor Tony Travers, director of the Greater London group at the London School of Economics and Roger Bright, chief executive of the Crown Estate.

The new city commission will examine how local authorities can become less reliant on central government funding and whether this could help the economic growth.

The panel’s  final report will form part of the coalition’s review of local government finance which is due in the summer.

Sir Stuart, chair of the commission, said: “The current system for funding our major cities is unsustainable and our goal is to investigate how it can become more self-sufficient.

“If the UK’s cities are to play a stronger role in promoting economic growth they must be in a position to be genuine local leaders and receive the financial benefits from the investment they make in supporting the local economy.  
 
“Without a clear link between local growth and local spend, local government’s ability to drive the growth of the country’s greatest cities will be limited.”

The three authorities – which are jointly set to make almost £500m worth of savings over the next four years – argue the current system for funding Britain’s major cities and their public services is unsustainable and needs radical reform.

Sir Richard Leese, leader of Manchester City Council, said: “Effective and efficient local government has been critical to Manchester’s success over the past 20 years. We want to build on Manchester’s economic success and continue to make sure the regional economy grows.

“To do that, and ensure that the Manchester City Region continues to complement and in some ways act as a counterbalance to the capital, central government needs to get local authority funding right.  For growth to happen, we need to have a healthy labour market and the tools to tackle deprivation, unemployment, skills gaps and inequality.

“Local authorities are the key to achieving this, which makes the reform of local government finance all the more critical.”

The panel will meet in Manchester on Friday and in Birmingham on March 9.

The other members of the commission are: Mike Emmerich, chief executive of Commission for the New Economy in Mancheser;  Francis Salway, chief executive of Land Securities, Anthony Browne, mayoral policy director for economic and business development at the Mayor of London’s Office, Alexandra Jones, chief executive at the Centre for Cities, Michael Hayman, founder of communication consultancy Seven Hills and chairman of entrepreneurs at Coutts & Co and Steve Freer, CIPFA’s chief executive.