LIBERAL Democrat leader Nick Clegg yesterday said the time was right to devolve financial freedoms to the country’s major cities like Liverpool.

He hit out at the “grotesque centralisation” that was holding back the progress of cities like Liverpool.”

Mr Clegg was addressing leaders from the biggest English cities at the Core Cities Conference held at the BT Convention Centre.

Earlier in the day, he called at Alder Hey Children’s Hospital to give his support to plans for a new hospital to be built.

In his speech, he said the recession and the impact of the decisions of bankers in the City of London had made clear that a new commitment to localism was needed.

“The time has come because the grotesque over-centralisation of our country has had consequences that it seems no one can deny.

“We need to introduce constitutional change which basically assumes that you [local authorities] have the powers to do what you want to do unless you are told otherwise. I think it needs to be enshrined in law.”

But he said that, without councils properly having the power to control financial affairs, the powers would not make a real difference.

He said this should start by returning to councils the powers to control business rates and a local council tax system that was based on the ability of residents to pay.

He said Liberal Democrat controlled cities were committed to the 10:10 challenge to cut 10% of carbon emissions in 2010.

But Labour spokesman for the environment in Liverpool, Cllr Tim Moore, later challenged the Lib-Dem controlled Liverpool Council to say whether or not it would agree to sign up to this pledge.

Earlier in the conference, economics expert Will Hutton addressed the audience, and said cities needed to improve investment in innovation research.