Local enterprise partnerships (LEPs) have improved their governance and transparency but have a long way to go, according to a group of MPs.
In a report, the House of Commons Public Accounts Committee said that it remained concerned that LEP boards are not representative of their local areas and business communities.
It said that local scrutiny and accountability arrangements are not strong enough considering the significant sums of public funding that LEPs manage.
Meg Hillier, chair of the committee, said: “LEPs have underspent their funding allocation by over a £1 billion in the past three years, raising questions about their capacity to deliver complex projects.
“The committee has previously raised concerns about the transparency and governance of LEPs and more action is needed to ensure they are held properly accountable for spending.
“LEPs are supposed to be an engine room of local economic growth but they have been dogged by a lack of local accountability and there is little evidence that they have levered in the promised private sector funds.”
