The coalition Government has withdrawn its stipulation that the public-private partnerships with which it intends to replace the regional development agencies will have to fund their own day-to-day running costs.
Earlier this week, the Department for Business, Innovation and Skills and the Department for Communities and Local Government jointly wrote to councils inviting them to bid to become new local enterprise partnerships.
A version of the letter uploaded on the DCLG website on Tuesday morning said that LEPs would have no dedicated funding for running costs. The news cast doubt on coalition government assurances that, in areas of the country where councils and businesses backed RDAs, they would be able to retain them more or less as they were, albeit in a rebadged form.
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