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

Despite Birmingham’s size and dynamism, it does not have the financial tools and freedoms to make major regeneration investments on its own terms. Greater local power and flexibility could help speed developments such as the Eastside quarter – which could be worth up to £6 billion once completed.

The Centre for Cities is talking to Birmingham’s leaders about the case for greater devolution to the city level, using examples such as Eastside and Brindleyplace. It is holding a stakeholder event on 18 August with Birmingham Chamber of Commerce and Birmingham Forward. This will discuss the case for greater financial devolution for Birmingham.

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

Adam Marshall, Centre for Cities, said:

“Cities like Birmingham don’t have the spending, borrowing and revenue-raising powers they need. Economic development is still too centrally-driven. Birmingham needs more financial incentives to grow. This project will help Birmingham and other cities make the case for greater financial devolution.”

Councillor Mike Whitby, Leader of Birmingham City Council, said:

“Birmingham welcomes the Centre for Cities' City Leadership research project, and its emphasis on financial freedoms, flexibility and governance. We look forward to working closely with the Centre and other key stakeholders as the project develops.

British cities do not yet have all the financial tools that they need to accomplish their regeneration and economic development goals. We hope that this project will suggest changes that enable cities to boost their economic base and lever in new investment.”

The Centre for Cities is working closely with Birmingham City Council on this project. Other key stakeholders include Birmingham Forward, Birmingham Future, Marketing Birmingham, Birmingham Chamber of Commerce, Eastside Team, Argent Group, Birmingham Alliance, Advantage West Midlands 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.