BUSINESS groups are close to being "disillusioned" with a lack of government support, a leading North West Lib-Dem warned.

In remarks that will embarrass Nick Clegg, Ian Marks, the former leader of Warrington Borough Council, criticised the Coalition's shake-up of economic development.

Mr Marks, who lost power in the Lib-Dems' “town hall massacre”, in May, attacked the abolition of the Northwest Development Agency (NWDA) – arguing it had "done some good work".

And he warned that “local enterprise partnerships” (LEPs) – the replacement for the NWDA – lacked the financial muscle enjoyed by the doomed quango.

Speaking at a conference fringe meeting, Mr Marks said: "The government was being London-centric in doing away with the NWDA and we are seeing the consequences. My worry is that the private sector will become disillusioned, because there is not much money there [in LEPs] and it's all a bit vague. We are not there yet – but it does worry me."

Mr Marks also criticised the Government's reliance on the flagship £450m regional growth fund, warning: "The funds are so limited and slow."

Last week, the Daily Post revealed that no cash had been handed out in Merseyside from the regional growth fund – five months after four job-creating projects were given the go-ahead.

However, Mr Marks insisted there was "a lot to be exciting and optimistic about" including the presence of legendary record producer Pete Waterman on the board of the Cheshire and Warrington LEP.

He said: "He can open doors in London that us mortals can't."