City deal close to agreement

CITY leaders believe a deal with the Government that could see the creation of a ‘super council’ and a new £400m infrastructure fund will be announced next month.

The Leeds City Region has been in discussions with Ministers over a ‘city deal’ and the details are now expected to be confirmed after the local elections.

City deals, first announced by Deputy Prime Minister Nick Clegg in Leeds last year, involve the Government agreeing to hand over powers and funds previously dealt with in Whitehall to local authorities as part of efforts to kickstart the economy.

Proposals on the table include councils pooling transport funding worth £1bn and asking the Government to give them more freedom over how its spent.

A new ‘super council’, known as a combined authority, would be set up to oversee the new transport fund. Councils in Manchester already have a combined authority with powers in areas such transport, housing and skills which has been credited as a major reason for the city’s economic success.

However any move to share power across boundaries in a similar way in Yorkshire is likely to prove controversial.

Speaking at an event in Leeds last night to encourage support for elected mayors, Cities Ministers Greg Clark said: “I would like to see the  equivalent of a combined authority in this area, such as Manchester has.”

The city deal could also see local authorities pool £200m over ten years to create a Leeds City Region Investment Fund, match funded by the Government, to spend on infrastructure “to deliver the right environment for business growth”.

In addition, the Leeds City Region wants to spend £2m working with UKTI on efforts to attract inward investment.

A final meeting with Ministers was held earlier this month but restrictions connected to the local elections mean a formal announcement is expected to be made next month.

However, the Government has already announced two measures that will form part of the city deal.

Leeds and Bradford were awarded £15m in last months Budget to create an ultra-fast broadband network in the two cities while Wakefield, Bradford and Leeds have also secured £5.6m to target youth unemployment.