Concerns about the new Local Enterprise Partnerships that are meant to drive economic regeneration have been strengthened by a Bradford business leader following a critical parliamentary report on the subject.

And a West Yorkshire business growth advisor has warned the decline in support for the small firms’ sector is putting growth in jeopardy Sandy Needham, chief executive of Bradford Chamber of Commerce, said LEPs, to be made up of councillors and business people, would be pointless unless they had Government funding and clear objectives.

One of the first LEPs has been granted to the Leeds city region, covering 11 local authority areas including Bradford.

One of its key jobs will be to put together viable bids for funding for job creation projects from the £1.4 billion Regional Growth Fund.

It must compete against other LEPS – and against bids from individual companies – for funds which will be thinly spread across the English regions over the next four years.

The LEPs were unveiled by Communities Secretary Eric Pickles, a former Bradford Council leader, following a Cabinet meeting held in the city this summer.

But Mrs Needham is worried that ministers are not providing funds for running the LEPs, instead relying on councils and companies to find the resources.

She said: “The way things are drawn up at present LEPs will have zero income and this will make it difficult for them to have a proper role and any clear objectives, which they will need if they are to succeed.

“Subsidised help for businesses will more or less come to an end by March, 2012, with funding for the Bradford Kickstart enterprise programme due to expire in March next year.

“Instead, it will be left to local bodies to find a way forward and respond to the needs of developing businesses and tackle issues such as skills and support for exporters.

“The chamber is devising its own plans in such areas, but I’m worried that without a budget and a clear purpose the LEPs will be pointless.”

Her comments reflects those of the Commons business committee which last week warned that LEPs were in danger of becoming ‘talking shops’.

Bradford East MP David Ward, who sits on the committee, and Shipley MP Philip Davies have pushed the Government over what will happen to five Yorkshire Forward assets in the city.

Matt Levington, director of business growth specialists the Business Doctors, is warning that the closure of Yorkshire Forward and the decline of Business Link is beginning to have its effect on the SME sector.

He said: “Our West Yorkshire office has been inundated with enquiries for business advice and support from firms which are struggling, many of which no longer have traditional support organisations such as Yorkshire Forward to fall back on.

“We have advised a number of firms which are struggling and looking for outside help to kick start growth in the face of the recession.

“It’s vital that these firms have this support, otherwise we could see companies going under and a deepening of economic problems in the county.”