Most Shropshire companies are unsure how the new Local Enterprise Partnerships will work, fearing the replacement for regional development agencies will cut back on business support.

A survey of nearly 300 firms in the county found that many businesses had no real understanding of the time frame involved in setting up the LEP, and confusion surrounds who is driving the changeover.

LEPs are being created following the scrapping of Advantage West Midlands, led by a 50 per cent split between private sector business and the local authority.

Last week councils and business leaders in Shropshire, Telford and Hereford revealed their bid to boost business growth.

The leaders of Shropshire, Telford & Wrekin and Herefordshire councils have submitted a “groundbreaking” venture to the Government to form a new Marches Local Enterprise Partnership – one of the first of its kind in the West Midlands and among the first in the country.

The move follows a survey carried out by Shropshire Chamber of Commerce of 290 firms in the county to gauge their concerns and expectations of the new LEP.

The research revealed that some firms believe there is a “lack of understanding of what the suggested function” of an LEP is to be.

And some bosses were concerned that the new LEP will simply be the Rural Regeneration Zone in another form and therefore some parts of Shropshire and Telford will not be focused on.

Although more than 63 per cent of businesses realised there was a change from RDAs to LEPs, more than 73 per cent knew that some Government business support services would be reduced.

The survey also revealed that although 60 per cent were unsure of how the Shropshire, Telford and Herefordshire configuration would be suited to their business, some believed the LEP should be created within relevant counties only, that such a wide geographical spread would not support micro businesses and there were concerns about a lack of consultation before the current plan was put forward to central Government.