Large cities must have elected mayors with executive powers, says study

Large cities must have elected mayors with executive powers, says study

	Published : Wed, 22 Feb 2006 16:05 By : James Rowe Print this Story

LONDON: Britain's largest city regions must have elected mayors with tax-raising and spending powers, says think tank, the Institute for Public Policy Research. Such a system can boost trade in these citifies, it feels.

The institute said elected mayors should be there in Greater Birmingham and Greater Manchester, who would run transport and handle regeneration.

The institute's report, titled City Leadership, also says city areas like Liverpool, Bristol, Leeds and Newcastle should also ultimately have elected mayors. It cited instances of cities like Bilbao in Spain and Portland in the U.S., where such a system could improve economic performance and political accountability.

The report proposes that each city should be able to introduce a levy of up to 5 per cent on the business rate, raising up to 35 million pounds each, which would be ring-fenced for transport projects. And some 1.2 billion pounds should be made available to the cities from existing funds controlled by regional bodies.

The report said cities are drivers of the national economy and better economic development policies are needed to fulfil their potential. "So it is critical that they have the right level of fiscal freedom to achieve their goals."

The study feels that British cities have been constrained by the "smallest local revenue raising powers in the developed world".

The institute, however, puts a rider saying city regions are a "hard sell -- a difficult economic concept, and a political minefield".

A spokesperson for the institute, Dermot Finch, felt while the proposal could be controversial, directly elected mayors could provide clear leadership and a visible line of accountability, "as Ken Livingstone has shown in London".

Sir Michael Lyons, who heads the official inquiry into council tax and the role of local government, said the institute's study is important and welcome. He said he may not agree with all of its findings, but accountability issues and questions of what local government should do and how it should be paid for are worthy of consideration.

A spokesperson for the Office of the Deputy Prime Minister said the government is convinced that strong leadership for cities is essential if they are to achieve their potential, economically and socially and directly elected mayors is an option for accomplishing this.

The report suggests that the Greater Birmingham city region would include Solihull, Sandwell, Walsall, Wolverhampton, Dudley, Coventry, Bromsgrove, Redditch, North Warwickshire, Tamworth, Lichfield and Cannock Chase with a combined population of over three million.

Similarly, the Greater Manchester city region would encompass Salford, Trafford, Stockport, Tameside, Oldham, Rochdale, Bury, Bolton, Wigan, Trafford and Macclesfield, also with a total population of three million.