National and Devolved Politics

12.07.18

More spending freedoms agreed for Liverpool City Region

A new funding agreement for Liverpool City Region has been agreed and will give its metro mayor Steve Rotherham and the combined authority greater freedom over its spending.

Rotherham will be able to plan and invest in ways which will drive long-term economic growth in such areas as transport, education and housing.

The agreement will be reviewed every five years and the government expects it will be used for long-term economic growth, not the day-to-day running of services.

The agreement will boost the City Region’s revenue budget with £120m to be moved from its capital budget over the next 27 years. This comes almost three years after the launch of the £900m devolution deal.

Plans to work with the City Region to explore further devolution options and to find ways of overcoming local barriers to growth were announced by the government at Autumn Budget.

Speaking on a visit to Liverpool today, Robert Jenrick, exchequer secretary to the Treasury, said: “Liverpool and Merseyside are important parts of the Northern Powerhouse, with businesses in the region delivering vital skills, jobs and growth.

“Since 2010 we’ve seen nearly 50,000 new jobs created in the Liverpool City Region alone, and inward investment increased by 6% in the North West as a whole in the last year.

“Today’s announcement will build on this progress and provide greater flexibility for leaders to deliver the jobs, infrastructure and growth in productivity that will help secure the region’s place in the new economy.”

Steve Rotheram, metro mayor of the Liverpool City Region, said: “I welcome this announcement which gives us more power over how we use the £30 million a year we receive from central government under our devolution agreement. This shows their confidence in our ability to drive long-term growth and make a real difference to people’s lives across the city region.”

Top image: Chris Hepburn

 

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