South Yorkshire devolution deal future to be considered after two councils withdraw

hesterfield and Bassetlaw have told South Yorkshire councils they no longer want to be full participants in the devolution deal struck with the Government in 2015.

Their decision means that if plans to elect a metro-mayor go ahead, a central plank of the deal, then their remit will only cover South Yorkshire.

Sir Steve Houghton, chairman of the Sheffield City Region Combined Authority said: It is disappointing for the residents and businesses of both areas that we aren’t going to be able to formalise our already strong partnership and make available the benefits of devolution and the powers that we have at our disposal to drive economic growth.”

Coun Houghton said that “politicians from across the city region now need to take the time to consider fully the next steps in the city regions devolution journey”.

The withdrawal of Chesterfield and Bassetlaw is the latest blow to the Sheffield City Region devolution deal which was agreed with then chancellor George Osborne in 2015.

It promised an extra £30m a year and new powers for the area in areas including transport and planning in return for the election of a metro-mayor.

Sheffield City Council leader Julie Dore subsequently complained about the powers the mayor would hold but later backed down saying her concerns had been addressed.

Derbyshire County Council launched a legal challenge over Chesterfield’s proposed involvement which was partially successful, leading to the delay of the mayoral election from this year to May 2018.

Tensions between South Yorkshire councils over HS2 have also cast a shadow over the agreement and raised questions over whether it will go ahead.

Sheffield and Rotherham remain supportive of the deal but Doncaster and Barnsley have indicated their interest in looking at other ways of moving powers from Whitehall to the region.

Council leaders and chief executives in other parts of the region have suggested a Yorkshire devolution deal should be pursued with a single mayor for the whole county.

Supporters of the existing Sheffield City Region deal believe it will not be torpedoed by the latest developments..

They also believe their hand may have been strengthened by the general election result with a minority Government unlikely to want to enter into new negotiations over devolution or do anything which may require passing measures through the Commons.

The legal challenge from Derbyshire County Council prompted plans for a fresh round of consultations this year on the devolution deal ahead of next year’s planned election.

Those consultations have now been scrapped and council leaders will consider their next moves in July.