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City deals are bespoke packages of funding and decision-making powers negotiated between central government and local authorities and/or Local Enterprise Partnerships and other local bodies.

Between July 2012 and August 2014, 26 city deals were agreed. The first wave, completed in July 2012 covered the 8 largest English cities outside London; the second wave, completed in July 2014 covered the next 14 largest English cities and their wider areas, as well as the next 6 English cities and areas with the highest population growth between 2001 and 2010.

In August 2014, Glasgow and the Clyde Valley became the first area outside England to agree a deal.

Since 2014, five further deals have agreed in Scotland, two in Wales and one in Northern Ireland.

The 2018 Budget saw the government commit to begin negotiations for a deal covering the Derry City and Strabane District Council area. A Heads of Terms document was signed in February 2021, though a finalised deal has not yet been agreed.

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