Chancellor George Osborne has outlined "a radical new model of city government" for major English cities to take control of their own affairs if they agree to be governed by a directly elected mayor.
Speaking in Manchester, he said: "We will hand power from the centre to cities to give you greater control over your local transport, your housing, your schools, your healthcare and we'll give you the levers you need to grow your local economy and make sure local people keep the rewards.
"With these new powers for cities must come new city-wide elected mayors who work with local councils.....I will not impose a mayor on anyone but nor will I settle for less. My door is open to any other major city who wants to take this bold step into the future".
"This is a revolution in the way we govern England", Mr Osborne added.
Tim Farron has launched his campaign for the leadership of the Liberal Democrats.
The Westmorland and Lonsdale MP says he wants to give Britain "the liberal voice it needs." However, he insists that his constituency will always remain his "top priority."
Mr Farron is the second candidate to declare, after the North Norfolk MP Norman Lamb.
"I'm standing to be leader of the Liberal Democrats because I think Britain needs a political party who will stand up for the environment, human rights, equality and liberalism. I want to be the person who helps our party fightback and give Britain the liberal voice it needs.
However Westmorland will always be my home and will remain my top priority. Nothing will distract me from that. When I was first elected I said that I would always be Westmorland’s man in Westminster and never the other way around."
Leigh MP Andy Burnham has launched his campaign for the Labour leadership with a pledge to unite the party and the country.
The Shadow Health Secretary used a video message to set out his stall for the top job.
David Cameron has named Edward Timpson as the new Minister of State for Children and Families at the Department for Education
Mr Timpson first became an MP in 2008 after winning a by-election in the constituency of Crewe and Nantwich, and has been re-elected twice.
Tim Farron has won the support of his Scottish and Welsh counterparts, as a possible contender for the Liberal Democrat leadership role.
Farron has not yet said if he intends to run for the post but he is already being touted by colleagues Willie Rennie and Kirsty Williams as "an inspirational leader".
Rennie and Williams released a joint statement today that said: "Tim is a committed liberal, a brilliant communicator, an outstanding campaigner and an inspirational leader.
"With him as leader we can show that we are a compassionate, tolerant, internationalist, reformist party that looks beyond sectional interest to the greater good, to our children's future not just ours, that believes in partnership home and abroad, not division, that is liberal and democratic."
Watch a special edition of Granada Reports as the North West takes in one of the most dramatic General Election results in British Politics.
The dramatic departures of Ed Miliband and Nick Clegg means this region could soon be boasting two of the main party leaders.
Yes, step forward the Leigh Labour MP Andy Burnham and Tim Farron, the Liberal Democrat MP for the Cumbrian constituency of Westmorland and Lonsdale.
Our correspondent Matt O'Donoghue reports now on the two men who could now be right at the heart of the country's political future.
Although it only officially started a month ago, in reality the parties have been fighting for votes since Christmas.
As the results started to sink in we went back to some of our voters of today and voters of the future.
Our political report Daniel Hewitt gives an overview of the main election headlines from the North West:
After Nick Clegg's resignation as Liberal Democrats leader, the Westmorland and Lonsdale MP Tim Farron is now favourite to take the position.
We spoke to voters in the town of Kendal to find out if they think he's the man for the job.