The Local Enterprise Partnership (LEP) in Cambridgeshire is causing the area ‘reputational damage’ the combined authority’s mayor has warned.

James Palmer, mayor of Cambridgeshire and Peterborough, has written to the LEP offering to work with it to create a new model of local governance.

The letter follows the announcement that the Government is withholding funding for the area while an investigation into the LEP takes place.

Mr Palmer said: ‘It is clear that GCGP LEP is no longer able to fulfil the purpose for which it was established and specifically to provide much needed help and financial support for local businesses.

‘Furthermore, the current position is creating reputational damage and will inhibit the ability of the area as a whole to attract inward investment at a time when we face such a huge deficit in our infrastructure.

'It is important that we provide leadership and act urgently and decisively to restore trust, including that of the wider business community and central Government.’

Robin Howe, deputy mayor for the combined authority added: ‘We envisage a future where the combined authority and Local Enterprise Partnership operate under a single umbrella, presenting ourselves to businesses and residents with singular ambition, objectives and delivery focus, whilst saving money for the tax payer.’