THE Tories have clarified their position on regional development agencies (RDAs), saying they would reform rather than abolish the present system.

In response, a senior North-East Labour MP last night branded the Conservative policy as “economic vandalism”.

Under the Tory proposals, businesses and local authorities would be encouraged to draw up plans to replace RDAs with local enterprise partnerships.

Details of the policy were revealed yesterday in a letter to party members by Shadow Business Secretary Ken Clarke and Shadow Local Government Secretary Caroline Spelman.

Business leaders in the North-East have expressed concern that scrapping One North East could damage the region’s recovery from the recession.

However, the Tories said their reforms would represent a new deal for local regeneration and economic development.

The letter described RDAs as “the remains of John Prescott’s failed experiment of regional government”, adding: “While we recognise that RDAs have had some local successes, we believe that the current arrangements can be improved.”

The Tories have already pledged to hand housing and planning powers back to local planning authorities.

In yesterday’s announcement, they also promised that councils could hold on to aboveaverage business rate revenue and offer local business rate discounts.

While the regions’ RDAs would be replaced, the Tories would allow London to keep its development agency.

In response, Roberta Blackman- Woods, Deputy Minister for the North-East, said the Tory proposals would have a huge impact on the region’s ability to generate jobs and new enterprise.

“They seem determined to dismantle a successful agency in the North-East, while leaving the one in London in place,” she said. “All they seem to be offering is powerless bodies which would set different areas of the region against each other.

“These proposals are economic vandalism from the Tories.”

However, Ross Smith, head of policy and research at the North-East Chamber of Commerce, welcomed the Tory pledge to allow new partnerships to remain regional, rather than sub-regional, bodies.

He said the North-East was the right size for a strategic economic area, adding: “It’s more important to focus on what the organisation would do, rather than what it’s called and where it’s based.”