Fresh talks have begun to thrash out a new devolution deal to hand more powers to councils in Norfolk, after a previous £600m package was scrapped.

But the government has made clear it wants Norfolk and Suffolk to seek a cross-border deal - with a shared elected mayor - if the counties are to get the widest range of new powers.

Local government minister Jim McMahonLocal government minister Jim McMahon (Image: PA)

Norfolk County Council leader Kay Mason Billig and chief executive Tom McCabe met local government minister Jim McMahon to discuss Labour's decision to ditch the deal County Hall agreed in principle last year.

That 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.

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

Mrs Mason Billig said: "We had a very good and detailed meeting with the minister, which discussed issues pertinent to Norfolk.

"There was general accord that we should look for ways to deliver devolution for the county."

The Conservative leader, who previously spoke of trying to 'salvage' the previous deal, confirmed: "The government will not allow our previously negotiated level three deal to go ahead and have expressed a preference for a more regional approach in East Anglia.

"However, there is still the potential for a level two deal for Norfolk, which would give us the adult skills funding, whilst we continue to explore further routes to devolution.

"We will continue to pursue devolution options which are in the best interests of our county and will be having ongoing discussions with the minister about what the next steps could be.

"As soon as we have further information and something which can be agreed we will let everyone know."

READ MORE: Broadland council leader open to Norfolk/Suffolk devo deal

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

In order to secure a level three deal - which would include powers over transport, local roads, urban regeneration and 30-year investment funds - the government wants a deal covering both Norfolk and Suffolk.

That would require a combined authority, with representatives from various councils and a directly-elected mayor - similar to the role Andy Burnham has in Greater Manchester.

Andy Burnham Mayor of Greater ManchesterAndy Burnham Mayor of Greater Manchester (Image: Jeff Moore/PA Wire) A previous Norfolk/Suffolk deal - with a single mayor - collapsed in 2016.

Steve Morphew, leader of the Labour group at County Hall, said: "Norfolk needs strong leadership, not strong language.

"If the leader had spent the last month putting together, with our partners, the ambitious offer the minister wants to hear that gives voice to the real opportunities Norfolk has in abundance, instead of complaining about being denied a second rate deal, things could have been different.

"The potential for a level 2 deal is no promise of even the consolation prize. There's a huge opportunity and a job to be done."