FOLLOWING the EU referendum result and a period of potential economic disruption, Hampshire County Council leader Roy Perry has called on the Government to avoid causing unnecessary instability to the local economy.

He has called instead for a halt to plans that would split up Hampshire and erode the strength of vital services to residents across the county.

In a letter to outgoing Prime Minister David Cameron, Chancellor George Osborne, and Greg Clark, the Secretary of State for Local Government, Mr Perry said now was not the time to press ahead with proposals to implement a Solent devolution deal which would break up crucial transport services on which Hampshire’s economy depends, and risk damaging, among other things, significant public investment in essential transport schemes.

He said: “The closure of the referendum campaign brings an ideal opportunity to reset the agenda on devolution and refocus on what we’re actually trying to deliver – strengthened local democracy, sustainable local growth, and reformed public services.

“The positive energy from the government’s initial announcement to devolve more decision-making powers to local areas has sadly dissipated, as councils up-and-down the country have divided over two issues – government’s insistence on having directly-elected mayors, and possible local government reorganisation as the alternative. This is certainly the case in Hampshire and the Isle of Wight where the collective, previously healthy, working relationships have been placed under massive strain by the very process that was supposed to bring us better together.

“We shouldn’t be spending time and resources on these disputes at a time of such uncertainty for the future of the economy and public services.

“With Hampshire County Council needing to save a further £120m by 2019, and most other local authorities also facing huge financial pressures at the moment, there is deep concern about the enormous additional risks of dismantling consistently high performing services such as child protection, highway maintenance and adult social care, and transferring them to combined or unitary authorities that split the county into several pieces, and cut across the well-established boundaries for the police, fire service and health.

“That is the inescapable conclusion of the current Solent plans.”

Urging government to get devolution back on track, Mr Perry repeated his call for proper deals to be delivered in areas which rejected Whitehall’s demand for elected mayors as a condition of devolution. East Hampshire – which covers Grayshott and Liphook – had backed the Solent mayor devolution plan when it was heavily hinted it would form a major plank of the March budget.

But Mr Perry urged last week: “Government should also set out the process and timetable for how new unitary councils could be created for areas pursuing local government reorganisation.”

Mr Perry also stressed the importance of giving the people of Hampshire a say in how local government operates across the county in future – and pressed for the Solent devolution process to be paused until there is a full and objective consultation. He added: “We are determined to listen first and decide later – it shouldn’t be the other way around.

“Just like with the EU referendum, the people need to have a say on potentially fundamental changes that will impact generations to come. We will be asking residents what they think about the idea of combined authorities, elected mayors and unitary options - no preferred option will be identified.”

The consultation is planned for late July, and the county council has invited all local authorities affected to make it a joint exercise. The feedback collected will inform Hampshire’s overall position and potentially a business case to ministers by the end of this year.

The council’s cabinet decided last month to also ask the public’s view on the original Hampshire and Isle of Wight combined authority proposal, set out at the start of devolution negotiations, and which had the support of all councils in the area.

Mr Perry added: “A combined authority would have huge financial and professional capacity and, crucially, the ability to transfer resources around the area and invest in those places that need growth. To be able to deliver a better deal for the residents of Hampshire, we’re stronger as one, unified body.

“It would also avoid a battle over reorganisation, allowing instead, a gradual approach under which some services and resources could, by agreement, be pooled rather than being forcibly broken up into smaller pieces.

“The only thing that prevented this “Southern Powerhouse” from being realised was Government’s insistence on an elected mayor. If they relaxed this requirement, we might be persuaded to halt the current discussions about reorganisation, and pursue a deal that could quickly deliver a wide range of positive outcomes.

“While I can’t speak for other leaders around the county, they might prefer a Hampshire and the Isle of Wight combined authority to a divisive battle over reorganisation, and the installation of what is being referred to locally as a ‘Solent Mayor’ with little public support and, as yet, no consultation.”