West Midlands and Liverpool city region agree devolution deals in principle

In common with devolution agreements for other regions, the West Midlands Combined Authority Devolution Agreement (WMDA) (20-page / 506 KB PDF) and the Liverpool City Region Devolution Agreement (LCRDA) (17-page / 417 KB PDF) both provide for directly-elected mayors who will exercise planning powers.

Under the LCRDA, the mayor for the Liverpool city region will chair the Liverpool City Region Combined Authority, which was founded in April 2014. The mayor will be responsible for bringing forward a development framework supporting the delivery of housing and employment sites of strategic importance and will have "the power to be consulted on and/or call-in planning applications of strategic importance".

The LCRDA proposes the creation of a mayoral development corporation with the ability to allocate key sites as mayoral development zones and use compulsory purchase powers to aid their development. The agreement also provides for the introduction of a new land commission for the city region to co-ordinate the release of publicly held land for development.

According to the WMDA, a proposed West Midlands Combined Authority will work with the Homes and Communities Agency to develop a joint approach to strategic planning in the region. The region's new mayor will exercise compulsory purchase powers on behalf of the combined authority, which will include the metropolitan councils for Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton.

A land commission for the West Midlands will create a comprehensive database of both public and private sector land and develop solutions to address barriers to their development under the proposals. A proposed land remediation fund will be used by the West Midlands Combined Authority to help make brownfield sites available for housing and employment provision.

The LCRDA is the fifth devolution deal to come forward under the UK government's plans to create a 'northern powerhouse' in the north of England, following deals for Greater Manchester, the Sheffield city region, the North East and the Tees Valley. The WMDA is the first such deal for what has now been dubbed 'the Midlands engine'.

Planning expert Helen Stewart of Pinsent Masons, the law firm behind Out-Law.com, said: "George Osborne’s so-called 'devolution revolution' continues apace and has now incarnated itself further south in what is being termed the 'Midlands engine'.  This week’s announcement comes hot on the heels of the government’s agreements in principle with Sheffield City Region Combined Authority in October and two north east regions earlier this month."

"The West Midlands deal will include one billion pounds of government investment and devolved powers for transport, housing, employment and skills decisions. Widely heralded as a dawn of opportunity for local growth and investment, devolution is not without its critics, but those voices were overruled by last week’s decisions by the Merseyside, Halton and Midlands councils," Stewart said.

Both agreements are subject to local consultation and ratification by the individual councils involved and the enactment of the Cities and Local Government Devolution Bill, which is currently making its way through parliament.