Bassetlaw District Council is withdrawing its bid for the area to be moved inside the Sheffield boundary.
The idea for the district to join Sheffield City Region was first put forward last year and backed by council leader Simon Greaves and Bassetlaw MP John Mann.
It would have seen some of the area’s council-run services move under Sheffield control, and away from Nottinghamshire County Council.
Announcing the plan was being abandoned on Tuesday (June 13) Cllr Greaves said: “The deal is no longer in the best interests of Bassetlaw.
“I have asked the chief executive to prepare a report for cabinet that will enable the council to formally withdraw its application for full constituent membership of the Sheffield City Region.”
He said the change had come about because of an apparent change in Government priority after the EU Referendum and May general election.
“If policies like devolution were on the backburner before, they’ll be pretty much extinguished now,” he added.
He added he believed devolution is ‘now an opportunity missed’.
He said: “It’s for all of local government, not just Bassetlaw but we have more important things to do now.
“We have ambitious plans for the growth of the local economy and I wait to see if Nottinghamshire County Council and D2N2 match our level of ambition.”
Chesterfield Borough Council have also pulled their plan for a devolution deal to join the Sheffield City Region.
The decision also follows a December ruling by the High Court which said a consultation run on the change for both areas had been unlawful because failed to ask local people a direct question about whether or not they believed Chesterfield should become part of Sheffield city region.
Nottinghamshire County Council leader Kay Cutts welcomed the decision.
“I am pleased Bassetlaw District Council has seen sense by withdrawing its application,” she said.
“It would have seen the creation of another unnecessary, unaccountable and expensive tier of Government. We already have Parish and Town Councils, a District Council and a County Council covering Bassetlaw – ask most local people and I think they would say they want fewer politicians, not more.”
