Co-operation between businesses and local politicians is vital if devolution is going to be a success, according to the Confederation of British Industry's director. 

In a speech to the Local Enterprise Partnership (LEP) Network conference today, Carolyn Fairbairn insisted the strength of local leadership would ‘make or break' devolution.

She cited work in the Spanish city of Bilbao, where a regenerated downtown area pulled in investment, a new metro improved transport links and a river clean-up scheme made the area a more attractive place to live. 

Ms Fairbairn said these were not ‘stand-alone schemes' but a ‘roadmap for growth drawn by politicians and businesses working together'. 

She said: ‘By kick-starting a new era of local co-operation, government ministers, local leaders – including those in LEPs – and firms of all sizes can make devolution a success.

‘Business must rise to its civic responsibilities – helping to design and deliver growth plans in partnership with local leaders.'

The devolution agenda at present leaves too many questions unanswered, she claimed, such as which powers could be devolved to which geographical areas and how success and performance will be managed.

Ms Fairbairn added: ‘When it comes to devolving powers, political expediency should not trump economic prosperity.

‘Devolve first, ask questions later is not a recipe for regional growth.

Ms Fairbairn said business leaders needed to ‘step up' to help devolution drive economic prosperity.