City Deals will see budgets devolved from Whitehall

Eight cities are to receive extra powers over transport, infrastructure and education budgets, as they sign up to new ‘City Deals’.

Birmingham, Bristol, Leeds, Liverpool, Newcastle, Nottingham, Sheffield and Manchester have been negotiating the deals with cities minister Greg Clark and Deputy Prime Minister Nick Clegg for the past six months. Preliminary deals had already been signed withManchesterandLiverpool.

Cash currently distributed to these councils by Government departments will instead be devolved directly to the cities, giving them more flexibility over local spending, it is hoped.

Leeds, Bradford, Barnsley and Harrogate have formed a new combined authority of West Yorkshire and have promised to cut the number of Neets – people not in education, employment or training – within the city area in return for power over transport spending.

Ministers suggest the deals could create 170,000 jobs and 37,000 apprentices over 20 years and unlock £8.2bn in infrastructure spending.

Clark said: “Our major cities have seized the opportunity to take control of their economic destiny and will now reap the benefits of new financial freedoms and investment opportunities available to them.”

Clegg added: “Everyone in these eight core cities will feel the benefits – from young people looking for jobs, to businesses looking to expand. Over the coming months, we are transferring more and more power from Whitehall to these cities.”

Julie Dore, leader of Sheffield council, said: “The City Deal will mean that local people who best understand the needs of the local economy will decide how £23.8m of government skills funding should be invested.”

Shadow Communities and Local Government Secretary Hilary Benn welcomed the deals, but called for more devolution of powers to other areas. He said: “What we now need is a clear commitment that local authorities in all parts of England– including other cities, counties and districts – will be given the same opportunity to come together and take back power in the interests of the communities they represent.”

Tell us what you think – have your say below, or email us directly at [email protected]


Harvey   05/07/2012 at 14:26

Incredibly hard to monitor whether future jobs / growth is a direct consequence of this move: which probably helps the Government no end!

Add your comment


public sector executive tv

more videos >

latest news

View all News


Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues t... more >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this feeling of imminent change than the article James Palmer, mayor of Cambridgeshire and Peterborough, has penned for us on p28. In it, he highlights... read more >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been the r more > more last word articles >


Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need ... more >

the raven's daily blog

Cleaner, greener, safer media: Increased ROI, decreased carbon

23/06/2020Cleaner, greener, safer media: Increased ROI, decreased carbon

Evolution is crucial in any business and Public Sector Executive is no different. Long before Covid-19 even became a thought in the back of our minds, the team at PS... more >
read more blog posts from 'the raven' >

public sector events

events calendar


August 2020

mon tue wed thu fri sat sun
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
31 1 2 3 4 5 6

featured articles

View all News