Sheffield wins devo deal

Region to get mayor with powers over transport budget and other infra areas; Doncaster to get national Institute for Infrastructure

Chancellor George Osborne has signed a deal with the Sheffield City Region to give the area more control over its finances, including cash for infrastructure.

Dubbed the second step in Osborne’s ‘Northern Powerhouse’ plans, the deal will see the creation of a directly elected mayor for the south Yorkshire region by 2017. The new post will have a range of powers devolved from central government, including over transport budgets and strategic planning.

Under the agreement, there will be a gain share deal within an envelope of £30m per year for 30 years, “giving Sheffield the power to use new funding to boost local growth and invest in local manufacturing and innovation”.

Furthermore, the proposals include plans to develop a national Institute for Infrastructure in Doncaster.

The deal mirrors that agreed between the Treasury and the Manchester City Region earlier this year.

“Manchester is not a one-off – far from it,” said Osborne. “In becoming the second great northern city to sign up to managing its own affairs with this ambitious agreement, Sheffield City Region is playing a vital part in helping to build the Northern Powerhouse.”

Sheffield was one of 38 authorities and regions to submit bids to the government to increase their devolved powers.