The proposed devolution deal for Cheshire and Warrington has been put on hold after politicians rowed back on the Government's demand for an elected mayor.
Cheshire East, Cheshire West & Chester and Warrington councils had put forward a devolution bid last year calling for new powers and funding.
The leader of Cheshire West & Chester Council, Cllr Samantha Dixon, said: ‘While the benefits of devolution are extremely favourable for our residents, the Government's insistence on an elected mayor has made it difficult for all politicians to come to an agreement.
‘If government is serious about delivering its Northern Powerhouse, now is the time to give up powers to sub-regions and local areas to make their own decisions and I would urge all of our parliamentarians to support this.'
In a joint statement the leaders said: ‘Following political discussions in Warrington a potential consultation with the public and businesses on a proposed devolution deal for Cheshire and Warrington has been put on hold.
‘We remain strongly committed to collaborative working on a number of key initiatives, and will continue to explore how best to secure more power and resources for our area.'
A DCLG spokesman said: 'The Government is determined to devolve power and resources to local people who know their areas best.
'This is a bottom-up process and it is up to local areas to come forward with their proposals but ministers are clear the door remains open to Cheshire and Warrington.'