WARRINGTON Borough Council's efforts to secure a devolution deal have been 'threatened' 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 council chiefs, who believe devolution has been placed on the 'back burner', have become increasingly frustrated with the Government.

And a statement in the authority's draft 2017-18 statement of accounts highlighted the 'major potential impacts' identified to date – they comprise devolution, funding, investment, legislation, labour supply and economic uncertainty.

It said: "The full impact of Brexit on the council and local government is not yet fully known.

"The council receives very little European funding and the removal of this in the future will not affect the council's financial strategies.

"After Brexit, there is a possibility that European firms will be deterred from investing in the UK.

"This could reduce economic development and the collection of business rates.

"The devolution agenda is, however, now threatened by the prospect of leaving the EU.

"The UK Government is currently inundated with sifting through Brexit-related legislation and policy implications.

"As a result, the negotiation process with the EU has become a priority of the UK Government, while policies such as local government devolution have been placed on the back burner.

"Local government currently complies with a plethora of EU legislation.

"This encompasses procurement, local economic development, waste collection and employment legislation.

"But, following Brexit, the supremacy of EU law will no longer apply.

"With no obligation to follow EU legislation, the Government will have the jurisdiction to amend or repeal EU laws.

"Local government now has the task of steering through all these challenges, while facing a future of uncertainty."

The statement added that Brexit 'promotes' interest rate, inflation and exchange rate uncertainty, while highlighting 'future controls on the migration of labour' may reduce the supply of labour and increase costs in the construction industry.