Millions being lost due to lack of devolution deal

A business leader has warned that the region could lose out on multi-million-pound public funding opportunities and says investor confidence could be undermined because of a lack of consensus on devolution.

The South Midlands Business Board, established 14 months ago, to advise the six South Midlands authorities on business matters relating to economic growth and development.

But Jason Longhurst, the chair of the board, said it was "losing us anything between £80m and £100m a year by not having a devolution deal".

In a statement, the Ministry of Housing, Communities and Local Government said: "Our ambition is that all of England can access devolved powers by establishing Strategic Authorities."

Talks about creating a South Midlands authority were held between councils in Northamptonshire, Bedford, Central Bedfordshire, Luton and Milton Keynes.

It has become clear that a grouping involving Northamptonshire is not on the cards - with both Luton and Milton Keynes councils opposing it.

Instead of uniting six councils with the creation of a South Midlands combined authority, it has caused a rift.

Longhurst added: "We now are looking for a more broader approach that is based on the economic potential.

"So, we're talking to government, we're talking to regional partners, to look at our alternatives."

He said there was a real need to promote the area.

"Northamptonshire and Bedfordshire host some of the most critical businesses across the most diverse range of sectors and it's really, really being undersold at the moment," he said.

Combined authorities led by an elected mayor are the government's preferred way of linking counties so they can be handed powers over issues like regional housing and transport.

The Ministry of Housing, Communities and Local Government added: "We will shortly be setting out the next steps for areas beyond the Devolution Priority Programme, and we encourage all areas, including Northamptonshire, to engage with that process."

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