A ‘BUNFIGHT’ between different London government departments has undermined attempts by North West firms to fight the recession.

Lobby group Private Sector Partners, representing 140,000 North West firms, makes the claim to the North West Regional Select Committee which requested regional evidence on the Government’s handling of the recession.

The paper by Merseyside-based PSP leader Len Collinson and CBI North West director Damian Waters, said London had failed to communicate coherent policy.

Mr Collinson said: “Whitehall’s response to the recession has been too governed by grabbing headlines. The last year has seen too many unnecessary announcements and schemes.

“The almost daily policies and initiatives by different departments has at times resembled a bunfight.

“This has almost certainly led to confusion and dismay in local agencies like the North-west Development Agency (NWDA) and Business Link.

“This is the case in delivery of the Venture Capital Loan Fund. The NWDA acted swiftly but has been held back by the Treasury.”