“What Manchester does today, the rest of world does tomorrow,” prime minister Benjamin Disraeli once remarked. It may no longer lead the world as it did in its Victorian heyday, but the northern city is in the vanguard of a revolution in local government that politicians hope will give the country’s big conurbations the independence to lead Britain out of recession.

Alistair Darling, chancellor, named Manchester and Leeds in the Budget as “pilot” city regions that could negotiate for devolved powers from the government. This week John Denham, communities secretary, heralded “the biggest single transfer of power to local government in a generation” as he outlined some of the plans.