A new council and business partnership which has been given the go-ahead will stimulate Shropshire’s economic growth and help lead it through “times of uncertainty”, it was claimed today.

It will replace the £300 million a year quango Advantage West Midlands. The new Marches Local Enterprise Partnership incorporates Shropshire, Telford & Wrekin and Herefordshire and is one of the first to be approved by the Government.

Shropshire Council leader Keith Barrow, said: “The Local Enterprise Partnership will allow us to build on the strong relationships, enterprising culture and record of delivery in the Marches to stimulate economic growth and help us through these times of uncertainty.

“The real work starts now, but the LEP is in the strongest possible position to improve the conditions and allow Marches businesses to thrive.”

Business Secretary Vince Cable said 24 out of some 56 bids had been successful and invited them to progress to the next stage and “set up their boards and get to work.”

He said: “I was delighted that so many of the proposals for local enterprise partnerships showed real imagination and initiative and a genuine desire to drive local economic growth.

“The knowledge and expertise of the private sector, local authorities and their local communities will be crucial as we work to create a better environment for business and ensure that everyone has access to the opportunities that growth brings.”

The announcement came as Deputy Prime Minister Nick Clegg was outlining the details of a Regional Growth Fund and declared it “open for business.”

The taxpayer-funded pot of cash, worth £1.4 billion over three years, has been set up to pump money into areas of the country worst hit by the spending cuts.

Ministers announced in May that the eight regional development agencies would be abolished and replaced by joint local authority and business partnerships.

But businesses have warned against a “patchwork quilt” of LEPs which would drive up costs and lack collective muscle.

By Dave Morris