A REGIONAL business forum has reiterated the need for a single North-East economic development agency.

The Northern Business Forum (NBF) has sent a letter to every council in the region saying it is not prepared to support individual Local Enterprise Partnerships (LEPs) in isolation, The Northern Echo understands.

The Government is considering bids to set up LEPs to replace regional development agencies, such as One North East.

Among those bids already tabled are LEPs for County Durham, Newcastle and Gateshead, Northumberland and North Tyneside, South Tyneside and Sunderland, the Tees Valley, York and North Yorkshire, and one covering the whole North-East region.

It is understood that while the NBF, which represents the region’s business community, does support the bids for five smaller LEPs, it believes they need to be supported by a larger North-East Economic Partnership (NEEP).

The forum wants the regional body to underpin the five LEPs and take responsibility for six key areas, including research development and attracting investment to the region.

It is concerned that the North-East – already a smaller area than many of its rivals – retains it size and does not become split into smaller areas.

It is worried that without a regionwide economic development agency, the North-East will struggle to compete with areas such as Greater Manchester.

Another concern is that the regional body should keep its function of attracting investment as, historically, only five per cent of investment in the North-East comes through central Government.

Bids for the five LEPs and the larger NEEP were submitted as a package to the Government last month. More details on the bid’s progress are expected to emerge over the next few days.

A source close to the NBF told The Northern Echo: “The NBF wants to have one North- East economic partnership which has an overall responsibility for six key areas of business.”

The source said the letter had come after a vigorous board debate. “The business community is concerned that the North-East as a region is already incredibly small in comparison to other regions. If it gets fragmented by LEPs, there is a real concern we will miss out on major economic development,” the source said