Northern cities must show they can deliver if they are to secure major devolution deals

NORTHERN cities like Leeds, Sheffield and Liverpool can secure major devolution deals like Greater Manchester, but they have to show government they can deliver, according to leading economist Jim O’Neill.

According to O’Neill, chair of the City Growth Commission, which has been set up to will investigate how England’s cities can become engines for growth, combined authorities have the chance to get a deal like this, too.

Speaking at the Northern Futures Summit in Leeds on Thursday Nick Clegg said he wants devolution deals done with the Leeds and Sheffield City regions by December and there won’t be an obligation to introduce a mayor in order to get them.

Greater Manchester has agreed a major devolution deal with the Government for the transfer of powers covering transport, housing, planning and policing – under the remit of a directly-elected city mayor. The new mayor will be elected in 2017 and the initiative is part of Chancellor George Osborne’s drive to create a Northern Powerhouse so cities like Liverpool, Manchester, Leeds and Sheffield can fulfil their economic potential and close the gap on London and the South East.

Speaking at Thursday’s Northern Futures Summit in Leeds, to answer the question ‘how do we build on the strengths in the north to create an economic core in the heart of the region to compete with the biggest cities in the world?’ O’Neill said: “This week’s Manchester deal is the sort of deal that’s going to be on offer. If you are in a combined authority, and there are currently five, you have the chance to get a deal like this.

“Those that are classed as being capable to deliver and take responsibility should be encouraged to go for it rather than waiting for others.”

But he added that the combined authorities need to be able to show they can implement that potential power.

O’Neill, the retiring chairman of Goldman Sachs Asset Group, says that skills is a critical area that needs to be addressed.

“Giving local people control of the skills agenda is probably the biggest thing in getting long-term GDP growth potential,” he said. 

“If you want to push for more beyond the things being done in Manchester, you need to be pushing other people to think more boldly and become more focused on these sorts of issues.

“It is very, very evident the skills challenge is very complex and different in different places. We cannot solve that with even the smartest people in Whitehall.”