Liverpool City Council should have greater control over regeneration spending in the city according to new research published today (Wednesday) by the Centre for Cities. The report recommends the creation of an ‘Economic Development Contract' (EDC) to enable Liverpool to set its own regeneration spending priorities.

The report says that the EDC could replace the complex mix of 30 different funding agencies that currently control around £300 million of regeneration spending in Liverpool. An EDC would establish a single fund, managed by the City Council, to spend on key regeneration priorities, like re-developing the Waterfront ahead of Capital of Culture in 2008.

The report argues that increased financial freedom could help the City Council to raise more money for development from private as well as public sources. This would also help drive forward regeneration in the Strategic Investment Areas outside the city centre, such as Edge Lane/Hall Lane, Speke-Garston and Liverpool's north Docks.

Adam Marshall, Centre for Cities researcher and report author said:

“Liverpool needs more financial freedom to make regeneration happen. The current complex maze of regeneration funding is inefficient. Dozens of departments and agencies are involved in decisions that could be taken more effectively if funding was streamlined and devolved to Liverpool City Council. Economic Development Contracts would help to solve this problem.”

The report also recommends:

• Elected Mayors for ‘city-regions' around Greater Birmingham and Greater Manchester, who would control substantial regeneration, transport and skills spending. They would also be able to levy up to five per cent on the business rate to spend on strategic transport projects.
• The Liverpool city-region could eventually follow Greater Birmingham and Greater Manchester. As public-private co-operation and confidence continue to grow, the city-region could then take on additional spending and revenue-raising powers.

City Leadership: giving city-regions the power to grow, by Adam Marshall and Dermot Finch, is available here

Cllr Warren Bradley, Leader of Liverpool City Council said:

“Liverpool needs more financial powers - so I welcome the findings of the City Leadership report. We will continue to build our case for more powers and freedom as our economy continues to improve. Liverpool looks forward to playing an active role in the debate over city-regions and financial devolution.”

Notes to Editors:

Local Area Agreements were introduced in 2004 to bring together funding streams and improve local government's financial flexibility. They are composed of four blocks:

1. Children and Young People
2. Safer and Stronger Communities
3. Healthier Communities and Older People
4. Economic Development and Enterprise

Economic Development Contracts (EDCs) would replace the ‘fourth block' of Local Area Agreements. They would join up existing regeneration funding streams, and devolve greater control over spending decisions and outcomes to the local level.

EDCs would establish an agreed set of regeneration objectives, allowing funding streams from central, regional and local government bodies to be pooled and devolved. Funds from the Regional Development Agency Single Pot, the Local Transport Plan, Single Regeneration Budget (and successors), the European Union, LEGI (for those areas that get it), LABGI, and the local authority (capital and revenue funding) itself could be included.

Economic Development Contracts could also give the North West Regional Development Agency and the Government Office for the North West the confidence to devolve more regeneration funding to Liverpool.

The Centre for Cities is an independent urban research unit, based at the Institute for Public Policy Research (ippr). Launched in March 2005, it is taking a fresh look at how UK cities function. Tom Bloxham MBE is the Chair of the Centre for Cities Steering Group.

The Centre's research work this year focuses on eight cities and towns: Birmingham, Manchester, Liverpool, Sunderland, Derby, Doncaster, Barnsley and Dundee.