Liverpool becomes first to strike new City Deal with Government
Liverpool has become the first city to agree new powers through the City Deals programme.
A range of transformative powers will be devolved to Liverpool to give the city what it needs to attract private investment, close skills gaps and create new jobs.
This landmark deal will create a new enterprise zone near the city centre, provide powers to help get young unemployed people into work and give greater control over land for redevelopment and help build twelve new secondary schools.
The deal will help the city compete in the wider economy, driving growth and creating opportunities that will benefit the wider Merseyside area.
City Deals are being negotiated with a number of England's cities. Instead of being presented with a set menu of measures decided in Whitehall, each city is now able to specify the particular powers they need to meet local needs and priorities.
The key elements of Liverpool's proposals are:
•A new Enterprise Zone, that will create a 'City Fringe Buffer Zone' to the north of the city centre and Central Business District. This means that for the next 25 years increases in Business Rate income, would be invested in regeneration. The Government will also be prepared to support economic development backed by a strong business case by up to £75 million during the spending review period.
•Creation of a joint Mayoral Investment Board to oversee the city's economic and housing strategy, pooling local assets including those of the Homes and Communities Agency to drive economic growth.
•Launch Welfare Pilots to reduce welfare dependency. The city will work closely with the Government on local schemes including a 'youth contract' to increase the number of claimants moving to work and to reduce fraud and error.
•A Secondary School Investment Plan to build 12 new secondary schools including at least six new academies to help support the local skills agenda and the local economy. The Council will work with the schools, private companies and local universities to develop specialisms to meet local skills shortages.
Deputy Prime Minister, Nick Clegg said:
"This first city deal heralds an unprecedented transfer of power from central government to local communities, with new powers and funding for Liverpool to do things its own way. I congratulate Liverpool on blazing a trail we look forward to seeing others follow.
"I firmly believe one size doesn't fit all - whether it's a mayor or whether it is a council leader, what Cities have to show in return for a City Deal is that there is strong clear leadership. This deal puts Liverpool back in the driving seat to create jobs and boost skills with greater economic and political freedom. It empowers Liverpool to go for growth that will benefit everyone who lives there.
"Our cities are Britain's economic heartbeat and their success is absolutely vital to getting the whole country's economy growing again. I want to see more cities take us up on our offer and I'm looking forward to announcing more city deals across the country in the coming months."
