Local enterprise partnerships (LEPs) would benefit from Government funding to guarantee minimum staff levels and independence in balancing local interests, an influential panel has recommended.

A study by the All Party Parliamentary Group (APPG) on Local Growth and published on 11 September, notes the hybrid private sector and local authority bodies rely heavily on local businessmen giving their time voluntarily.

The report claims that modest core funding would offset the risk that large local authorities and major firms could begin to dominate the LEPs' agenda by providing staff or support services – to the exclusion of smaller partners such as district councils.

Dr Andy Wood, chief executive of brewers Adnams and chair of the New Anglia LEP, said: ‘The amount of money given needs to be enough for independence'.  ‘But it's a fine balance, as if too much is available bodies may take the attitude that they don't need partners,' Dr Wood added.

A joint statement from the Department for Business, Innovation and Skills (BIS) and the Department for Communities and Local Government (DCLG) stated: ‘LEPs have recently made representations to Government for further limited core support, to be matched by local partners. Government understands that if LEPS are to be successful they need to be properly resourced.'

Hailing the APPG's study as ‘an excellent report', Sir Merrick Cockell, chairman of the Local Government Association urged ‘the Government to accelerate the City Deals process and offer it to as many areas as want it'.

Speaking at the launch, Brandon Lewis MP, who was, prior to being appointed a DCLG minister last week chair of the APPG, said: ‘Much had been achieved but the findings of this report show that there are clearly still gaps and weaknesses that all parties including government must address as a matter of urgency.'