Liverpool business leaders call for regional devolution deal

The Merseyside region is being urged by some business leaders to embrace devolution

A group of Liverpool business leaders has called on the area's politicians to work together to ensure the city region keeps up with Greater Manchester.

About 100 met at Liverpool Town Hall to discuss how the Liverpool City Region can benefit from the government's new 'Northern Powerhouse' devolution deal.

John Hall, from Professional Liverpool, fears his city is "missing out and falling behind other city regions".

There is currently a row about whether the region should have its own mayor.

Liverpool City Region includes Merseyside's five councils as well as Halton, which is geographically in Cheshire.

While Tony Lloyd has been formally appointed as Greater Manchester's interim mayor, politicians across Merseyside and Halton have differing views about devolution, with some opposed to the idea of having a single, elected figurehead for the whole region.

Liverpool Mayor Joe Anderson has clashed with some of the other councils. Earlier this year, he said critics of plans to devolve more powers to the region were "bringing the area into disrepute."

But council leaders from some of the local authorities insist they want a referendum on whether to have a directly elected mayor.

This was a key requirement of Chancellor George Osborne before he agreed a devolution deal for Greater Manchester.

Among those calling for a referendum are St. Helens, Wirral and Knowsley councils.

Councillor Phil Davies, leader of Wirral Council and the chair of the Liverpool City Region Combined Authority, said he was frustrated "because people are - and I understand why - kind of fixated on the governance arrangement."

He added: "We don't yet know the package that we can negotiate and we can get from the government."

Mr Davies said that if having a metro mayor is "the only way we can get a radical devolution package I believe we should ask the residents of the Liverpool City Region via a referendum. I feel very strongly about that."

Analysis: Mairead Smyth, BBC Radio Merseyside's political reporter

On the day that Greater Manchester's interim metro mayor starts his new job, many business leaders in Liverpool are looking down the M62 in envy.

Greater Manchester has already agreed to have one, paving the way for greater devolution there.

But some of Merseyside's council leaders say the public needs to be asked whether they want a mayor.

Professor Jon Tonge, from Liverpool University, said there's a lack of co-operation between Merseyside's council leaders. He said they can't agree on the principle of metro mayor - let alone who that mayor might be.

Chancellor George Osborne has said that he will not impose the model on anyone, but added: "Nor will I settle for less."

John Sutcliffe, chair of Liverpool and Sefton Chambers of Commerce, who organised the meeting, said: "We do really want them to work together and put aside their differences and do their best for the city region.

"They will be stronger together as one city region. And rather than arguing between themselves they should put that behind them and work together to get the best deal out of the government."

He said having a referendum would "not be a good idea", adding that the £500,000 cost involved could be spent much more wisely.

And Mr Hall whose organisation co-hosted the event, said: "I think a metro mayor is the only way at the moment for us to get a decent size of money rather than a city deal. We should proceed and we should stop dithering.

"We see the bigger picture and the private sector is concerned we are missing out because of the lack of collaboration on the part of the councils who make up the regional authority."