Plans to replace the regional development agency (SEEDA) with local economic partnerships (LEPs) are descending into chaos, John Denham has warned.
He spoke as Hampshire County Council pulled out of the Partnership for Urban South Hampshire.
There are now two competing bids, one covering south Hampshire and the Isle of Wight, lead by PUSH, and another lead by Hampshire County Council.
Mr Denham said: “The two bids seem to owe more to the vanity of local council leaders than they do to the desperate need to help businesses grow and create jobs.
“The real blame lies with central government who have decided to destroy RDAs without any clear idea of what should replace them. This was bad enough, but it has not been helped by the petty conflicts and squabbles between local council leaders.
“I will be writing to ministers making it clear how badly their policies are working at a local level.”
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