LIVERPOOL'S most prominent peer believes the city should be handed more powers and money to achieve its full potential.

Lord Storey yesterday tabled a debate in the House of Lords about how to develop the country’s biggest cities.

The Liberal Democrat said: “We need to ensure that, during challenging times, our cities continue to grow and develop. 

“If they flourish, they can help to contribute to the economic recovery of our urban areas. 

“We must ensure that cities can build on their strengths, think imaginatively about what needs to be done to grow and develop them, and have the single-minded determination to carry it through.”

The local Lib-Dems are set to campaign against elected mayors in the referendum due to be held in May. But the former council leader appeared to be at odds with that stance.

He said: “I personally think that the notion of the city leader being elected by the people has more democratic legitimacy than by a party caucus.

“City mayors must be part of strong democratic and open structures, and will only be worthwhile if they have more decentralised power and responsibilities.”

He argued that more money needed to be handed to local authorities to spend.

He pointed out that, in Germany, just 17% of public spending was decided by central government, whereas in the UK the figure stands at 72%.

He said cities must also have greater control over policy areas, such as housing, transport, and skills.