West Yorkshire metro mayor can ask council tax payers to help fund key projects

Details of the historic devolution deal, worth £1.8bn to West Yorkshire over 30 years, were revealed today by the Government after an agreement was finally reached between Ministers and local leaders.

As well as access to a West Yorkshire Investment Fund worth £38m and other new sources of funding, the deal gives whoever is elected mayor in May next year a range of powers to raise extra money.

The 31-page documents says the mayor will have the "power to set a precept on local council tax bills to help pay for the Mayor’s work".

Such precepts are common for elected metro mayors but not all choose to take them up. Sheffield City Region mayor Dan Jarvis said he would not following the example of metro mayors in Greater Manchester and the Liverpool City Region by imposing a mayoral precept in South Yorkshire.

In addition the mayor will have the power to introduce a supplement on business rates to pay for projects that promote local economic development, though this would require a ballot of affected businesses.

The West Yorkshire Combined Authority would also be able to seek consent to raise a 'strategic infrastructure tariff' to raise money for major projects, potentially including a mass transit system.

It will be given powers to borrow money to carry out its work, allowing it to "invest in economically productive infrastructure, subject to an agreed cap with HM Treasury".

And it could collect contributions from utility firms for any diversionary works needed as a result of highways works carried out on the so-called 'Key Route Network' covering the busiest roads in the county.

The power to set up the 400-mile key route network, which would be overseen and managed by the mayor rather than local councils, was among those handed to West Yorkshire in the devolution deal.

Chancellor Rishi Sunak described the devolution deal as setting "an example for the country to follow" as he signed it alongside the leaders of Leeds, Bradford, Kirklees, Wakefield and Calderdale on Thursday.

An agreement between government and West Yorkshire leaders was announced in the Budget the previous day, bringing to an end a five year saga over the transfer of powers and funding from Whitehall.

As part of the deal the mayor will have control of a £63m annual adult education budget previously held by government and powers to "acquire and dispose of land to build houses, commercial space and infrastructure, for growth and regeneration".

According to the document: "With a population of over 2.3 million people and a gross value added (GVA) of over £55bn p.a., West Yorkshire offers enormous potential.

"Sizeable parts of West Yorkshire enjoy a great quality of life, good wages, and lower living and housing costs, and for many the region is a great place to live, work, visit and invest.