THE North-East would witness a huge power shift from Whitehall and regional groups back to local councils if a Conservative Government is elected.

Speaking at a meeting of the North-East Economic Forum, in Middlesbrough, Baroness Warsi, the Shadow Minister for Communities and Local Government, said the Conservatives would shift decision-making power from the Government to councils.

She said as many as 1,200 targets were imposed by the Government on councils, leaving them “clogged up” by bureaucracy.

Baroness Warsi, who was also critical of the unelected North-East Assembly, which she said no one wanted and no one voted for, said a Tory Government would introduce more city mayors to give strong leadership and “energise” local politics.

She said they would take over many of the spending powers held by regional quangos.

Other changes would result in development agencies such as One North East being stripped of future responsibilities for housing and planning, which would be given to councils.

Referendums would also be held to determine local issues where necessary, and local police commissioners could be elected.

Baroness Warsi said: “If we allowed more decisions to be made at a local level and more money to be spent at a local level, we would have better outcomes and more things would actually work.”

However, some at the event questioned whether such measures would benefit businesses.

Sarah Green, North- East director of the Confederation of British Industry, said such a change could quite easily lead to delays in decisionmaking and “infighting”.

Mrs Green said: “This is an absolutely critical period for the economy and for business, and we cannot have discussions and discussions about what the structures look like, nor can we delay while we wait for someone else to tell us what they look like.

“We need to get on with delivering for the region and doing it.”

She said business needed strategic decision-making, and added: “We need a loud voice and if you break us into smaller sections, that voice diminishes.”

Forum chairman Hugh Morgan-Williams said it was important not to be too parochial since this could affect the region’s ability to attract investment.

He said the North-East was very small and had to work very hard to make economic progress.

He said: “If some of the regional bodies were to be scrapped, we would be in danger of throwing the baby out with the bathwater.”