Greater Manchester’s devolution delight

Sir Richard Leese, vice-chairman of the Greater Manchester Combined Authority

LOCAL authority leaders in Greater Manchester have welcomed the announcement of further devolution for the area during yesterday’s Budget speech by Chancellor George Osborne.

Greater Manchester will pilot a scheme for the approach to 100 per cent business rates retention, which will help them to build financial capacity to reform core services and invest in long-term economic growth from 2017, three years ahead of schedule.

Local authorities in Greater Manchester will be able to retain any growth in business rate income to invest in projects to secure economic growth.

Sir Richard Leese, vice-chairman of the Greater Manchester Combined Authority, said: “Devolution is about giving local leaders the power to make decisions that improve their communities. This fourth devolution agreement is an important step along the road. The Government recognises we’ll make better decisions over investment, housing, skills and deliver a stronger economy.”

Greater Manchester will also work with the Government to create a new prison and will have greater involvement in future plans for the local courts. Investment, adult skills and housing are also among other measures detailed in the latest devolution agreement.



OLDHAM Council’s cabinet member for finance, Abdul Jabbar, has welcomed more autonomy over its business rates - but says in the wake of crippling cuts the result could put yet more pressure on services.

Councillor Jabbar said: “This pilot gives Greater Manchester authorities an opportunity to test and shape outcomes that will fundamentally affect all of local government in the years ahead, so we are committed to making a positive contribution.

“However, when the scheme moves to full implementation we will inevitably see winners and losers because not all local authorities have the same capacity to generate business rates.

“What happens, for example, in an area which loses a major local business, as has happened with Redcar and the steel industry? There has to be a safety net there in the final system to mitigate events like that which could have a huge impact on your business rates and local economy.

“As with all initial announcements like this from the Chancellor, the devil will be in the detail. This will be particularly tough on councils like ours which have a low tax base.”