'Radical' City Devolution Plans Unveiled

George Osborne is unveiling plans to give English cities an opportunity to elect their own mayor, who would receive greater powers over housing, policing and transport in their areas.

The Chancellor is making his first speech since the General Election in Greater Manchester – the first region to undergo devolution once a mayor is elected in two years' time.

Mr Osborne now wants other major cities to come forward "and take this bold step into the future", but has stressed the policy will not be imposed on areas which do not want greater controls.

He said: "The old model of trying to run everything in our country from the centre of London is broken - it's led to an unbalanced economy.

"It's made people feel remote from the decisions that affect their lives. It's not good for our prosperity, or our democracy.

"We will deliver the devolution to Scotland and Wales we promised. But today, I can tell you we will go much further - and deliver radical devolution to the great cities of England."

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Under the proposals, which will be included in the Queen's Speech, so-called "Metro Mayors" are going to be given responsibility over their city's transport budget.

As part of the agreement in Greater Manchester, the new mayor would also have control over a £300m fund which has been earmarked for housing.

Two years ago, the people of Manchester voted against introducing a mayor for the city alone.

This devolution would cover the 10 metropolitan districts which comprise Greater Manchester as a whole.

Joining Mr Osborne at the speech was Greg Clark, who has replaced Eric Pickles as the Secretary of State for Communities and Local Government following the Prime Minister's reshuffle.

In 2012 referendums were held in 10 cities including Manchester to decide whether to have a directly elected mayor.

However only Bristol voted to create the role.

Shadow chancellor Chris Leslie said "one-off deals" were not the best way to devolve power.

He said: "Labour supports genuine devolution to all parts of England, as well as to Scotland, Wales and Northern Ireland. But communities have heard promises before and they will be no clearer today about looming decisions on funding.

"Devolution needs to be part of a UK-wide plan, not a series of one-off deals done by the Chancellor."