PLANS to give new powers and multi-million pound budgets to a Hampshire ‘super-council’ could be announced in the new year, civic chiefs have said.

Council leaders have hailed “positive” progress in a devolution deal which will bring key decisions closer to the county and Isle of Wight.

They want to keep all their business rates and take greater control of transport, skills and housing through a combined authority including Southampton and Portsmouth.

On Monday, Hampshire County Council’s cabinet heard how local government secretary Greg Clark had praised the “credible and ambitious” scheme.

The county previously hoped a decision would be made by the end of the year, but remain optimistic that the deal will be announced within months.

Police, fire and health chiefs have all given their blessing to the bid, submitted by 19 councils, national park authorities and local enterprise partnerships.

They promise more jobs and homes, higher wages, better skills, improved transport and broadband expansion.

Hampshire council leader Roy Perry, leader of Hampshire County Council, said: “In Hampshire and the Isle of Wight, there’s a firm commitment for a single, combined authority, where all partners are equal and working together at no extra cost to the taxpayer.

“It’s not about replacing or changing the two-tier structure of local authorities in Hampshire – it’s about acting together to get the powers we need from government to grow our economy, protect our area and deliver a better deal for our 1.9 million residents and 80,000 businesses.”

The bid, submitted in September, pledged to accelerate and expand housebuilding if the government helps with infrastructure and land availability.

Cllr Perry said: “Greg Clark has made it clear that he’d like to see more ambitious plans around housing – delivering more low-cost starter homes through the use of public land, which could help to unlock an early devolution deal for our area.”

The bidders want powers to designate new green belts to stop unwanted rural development.

Council leaders are also resisting pressure to install a Boris Johnson-style elected mayor, which Cllr Perry said is better suited to large cities.

The partnership is due to respond to the government’s questions and hope an announcement is due in early 2016.

The scheme would then go out to consultation before each authority signs up.