Devolution talks a 'game changer' for Greater Essex
Three local authorities are to discuss formally approaching the government on setting devolved powers in motion.
Essex County Council, Southend and Thurrock councils will come together in the next few days with a view to a Westminster meeting by March.
A devolution deal would create a new combined authority, with representation from all three top tier councils.
One deal, offering greater powers on local training and skills, has been described as a "game changer".
The three councils will talk about whether to express an interest in both a level two and level three deal at cabinet meetings next week.
Level two would give an Essex combined authority greater power on local training and skills, described as "a game changer for Greater Essex, enabling us to address long-standing issues with low skills and low productivity and make the transition to new fast-growing economic growth sectors" - and control an adult learning budget of up to £84m.
Level three would give greater powers on local rail services, running Department of Work and Pensions (DWP) employment programmes locally and an investment pot worth a forecasted £1bn over 30 years. There would be a directly-elected mayor overseeing the combined authority.
If the leaderships of the three authorities agree, talks with government could begin in March with details of a possible deal emerging by the summer.
A number of senior Conservatives in Essex prefer level three because it comes with greater local powers and spending.
However, Southend-on-Sea City Council - which is run by a Labour-led coalition - has opposed the idea of a directly-elected mayor for Essex before.
Liberal Democrats say the devolution options do not offer any solution to the financial difficulties facing local government.
Stephen Robinson, leader of Chelmsford City Council, says £1bn works out at £17 per head of the Essex population annually for the next 30 years and is not a huge sum.
Essex County Council's cabinet papers for the Conservative administration say a level three deal could "transform the Greater Essex economy and make it the fastest growing in the UK outside London".
Currently Greater Essex has an economic output of £47bn and is similar in size to Northern Ireland.
The letter to government notes the area has 1.9 million people and its population is growing but jobs are not keeping pace, especially highly skilled ones.
The role of the police, fire and crime commissioner would be included in a level three mayoral brief.
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