Manchester leaders demand utilities role

Greater Manchester's councils could receive powers to tell utilities firms what infrastructure to build as part of their multi-area agreement (MAA).

A lack of capacity in electricity, water and sewerage systems has emerged as a barrier to economic growth in the area. Officials from the Association of Greater Manchester Authorities (AGMA) are in discussions with Whitehall about the MAA, including a central role for the city region in planning upgrades.

The issue was raised at a two-day negotiation session between AGMA and Whitehall departments at the end of March. A report published by AGMA said the Department for Business, Enterprise & Regulatory Reform, which was represented at the session by deputy director-general for regions Philippa Lloyd, made a commitment "to talk to their utilities leads" and report back.

At a meeting of the AGMA Executive, Mike Emmerich, chief executive of Manchester Enterprises, Greater Manchester's economic development agency, said there was a danger of the city region running out of power and that sewerage systems and water provision were inadequate.

Utilities firms are under no obligation to discuss infrastructure needs with local authorities.

But Salford City Council leader John Merry (Lab) said utilities companies were increasingly expecting developers to bear the cost of installing new infrastructure.

"It is getting to the point where it is holding us back," he said. "If you are converting an old mill or factory into flats or offices, then the power supply might need to be updated. But the utilities are in a monopoly situation and costs seem to be rising."

A new constitution for the city region was also agreed at the meeting. The 'AGMA board' of the leaders of the 10 Greater Manchester councils could potentially oversee the pooling of budgets and joint commissioning of services.

Cllr Merry told the meeting civil servants would expect "a delivery structure that delivers the equivalent of a mayoral structure".