Nick Clegg intervenes to make Chancellor backs Yorkshire

YORKSHIRE cities will likely be handed new transport and housing powers within five years even as Manchester pushes ahead in the first devolution wave.

A timetable for devolved powers to Manchester, announced yesterday, will not see the likes of Leeds and Sheffield miss out, ministers have insisted.

Next month’s Autumn Statement will be used to kickstart the devolution process for Leeds and Sheffield, with the two set to be told they can enjoy new spending powers even if they refuse to have a London-style mayor.

George Osborne yesterday made introducing a Metro Mayor the key condition of Manchester getting a £300m housing investment fund among other measures.

But an intervention by Deputy Prime Minister Nick Clegg has seen the Chancellor agree to let cities come forward with their own preferred way of strengthening governance before receiving extra responsibilities.

The Treasury said the Manchester package should see legislation for a new mayor introduced by 2017, a timetable likely to be similar to that used to hand over powers to Yorkshire.

Mr Clegg said last night the Metro Mayor demand made of Manchester will not be repeated by the Treasury after he made clear the two cities had to see a devolution benefit.

It comes after senior economist Jim O’Neill handed in a city growth report to ministers urging them to include Leeds and Manchester in any first wave devolution.

It is thought Mr Osborne had wanted to focus only on Manchester as his flagship example of Conservative efforts to create a “Northern Powerhouse” with a powerful new mayor.

That plan was defeated following opposition from the coalition partners.

A senior Lib Dem source said: “The Conservatives were very keen on giving Manchester extra powers but Nick Clegg and the Liberal Democrats were very keen that it wasn’t Manchester alone. As a result, the Chancellor will be able to make announcement on Manchester soon, while the Deputy Prime Minister will be able to make an announcement on Sheffield and Leeds soon after.”

Leeds city leaders have already questioned whether a Boris Johnson style figure was right for Yorkshire.

Coun Peter Box, chairman of the West Yorkshire Combined Authority which brings together the five West Yorkshire authorities and York to work together on the economy and transport, said the body was keen to see the detail of the Manchester deal.

He said: “It is a fact that there were three referendums here only two years ago when the public resoundingly rejected the idea of directly elected mayors.

“I think the public would have some concerns that what appears to be on offer is additional politicians, no doubt at additional expense.

“In the short time the Combined Authority has been in existence we have shown we can take really tough decisions, we have shown we can work together effectively.”

Local government figures in the region have privately told of their concern that the Manchester agreement could be used to portray any resistance to directly-elected mayors on this side of the Pennines as unreasonable.