 Mayor of the Liverpool City Region, Steve Rotheram, has welcomed the Government’s announcement of a new package of financial powers that will allow English mayors to receive a share of income tax revenues for the first time.Â
The measure forms part of what the Government describes as the largest package of financial powers ever offered to mayors in England. The move is intended to give local leaders greater control over the money generated by economic growth in their regions and allow them to invest more directly in local priorities.
Under the new arrangements, areas that create jobs and expand their economies will be able to retain more of the benefits generated locally. The Government says the policy will strengthen local decision-making and give communities greater influence over key issues including transport, housing, skills and public services.
Welcome to the announcement. Mayor Rotheram said regions such as Liverpool had played a major role in the country’s economic success for decades but had not always seen enough of the benefits remain within the communities that helped generate them.
“When our economy grows, more of the value created here should be reinvested here too,”
Rotheram said. He argued that giving mayors a direct stake in economic growth would allow them to support projects capable of creating new opportunities and strengthening local economies.
The Mayor highlighted several initiatives already delivered across the Liverpool City Region, including bringing bus services back under public control, introducing simpler contactless fares, building tens of thousands of new homes and investing in industries expected to play an important role in the region’s future.
Rotheram said the new financial powers would provide an opportunity to build on that progress and ensure that economic growth delivers greater benefits for the region’s 1.6 million residents.
The Government has described the reforms as the biggest transfer of power from Westminster to local communities in a generation. Its stated ambition is to give every community greater control over decisions that directly affect people’s lives.
For Rotheram, however, devolution is ultimately about more than financial powers or administrative reform. He said that with the right responsibilities and long-term funding, local leaders could continue working towards making the Liverpool City Region an attractive place to live, raise a family and build a business.
The announcement marks a significant step towards greater fiscal devolution in England, with local leaders expected to play an increasingly important role in determining how economic growth is invested in their communities.
