Prime minister appointment delaying Hampshire's progress towards a county deal

Hampshire County Council has been working on a pan-Hampshire county deal, in a bid to secure more devolved powers and financial freedom for councils.

Proposals have been drawn up, say council bosses, but further work cannot begin until a new prime minister is appointed.

Chief executive Carolyn Williamson said: 'We have reached a conclusion for our proposals and stand ready to negotiate a devolution deal.

'National political uncertainty means we will hold onto these proposals and present them when there is greater clarity.

'Hopefully in September we can get back on track.'

The new prime minister is set to be officially announced on September 5, with Conservatives voting for candidates this week.

Leader of Hampshire County Council, Councillor Rob Humby, added: 'The work we have done alongside our partners leaves us in a really good place, and is a practical approach given the situation we are in.

'We've had quite a few meetings recently and will continue these regardless of this process.'

While exact details remain unclear, it is hoped that these devolved powers will give councils more control over things like council tax, while making funding less ringfenced to allow authorities to budget as they see fit.

Nine local authorities are already in the process of negotiating a county deal with the government.

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Ms Williamson said: 'The nine organisations which were successful in the first round are continuing to work with officials in central government.

'Other local authorities I expect are in the same position as ourselves.'

The county deal sits against the backdrop of £200m budget cuts that need to be made by 2025/26.

Council officers and politicians alike believe that the current model of government funding 'does not work'.

Executive member for recreation, heritage and rural affairs, Cllr Russell Oppenheimer, said: 'Inflation is already putting pressure on our resources.

'We are getting a financial return of 1.59 per cent but that is nowhere near the rate of inflation.

'Even though this year is meant to be the peak of this inflation, over the coming years there will still be a big gap between financial returns and inflation - which means we will see further reductions to our spending power.'