---

Central Government: Devolution of Power

My honourable friend the Minister for Cities (Greg Clark) has today made the following Statement. The Government are today publishing Unlocking Growth in Cities, which describes a new framework for the relationship between our largest cities and central government. In particular, the document sets out the terms for a system of city deals—binding agreements which enable cities to negotiate the devolution of specific powers, resources and responsibilities required to meet locally determined economic and social objectives. The Government are committed to the decisive action required to restore confidence in our economy. This, above all, rests on the principle that sustained recovery and long-term prosperity can only be achieved through private sector growth. This will not occur in the abstract, but through the success of real businesses in real places—especially our cities which, together with their wider commuting areas, account for 74 per cent of England’s population and 78 per cent of English jobs. To achieve their full potential, our urban communities must be empowered to act in support of their local economies. It is widely recognised that, compared to their European counterparts, English cities have less influence over the key decisions that affect their competitiveness in national and international markets. Because power and influence over relevant policy making areas has been so heavily skewed towards Whitehall and Westminster, civic leaders have been forced to look upwards to central government to resolve problems, rather than through direct engagement with existing and potential sources of private and voluntary sector investment and innovation. We are therefore committed to revitalising the role of city leadership through a radical shift in power, allowing cities to take on certain responsibilities and resources from Government wherever they can make the case that this would improve the efficiency and outcomes of public policy. The document sets out a series of indicative options for the transfers of control that could be considered as part of each deal making process. This list is not intended as a statement of policy or as an automatic entitlement for all cities. It is neither prescriptive nor exhaustive. Rather, the specifics of each city deal negotiation will be determined by city-led initiative and its conclusion dependent on the strength of the case presented. From the Government side, we will look for a clear economic rationale, a robust evidence base, an appropriate geography, the acceptance of a proportionate degree of risk and proper standards of governance, co-operation and accountability. Supported by the Cities Policy Unit in the Cabinet Office, and in partnership with DCLG and DBIS, I will, as Minister for Cities, work closely with city leaders and with colleagues across Whitehall departments to agree a series of city deals over the coming months. Our timings will reflect the needs and readiness of each city, but given the national imperative to boost economic growth, and the enthusiasm in our cities for moving this agenda forward, we intend to move at pace, agreeing the first wave of city deals by spring next year. Because of their size and economic importance, we are currently focusing on the largest cities in England. However, taking account of the lessons to be learned from this first wave, we will consider the case for extending the city deal process to other communities in due course. I have placed copies of Unlocking Growth in Cities in Libraries of both Houses.