Osborne pledges ‘devolution revolution’

CHANCELLOR George Osborne will promise a “revolution” in the way we govern England by handing cities devolved powers over housing, transport, planning and policing.

In his first key first post-election speech in Manchester, he will say other cities should see it as a blueprint for city-regional devolution, and that his “door is open” for leaders to put their case to be handed more powers.

The “old model” of running everything from London is “broken” and has unbalanced the economy, he will add. A Cities Devolution Bill will be in the Queen’s Speech later this month.

Tatton MP Mr Osborne, who in the coalition government became the architect and the flag-bearer in chief for the Northern Powerhouse concept to rebalance the economy,  says that trying to run everything in the country from London has “made people feel remote from the decisions that affect their lives.

“It’s not good for our prosperity or our democracy.”

As part of the devolution plan, only cities that elected their own mayor would be given control of local transport, housing, skills and healthcare.

“I will not impose this model on anyone,” Mr Osborne will say, “but nor will I settle for less.”

“My door now is open to any other major city who wants to take this bold step into the future.”

This is a “revolution in the way we govern England”, he will add.

Last year, leaders of Greater Manchester’s 10 councils agreed to the area’s first mayoral election. An interim mayor, who will hold the post until 2017 will be elected this summer.

From 2017, under the devolution plans, the mayor would lead Greater Manchester Combined Authority, chair its meetings and allocate responsibilities to a cabinet made up of the leaders of each of the 10 councils.

Councils in Greater Manchester currently control about £5bn of public money each year. This deal is expected to give them control over a further £2bn.

Further government plans include creating a so-called Northern Powerhouse, aimed at closing the economic gap between north and south, which Mr Osborne said would be backed by extra funding of more than £18bn to the region by 2030.

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