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Sheffield area expected to become second 'northern powerhouse' Sheffield area expected to become second 'northern powerhouse'
(about 1 hour later)
George Osborne is expected to be able to announce a second “northern powerhouse” – alongside Greater Manchester – when Sheffield city region combined authority is given the go-ahead by the Treasury on Friday.George Osborne is expected to be able to announce a second “northern powerhouse” – alongside Greater Manchester – when Sheffield city region combined authority is given the go-ahead by the Treasury on Friday.
The announcement will be a coup for Osborne, who is winning support for his plans from Labour local government leaders despite the hostility from the national Labour party.The announcement will be a coup for Osborne, who is winning support for his plans from Labour local government leaders despite the hostility from the national Labour party.
The plan, as in Manchester, would require the city region – subject to consultation and national legislation – to introduce a directly elected mayor. As many as 34 separate city region bids were submitted to the Treasury by the 4 September deadline but Whitehall sources said Osborne looks to have struck a deal for South Yorkshire.The plan, as in Manchester, would require the city region – subject to consultation and national legislation – to introduce a directly elected mayor. As many as 34 separate city region bids were submitted to the Treasury by the 4 September deadline but Whitehall sources said Osborne looks to have struck a deal for South Yorkshire.
The city region covers some of the great Labour heartlands of Rotherham, Sheffield, Doncaster, Bolsover and Bassetlaw, and suggests Labour councils are willing to swallow their opposition to Osborne and the idea of a directly elected mayor in return for the powers they are likely to be offered.The city region covers some of the great Labour heartlands of Rotherham, Sheffield, Doncaster, Bolsover and Bassetlaw, and suggests Labour councils are willing to swallow their opposition to Osborne and the idea of a directly elected mayor in return for the powers they are likely to be offered.
The city region will cross county borders and may raise issues over policing. There have also been disputes about the precise title and boundaries of the combined authority, likely to encompass 2 million people. The city region will cross county borders and may raise issues over policing. There have been disputes about the precise title and boundaries of the combined authority, likely to encompass 2 million people.
Details of the powers to be devolved will continue to be negotiated over the next few weeks. But it is a boost for Osborne before the Conservative party conference.Details of the powers to be devolved will continue to be negotiated over the next few weeks. But it is a boost for Osborne before the Conservative party conference.
George Osborne has made the “northern powerhouse” project the single biggest policy initiative he wants to take in his remaining period at the Treasury since he thinks it will rebalance the UK economy and find a means of regenerating city economies that have long been moribund. The chancellor has made the “northern powerhouse” project the single biggest policy initiative he wants to take in his remaining period at the Treasury since he thinks it will rebalance the UK economy and find a means of regenerating city economies that have long been moribund.
He has been advised by an economist, Lord Jim O’Neill, who as a Treasury minister has been leading the negotiations.He has been advised by an economist, Lord Jim O’Neill, who as a Treasury minister has been leading the negotiations.
The “northern powerhouse” concept has been tarnished in recent weeks by delays in rail electrification projects and the mothballing of the SSI steelworks in Redcar. This week Osborne announced the unblocking of the suspended electrification works. The “northern powerhouse” concept has been tarnished in recent weeks by delays in rail electrification projects and the mothballing of the SSI steelworks in Redcar. This week, Osborne announced the unblocking of the suspended electrification works.
Labour under Jeremy Corbyn has so far taken little interest in devolution to English city regions, publishing one policy paper that showed hostility to the concept. Labour MPs say the danger of the devolution deals is that local councils will find they are made responsible for implementing Treasury-imposed cuts.Labour under Jeremy Corbyn has so far taken little interest in devolution to English city regions, publishing one policy paper that showed hostility to the concept. Labour MPs say the danger of the devolution deals is that local councils will find they are made responsible for implementing Treasury-imposed cuts.
A West Yorkshire combined authority, largely advocated by Labour politicians, has previously been described as “very close” to being offered a deal by the Treasury, although some Labour figures in Leeds and Wakefield fear giving Osborne any party conference headlines about a dramatic remaking of the state. Osborne took northern council leaders with him on his trade trip to China as a sign of how seriously he wants to involve them in his grand experiment.A West Yorkshire combined authority, largely advocated by Labour politicians, has previously been described as “very close” to being offered a deal by the Treasury, although some Labour figures in Leeds and Wakefield fear giving Osborne any party conference headlines about a dramatic remaking of the state. Osborne took northern council leaders with him on his trade trip to China as a sign of how seriously he wants to involve them in his grand experiment.
Separately Conservative politicians in Yorkshire hoped that a competing “greater Yorkshire” plan, which would tie West, north and east Yorkshire together in a single devolution agreement, can yet be made to work. Separately, Conservative politicians in Yorkshire hoped that a competing “greater Yorkshire” plan, which would tie West, north and east Yorkshire together in a single devolution agreement, can yet be made to work.
The outline South Yorkshire combined authority was established in 2014, bringing together an integrated transport authority and an economic prosperity board.The outline South Yorkshire combined authority was established in 2014, bringing together an integrated transport authority and an economic prosperity board.