‘A Manchester mayor needs cash’
A mayor for the Greater Manchester ‘city region’ will be of no benefit unless the city wins more powers over its own finances.
That’s according to Dermott Finch, the director of a London-based think tank, who believes that Manchester must take control of its business rates and other funds which are currently channelled through quangos such as the Learning and Skills Council.
He was speaking at a meeting held by Greater Manchester Chamber of Commerce yesterday to discuss city region status.
In April’s Budget Chancellor Alistair Darling named Manchester and Leeds as two areas earmarked for pilot city region schemes, giving the cities autonomy in some areas.
And earlier this week the Department for Communities and Local Government released a paper suggesting that city regions could opt for elected mayors or choose a single leader from the various local authorities.
Mr Finch, from the Centre for Cities, argued that a mayor “allows you to get stuff done” because he or she has the “power of the personal, direct mandate”.
But he said there was “no point” to the idea unless Greater Manchester could keep hold of business rates – which currently go to the Treasury – and use this revenue to secure the finance required for large capital projects.
He said: “Currently local authorities have no incentive to grow the business base because revenue goes back to the Treasury.”
He stressed that city regions were required because larger cities were less vulnerable to recession, devolved budgets could improve skills and training as well as the chances of developing infrastructure projects, and they help cities to project a “bigger brand”.
His arguments were echoed by Peter Heginbotham, president of the chamber. He said: “The fundamental thing is to stop arguing about the structures and get some powers.”
The debate was also attended by Lord Peter Smith, leader of Wigan Council and chairman of the Association of Greater Manchester Authorities, and Justin Bentham of the Commission for the New Economy.
