IoD chief hails Manchester devo example

THE North West chairman of the Institute of Directors believes other cities across the UK will follow the example of Manchester in seeking devolution.

Mike Perls was speaking as a new survey of more than 1,000 business leaders revealed 65% of bosses support Government plans to devolve powers to cities and regions.

IoD members supported giving combined authorities significant extra powers on housing, planning, transport, education skills and local taxes.

But businesses were clear that tax-raising powers should not be used by local authorities to raise rates or increase the complexity of tax rules.

Perls said: “The ambition and innovation shown in Greater Manchester’s growth and reform plan alongside the maturity of its governance structures illustrates the potential that devolving power to the regions can present.

“Cities know what is best for their own region. Businesses understand that regionally controlled transport, planning, housing, education and skills strategies are more likely to create an environment to enable them to create growth through higher value jobs.

“I fully expect and welcome more City region Combined Authorities to finalise devolution agreements over the coming weeks and months.”

Other findings in the survey said that 58% of business leaders supported the model of directly elected mayors for combined authorities.

Businesses showed support for devolving powers over housing and planning (78%), transport (76%) and education and skills (52%).

But there was staunch opposition to the idea of giving combined authorities the power to keep or later rates of national businesses or personal taxes such as national insurance, income tax, corporation tax and VAT.