THE new Liverpool elected mayor's role could unlock up to £1bn of funding for the city, as a huge shake up of Liverpool council would see a mayor’s development corporation created.

Liverpool council will vote on Tuesday in an extraordinary meeting on bypassing a planned referendum on the mayor's role and instead ditching the role of council leader and having a directly elected mayor instead.

Liverpool's electorate  will then be voting for candidates  in May.

The plan has been put  forward by council leader Joe  Anderson because the  government will hand over  £130m of extra cash  for  schools, housing,  regeneration and job  creation.

Liberal leader Steve  Radford is due to second the  vote at the town hall so long as  the government has delivered  a firm commitment to back  the plan.

Meanwhile deputy leader  of the Liberal Democrat  opposition Richard Kemp has  written to deputy prime  minister Nick Clegg to  request the additional powers  be given to Liverpool without  having an elected mayor.

Around £75m of the  promised cash will be  directed through a new  mayoral development  corporation (MDC) – the first  outside London.

The MDC will provide  financing for schemes to  boost the city’s economy, in  partnership with the private  sector.

“The scheme will not be  approached or viewed as an  isolated scheme... there is  significant opportunity to  increase the financial  potential to between £500m or  £1bn,” states the council  report.