The government outlined plans to set up local enterprise partnerships (LEP) to replace axed Regional Development Agencies (RDA) such as Yorkshire Forward, which funds Print Yorkshire.

In a joint letter to councils and business leaders, business secretary Vince Cable and communities secretary Eric Pickles asked them to consider forming new local enterprise partnerships to provide "strategic leadership in their local areas".

Cable said: "We are determined to rebalance the economy towards the private sector, so it’s important we create a more effective structure to drive economic growth and development across the country.

"We want a structure that reflects the genuine interests and commitment of enterprise, local councils and other stakeholders, such as universities and colleges.

"Local enterprise partnerships will provide that vision and then take on the task of renewing local economies and tackling local barriers to growth. Today, we are asking them to tell us about their vision and I’m looking forward to what they’ve got to say."

Areas at risk from government spending cuts have also been given assurances over lost revenue with the launch of a £1bn Regional Growth Fund (RGF).

The fund was launched yesterday (29 June) by deputy prime minister Nick Clegg who said: "While we sort out the nation's finances, we can also help to foster a thriving and more balanced economy so that no region or community gets left behind. The RGF will create the conditions for growth and enterprise in the regions by stimulating investment and create sustainable private sector jobs.

"Alongside our commitment to waive some employment taxes for new businesses starting up in targeted regions of the country, this fund can make a real difference to companies during difficult times."