LANCASHIRE'S council leaders are examining the creation of a single 'combined authority' for the county to save cash.

It would be similar to the existing body for Greater Manchester which the government says could have a powerful elected London-style Mayor in the future.

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At a meeting this week, Lancashire county boss Jenny Mein and her counterparts from its12 districts agreed to explore the possibilities of merging back office functions and seeking new powers to control transport, economic development and other key issues.

It follows a meeting last month between East Lancashire MPs and council leaders hosted by Blackburn's Jack Straw to examine giving its six councils a separate local government identity independent of the county council.

This week's meeting, chaired by coun Mein, agreed to investigate the potential of forming a Lancashire Combined Authority to benefit from offers by both Conservative and Labour Parties to devolve enhanced powers and budgets to local councils.

The leaders of Hyndburn, Pendle, Burnley, Ribble Valley, Chorley and Rossendale council all attended.

It was agreed that Blackburn with Darwen and Blackpool, both independent all-purpose authorities, would be invited to take part in future meetings.

Draft exploratory documents will be prepared for a follow up meeting on November 27..

Coun Mein said: “For a number of months now the Labour group on the county council has been working to explore the potential of a Combined Authority for Lancashire.

“We believe to gain vital devolved budgets and powers for our communities, we have to explore changes to the ways we and our partners work together across the county.

“I chaired a cross-party meeting with district council leaders to discuss how we can move forward in this direction and I believe there is a growing consensus we need to look to explore establishing a Lancashire Combined Authority.

“Alongside access to devolved powers, the Combined Authority model would offer us an enhanced relationship with local district councils and the opportunity for closer working with our neighbouring Lancashire unitary authorities on issues such as economic regeneration and transport."

Former Cabinet minister Mr Straw personally favours a stand-alone single all-purpose authority for Blackburn with Darwen, Burnley, Hyndburn, Pendle, Ribble Valley and Rossendale.