By Richard Johnstone | 27 March 2014
Combined city authorities should be given the same powers as the Mayor of London to levy taxes for infrastructure and oversee planning, a think-tank has said.
In a report examining the combined authorities for Merseyside, West Yorkshire, South Yorkshire and Tyne and Wear, which are set to be created from next month, the Centre for Cities said ministers should give the bodies additional responsibilities to drive economic recovery.
Chief executive Alexandra Jones said many places would struggle to reach their economic potential in an era of reduced public spending. However, the new authorities were an opportunity to reform the over-centralised local government funding system and empower cities.
Plans for new authorities to take responsibility for economic development in England’s eight core cities formed part of City Deals agreed with the government in July 2012.
Ministers should now use these authorities as the basis for ‘tailored devolution’, Jones said, with greater autonomy for cities.
‘Local areas also need to be bold and come together to transform the way they support businesses, invest in transport and provide the services people use every day.’
Among the powers that should be given to the combined authorities is the ability to raise additional funding for economic growth projects, as Mayor of London Boris Johnson did with a supplemental business rate levy to pay for Crossrail.
Powers similar to the mayor’s ability to intervene in strategically important planning issues – and direct boroughs in the capital to conform with an agreed strategic plan – should also be given to the bodies.
A combined transport authority should be set up in each area to take control of some transport operations and manage fares and revenue. Powers to take control of assets from the Homes and Communities Agency as part of regeneration policy, and the creation of local development corporations, should also be devolved.
In addition to these responsibilities for city regions, enhanced economic development roles should also be offered to county councils that cover functional economic areas, the Breaking boundaries report suggested.
