Norfolk's multi-million-pound devolution plan will not be going ahead after the Labour government pulled the plug on the deal.

Leaders at Norfolk County Council and Suffolk County Council - whose deal has also been scrapped - are furious at the withdrawal of the offer.

Norfolk County Council leader Kay Mason BilligNorfolk County Council leader Kay Mason Billig (Image: Norfolk County Council)

After months of speculation about what would happen after the change of government, civil servants telephoned Norfolk County Council on Wednesday to inform officers the deal offered by the former Conservative administration was off.

The new government was not in favour of a deal which featured a directly-elected county council leader, preferring a mayoral model separate from the council.

Kay Mason Billig, leader of Conservative-controlled County Hall, said she was "devastated".

She said: "Ministers don’t support the idea of a Norfolk-only deal, or the idea of a county council leader, elected by the public – even though this would not have involved additional bureaucracy.

"The government says it supports devolution, yet it has killed off a deal that was ready to go.

"Norfolk deserves better than this. I intend to press the government for talks on how we can salvage as many benefits as possible from our current deal – and ensure we don’t go to the back of the queue for new powers and funding."

She claimed the collapse of the deal meant money for schemes such as the revamp of Norwich's Anglia Square, Hethel Engineering Centre, Scottow Enterprise Park, Attleborough railway station and the Nar Ouse Regeneration Area could be at risk.

Former Norfolk County Council leader Andrew Proctor agreed the deal in principle with housing minister Lee Rowley in 2022Former Norfolk County Council leader Andrew Proctor agreed the deal in principle with housing minister Lee Rowley in 2022 (Image: Dan Grimmer) Mrs Mason Billig said she had been "ghosted" by the government in her efforts to speak to ministers.

The government has left the door open for a new package to be negotiated - but hinted it could seek a cross-county deal jointly involving Norfolk and Suffolk.

But Mrs Mason Billig said: "Why can't Norfolk and Suffolk have the same opportunities as every other area?

"Norfolk's geographical area is massive - bigger than some of the areas which have got deals.

Norfolk County Council's County Hall headquartersNorfolk County Council's County Hall headquarters (Image: Mike Page)

"We cannot understand why that is not good enough for devolution."

She added: "I have also been told that there is no funding for our deal. I find that very hard to believe."

The £600m county deal, agreed in principle in December 2022, would have included an investment fund of £20m a year for 30 years, control of the £12m budget for adult education, and £7m to kickstart housing on brownfield sites.

Brian WatkinsBrian Watkins (Image: Liberal Democrats)

Brian Watkins, leader of the council's Liberal Democrat, group, said: "We need to build a new consensus straightaway - one that brings together the county, districts, MPs, and key partners."Steve MorphewSteve Morphew (Image: Denise Bradley)

Steve Morphew, leader of County Hall's Labour group, said: "Nobody should be mourning what was always a second rate deal that would have consigned us to being a second rate county always playing catch-up."

Ed MaxfieldEd Maxfield (Image: Supplied by Ed Maxfield)

Ed Maxfield, leader of the independent group, said it had been killed off "by the same vested interests that have blocked every attempt to reform councils in Norfolk going back over decades".

Green group leader Ben PriceGreen group leader Ben Price (Image: Ben Price)

But Green group leader Ben Price, said: "The deal on the table offered a paltry amount of money and failed to address the burning issues of the climate emergency or the crisis in social care."

The deal would also have seen the Norfolk public vote for a directly-elected county council leader next May.

That would have been slightly different to other metro mayors like Greater Manchester's Andy Burnham, who head up a combined authority with representatives from other councils.

Andy Burnham, Greater Manchester mayorAndy Burnham, Greater Manchester mayor (Image: Jeff Moore/PA Wire)

A Ministry of Housing, Communities and Local Government spokeswoman said discussions would continue.

She said: "This government strongly believes 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.

A previous Norfolk/Suffolk devolution deal - with a single mayor - collapsed in 2016 after a string of Norfolk councils withdrew from the process and West Norfolk Council voted against it.