City devolution to include transport budget control

England’s big cities have been invited to join Manchester in bidding for devolved powers, including control over their transport budget.

A City Devolution Bill was included in the Queen’s Speech, which offers combined local authorities with an elected mayor powers over transport, housing, planning, policing and public health.

But the Freight Transport Association (FTA) has concerns that devolution over transport could lead to disparate rules and regulations when it comes to delivering goods.

Christopher Snelling, FTA head of urban logistics and regional policy, said: “The Government and proposed new authorities should ensure that operators of freight do not have to face differing rules and regulations in order to deliver goods in different cities.”

In his first post-election speech the chancellor George Osborne set out his plans for English cities to get powers over housing, healthcare, transport, planning and policing.

He said: “Last autumn, we reached an absolutely ground-breaking devolution agreement with the elected leaders of Greater Manchester.

“When I proposed the idea a year ago, it seemed a distant prospect. Now it is becoming a reality.

“Now we’re devolving power over policing, skills and housing. We’re giving the city control over transport, including buses. We’re devolving power over a £6 billion health and social care budget.

“And we’re bringing it all together with the accountability and leadership that an elected city-wide mayor will provide.”

Greater Manchester – which will take on the powers when electing a mayor in two years as part of the Government’s drive to create a ‘Northern Powerhouse’ – is expected to become a blueprint for other large cities.

Snelling continued: “FTA has concerns over the future role of elected mayors in these authorities. Personality politics can lead to actions led by political image concerns rather than good policy making processes.”

The Coalition Government, prior to the election, published a report on northern transport as part of its plans to create a ‘northern powerhouse’.

Plans included a new TransNorth rail system and new road investments, which were set out by Transport Secretary Patrick McLoughlin.

As part of the strategy, Transport for the North (TfN) was established to bring together northern transport authorities.

It was tasked with working with the Government to create the first ever comprehensive transport strategy for the region, covering roads, rail, freight, airports and smart  ticketing.

McLoughlin said, at the report’s launch: “This dynamic change transforms the way government looks at transport solutions for the north.

“Creating a northern powerhouse of jobs, investment and prosperity, is a key objective of the Government’s long term economic plan. We are planning for transport and growth in a new joined-up way.”

Major road improvements to the north’s road network will continue, including the expansion of the M62 to four lanes between Leeds and Manchester and the widening of the M1 to four-lane running in Yorkshire and Humberside.

However, as part of Greater Manchester’s devolution plans, Highways England and Transport for Greater Manchester (TfGM) have signed a memorandum of understanding which will see the two bodies work in partnership to develop shared priorities and a long-term vision for motorways and key roads across the city-region.

Graham Dalton, chief executive of Highways England, said: “Over £200 million is already being invested on creating a smart motorway on a section on the M60 and M62, and we need to make sure that the work taking place there complements other improvements on local roads.”

Dr Jon Lamonte, chief executive of TfGM, added: “Having a clear, strategic approach to the management of highways across a city-region as large and complex as Greater Manchester – and making sure it works in tandem with tram, train and bus services – is absolutely essential.

“As such, it is excellent news that we have been able to agree this new partnership with Highways England, which represents a key piece of the jigsaw in terms of making travel easier in Greater Manchester and allowing the region to fulfil its economic potential.”

Reaffirming the Government's committment to creating a Northern Powerhouse, McLoughlin said yesterday (June 1) the election result was a massive vote of confidence in favour of High Speed 2 (HS2) and confirmed construction is on track to start in 2017. Work, he said, is also well underway on developing plans for high-speed east-west rail links.

He also confirmed that £13 billion government funding would be invested to transform transport infrastructure in the north over the next five years.

And, he again pledged that the north will be empowered to shape its own future - by devolving power away from Whitehall.

He said that by the autumn, TfN will have a new independent chair to speak on behalf of the north with one voice on delivering improved train and bus services, rolling out smart ticketing, looking after passengers, reducing road congestion and speeding up links to ports and airports.

He said: "This is the best opportunity in well over a century to level the playing field between north and south. Not by dragging London down, but by firing up the rest of the country - the east and west midlands and the new Northern Powerhouse - with transport connections that match the very best in Europe."