Economist Lord Jim O'Neill, who has been advising the prime minister, has said he will not be taking a government job, but has voiced support for plans to devolve more power to the regions.
The former investment banker has long been associated with arguments for giving cities and regions greater control over spending and economic strategy.
His comments come as the government sets out proposals intended to hand more decision-making powers to local and regional leaders in England.
“Devolution only works if the money and the powers arrive together, otherwise you simply hand councils the blame.”
Supporters of devolution argue that local leaders understand their areas better than Whitehall and can target investment more effectively. The plans are expected to cover areas such as transport, skills and housing, as well as the structure of local leadership.
“Devolution only works if the money and the powers arrive together, otherwise you simply hand councils the blame,” said one local government finance expert.
Critics caution that previous reforms have created a patchwork of arrangements, with some areas gaining significant powers and others left behind.
Business groups have generally welcomed efforts to boost growth outside London and the south-east, while calling for stable long-term funding.
Economists have long highlighted large gaps in productivity and wages between different parts of the UK, and successive governments have promised to narrow them. Progress has often been slower than hoped.
His decision not to take a formal role leaves him free to comment on policy from outside government.
Ministers are expected to publish further details of the devolution plans in the coming months.
