The Budget has boosted devolution to the capital with new powers handed down to London.

A new devolution deal for London will see mayor Sadiq Khan and the boroughs receive more powers over transport, infrastructure, health, criminal justice, skills and employment. 

There will be extra flexibility in the capital to allow the voluntary pooling of business rates across the city. 

London Councils chair Claire Kober said: ‘Alongside Greater Manchester, the West Midlands and other regions of the country, the capital is proud to be at the forefront of devolution. As we've long argued, this promises local people the power to set out a new path for delivering both economic growth and excellent public services in the context of a continued squeeze on public finances. 

‘However, despite today's positive news, we believe that there is more room for further transfer of power to both London and cities across the UK, and we will continue to argue the need for Government to properly fund public services.' 

The Memorandum of Understanding stated the Greater London Authority would take on responsibility for funding TfL's investment grant  in return for a higher share of locally raised business rates.

The Government also committed itself to supporting the voluntary pooling of business rates within London, subject to appropriate governance structures being agreed.

West Yorkshire Combined Authority chair, Cllr Peter Box, criticised the Government's 'continued reluctance' to devolve to Yorkshire and claimed Northern Powerhouse minister Andrew Percy was 'working on how to keep us divided'.

A meeting today hopes to identify a 'committed coalition of the willing' around devolution, including an 'ambitious' deal for the whole of Yorkshire, with one mayor but a number of combined authorities.

The Government today announced plans to invest nearly £400m in the Midlands as part of its new strategy to drive the region's ‘enormous economic potential'.

Chancellor Philip Hammond said: 'The Midlands has enormous economic potential and it is more important than ever that we now build on its existing strengths to make sure it fulfils it.

'The Midlands Engine strategy is an important milestone, setting out the concrete actions we are taking, where we are not only investing in what it does well but also tackling some of the long-standing productivity barriers in the region, including skills and connectivity.'

Communities secretary Sajid Javid added: ‘Backed by millions in investment, this new strategy will help create more jobs and boost skills in the region.

‘It will also showcase to investors here and abroad everything the Midlands Engine has to offer.'

Responding to the announcement, Midlands Engine Partnership chairman, Sir John Peace, said: ‘This strategy represents a clear footprint for the Midlands Engine, empowering us to think bigger and work even closer together across local economies and on a scale that makes sense in global markets.'