Following the publication of the Local Government White Paper Dermot Finch, Director Centre for Cities, said:

"There's a lot to welcome in this White Paper. Fewer central targets will give councils more room to deliver local services. And more directly-elected mayors or cabinets, with 4-year terms, will provide the stronger leadership that our towns and cities need.

But the White Paper is just the first step. Big announcements are coming up on transport, skills and planning. All of Whitehall needs to devolve - not just Ruth Kelly's department.

We want stronger leadership in all our towns and cities, with more powers to deliver local growth and quality services.

Money is key. Our towns and cities need more control over transport and training budgets. And more say on how local revenues are spent, including business rates. The Lyons Inquiry will report on this in December."

The Centre for Cities report City Leadership: Giving City-Regions the Power to Grow published earlier this year recommended:

• Directly elected city-region mayors scrutinised by boards of local authority leaders, businesses and community representatives.
• Devolved budgets for cities and towns over priorities such as transport and skills. In Manchester and Birmingham this could mean devolving around £1.2 billion in existing funding from Regional Development Agencies, Transport and Housing Boards, Passenger Transport Executives and then post-19 funding from the Learning and Skills Council.
• City-Regional Supplementary Business Rates. The ability to levy up to five per cent on the business rate, ring-fenced to strategic transport projects. This could raise £35 million a year in each city-region, and would cost the average small business less than £150 per year.