West Midlands and Liverpool take control of billions of infrastructure funds

The Chancellor today hails devolution deals with the West Midlands and the Liverpool City Region, which will see local leaders handed control of £1bn of funds each for economic development and further transport funding.

The West Midlands Combined Authority - spanning an area from Telford to Coventry and Tamworth to Redditch - and Liverpool City Region both agreed to a directly-elected mayor in return for power over local transport buses and franchised bus services. The Government also backed the West Midlands' key transport ambitions including funding the Metro extension to Eastside - subject to a business case. 

The conurbations will have responsiblity for consolidated, devolved transport budgets, with multi-year settlements to be agreed at the Spending Review, and new additional funding allocations over 30 years - £36.5m a year for the West Midlands, £30m a year for Liverpool. The Government will also work with the WMCA on the second Roads Investment Strategy for strategic roads and work with Liverpool City Region "to agree specific funding flexibilities after the Spending Review".