Liverpool to be run by mayor

An extraordinary council meeting voted to change to a mayoral system without holding a referendum. The move follows the conclusion of negotiations on a ‘city deal’ with Whitehall, which secures the city £75m of extra government funds.

Councillors approved the switch by 62 votes to 3, with 12 abstentions. The creation of a mayor was originally going to be put to the electorate on May 3, using the referendum powers under the Localism Act. This will now be the day of the election for the mayoral position, with the winner taking up his or her responsibilities on May 7.

The agreement follows Deputy Prime Minister Nick Clegg’s call late last year for a series of bespoke accords to ‘unlock growth’ in English cities through extra funding and devolution of powers. Eight cities were offered a deal, of which Liverpool is the first to complete negotiations. The offer has now been extended to all English cities.

Liverpool’s talks with the government, revealed last month, have ended in agreement on a new approach to welfare reform in the city. This will extend the Work Programme to include qualifications in a 'youth contract'.

The new mayor will be in charge of the Mayoral Investment Board, which will oversee the city's economic and housing strategy.

A Mayoral Development Corporation will be created, with responsibility for a new enterprise zone for north Liverpool. Five linked mayoral development zones will also be set up, which will be able to benefit from business rates growth in the enterprise zone.

Announcing the decision, the council said that the mayor would be ‘a powerful and influential voice for the city, locally, nationally and internationally’. It added: ‘He or she will provide leadership, especially by building the confidence of investors and directing new resources to economic priorities.’

Welcoming the pact, Clegg said it would lead to ‘an unprecedented transfer of power… with new powers and funding for Liverpool to do things its own way’.

He added: ‘I firmly believe one size doesn't fit all – whether it's a mayor or whether it is a council leader. What cities have to show in return for a city deal is that there is strong clear leadership. This deal puts Liverpool back in the driving seat to create jobs and boost skills with greater economic and political freedom. It empowers Liverpool to go for growth that will benefit everyone who lives there.’

Clegg said that he was looking forward to more city agreements being reached across the country ‘in the coming months’.

Cities minister Greg Clark added: ‘We've said to each city “make us an offer”. Tell us how you can drive growth, and I promise that the government will respond positively.’