A LONDON-BASED quango will be handed responsibility for bringing investment to Merseyside, raising fears the region will miss out on crucial funding.

A Commons select committee last night heard that UK Trade and Investment will be responsible for inward investment following the abolition of the Northwest Development Agency.

The news prompted warnings from Merseyside leaders that the government is going back on its “localism” pledge and re-centralising power in Whitehall at the cost of the regions.

The announcement comes as the Local Enterprise Partnerships (LEPs) prepare to hear whether they will be given their own funding, or whether they will merely exist to compete for central funding.

The latter outcome could mean the local partnerships would have to compete for a share of the regional growth fund (RGF) with other areas of the country. The fund, which would be competed for by all regions, is worth just £500m a year.

Merseyside business leaders said they were already in talks with UKTI to ensure continued investment in the region.

At yesterday’s select committee, it was made clear by Conservative Mark Prisk that it would be UKTI, rather than the LEPs, who would have ultimate responsibility, but would have “strong roots” in the regions.