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England cities to be offered more control over budgets England cities to be offered more control over budgets
(about 14 hours later)
Twenty towns and cities in England are to be offered more spending control in areas such as planning and transport.Twenty towns and cities in England are to be offered more spending control in areas such as planning and transport.
The government earlier this year gave Birmingham, Manchester, Sheffield and five other authorities the right to spend tax receipts from local firms.The government earlier this year gave Birmingham, Manchester, Sheffield and five other authorities the right to spend tax receipts from local firms.
Cambridge, Hull, Coventry, Plymouth and Sunderland are among the areas that could now gain similar powers.Cambridge, Hull, Coventry, Plymouth and Sunderland are among the areas that could now gain similar powers.
Deputy Prime Minister Nick Clegg is set to announce the latest round of City Deals later. Nick Clegg said the City Deals were part of efforts to rebalance the economy and decentralise powers.
Mr Clegg is expected to say the country needs "a stronger, more resilient economy, built on the backs of industrious and independent cities". The deputy prime minister insisted the process would be a "genuine transaction" between cities and central government.
And he will say the old policy of spending City of London tax receipts on infrastructure projects across England was the wrong approach. The initial eight cities - which also included Bristol, Leeds, Liverpool, Newcastle and Nottingham - were given greater control over government areas including infrastructure projects, transport and job training budgets.
"You can't revive the regions just through handouts from Whitehall," Mr Clegg will say. Now a further 20 towns, cities and regions are being invited to set out the powers they need to drive local growth.
"Certainly not now when the Treasury's coffers are bare. And even if we did have lots of money, the previous approach was fundamentally flawed.
"Revenues from the financial services sector were recycled round the rest of the country through the long arm of the state, creating the illusion of strong, national growth.
"Jobs were created but in an unbalanced way, over-relying on the public sector, funded by tax receipts from the City of London."
The 20 towns, cities and regions involved in the latest bids will be invited to set out the powers they need to drive local growth.
They are: The Black Country; Bournemouth; Brighton and Hove; Cambridge; Coventry and Warwickshire; Hull and Humber; Ipswich; Leicester and Leicestershire; Milton Keynes; Norwich; Oxford; Reading; Plymouth; Preston and Lancashire; Southampton and Portsmouth; Southend; Stoke and Staffordshire; Sunderland and the North East; Swindon and Wiltshire, and Tees Valley.They are: The Black Country; Bournemouth; Brighton and Hove; Cambridge; Coventry and Warwickshire; Hull and Humber; Ipswich; Leicester and Leicestershire; Milton Keynes; Norwich; Oxford; Reading; Plymouth; Preston and Lancashire; Southampton and Portsmouth; Southend; Stoke and Staffordshire; Sunderland and the North East; Swindon and Wiltshire, and Tees Valley.
The other cities involved in the initial "City Deals" were Bristol, Leeds, Liverpool, Newcastle and Nottingham. 'Quiet revolution'
Agreements reached with the government saw the eight cities gain control over areas including infrastructure projects, transport and job training budgets. Council and business leaders in each of the cities will be asked to put forward proposals to "unlock" potential for growth in their areas with the "strongest propositions" being taken forward.
Plans will need to be "ambitious" and harness both public and private sector resources, ministers said.
Mr Clegg said there was a "quiet revolution" taking place in England's largest cities.
"From control over buses and trains and the freedom to plug skills gaps, to powers to 'earn back' tax and set up local investment funds to spend on local projects - the deals are unlocking the huge potential of our cities," he said.
"Now it is time to free even more places from Whitehall control. I want these 20 cities and their wider areas to come up with ambitious and innovative proposals to help them make changes that will be felt by everyone across their region."
Conservative minister for cities Greg Clark said the process would put cities in the "driving seat" and allow them to consider new and different ways of operating.
"If it is in the city's interest and the national interest, we will strike a deal and make it happen."
The Centre for Cities think tank welcomed the roll-out of the scheme but that cities need to make the most of powers already at their disposal.
"The focus for both government and cities needs to be ensuring that there are sufficient resources to implement the first round of eight Core City Deals, at the same time as delivering transformational deals for a new wave of cities," it said.