COUNCILLORS have agreed to continue discussions for a larger Hampshire combined authority as councils prepare to submit the proposal to Government on Friday.

As previously reported by The Gazette, councils across Hampshire are in discussions to create a large combined authority to receive more powers and millions of pounds from central Government.

If it was to go ahead, it would see the creation of a “southern powerhouse”, which would make decisions on issues such as health, the environment and transport.

The plan would mean that Hampshire’s existing councils would still carry out their function but a new layer of Government, made up of a joint committee of council leaders, would hold the control of millions of pounds of funding each year, currently in the hands of Government ministers.

In addition, borough and district councils could bid to carry out functions which are currently held by Hampshire County Council such as transport.

The move follows the example of Greater Manchester – dubbed the “Northern powerhouse” by Chancellor George Osborne – which now has control over the area’s £6billion health budget, a £300million housing fund and £500m of skills spending.

As part of Hampshire’s proposal, councils have said they are willing to forego a Revenue Support Grant they receive each year from the Government, which is falling year on year, as well as other grants in exchange for the 100 per cent retention of the business rates generated in the Hampshire and Isle of Wight area.

A full council meeting held at the council offices last night heard that Basingstoke and Deane Borough Council currently collects around £75m a year through business rates which makes it the highest collecting borough council in Hampshire.

This compares with the Revenue Support Grant which saw the borough council awarded £3.126m in 2014/15 and £2.22m in 2015/16.

In addition, councils have proposed to accelerate housing delivery of 76,000 homes across Hampshire and the Isle of Wight already agreed in Local Plans to have them completed in 2024 – two years ahead of schedule.

Deputy leader of the borough’s Labour party, Councillor Mike Westbrook, told the meeting that he hoped some services could be devolved locally if the proposal goes ahead but expressed concern at the speed the plan is currently taking.

He added: “This whole process is moving so fast, it would give the Jamaican relay team a run for its money. We seem to be in a race that local authorities up and down the country are still uncertain they want to be in.

“This proposal is so much in its infancy in regard to what it can offer Basingstoke and Deane, that it appears little more than some ideas and a wish list at present, so taking a suck it and see approach maybe the only way forward.”

Labour councillor Paul Harvey questioned what benefit the deal would bring to people living in Basingstoke and Deane and raised concern about the lack of reference to potential environmental powers in the proposal.

Council leader Cllr Clive Sanders said he expected the Government to “push back” and said the proposal as it stands “lacks some ambition”, “leadership and inspiration within it” but said that is “largely because of the speed it has been put together”.

He added: “What you are being asked to note this evening is to carry on being part of this process and developing the proposition so if at all possible we get in there first or the first wave for the benefit of our residents and the wider population of Hampshire.

“I think it is appropriate to be seen to be playing an active part of that. It is not something which is being driven on a party political basis, it has got very good cross-party support.”

The proposal will be submitted to Government on Friday and if negotiations are positive, a deal could be announced as soon as November.