Cities ‘will control economic levers’ – Clegg
MAJOR cities will be given the powers and money they need to kickstart projects that will support economic growth rather than having to go cap in hand to Whitehall, Deputy Prime Minister Nick Clegg will tell a Yorkshire audience today.
In a speech in Leeds, Mr Clegg will announce cities will receive a single pot for capital projects rather than bidding to Government departments.
He is also set to promise the bulk of business rates will be put back in local hands by April 2013 as well as making tax increment financing powers – a way of borrowing against business rate growth – available to all areas and allowing local authorities to offer business rate incentives.
Mr Clegg will describe the Government’s new “city deals” as an “unprecedented transfer of power” that will help correct imbalances in the economy.
The speech will include commitments to simplifying the system for securing transport funding that mean in future a scheme will only have to show it “is feasible, achieves value for money, is transparent and accountable and contributes to growth.”
Leeds is currently awaiting a decision on whether the Government will back plans for a new trolleybus system, itself a successor to the Leeds supertram project which collapsed after long delays.
Pointing to the example of Transport for London, Mr Clegg will suggest there may be scope for similar models to control transport planning and provision outside the capital.
However, the Sheffield Hallam MP will also warn cities there will be a price to pay for taking on new powers, including shouldering more of the risk attached to major projects.
Mr Clegg is speaking at an event in Leeds on rebalancing the economy organised by the thinktank IPPR North.
In the Autumn Statement, Chancellor George Osborne offered cities the chance to compete for a share of £100m to create “super connected cities” with broadband speeds of 100MB.
Mr Clegg will cite Philadelphia as an example of where digital connectivity has been used to drive economic growth.
The first city deals are expected to be in place by the Budget in March.
