News / Politics
New devolution deal proposed
A devolution deal could boost the West of England economy with over £1 billion of investment as well as expand opportunities in the area for businesses and residents, says Chancellor George Osbourne.
The chancellor proposed the deal during Wednesday’s budget speech.
The devolution deal would bring certain powers, funding and responsibilities down to council level and promote cooperation between the four councils of the former Avon area, which include Bristol City, North Somerset, Bath and North East Somerset and South Gloucestershire councils.
All four councils must now consider the deal and decide whether or not to proceed. The deal will only become active if the four local councils, which would make up a Combined Authority, agree to move forward.
The new deal gives the councils new powers over transportation budgets, adult education and housing.
Additionally, the deal would create a West of England Investment fund, into which the government will put £30m a year for 30 years, as well as additional sums. The total investment will grow to over £1b.
Closer cooperation between the government and the councils in areas such as trade, investment, and the new National Work and Health Programme, could also occur thanks to the deal.
“This much hoped for deal shows that our local authorities are committed to working closer together and means we will join the other ambitious city regions of England in being granted significant devolved powers,” says James Durie, chief executive of the Bristol Chamber of Commerce and Initiative at Business West. “Greater control over our transport budget and a new £900 million ‘gain share’ mechanism will allow our local authorities to invest in better infrastructure and future growth and is to be warmly welcomed.
“This is a significant step forward for our region and will allow us to put much greater weight on tackling some of our major transport and infrastructure problems that hold back our businesses. This is just the start of how we can grow our economy.”
West of England council leaders, Mayor Ferguson and others in the government negotiated the deal alongside the West of England Local Enterprise Partnership.
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