Title

ECONOMIC GROWTH

Budget 2016: New mayors as 'devolution revolution takes hold'

New elected mayors for English counties and southern cities have been announced by chancellor George Osborne as he insisted the ‘devolution revolution is taking hold’.

New elected mayors for English counties and southern cities have been announced by chancellor George Osborne as he insisted the ‘devolution revolution is taking hold'.

In his Budget speech today, Mr Osborne revealed agreements had been reached to create combined authorities headed up by elected mayors for East Anglia, the west of England and Greater Lincolnshire.

He added that more than half of the population of the Northern Powerhouse would be able to elect a mayor accountable to them next year.

Mr Osborne also announced that new powers over the criminal justice system would be transferred to Greater Manchester and business rates would be fully devolved to the Greater London Authority from next April – three years before the rest of the country.

Director of the New Local Government Network think-tank, Simon Parker, said: ‘Devolving power over the criminal justice system in Greater Manchester is a show of confidence in what local delivery can do. 

‘Working locally to keep people out of expensive prisons and deal with anti-social behaviours in a person-centred way is vital to improving lives and life chances.'

Greater Lincolnshire's deal – worth £450m over 30 years - includes transport, housing, skills, health and care.

North Lincolnshire Council leader, Cllr Liz Redfern, said: ‘Combined, we will be a much bigger force, with greater powers to deliver what's needed locally.'

East Lindsey DC leader, Cllr Craig Leyland, added: ‘If supported, the deal unlocks the ability to make more decisions locally and thereby prioritise more government funding to meet local need.'

East Anglia's deal - worth more than £1bn over the next 30 years - features infrastructure, growth, transport, economic development, planning, housing, health, employment and skills.

It was originally only going to include Norfolk and Suffolk, but was widened at the last minute to include Cambridgeshire - though Cambridge City Council refused to join.

Norfolk CC leader George Nobbs said: ‘I am personally delighted that this is a deal specifically for East Anglia. 

‘This is not a region created by central dictate - it is deeply rooted in English history and has possessed a distinct identity for more than a thousand years.'

The west of England agreement includes transport, skills, housing, infrastructure, adult education and planning.
 
Communities secretary Greg Clark said: ‘The west of England already offers significant opportunities across a range of innovative industries – we're determined to ensure this success continues for years to come.'
 
Mr Osborne said a ‘radical devolution of power so more of the responsibility and the rewards of economic growth are in the hands of local communities' would help make Britain ‘fit for the future'. 

He continued: ‘When I became Chancellor, 80% of local government funding came in largely ring-fenced grants from central government. 

‘It was the illusion of local democracy.

‘By the end of this Parliament, 100% of local government resources will come from local government – raised locally, spent locally, invested locally.

‘Believing in our United Kingdom is not the same as believing that every decision should be taken here in London.

‘Because we know that if you want local communities to take responsibility for local growth they have to be able to reap the rewards.

‘The Government is delivering the most radical devolution of power in modern British history.

‘We're making the Northern Powerhouse a reality and rebalancing our country.

‘North, south, east and west – the devolution revolution is taking hold.'

But lead local government partner at business advisory firm Deloitte, Ian Washington, said: ‘Leaders with devolved powers will need to oversee huge organisational and structural changes and do so with little to no money.'

Mr Osborne also announced he would be opening talks on city deals for Edinburgh and Swansea, and on a growth deal for north Wales so it was ‘better connected to our Northern Powerhouse'.

Yesterday a £1.2bn City Deal - expected to deliver 25,000 new jobs and unlock £4bn of private sector investment – was announced for the Cardiff capital region.

Read an opinion piece by chief executive of the Local Government Information Unit think-tank, Jonathan Carr-West, here.

ECONOMIC GROWTH

Social care fair pay 'unlikely to be sufficient'

By Martin Ford | 09 October 2025

Doubt has been cast on whether the adult social care fair pay agreement will have the impact claimed by ministers.

ECONOMIC GROWTH

Delivery of housing can be turbo-charged

By Cllr John Merry | 09 October 2025

Cities and central government must work together to tackle the viability barriers to housing delivery, says Cllr John Merry.

ECONOMIC GROWTH

EXCLUSIVE: District dead end

By Dan Peters | 09 October 2025

Just five district council chief executives have made the move to a unitary or county council since 2020, research has revealed as ministers push ahead with ...

ECONOMIC GROWTH

Clash expected over councils' choice of devolution plans

By By Joe Lepper | 09 October 2025

Councils in Gloucestershire are expected to clash over the county’s devolution options.

Dan Peters

Popular articles by Dan Peters