NEW powers gained through an ambitious “alliance” of councils could help growth in Oxfordshire, it is hoped.

At a meeting of Oxfordshire County Council’s cabinet, senior councillors agreed to the creation of a “strategic leaders board” which will be made up of the leaders of Oxfordshire, Buckinghamshire and Northamptonshire’s county councils.

It will also include the leaders of the local enterprise partnerships of each area and could be expanded in future to include other councils.

The new alliance will seek to position the counties as “England’s Economic Heartland” – a rival to the so-called “Northern Powerhouse” – and council leaders say it will help in lobbying the Government for devolved powers.

At the meeting yesterday Oxfordshire County Council leader Ian Hudspeth said the alliance would “enable infrastructure that can allow growth to happen”.

He added: “It is about moving forward and this is the start of the process on the devolution agenda.”

The leaders board, which will also require approval from Buckinghamshire and Northamptonshire later this year, will lead the lobbying efforts.

It will argue that local control over business rates, joint transport plans for the counties and longer-cash settlements will allow them to generate £9bn extra for the economy each year.

It could create 135,000 jobs across the three counties, the councils have said. The proposal came as Oxfordshire County Council warned it was likely to receive far less money from the Government in the wake of future spending cuts.