Plans for new devolution deal for Suffolk which would have seen the creation of a directly-elected county council leader and extra funding have been formally dropped by the government.

It is also withdrawing a similar offer to Norfolk County Council.

The previous Conservative government had made the offer last year and it was in the final stages of being set up when the general election was called earlier than expected at the start of July.

The government offered £16million a year for 30 years - a total of £480m over the length of the deal - which would have come with new local decision-making powers over areas including housing, transport, adult education and regeneration.

As part of the consultation process before the council voted on the proposal, Suffolk residents backed calls for more devolution - but the new government has pulled what were known as "county deals" for Suffolk and Norfolk because they did not involve the creation of directly-elected mayors.

Matthew Hicks was disappointed at the news about devolution.Matthew Hicks was disappointed at the news about devolution. (Image: Suffolk County Council)

Suffolk County Council leader Matthew Hicks said: “This feels like a real slap in the face for Suffolk from a Government that won’t listen to what local people are saying.

"First, they waved through the Sunnica application, showing little regard for the communities affected.

"Then, they scrapped the winter fuel payments, which will adversely affect older people living in rural areas.

"Now, our proposed devolution deal – which has widespread public support – is in the bin.

“Governments of any colour should be pro devolution because councils know how best to serve local people.

"Local councillors have now been stripped of the opportunity to support or reject the proposed deal which is a sad day for democracy by any measure.”

A spokesperson for the Department of Local Government said the Suffolk and Norfolk deals were rejected because the government wanted to see local mayors elected who were independent of existing councils.

They said: “Devolution is central to the government’s mission to economic growth, which we’ve set out plans to take power away from Westminster and into the hands of local leaders – who know their area best.

“This government strongly believes that mayors should have a unique role, while council leaders must continue to focus on the delivery of the essential services.

“We want to see those two functions kept separate as this benefits the community and its people, which is why we will not be proceeding with the Single Local Authority mayoral deals proposed in Norfolk and Suffolk.

"We intend to continue discussions with both areas on alternative models for ambitious devolution.”

Opposition leader at the county council Andrew Stringer said he was not surprised by the news from the government - and hoped that talks on a real devolution deal would soon take place.

Green councillor Mr Stringer, who heads group including Liberal Democrats and Independent councillors, said: "This devolution proposal only ever really had the backing of the Conservative councillors.

Andrew StringerAndrew Stringer (Image: Archant)

"I hope the government does get all sides together around the table to come up with a deal that really devolves more power to local people and doesn't just mix up the existing system."

Ipswich Labour MP Jack Abbott was a county councillor for four years and welcomed the government's decision.

He said: “The reality is, the deal put on the table by the previous Conservative government shortchanged Suffolk and created a bizarre political settlement.

“I'm much more ambitious for Suffolk - I believe we deserve our fair share. So it is welcome that the new Government will review this devolution settlement and come back with a proper agreement that values our great county.”