By Richard Johnstone | 1 June 2012
County councils have made a bid to be included in the government’s plans to devolve economic powers to town halls in England.
Ministers have already agreed two ‘city deals’ this year that will give both Liverpool and Manchester councils more say over local economic development. These were reached after cities minister Greg Clark urged England’s eight biggest cities outside London to reach an accord with the government on devolution of responsibilities to help them attract private sector investment. More agreements are expected soon.
The Local Government Association has now written to Clark backing county councils’ calls for them to be included as well.
One source close to the process told Public Finance that counties were ‘relatively flexible’ on how agreements would be reached. These could include consulting district councils, but would focus on ‘economic levers and growth’.
The two city deals announced give Liverpool a greater say over the government’s welfare programme, and introduce a tax ‘earn back’ scheme for Manchester. A portion of the tax revenues generated by infrastructure investment will be returned to the city to be reinvested.
The government should end its current ‘geographical distinction’ between cities and counties, the source said. ‘If something is available for 500,000 people [in cities] then it should be available to 500,000 people in counties.’
The source added: ‘We do worry about an agenda that says economic growth happens in cities, and people travel back to counties in the evening to sleep before they go back to the city in the morning to be economically productive again.’
Robert Gordon, chair of the County Council Network in the LGA, said that ‘counties stand ready and willing to take on more local control’.
Gordon, who is also leader of Hertfordshire County Council, said counties would work with local enterprise partnerships to take on powers that could boost economic growth.
‘There is simply no reason that powers available to strategic authorities in cities should not be available to strategic authorities in the rest of England,’ he said.
‘In the longer term, we remain committed to meaningful devolution across a range of policy areas, putting local people in control of local services.’
A Department for Communities and Local Government spokesman said Clark would meet LGA chair Sir Merrick Cockell soon to discuss the potential of extending the deal. It was opened up to smaller English cities in January.
However, ministers want ‘all cities to have the powers and resources they need to attract investment,’ he added.
County councils have made a bid to be included in the government’s plans to devolve economic powers to town halls in England.
Ministers have already agreed two ‘city deals’ this year that will give both Liverpool and Manchester councils more say over local economic development. These were reached after cities minister Greg Clark urged England’s eight biggest cities outside London to reach an accord with the government on devolution of responsibilities to help them attract private sector investment. More agreements are expected soon. The Local Government Association has now written to Clark backing county councils’ calls for them to be included as well.
One source close to the process told Public Finance that counties were ‘relatively flexible’ on how agreements would be reached. These could include consulting district councils, but would focus on ‘economic levers and growth’.
The two city deals announced give Liverpool a greater say over the government’s welfare programme, and introduce a tax ‘earn back’ scheme for Manchester. A portion of the tax revenues generated by infrastructure investment will be returned to the city to be reinvested.
The government should end its current ‘geographical distinction’ between cities and counties, the source said. ‘If something is available for 500,000 people [in cities] then it should be available to 500,000 people in counties.’
The source added: ‘We do worry about an agenda that says economic growth happens in cities, and people travel back to counties in the evening to sleep before they go back to the city in the morning to be economically productive again.’
Robert Gordon, chair of the County Council Network in the LGA, said that ‘counties stand ready and willing to take on more local control’.
Gordon, who is also leader of Hertfordshire County Council, said counties would work with local enterprise partnerships to take on powers that could boost economic growth.
‘There is simply no reason that powers available to strategic authorities in cities should not be available to strategic authorities in the rest of England,’ he said.
‘In the longer term, we remain committed to meaningful devolution across a range of policy areas, putting local people in control of local services.’
A Department for Communities and Local Government spokesman said Clark would meet LGA chair Sir Merrick Cockell soon to discuss the potential of extending the deal. It was opened up to smaller English cities in January.
However, ministers want ‘all cities to have the powers and resources they need to attract investment,’ he added.
