AN ELECTED mayor could just be the start of new powers for Liverpool after the city signed off a £130m deal with the Government.

Cities minister Greg Clark praised Labour-run Liverpool for being the first city to sign a "city deal."

The deal is tied to tonight’s Liverpool council vote to ditch the role of council leader and have a directly elected mayor instead.

The move will bypass a planned referendum, and instead the city’s electorate will be voting for candidates in May.

*More on this: David Bartlett's blog - Government signs off Liverpool City Deal for elected mayor

The deal includes £130m from the Government to boost schools, regeneration, job creation, and housing. And decision making powers linked to those areas are also being devolved.

Today Mr Clark said: "The Government is approving the city deal with Liverpool.

"We said that each of the eight core cities should consider what powers they need to be able to drive growth and build the best future for their local economy.

"I think Liverpool has responded to that challenge with great enthusiasm."

The "cities deals" are dependent on councils proving their have ‘strong governance’ arrangements – having an elected mayor meets that requirement.

"The deal is a proposal from Liverpool that the Government has said ‘yes’ to.

"Part of that package is that they would have an elected mayor."