Liverpool's first directly-elected mayor to oversee 'City Deal' with Government

Published by Jon Land for 24dash.com in Local Government and also in Central Government, Housing

Liverpool is to hold elections in May for its first directly elected mayor.

The city council has confirmed the move following a vote on the issue this week which resulted in an overwhelming victory for the pro-mayor lobby with 62 votes in favour and just 3 against.

The decision will see elections for a mayor take place on 3 May 2012 alongside local government elections. The mayor will take up his or her responsibilities on 7 May.

The mayor will be a powerful and influential voice for the city, locally, nationally and internationally. He or she will provide leadership, especially by building the confidence of investors and directing new resources to economic priorities.

The vote follows the negotiation of a new 'City Deal' with central government that will see new powers devolved to the city and the creation of a single investment fund of new and existing public and private money, initially worth £130 million but with the potential to grow to £500m - £1 billion.

The deal is not dependent on the city having a mayor, but central government has given a clear signal that moving to a mayoral model will provide the accountability it needs before the funds and new powers are handed over.

Liam Fogarty and Herbert Howe are standing against current city council leader Joe Anderson for the position of Mayor of Liverpool.

Commenting on the 'City Deal' agreement, Council Leader Joe Anderson said: “This is a new deal for Liverpool. It’s great news. It’s the culmination of four months of tough negotiations with government.

“For the first time in decades, we are being given the chance for power to be returned to the city from Whitehall. It is a huge moment for Liverpool.

“The deal is bespoke to us.  It gives us direct control over our destiny and brings with it new investment in the future of Liverpool and the people of Liverpool.

“The government has made it clear that they want ‘strong, accountable leadership’. I agree with them. That is why I successfully argued for us to change our constitution now, rather than following the referendum route for an elected mayor. The deal and a mayoral model are the right thing for Liverpool. We can’t wait for 12 to 18 months to get started.

“We need to grasp the competitive advantage now to put us ahead of other cities and we need to get on with transforming our city.”

Announcing the 'City Deal' for Liverpool in a written ministerial statement, Planning Minister Greg Clark stated:

"I am pleased to inform the House that the Government has approved the following proposals from Liverpool as a 'City Deal':

1. Subject to HM Treasury clearance of a business case and agreement with the Local Enterprise Partnership, the Government will designate a new Enterprise Zone covering the City Fringe Buffer Zone and Central Business District. The growth in Business Rates income from the Enterprise Zone will go to the Liverpool City Region Local Enterprise Partnership, in line with the Government's wider Enterprise Zone policy and our ambition to see a city-region wide approach to growth and regeneration. The Government recognises that Liverpool has ambitious plans to develop five further priority economic development areas (proposed Mayoral Development Zones) in the city, and their ambition to reinvest rates retained from this new Enterprise Zone within the city. Any retention of Enterprise Zone business rates by the city council will need to be negotiated between Liverpool and the Local Enterprise Partnership.

2. The creation of what Liverpool propose to term a Mayoral Investment Board that will oversee the city's economic and housing strategy as well as oversight of the development of Home and Communities Agency's land assets and other economic development priorities including those linked to the Enterprise and proposed Mayoral Development Zones. This arrangement will be based on the principle that the Home and Communities Agency will retain legal ownership and accountable body status for current Home and Communities Agency assets.

3. The Department for Work and Pensions will work with Liverpool to develop welfare pilots to deliver a localised programme of support for people leaving the Work Programme and in particular include a 'youth contract' pathfinder. It is expected that this will improve the benefit claims experience for customers while making efficiency savings for both the City and the Department for Work and Pensions; increase the numbers of claimants moving into work; and reduce benefit fraud and error.

4. A Secondary School Investment Plan funded by the Council for up to twelve new build secondary schools, including at least six new academies. These schools will be subject to the normal Academy converter application process and once in place, the Council will not be part of their ongoing governance or financial management. Liverpool have made clear their commitment to ensure that the schools in the city support the local skills agenda and the local economy. The Government therefore expects the Council to be proactive and work with the schools, the private sector and the universities in Liverpool to help them develop specialisms and identify and attract appropriate sponsors.

5. The Government is prepared to support initiatives that boost economic growth and development. The Department for Communities and Local Government (DCLG) already supports economic development in local authorities and is therefore prepared to work closely with the City as Liverpool implements its vision for economic development. As part of that close working, the Department for Communities and Local Government will contribute £75 million over the remaining years of the spending review period, subject to a strong, robust business case, to be cleared by HM Treasury, demonstrating clear value for money.

6. The Government set out in 'Unlocking Growth in Cities', that where cities want to take on significant new powers and funding streams, they will need to demonstrate strong, accountable leadership, an ambitious agenda for the economic future of their area, effective decision-making structures, and private sector involvement and leadership. The appropriate governance structure may be different for each city, and no city deal is conditional on having any particular governance arrangement. However, the Government believes that directly elected mayors are one way of providing the strong, visible and accountable leadership so, subject to approval by the Council, the Government can confirm that a move towards a directly elected mayor and the creation of a Mayoral Development Corporation would satisfy its requirements as regards governance arrangements to strengthen leadership and accountability in Liverpool City Council.