THE region will today be handed almost £30m for key infrastructure projects as part of a Government drive to stop Britain being dragged back into recession.

Council and business leaders will be urged to draw up rapid-fire plans for "shovel-ready" schemes - for roads, housing, shops and business parks - to get underway within months.

Ministers are determined to revive projects that have got "stuck in the mud" because of the economic slowdown, amid growing fears of a 'double-dip' recession as winter closes in.

The cash will be handed to the new 'local enterprise partnerships' (LEPs), the much-criticised bodies set up to replace the doomed One North-East and Yorkshire Forward development agencies.

The allocations to be announced today will be; Tees Valley LEP (£5,69m), York and North Yorkshire LEP (£6,22m) and North Eastern LEP (£16,71m).

The handouts represent a significant U-turn, given that the Government has previously insisted the LEPs did not need Government funding in order to draw in private investment.

However, in September, ministers announced a £500m 'Growing Places Fund', to "get Britain building again". That pot is being divided up today.

The £500m is not increased government spending - underspent budgets in the transport and local government departments were raided - so is unlikely to satisfy calls for a 'Plan B' financial stimulus.

Last night, Linda Edworthy, director of policy at the Tees Valley LEP, said it was too early to say how the money would be spent, pointing to a long list of hoped-for road and other infrastructure schemes.

Ms Edworthy also expressed mild disappointment at the amount up for grabs, saying: "We were told we might receive £8-£10m. Our plans are for projects that would cost hundreds and hundreds of millions."

But Communities Secretary Eric Pickles said the cash injection would "unlock much-needed local infrastructure and get the homes we need built."

He added: "It will be local enterprise partnerships, made up of the people and businesses who know their local areas best, who will decide where this cash boost will be spent."

Mr Pickles suggested the cash could be spent on: * Link roads to "unlock" housing and business developments.

* Other measures to "improve local connectivity and reduce congestion".

The LEPs have just six weeks to submit proposals to the department for communities and local government (DCLG), with allocations to be confirmed in January.

Two weeks ago, a damning report by the Centre for Cities thinktank said LEPs were stuck in the slow lane, having failed to draw up convincing strategies for investment and employment growth.

Furthermore, the LEPs have only been invited to "apply for the funding", suggesting it could be withheld if their plans do not come up to scratch - but the DCLG played down that possibility.

A spokeswoman said: "We have kept the bidding process as simple as possible, requiring LEPs to indicate the types of project they would expect to support and provide assurances on governance, financial management and transparency."

Ms Edworthy rejected the Centre for Cities criticism as "uninformed", pointing out the Tees Valley LEP had, in effect, existed for many years as the Tees Valley Unlimited partnership.

The allocations were decided partly on the basis of population size and partly according to the relative prosperity of the 38 areas covered by LEPs.