THE creation of a combined authority would keep the Tees Valley in the "premier league" and hand the area the "major prize" of devolved powers, councillors will be told.

A report passed to the five local authorities looking to form a combined authority claims the new body would be non-bureaucratic and cost-effective.

According to the document, the Tees Valley Combined Authority would combine the strengths of Tees Valley Unlimited (TVU) local enterprise partnership, but with added new powers from the Government.

The report states: "We want to be a big player, competing successfully alongside other, often much larger, sub-regions, both in the UK and internationally.

"We must remain in the premier league, rather than risk lagging behind."

It states that four options for the future governance of the Tees Valley have been assessed - enhancements of the status quo, joint committees, a combined authority and a company model.

The report states: "Our appraisal of the options concludes that the most desirable model would be a combined authority for the Tees Valley."

It later adds: "Part of the rationale for the combined authority is to make decision-making more efficient by requiring just one decision instead of five locally.

"The major prize, however, is the devolution of powers from Government and the opportunities afforded by reversing decades of centralisation in the UK."

The report, prepared by TVU's governance group, said the proposed combined authority would want the same powers as integrated transport authorities.

This would give the new body powers to do a range of things including subsidise unprofitable bus services and influence train fares and timetables.

The report suggests the combined authority could also potentially obtain more powers over buses through quality contracts, which the North East Combined Authority has recently agreed in order to control when and how often bus services run in Tyne and Wear.

Tees Valley Combined Authority would consist of a member from each of the five authorities with the intention that this is either the leader or elected mayor.

Each member would get one vote and would take responsibility for a portfolio.

A chair and vice-chair would be appointed for a one year term, with the positions rotated among the five authorities.

The functions of the combined authority would be merged with TVU, with meetings of the two bodies held together with a two-part agenda.

A scrutiny panel would be formed to oversee the work of the body, featuring three councillors from each of the five authorities.