THE former chief executive of supermarket chain Tesco has dealt a blow to the hopes of the region’s business community by turning down the chance to become chairman of the area’s Local Enterprise Partnership.

It had been hoped to recruit one of the biggest names in British business to the role, but a recent meeting of the LEP’s shadow board was told that Liverpool-born Sir Terry Leahy had decided he couldn’t fill the post.

Sir Terry, who retired as boss of Tesco earlier this month, remains a member of the LEP’s board.

His decision means the board must now find an alternative chairman. LEPs are being set up by the Coalition government to replace England’s regional development agencies, which are being scrapped. They will take over the task of co-ordinating and planning local economic development and support for small businesses in England. It had been hoped that Sir Terry would agree to take the post, because he has given a lot of time to the board of Liverpool Vision, another economic development agency.

Sir Terry grew up in a council house in Lee Park, south Liverpool, and attended St Edwards College, in West Derby.

He became chief executive of Tesco 14 years ago, having spent his entire career with the supermarket chain.