Northern devolution to be centrepiece of Autumn Statement

5 Aug 14
Plans to devolve new money and civic powers to the north of England are to be worked up over the next five months in order to form the centrepiece of December’s Autumn Statement, Chancellor George Osborne has announced.

By Richard Johnstone | 5 August 2014

Plans to devolve new money and civic powers to the north of England are to be worked up over the next five months in order to form the centrepiece of December’s Autumn Statement, Chancellor George Osborne has announced.

Manchester

Responding to the One North report published today by the leaders of five cities in the region, Osborne set out what he called ‘the pathway to a Northern economic powerhouse’.

He said a range of reforms could help raise the level of economic growth in the north to match that of the UK as a whole, adding £44bn in real terms to the region’s economy by 2030.

‘There is a prize that awaits the north of England,’ he told city leaders in Manchester.

‘If we work together, bring our cities together, invest in future transport and skills and science, we can build a Northern Powerhouse.’

He highlighted that his speech in June, which called for a conversation about a new model of city government, had chimed with other research, including Lord Heseltine's growth plan and the work of the City Growth Commission.

What I find very exciting about this moment is that there is the prospect of a real consensus that this is the way forward,’ he added. ‘Not total agreement on every detail – that would be absurd. But general agreement on the plan ahead.’

Therefore, he was now able to set out what the government would do to help boost the northern cities, with a process culminating in a package that will form the centrepiece of December’s Autumn Statement.

‘I’m ready to commit new money, new infrastructure, new transport and new science, and real new civic power too,’ he said.

Firstly, the government will examine the component elements of today’s One North report, which included a call for extra motorway capacity, and better rail connections across the north, including freight routes.

Next month, the government’s chief scientist Mark Walport will report to Osborne with a plan to boost science research, while David Higgins, the chair of the company developing the High Speed 2 line, will examine plans for a new high-speed cross-Pennines route in October.

Osborne said he would then set out plans to transfer powers and budgets to cities in November, provided that they ‘want to move to a new model of city government’ including city mayors.

‘I know it’s controversial with some, and the local politics isn’t always easy – but almost every major global city has a single mayor, and it’s the view of many different people who’ve looked at our cities here and say it’s time we did the same,’ he said.

‘Before deciding in advance how to respond, wait to see what I am offering in return,’ he stated.

‘Work with me over the coming months and together we will make a reality of the plan I’ve set out for the Northern Powerhouse.’

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