Angela Rayner has urged Swindon Borough Council to start talking to neighbouring authorities if it wants increased powers

The new deputy prime minister and the secretary of state for local government has written two letters to the council, as well as all local authorities natioinwide, and has said she wants to ‘reset’ the relationship, including financial, between central and local government and has also invited Euclid Street to take part in an ‘ambitious devolution programme’.

Ms Rayner, herself a former council officer who worked in social care,  wrote to Swindon Borough Council in the weeks following the general election on July 4.

Her first letter said: “I know first-hand the incredibly hard work councils do at all levels to deliver the essential public services that residents rely on. A fundamental reset is needed in the relationship between local and central government, ending the politics that has seen Westminster hoard power, holding back towns, cities, and villages across the country from achieving their true potential.

“A government of public service means fixing the fundamentals, rebuilding the foundations and getting the basics right to deliver for the British people.

She added: “We recognise that rebuilding the foundations of local government is central to that mission.

“My cabinet colleagues and I also understand that all too many councils are facing financial strain and have been left balancing new obligations with higher costs and interest rates after a decade of financial mismanagement from the centre.

We know we will only be able to improve public services through economic growth, and it is critical you play a leading role in delivering it by participating in a new wave of devolution. But we also recognise this must be accompanied by reforms to local government and long-term funding settlements, providing you with the certainty to plan and provide the best possible value for money for residents.”

Expanding on the devolution theme, Ms Rayner said:  I would like to invite you to partner with this government to deliver the most ambitious programme of devolution this country has ever seen. I know you agree that for too long, Westminster has hoarded power and held back towns, cities, and villages across the country from achieving their true potential.

“I have seen first-hand the benefits of devolution, from better integrated transport and publicly controlled buses to new skills programmes and good, affordable housing projects. But our ambitions go further.

“We will devolve new powers over transport, skills, housing, planning and employment support.

My cabinet colleagues and I also understand that all too many councils are facing financial strain and have been left balancing new obligations with higher costs and interest rates after a decade of financial mismanagement from the centre. Rest assured, we will ensure that you have the resources to deliver new devolved powers and functions.”

And Ms Rayner urges the council to start discussions with neighbouring authorities: “In due course, the government will publish a new devolution framework, setting out the new powers and flexibilities available to you.

“While we will not force places to take on a metro Mayor, we will not shy away from making the case for their huge advantages, with some powers continuing to be reserved for institutions with directly elected leaders, such as Mayoral Combined Authorities.

“We continue to believe that new devolution settlements should be tailored to sensible economic geographies so that local leaders can act at the scale needed to effectively deploy their powers. In the majority of cases that will require local authorities to come together in new combined or combined county authorities.

“I encourage you to begin discussions with your neighbouring authorities on this basis.”