By Richard Johnstone | 31 July 2014
The eight core cities in England have set up a new board with their corresponding Local Enterprise Partnerships in a bid to boost jobs and investment outside London and the south east.
The Cities for Business board, made up of the city leaders and LEP chairs, will ensure the work of councils is coordinated with the partnerships that cover wider economic areas, and also develop policies to support local businesses.
Launching the initiative, the 16 leaders of the councils and LEPs have written to Chancellor George Osborne and Chief Secretary to the Treasury Danny Alexander, as well as shadow chancellor Ed Balls, calling for new powers and freedoms.
The letter stated that the eight urban areas – Manchester, Nottingham, Newcastle, Birmingham, Leeds, Liverpool, Bristol and Sheffield – represent 27% of the nation’s economy. However, by international standards, these areas underperform, the statement added.
‘The reason for this is clear; we lack the freedom and flexibility to act in the interests of local business, to create local growth, local investment and local jobs for the people and businesses we represent.
‘It’s time for more devolution directly to cities, economic powerhouses who together deliver far more for our economy.’
The Cities for Business prospectus set out five policies to boost economies as part of moves to increase local control over funding.
These include creating growth hubs in each city to support local business in high-growth sectors, as well as more local control over skills and employment services. Cities should also be freed to undertake more investment in transport and telecommunication projects, as well as being given more control over local housing and energy developments.
Jon Collins, the leader of Nottingham City Council and vice chair responsible for growth in the Core Cities Cabinet, said greater freedom could help deliver around 1.2 million jobs and add £222bn to the national economy by 2030.
‘This is a critical moment for our economy and our cities,’ he added.
‘As leaders and mayors of big cities we want to do all we can to support our businesses to create growth and jobs, but it often feels like we are doing so with one hand tied behind our backs. With greater freedom to generate the right skills in the labour market, more investment and tailored support packages for business, we could do much more.’
