Districts could be 'lumped in with failing councils' in devolution
Oxford could become part of a combined Thames Valley authority in a local government revamp.
The government announced proposals to abolish district councils and introduce large mayoral combined authorities as part of a devolution white paper.
Susan Brown, leader of Oxford City Council, welcomed the proposals, though MP Layla Moran said successful districts could be "lumped in" with underperforming councils.
Deputy Prime Minister Angela Rayner pledged to end "micromanaging by central government".
Ms Brown, leader of the Labour Group, said devolution could put decision making "closer to local people and should ensure a better approach".
She said: "This also presents a real opportunity to secure the investment in infrastructure required to support sustainable growth and deliver more affordable homes that Oxford clearly needs...
"We have already been engaging in discussions with neighbouring councils in Oxfordshire, Berkshire and elsewhere, about the potential creation of a Thames Valley Mayoral Combined Authority.
"Government has also indicated it is seeking to introduce a single tier of local authorities – so-called unitary councils, as part of this process."
She added the white paper mentioned that unitary authorities would be expected to contain about 500,000 people, which would be too big for Oxford and too small for Oxfordshire, but that decisions would be made on a case-by-case basis.
She said the council would be looking at "the very different needs of a city from its surrounding rural hinterland".
A Oxfordshire County Council spokesman said it was "committed to seizing the benefits provided by more investment, powers and influence and to ensure that the proceeds of our economy, now and in the future, are shared more fairly across all of our communities".
He said it would be working closely with local authority partners over the coming weeks to "collectively discuss its implications".
"This council is still actively planning the delivery of county council elections, together with city and district council colleagues in May 2025," he added.
Conservative leader of the opposition, Eddie Reeves, said he favoured a "single council that is accountable to residents".
He also said he hoped parties would put "party politics aside to find the right models, both of devolution and of local government reform, that are in residents' best interests".
But speaking in the House of Commons, Layla Moran, the Liberal Democrat MP for Oxford West and Abingdon, said: "South Oxfordshire District Council has doubled the number of social homes delivered over the last 10 years, meanwhile Oxford City next door has halved it.
"So there are districts doing incredible work - why should they face finding themselves lumped in with other underperforming councils?"
The government said the parts of the country it was prioritising for devolution would be revealed in due course, with the aim of holding mayoral elections in those areas in May 2026.
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