Cities require genuine power

NEW powers to commission rail and bus services, the creation of City Apprenticeship Hubs to access national funding and the possibility of local authorities taking over the running of Job Centre Plus, the Government’s belated City Deal for Leeds and Sheffield appears, at face value, to be a meritorious one.

Yet, when the details of this “bold new offer to England’s cities” is examined in closer detail, the strategy could disappoint many. Far from being a blueprint to stimulate investment, today’s announcement only paves the way for councils from eight metropolitan areas to “pitch for new freedoms”.

And while, for example, the prospect of commissioning rail services might appease commuters in these parts if councils do enjoy a greater say over franchises, the reality is that it is a lack of track capacity, and shortage of rolling stock, which is preventing the railways from fulfilling their potential, even when the electrification of the TransPennine line is completed.

The concerns do not end here. Even if local councils do seize the opportunity on transport, and it must be remembered that neighbouring authorities have conflicting priorities, this does not mask the Government’s failure to put in place proper structures following the winding up of regional development agencies like Yorkshire Forward. Indeed, one reason why Scotland is withstanding the slump is because its devolved powers are substantial, effective and were in place before the public sector cuts began to be implemented.

As such, Deputy Prime Minister Nick Clegg and Cities Minister Greg Clark need to demonstrate today that their new City Deal has genuine substance and will not leave the decision-making process even more convoluted because of the number of rival funds and initiatives that have replaced the RDAs.

That said, it is welcome that Ministers recognise that key cities should be the drivers of growth and investment in their respective travel-to-work areas, though it remains to be seen whether the regional interest can trump local priorities.

The regret is that it has taken 18 months to reach this position – a time lapse that has seen countless people lose their jobs because the North was not afforded the same political and economic importance as London and the Celtic nations. Much, therefore, rests on the clarity that Ministers will be expected to provide today.