THE Government’s proposed Local Enterprise Partnerships (LEPs) are too small and fragmented to be effective, it was claimed yesterday.

Director General of the Confederation of British Industry, Richard Lambert, issued the warning outside the Liberal Democrat party conference being held at Liverpool’s BT Convention Centre.

The Government wants LEPs to replace regional development agencies (RDAs) as the principal agents for economic and business development across the English regions.

Speaking exclusively to LDP Business, Mr Lambert said: “Our members did not want us to go out on a limb to defend RDAs, but there is also real concern about the Government’s approach to LEPs.

“The concern is they will be too small and fragmented to have any real impact and that business opportunities will be lost as a result.

“Across the North West, there will be eight LEPs to replace one RDA. In Tyneside, they think there will be a battle between the local authorities, who all hate each other.

“Its something we think can be fixed, but it needs some work by government to fix it.”