MORE than £1bn of regional growth fund cash will be handed out without senior North East oversight as Sir Ian Wrigglesworth steps down from his position as the panel’s deputy chairman.

Port of Tyne chairman Sir Ian has removed himself from the post after he was appointed national treasurer of the Liberal Democrats. He told The Journal he made the decision in order to avoid any potential conflict of interest given his new position of influence.

His move comes amid growing frustration from council and business leaders over Sir Ian’s criticism of their work on the North East local enterprise partnership.

Sir Ian has raised concerns that the Government-created jobs partnership is acting too slowly and gripped by internal rows based on territorial battles between council leaders.

Most recently he told the Royal Institute of Chartered Surveyors that the North East partnership, stretching from Durham to Northumberland, was lagging behind Manchester, Leeds and Teesside and must do more to catch up.

His latest attack follows on from comments last September that the leaders of the seven councils on the partnership were engaged in “civil war” over where to place an enterprise zone offering tax incentives.

It is understood the local enterprise partnership made representations to Sir Ian regarding his frequent criticisms. The partnership also informally approached Department for Business civil servants to say they were unhappy with a man controlling a further £1bn of growth fund cash being so public a critic of the work the Government-backed group was doing.

Sir Ian will now play a lead role within the party, including a significant speech at the Lib Dem spring conference in Gateshead next month.

Last night Sir Ian said comments he had made regarding the partnership were meant as those of a critical friend.

He said: “I want the local enterprise partnership to succeed as much as anyone else does, and I’d be happy to help them on this however I can. I, like many, am desperate for it to do well, but the fact remains that it is behind, it is not doing as well as that of, say, Manchester.

“It needs to come together better and set a clear agenda and state how it will achieve that and I am more than happy to help it do so.”

Sir Ian is not the only person to have criticised the partnership. Regional business groups have also been outspoken, questioning the speed with which the partnership is acting to create job growth.

Last night Newcastle Council leader Nick Forbes, who sits on the partnership, said the board members were working together for the good of the region.

He added: “Sir Ian has made the right decision and I am sure he will review his remaining interests in the North East given his new highly political role with the Liberal Democrats.”