BUDGET: Osborne confirms talks underway over devolved powers for Yorkshire

Chancellor of the Exchequer George Osborne delivers his Budget statement to the House of Commons. (Picture: PA Wire)

CHANCELLOR George Osborne has vowed to “put the power into the Northern Powerhouse” as he confirmed that negotiations were ongoing over devolution deals for both Leeds and Sheffield city regions.

He said these talks could deliver “far-reaching devolution of power in return for the creation of directly-elected mayors”.

Announcing his budget today he also confirmed that an agreement had been reached with 10 councils in Greater Manchester to devolve further powers to the city - including decision making over transport and children’s services.

Osborne’s key quotes from the summer budget

Yorkshire put under pressure over mayors

The Yorkshire Post reported today that the authorities in the Leeds City Region have proposed being given new powers to raise money from business to pay for major infrastructure schemes and to be able to offer developers incentives to get projects started.

In the first budget of the newly elected Conservative Government Osborne pledged to create a “higher wage, lower tax, lower welfare” Britain.

The Chancellor pointed to the Greek crisis as evidence that a “bold new settlement” is needed, saying Britain was still “borrowing too much and spending too much”.

“This is the new settlement from a one nation government,” he said. “This is a big budget for a country with big ambitions.”