• Swindon & Wiltshire Economy
• Friday June 19 2026

Thames Valley devolution bid in tatters after Oxfordshire Lib Dems pull plug

A “once-in-a-generation opportunity” to create one of the UK’s most powerful regional economies has been dealt a significant blow after Liberal Democrat leaders in Oxfordshire refused to agree a proposed Thames Valley Foundation Strategic Authority.

The decision, taken at a meeting of partner authorities on Wednesday morning (June 17), effectively brings to an end nearly two years of cross-border collaboration and stalls a deal that could have unlocked billions of pounds of investment, new powers and long-term growth for the region.

The Oxfordshire Lib Dems objected to the shift from a Mayoral Strategic Authority to a Foundation Strategic Authority, which they felt would be weaker and less effective.

They were unhappy that Swindon’s inclusion remained unresolved, with Oxfordshire County Council leader Tim Bearder arguing it was not really part of the Thames Valley and that the government’s geography looked driven by convenience rather than local coherence.

And they argued the new model would not deliver enough meaningful benefit for Oxfordshire residents or businesses.

Reading Borough Council leader, Liz Terry, accused Oxfordshire’s Tim Bearder of “playing politics” by withdrawing support from what Reading says would have brought major benefits for residents and businesses across the region.

Reading had previously supported the Thames Valley devolution process and says it was ready to move forward with a Foundation Strategic Authority as the next step toward a mayoral deal.

The outcome came just 24 hours after a Government minister wrote to council leaders urging them to move forward at pace, describing a Thames Valley deal – including Swindon and reading – as “game changing for growth” and a “strong and compelling” proposition.

In the letter, Nesil Caliskan MP, Parliamentary Under-Secretary of State for Devolution, Faith and Communities made clear that a Thames Valley devolution deal would create a £97 billion economy comparable in scale to Greater Manchester, strengthen housing and infrastructure delivery across the region, and help unlock stronger links between research, manufacturing and innovation.

The Minister also warned that a Thames Valley deal without Swindon would be unviable and diminish the overall economic opportunity, urging leaders to reach agreement quickly so the region could benefit from future Government investment.

Just months ago, 13 councils across Berkshire, Oxfordshire and Swindon came together to submit a joint expression of interest to the Government, setting out a shared ambition to secure devolution and unlock the full economic potential of the Thames Valley.

That ambition would have seen the Thames Valley become one of the largest strategic economies in the country.

The Thames Valley’s success relies on a mix of high-performing areas, with Swindon playing a central role. The Borough’s GVA per capita of £52,900 is second only to Berkshire (£56,500) and significantly ahead of Oxfordshire (£39,800).

At a time when productivity across parts of the Thames Valley has stalled or declined, Swindon has continued to deliver steady growth and resilience, strengthening the region’s overall economic performance.

Swindon Borough Council leaders say the decision risks throwing away a generational opportunity to boost growth, accelerate delivery of affordable homes, improve skills and create jobs, and to give communities greater control over investment and decision-making. They called on businesses across the Thames Valley to lobby Oxfordshire County Council leaders to change their mind.

Councillor Gary Sumner, leader of Swindon Borough Council, said: “Today is a sad day for businesses across the Thames Valley. We’ve seen brilliant growth in key sectors in Swindon recently and that growth will spread across the supply chain.

“Devolution has the potential to turbo-charge that.

“Only months ago, leaders across the Thames Valley stood shoulder to shoulder to make a compelling case to the Government. Earlier this week, the Government made clear it backs a deal that includes Swindon, but that opportunity has effectively been thrown away.

“This deal had the potential to unlock billions, creating jobs, delivering homes and giving us more control over our own economic future.

“We remain open for business, open to growth and open to partnership, and we will continue to fight for the investment our residents and businesses deserve.”

Labour leader Jim Robbins, who as leader council leader until May drove much of the devolution discussion, said: “This should have been about what is best for residents across the region.

“We have spent two years working constructively across the region to build a deal that would deliver real opportunities, better transport, more affordable homes, stronger skills and good jobs. We even hosted the initial meeting of the leaders across the Thames Valley here in Swindon.

“The Government has been clear about the strength of a Thames Valley deal that includes Swindon. Ignoring that risks losing a major opportunity for the whole region. The business sector has been extremely supportive of the proposal and they will be rightly disappointed the deal has seemingly collapsed at the eleventh hour.

“We remain committed to working across party lines in the interests of our town and will continue to push for the best possible future for our residents.”

Swindon Borough Council says it remains committed to securing investment and growth for the town and will continue to explore every opportunity to deliver for its residents and businesses.