Cheshire East is holding talks with the Government next month about a possible devolution deal with Cheshire West and Chester and Warrington – but stressed it must be good for the borough.
Deputy prime minister Angela Rayner has written to all councils encouraging them to enter discussions early so the Government can devolve new powers over transport, skills, housing, planning and employment support, (writes local democracy reporter Belinda Ryan).
Cheshire East leader Coun Nick Mannion emphasised officers were only meeting with Government officials to find out what was on the table at this early stage and not to do a deal.
Coun Mannion told Wednesday’s meeting of the Corporate Policy Committee that devolution would give the sub-region control over a “considerable amount of funding” that is currently dispensed from Whitehall.
“But the devil will be in the detail and, until we see the detail, I think we should restrict ourselves and avoid speculation on what it may or may not be, because I will say now, any devolution deal has to be good for Cheshire East, full stop.”
Deputy council leader Michael Gorman (Wilmslow) said: “The question for us is:, do we want to be back of the queue or front of the queue? “I think the prizes that are available here are really worth us really engaging with this to find out what’s available and what kind of powers we can have, and what the financial benefits will be.”
Chris O’Leary said: “I think it’s important to point out that, with the exception of 100% business rate retention, all of the financial and budgetary benefits go to the combined authority or the mayor.”
He feared this could mean the bulk of the money would go to the more deprived areas of Warrington.
Coun Mannion pointed out there were areas of Macclesfield and Crewe that were just as deprived as parts of Warrington.
Coun Mark Goldsmith said that if Cheshire East could retain 100% of its business rates – at the moment it keeps just 30% – that would equate to £70m a year.
“We are going through a transformation programme to save £100m over four years. That £70m will be each and every year,” he said.
“That alone is a game-changing prize for the council, and that’s why we want to be in the conversation early and to decide and discuss whether that’s part of the options.”
Conservative group leader Janet Clowes (Wybunbury) was concerned at how fast things were progressing.
“The Conservative group is not opposed to devolution – absolutely not – but it’s got to be right. My concern is the speed at which we are being asked to put things forward,” said Coun Clowes She said the days of excellent “devo deals” were gone.
“It’s actually being very clear about what suits us, what suits our economy, what will suit us going into the future and see how that dovetails with others,” she said.
“But we know historically, we have some really good synergies with Cheshire West, I am waiting to see what those synergies with Warrington actually will be.”
The committee voted to set up of a member reference group to help progress discussions with Government officials.
