Liverpool's city leaders are taking part in a major new research project with the Centre for Cities. City Leadership is examining the scope for Liverpool to take on more financial powers, to support local economic development and job creation.

Liverpool's regeneration programmes currently total more than £3 billion. But these are mostly from private, Government and EU sources – Liverpool isn't able to fund major projects or catalyse investment on its own. Our early findings suggest that cities like Liverpool need new revenue-raising tools and spending freedoms to fulfil their role as economic drivers.

The Centre for Cities is holding a stakeholder event on 19 August with City Growth Liverpool and the Liverpool Chamber of Commerce. This will discuss the case for greater financial devolution for Liverpool.

City Leadership is working with business and council leaders in Liverpool, Birmingham and Barnsley and will report in March 2006.

Adam Marshall, Centre for Cities said:

“Liverpool doesn't have the spending, borrowing and revenue-raising powers it needs. Economic development is still too centrally-driven. Cities need more financial incentives to grow. This project will help Liverpool make the case for greater financial devolution.”

Mike Storey, Liverpool City Council leader said:

“I welcome the Centre for Cities' study of the freedoms and flexibilities in local government finance. Liverpool now has an excellent reputation for the use of resources, but most of what we spend is dictated by the government. Whitehall needs to trust local government to make decisions itself.”

The Centre for Cities is working closely with Liverpool City Council on this project. Other key stakeholders include Liverpool Vision, Liverpool Land Development Company, City Growth Liverpool, Liverpool Chamber of Commerce, Downtown Liverpool in Business, NWDA and English Partnerships.

Notes to Editors:

City Leadership is examining cities' existing economic development toolkit – and will make the case for greater financial devolution to the city level. It is asking these questions:

• What functions should be run at what level?
• What are the implications of greater financial devolution to cities?
• How do we make city governance economically effective, and accountable to local needs?
• What's the correct scale for city economic development?
• Would elected city mayors help achieve better economic outcomes?

The Centre for Cities is an independent urban policy research unit, based at ippr – the Institute for Public Policy Research. Launched in March 2005, it is taking a fresh look at how UK cities function. It is funded by Lord Sainsbury of Turville.