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George Osborne has proposed radical devolution of central government powers to English city regions, Scotland and Wales, in a move he said would give 鈥減ower to the working people鈥�.

Speaking at Victoria Warehouse, Manchester, the chancellor said it was time to close the 鈥渄ecades-old economic gap between the north and south鈥�. The chancellor also promised to deliver devolution to Scotland and Wales.

Osborne announced plans to devolve power over policing, skills, housing, and transport to the cities,as well as a 拢6bn health and social care budget.

A central part of the Queen鈥檚 speech on 27 May will be given over to a new City Devolution Bill 鈥渢o enable a new model of city government鈥�. 

James Wharton, newly-appointed minister for the northern powerhouse in the department for communities and local government is to take the legislation through Parliament.

Wharton will be assisted by top economist Jim O鈥橬eil who has been appointed to the Treasury as commercial secretary to drive forward the changes, replacing well-respected infrastructure tsar Lord Deighton.

Osborne added that while it is of benefit to the country that London is one of the great global cities, 鈥渞adical action鈥� needs to be taken to build up the rest of the country as the 鈥渆conomy has become unbalanced鈥�.

These new powers will be led by elected mayors who will provide leadership and accountability. However, this new model will not be imposed on the cities.

Greater Manchester will be the first city to have an elected mayor and take part in the 鈥淣orthern Powerhouse鈥� blueprint, following the agreement of the area鈥檚 ten councils. Osborne said he hoped this would also give the city 鈥渁 powerful new voice in national life鈥� as well.

Around a year ago Osborne first spoke of creating a 鈥淣orthern Powerhouse鈥� at the Museum of Science and Industry in Manchester.

The idea is to band together the cities of the North, such as Leeds, Sheffield, Liverpool and Yorkshire to create a collective force to rival London and the South East, as well as other cities in the world.

However, Osborne noted that he could not offer devolution settlements to every major city simultaneously or force elected mayors on the cities. It simply would not work. He did though challenge them to control of their own affairs and to work together.