West Midlands Combined Authority: Elected mayor 'will boost world presence'

George Osborne was in Coventry yesterday to announce that £1 billion of Government investment will be provided to create the new West Midlands Combined Authority.

Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton have all signed up to be full members, while three Local Enterprise Partnerships and various district councils will be involved on a non-constituent basis.

As part of the deal a metro-mayor will be elected for the region in 2017. The post will hold a major influence over a host of strategic policy areas, including transport, housing and health services.

Speaking at an event at the Institute for Advanced Manufacturing and Engineering, Mr Osborne explained why it was vital that the WMCA had an elected mayor.

He said: "Big successful city areas in the world have elected mayors. There's an elected mayor in London, an elected mayor in Paris, New York.

"What we are doing is saying let's create a combined authority, let's give it powers over things like strategic planning, transport and let's put someone in charge elected by local people, accountable to local people and take the credit when things go well or carry the can when they make a mistake and makes sure the West Midlands has an even stronger presence on the world stage."

Mr Osborne also moved to quash fears that devolution would reduce the power of local authorities across the region.

"What we're agreeing is devolving power, not taking power from local authorities and putting it in the hands of the combined authority and a mayor," he added.

"We're taking power from London and giving it to the community leaders, the local government leaders and local enterprise partnerships that represent four million people in this country. That's why it is a historic moment."

Today the deal was praised by business leaders.

Mike Wright, JLR executive director and CBI West Midlands chair, said: "The agreement places a welcome emphasis on boosting skills and also the integration of major transport projects, like HS2, into the local network.

"The drive to bring about better training and skills through devolution is of critical importance to firms in the region, such as our advanced manufacturing businesses."

Mike Steventon, Midlands regional chair at accountancy giant KPMG said a combined authority would put power into the hands of those who understand the needs of the region.

Stephanie Hyde, head of regions and board member at PwC called it 'a significant and positive step forward' and said the focus should now shift to 'making public services more effective'.

Chair of Alliance 4 the Black Country, James Sage from FBC Manby Bowdler, said the deal would be 'a game-changer' for businesses, particularly those in advanced manufacturing, engineering and the automotive sector.

Labour's West Midlands MEP Siôn Simon was among the many politicians to praise the deal, calling it 'the beginning of the end of the Whitehall stranglehold on our region'.

"This will be the start of a devolution process," he said. "Gradually, we need to take much fuller control of our own lives and decisions in the region. London does not know best.

"An elected mayor will be provide vital, visible accountability, while uniting the different parts of the region. We can't live on handouts from Whitehall any more."

Meanwhile Birmingham City Council leader Sir Albert Bore said the deal was 'an historic milestone for Birmingham and the West Midlands that would leave 'a positive legacy' when he stands down from office.

However the plans have not received universal support. UKIP's West Midlands MEP Bill Etheridge described it as a 'betrayal of democracy'.

He said the settlement would 'drive an anti-democratic dagger into the heart of local democracy and communities'.

"It is a worrying development indeed in local democracy and I fear a Metro Mayor would be used as a blunt instrument to drive through things such as the white elephant HS2 project," he added.

As well as agreeing on the combined authority, the Government has pledged its backing for other investment projects in the West Midlands.

These include extending the Metro service to Brierley Hill and the proposed HS2 interchange.