The new unitary authorities are expected to come into force by April 2028 after shadow elections in 2027.

Corin Crane, chief executive of Coventry and Warwickshire Chamber of Commerce, said: “We have been following this very closely and have stayed in close contact with partners across all local authorities in the region and we welcome the fact that a decision has been made because there was talk of further delay.

“That would have left the county in limbo.

“What’s absolutely vital now is that local government continues to support the growth of our economy over the next two years – whether that’s planning, inward investment, business support or skills.

“Businesses will want to know what this huge shake up is going to mean to them and must have a voice in this conversation from the start.

“There are also questions around where this leads in terms where Warwickshire fits in terms of mayoralties. 

“So much power and funding now comes through combined authorities and Warwickshire’s place within that will start to unlock further growth opportunities.”