IPPR calls for more autonomy for cities

23 Feb 06
City regions such as Birmingham and Greater Manchester should be given control of their own regeneration budgets and granted tax-raising powers, according to a report published by the Institute for Public Policy Research.

24 February 2006

City regions such as Birmingham and Greater Manchester should be given control of their own regeneration budgets and granted tax-raising powers, according to a report published by the Institute for Public Policy Research.

The report, City leadership, published on February 22, says that as only 22% of English council spending is raised locally, authorities face 'a high level of budgetary uncertainty'.

This is particularly a problem for large cities, as their dependency on decisions made by Whitehall or regional development agencies forms 'a critical barrier for cities seeking to finance major economic development projects'.

Anticipating this year's local government white paper and Lyons review of local government, the report proposes that city regions be given wider administrative powers.

It says England's two largest cities should be handed control of their own regeneration, skills and transport budgets, totalling more than £600m each.

Increased financial autonomy for city regions should be matched by new forms of political accountability, such as a move towards directly elected mayors, it says.

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