Chancellor George Osborne is set to sign a devolution deal with political leaders in Sheffield later, paving the way for an elected mayor in the city.
The Sheffield City Region was one of 38 places to bid for increased control in how public money is spent in its area.
The deal – part of the government’s northern powerhouse programme – will require the support of local councils and be subject to public consultation.
The mayor will oversee transport budgets and strategic planning.
The chancellor described the northern powerhouse as “a collection of northern cities sufficiently close to each other that combined they can take on the world” when he unveiled the plan for devolution in England’s cities in June 2014.
Last November he announced that Greater Manchester was to have an elected mayor and next year the region is to become the first English region to get full control of its health spending.
‘Historic deal’
Mr Osborne is expected to describe the Sheffield deal as the most fundamental shake-up of local government for a generation.
He will say: “Sheffield is forging ahead in the Northern Powerhouse, which this historic deal proves is taking shape.”
The agreement means the Sheffield City Region will have access to a pot of government money – £30m a year over 30 years – enabling Sheffield to boost local growth and invest in local manufacturing and innovation.
The new Mayor will be elected in 2017 and will act as chairman of the Sheffield City Region Combined Authority (SCRCA).
The authority is comprised of the nine local authority areas of Barnsley, Bassetlaw, Bolsover, Chesterfield, Derbyshire Dales, Doncaster, North East Derbyshire, Rotherham and Sheffield.
Sir Stephen Houghton, current chairman of the SCRCA, will say: “This proposal marks the next step on our devolution journey and will enable local leaders to make bigger and better local decisions over skills, business growth and infrastructure.
“Over the coming months we will be speaking to local residents, businesses and partners about what this means for economic growth in their City Region.”
‘Piecemeal approach’
James Newman, chairman of the Sheffield City Region Local Enterprise Partnership, will say: “For too long Whitehall has been in control of major decisions affecting local places on important issues such as transport, skills, regeneration and infrastructure improvements.
“This deal goes some way to redressing this imbalance.”
When the Chancellor unveiled the planned Cities Devolution bill shortly after the general election in May, Labour claimed the government’s “piecemeal approach” could mask big cuts to local councils’ spending.
BBC assistant political editor Norman Smith said the chancellor hoped the move would “reignite” areas such as Manchester, not just economically but also to renew a sense of civic pride.
But it is also designed to “wrong foot” Labour in their northern heartlands, and to “re-present” the Tories in the north where they have traditionally been “on the back foot”, he added.
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