BRISTOL has been shown a £130 million glimpse of what could be on offer after Liverpool became the first to clinch a "city deal" with the government.

When city deals were announced by Deputy Prime Minister Nick Clegg, pictured, in December he gave non-specific promises of new powers that would allow eight of the country's major cities more control over the way they are run.

The big question mark was funding. This week, it emerged Labour-run Liverpool will receive £130 million of government money after agreeing the first city deal.

At the same time its council decided to push through plans to have an elected mayor without bothering to hold a referendum.

The government is insistent the funding is not contingent on agreeing to having an elected mayor. But that does not mean it would not be looked on favourably.

A spokesman for the Department for Communities and Local Government said it was "entirely Liverpool's decision" to abandon a referendum.

Negotiations between Bristol and the government are ongoing as to what our city deal will include, and the remaining deals are to be announced in the spring.

Bristol's MPs gave a mixed reaction to Liverpool's windfall, with one claiming the city was being given "preferential treatment" for signing up to the coalition's flagship mayoral policy.

Bristol South MP Dawn Primarolo said: "The government said each city would have a referendum – now this is being presented as a fait accompli. It's a strange approach to democracy."

Liverpool's settlement includes money for schools, regeneration, job creation and housing, as well as greater powers over generating finance through business rates.

A new Mayoral Development Corporation has been established to distribute funding. And an enterprise zone, with low business taxes and special planning rules, will be set up. The plans include 12 new secondary schools.

Liberal Democrat Stephen Williams, who is considering putting himself forward for mayor, said: "There is nothing too revolutionary. To be honest, quite a lot could be done under existing arrangements.

"For the case to be made for an elected mayor in Bristol, I would like to see it go further than what's been agreed in Liverpool."

Charlotte Leslie, Conservative MP for Bristol North West, said: "It's going to be much easier for a city with an elected mayor."

This is because a city with a mayor could demonstrate stable leadership, she said.

Labour's Kerry McCarthy, Bristol East MP, said it would be "entirely wrong" for council leaders to "stitch up" the mayoral debate without a referendum. She said: "Certainly Liverpool seems to be in there fighting for their city, and that's the criticism that I have got of Bristol."

Bristol's elected mayor referendum is due to take place in May, and even supporters say one is needed before a mayor is introduced.

Jaya Chakrabarti is a member of the yes campaign for an elected mayor in Bristol.

She said: "I think we do need a referendum. I want people to think about it. I don't think it's a problem with the leadership so much as the leadership model.

"From our dealings with the cabinet office there will be plenty of opportunities for funding."

City council leader Barbara Janke is opposed to the idea of an elected mayor but is working on a city deal for Bristol.

She said: "We're making a very persuasive case to government for support through the city deal. We have been given a great deal of encouragement from government which we shall be following up over the next few weeks, with a view to having our city deal in place by the end of February."