Oxfordshire leaders pulled support for a Thames Valley-wide strategic authority, collapsing months of talks at a meeting in Reading.
Leaders from Oxfordshire, Berkshire and Swindon had gathered to sign a Foundation Strategic Authority (FSA), the interim step before creating a Mayoral Strategic Authority with elections pencilled in for May 2028.
A potential mayor could bring jobs and development to Oxfordshire, West Berkshire, Reading, Slough, Wokingham, Bracknell Forest, Swindon and Maidenhead, but the joint plans of all these councils are now on the line.
Participants were tight-lipped. It is understood Oxfordshire's Liberal Democrat leadership abruptly withdrew support, effectively collapsing months of negotiations. Lib Dem leaders from Berkshire were thought to remain broadly in favour; the prospect of big projects, like a third bridge across the Thames in Reading, may have put a spanner in the works.
Windsor and Maidenhead, part of earlier discussions, was notably absent from the meeting. Partners had been working towards a shared structure, with only details to be ironed out.
The proposed Thames Valley Strategic Authority would have covered a polycentric economic region of about 1.97 million people with a gross value added of £97.3 billion in 2023, joining research hubs, innovation districts and major employers along the M4 and M40 corridors.
In an expression of interest to ministers on March 20, local leaders said a mayoral authority could unlock an extra £18.7 billion in annual GVA by 2040 and £7 billion a year in additional tax revenue by tackling fragmented labour markets, infrastructure gaps and housing constraints.
The letter to ministers Matthew Pennycook and Miatta Fahnbulleh said "the economic case is made" for devolution.
Under the plans, the shadow authority and later Mayoral Strategic Authority would have taken on strategic functions over transport, housing and regeneration, skills, economic development, climate resilience and public safety, while day-to-day services would remain with existing councils. Central government was understood to be supportive and ready to move quickly on approving an FSA once councils had agreed a governance model.
Local business leaders who had backed the proposals are said to be alarmed that the U-turn could put jobs and investment at risk. The collapse of support in Oxfordshire leaves the future of Thames Valley devolution highly uncertain; partner councils now need to decide whether to attempt a revised deal without the county or to pause plans altogether. Without collaboration, the government could impose a plan with limited input from local partners.
The leaders of Bracknell and Wokingham councils were approached for comment.
Ted O'Neill, Local Democracy Reporter
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