Axe expected to be swung again

It has already seen its budget slashed by nearly a quarter this year – forcing regeneration funding to be cut – after a 300m Labour raid on development agencies to fund programmes to help people onto the housing ladder.

Now Yorkshire Forward will now take another hit, although Ministers have not yet revealed how much each agency will have to save.

"We do not yet know how much of the 293m will need to come out of Yorkshire Forward's budget and therefore which individual projects and areas of our work will be affected," said a spokesman. "What is clear, is that there is a need to accelerate a reduction in our overheads over the coming months.

"We recognise that Government needs to take action to address the current deficit and this means, along with other public sector organisations, we are facing some difficult decisions ahead."

The Tories and Liberal Democrats have been sceptical of the value of the agencies.