THE Government has not ruled out a devolution deal for Cheshire and Warrington despite the 'threat' posed by Brexit.

In January last year, the authority's Labour group voted for the town to team up with Cheshire West and Chester Council and Cheshire East Council in a deal – instead of the Liverpool City Region.

But, in a statement in the council's draft 2017-18 statement of accounts, the authority said devolution is 'threatened' by Brexit.

Senior Town Hall figures believes the negotiation process with the EU has become a 'priority' for the Government, while policies, such as devolution, have been placed on the 'back burner'.

However, the Government insists it wants to see councils and key services play an important role 'in making Brexit a success for the communities they serve'.

Cheshire and Warrington was announced as one of the six areas that the Government will 'work with closely' in developing their local industrial strategies last week.

Over the coming months, it is aiming to provide areas with 'clarity' on how best to take their growth and devolution ambitions forward.

A Ministry of Housing, Communities & Local Government spokesman added: "We have been in contact with local areas, including Cheshire and Warrington, on their plans for growth and devolution.

"Brexit gives us the chance to review the responsibilities of local government and look carefully at whether repatriated powers can be devolved further."