The West Midlands and Merseyside have become the latest city regions to agree devolution deals with the government. The deals total about £2bn.
Both regions will elect mayors in 2017 who will have planning powers to boost housing delivery, responsibility for a transport budget and powers over skills provision and employment.
The breakthrough West Midlands deal will bring together the seven local authorities that make up the West Midlands Combined Authority, representing a population of 4m.
The metro-mayor, who will act as chairman for the WMCA, will be responsible for an area from Telford to Wolverhampton in the west, Coventry in the east, Tamworth in the north and Redditch in the south, with an annual budget of £36.5m.
The authority will have similar powers to the Homes and Communities Agency – including compulsory purchase, regeneration, providing financial assistance and establishing companies – in order to push through housing delivery.
The Liverpool city region’s mayor will control a £30m annual budget, intended to unlock the economic potential of the River Mersey and super port, as well as opportunities around the HS2 rail link.
The Midlands deal comes after years of political gridlock, which helped Manchester become the first city region to agree a devolution deal with chancellor George Osborne.
Other areas that have agreed deals include Sheffield city region, the North East and Tees Valley. Further powers for the devolved regions are expected to be announced in the chancellor’s spending review next week.
Osborne said: “We have worked with local council leaders across the party divide, and we are announcing a collaborative way of working that would not have been countenanced in this region even a few years ago.”
Budgets for both regions are guaranteed for 30 years.
