Chancellor George Osborne has recommitted to a ‘devolution revolution’ in today’s Spending Review though he failed to announce any further deals.
Mr Osborne said he wanted the Spending Review to ‘hand back power to local communities’ and ‘spread economic power and wealth’.
Announcing a ‘big package of new powers’ as well as extra responsibilities for local councils, Mr Osborne described it as a ‘revolution in the way we govern this country’.
Additional responsibilities for councils will include the administration of housing benefit, the provision of more help to homeless people and further leadership in the area of public health - despite an anticipated cut to the specific grant.
Mr Osborne added: ‘We’re devolving power across our country.
'It is the most determined effort to change the geographical imbalance that has bedevilled the British economy for half a century.
‘If we really want to shift power in our country, we have to give all local councils the tools to drive the growth of business in their area – and rewards that come when you do so.’
But no devolution deals were revealed on top of the ones recently signed with Sheffield, Liverpool, the Tees Valley, North East and West Midlands, where elected mayors will be able to raise business rates as long as they secure support from their local enterprise partnership.
A document published by the Treasury said the Government would ‘work towards further devolution deals with other major city regions and other areas’.
It read: ‘The Government is making further progress on devolving powers to Greater Manchester, demonstrating that the first devolution deal is just the start of a closer dialogue between cities and government.’
Chief executive at the Local Government Information Unit think tank, Jonathan Carr-West, said: ‘If we are to realise the Government’s ambition for a country that spends less but to greater effect, we need fuller and faster devolution to give every part of the country complete control over public services and over public finances.’
South Tyneside MBC leader, Cllr Iain Malcolm, added: '‘This was the chancellor’s chance to show support to the devolution pledge and the Northern Powerhouse, but his speech seemed to lack details on real devolution for the Northern Powerhouse.’
Mr Osborne also announced new powers for the devolved administrations, with income from corporation tax going to Northern Ireland and the announcement of legislation that will allow Wales to receive income tax receipts without a fresh referendum.
In addition, he pledged to negotiate city deals for Aberdeen and Inverness, implement one for Glasgow and ‘help fund’ one for Cardiff.
Cardiff City Council leader Phil Bale described it as ‘encouraging news’ that would allow the area to ‘press ahead with our plans to reboot’ the local economy.
