Ministers invite bids for new powers in second wave of 'City Deals'

The Government has invited 20 cities and their surrounding areas to bid for new powers in a second wave of so-called ‘City Deals’.

Under the deals, cities are given greater flexibility in the use of powers in exchange for responsibility for delivering growth locally. Earlier this year, Birmingham, Leeds and Bristol were among those cities included in the first wave.

The cities in ‘Wave Two’ are the 14 biggest cities and their environs (excluding the 8 which participated in the first round) and the six which are growing the fastest. The 14 biggest are:

  • The Black Country
  • Bournemouth and Poole
  • Brighton and Hove
  • Coventry and Warwickshire
  • Hull and The Humber
  • Leicester and Leicestershire
  • Plymouth
  • Preston and Lancashire
  • Reading
  • Southampton and Portsmouth
  • Southend
  • Stoke and Staffordshire
  • Sunderland and the North East
  • The Tees Valley

The fastest growing are:

  • Cambridge
  • Milton Keynes
  • Norwich
  • Ipswich
  • Oxford
  • Swindon and Wiltshire

Over the next three months the Treasury plans to hold informal discussions with the 20 areas which are being invited to apply.

Greg Clark MP, the Financial Secretary to the Treasury, said selected cities and areas would then work with the Government to develop and negotiate proposals over the following months.

Explaining the broad terms of the plan, he said: “Cities will need to make a case for new investment and powers, with a clear evidence base and a strong economic rationale.

“You will need to show how new flexibilities will benefit local people. And you will need to demonstrate how you would manage budgets, and hold yourselves accountable to residents. Every deal is a two-way trade.”

Detailed guidance is being prepared to be sent to the 20 cities. Applications are expected to be made by the areas in conjunction with their Local Enterprise Partnerships.

The Financial Secretary to the Treasury also spoke of the need to give packages of new powers: “Bespoke arrangements will, therefore, be complemented by a ‘core package’, consisting of measures that will devolve significant powers and functions to all cities that go on to negotiate a deal with Government.”

Neasa MacErlean