Sheffield City Region to spend £860m on coronavirus recovery plan

Sheffield City Region is hoping to spend £500m in a renewal fund

Sheffield City Region (SCR) has unveiled an £860m spending plan to help the area recover from coronavirus.

SCR mayor Dan Jarvis aims to borrow £500m for a "renewal fund" to be invested in infrastructure, transport and jobs.

If approved by the Treasury, the money will be an advance against the £30m a year the devolved region gets from the government.

Mr Jarvis said the plan showed the area's "ambition and confidence".

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According to the Local Democracy Reporting Service, the region would use its "gainshare" funding, the £30m that has been promised every year for 30 years as part of the devolution deal, to repay the government loan.

Around £300m is planned for investment in places, transport and infrastructure and another £200m of borrowed money will be invested in jobs and skills from 2022.

These pots of borrowed money will be called the "South Yorkshire Renewal Fund".

A further £358m, from a variety of sources, will support the creation of jobs, apprenticeships and helping people secure work.

This pot will also aim to help businesses, revamp high streets, build new homes and improve active travel making it easier to cycle and walk. Plans also include modernising of homes and approving flood defences.

Dan Jarvis became Sheffield City Region's first elected mayor in 2018

Mr Jarvis said the proposed spending showed "the power of devolution".

"It means we can deliver on the priorities of our people: jobs, apprenticeships, better buses, new flood defences, stronger transport links and revitalised high streets and town centres," he said.

He added: "Extraordinary times call for extraordinary measures. Despite the challenges Covid-19 throws at us, our plan sends a crystal-clear message of ambition and confidence that South Yorkshire is open for business and ready to prosper."

The SCR covers the former metropolitan county of South Yorkshire. The devolution deals gives it control over policy areas such as transport, housing and skills. Mr Jarvis, who is also Labour MP for Barnsley Central, was elected mayor in 2018.