Yorkshire councils clash over future regional economic body

After crunch talks between all 22 councils in Yorkshire and the Humber region yesterday, it was agreed smaller local economic partnerships should be created in place of the regional development agency, which has spent hundreds of millions of pounds trying to grow the economy over the past decade.

One partnership – led by councils and businesses and responsible for boosting local economies – is likely to cover Leeds and the surrounding area, known as the city region. Another would cover Sheffield city region, with a third for York and North Yorkshire. There could also be a Humber partnership, or separate bodies for the north and south bank.

Local authorities also decided there needed to be "the ability" to deal with economic development at a regional issue, but that appears to have been taken in different ways by different councils.

Several sources claim it means there will be a slimmed-down, rebranded regional body focused on economic development, rather than dealing with issues such as planning and housing which are being restored to local authorities.

A smaller, more focused organisation is seen by many as a good way to push forward on issues such as the development of green technology in Yorkshire and around the Humber – an issue on which Yorkshire Forward has gained plaudits – and dealing with Whitehall on issues which affect the whole region such as transport.

One council source said there had been "pretty well unanimous" agreement that a smaller body was necessary, albeit one which would employ far fewer than Yorkshire Forward and have a much smaller budget than the 270m the agency had at the start of this year.

But the Yorkshire Post has learnt others are still reluctant to have any regional body, preferring voluntary co-operation between councils and partnerships.

One council leader declared:

"Yorkshire Forward is dead and it can't be seen to come back", and last night Sheffield City Council leader Paul Scriven went public with his opposition.

"Some things need to be discussed at regional level and across local economic partnership boards, but that should be how we come together to co-operate, not having a structure over us which becomes bureaucratic, costly and tiresome," he said.

"I'm very clear that while I wish to co-operate with partners across Yorkshire and the Humber it would be wrong to suggest that the powers offered by Government should somehow go back up rather than become more local and exercised in a more local way."

Over the next few days councils will have to agree a letter to Ministers setting out their position and more detailed plans will be drawn up as the Government prepares to publish a White Paper in the autumn spelling out what powers and funding local economic partnerships will have.

Communities Secretary Eric Pickles has made no secret of his desire to abolish the regional tier of government.