LIVERPOOL’S new economic development agency is finally scheduled to be up and running by Christmas – after stinging criticism of a lack of progress so far.

Former Liverpool Airport boss Robert Hough will take the controls of the Local Enterprise Partnership (LEP) which will replace the North West Development Agency, where he is currently chairman.

The deal will see the Lorraine Rogers-led tourism and investment body The Mersey Partnership and the LEP merged into one organisation.

It secures the future of TMP which had faced an uncertain outlook due to its high level of public funding.

The LEP currently only exists in a “shadow” form and the government will have to sign off the merger before it gets the final green light.

Today the Daily Post can reveal the bitter background fighting that has led to the delays in the deal being reached.

Some close to the negotiations feared Mr Hough was poised to walk away due to a lack of progress.

He has not yet officially accepted the appointment as chairman, and will not do so until the deal has been finally reached.

A major sticking point was the future within the new arrangements of Lorraine Rogers, who has led TMP for four years.

Some had questioned the need for a £150,000 chief executive of the new organisation.

A leaked email – seen by the Daily Post – from Liverpool council chief executive Ged Fitzgerald, warned of “major implications” if issues regarding her position were not resolved.