George Osborne's flagship plan to boost regional economies is failing to deliver as many jobs as under Labour, according to the public spending watchdog.
In a daming report, the National Audit Office (NAO) has revealed spending on "local growth" projects has almost halved since 2010, and concludes the Chancellor's raft of schemes for boosting the economy in the regions have ultimately proved "slow" to create new jobs.
Initiatives criticised include enterprise zones, City Deals, the £2.4 billion regional growth fund, the £650 million "growing places" fund and the newly-created local enterprise partnerships (LEPs).
Its report criticises the controversial decision to abolish regional development agencies (RDAs) – such as one for the South West – as it has caused a "significant dip in local growth funds and jobs created" across the regions.
Job creation estimates for enterprise zones by 2015 have dropped from 54,000 to between 6,000 and 18,000, the NAO said.
Ben Bradshaw, Labour MP for Exeter and a Cabinet minister in the last government, said: "LEPs are a pale and ineffective imitation of the regional development agencies without the capacity or strategic reach to deliver It was a damaging mistake by this Government to scrap the RDAs."
In the South West, there is a LEP covering Devon and Somerset and another for Cornwall and the Isles of Scilly, while there is an enterprise zone at Newquay airport. A City Deal is being worked up for Plymouth.
Amyas Morse, head of the NAO, said: "The transition from the old to the new schemes has not been orderly and there has been a significant dip in growth spending."
Direct central government spending on local economic growth fell from £1.4 billion in 2010/11 to £273 million in 2012-13, although it is set to rise to £1.7 billion in 2014-15, the NAO found,
But Chris Pomfret, chairman of the Cornwall and Isles of Scily LEP, said it has committed more than £11 million from the Regional Growth Fund – with more in the pipeline – and its expects those investments to create or safeguard 5,000 jobs and attract a further £30 million in match funding.
He added since Newqauy's Aerohub enterprise zone was launched there have been 160 jobs created and safeguarded.
He said: "I think the experience gained from successive EU investment programmes in Cornwall and the Isles of Scilly and the availability of EU funding means we have maintained momentum and I'm very proud of what we have achieved as a LEP.
"Our focus now is on the next European funding programme worth some £500 million over the next six years, and negotating a fair Growth Deal with Government."
In a daming report, the National Audit Office (NAO) has revealed spending on "local growth" projects has almost halved since 2010, and concludes the Chancellor's raft of schemes for boosting the economy in the regions have ultimately proved "slow" to create new jobs.
Initiatives criticised include enterprise zones, City Deals, the £2.4 billion regional growth fund, the £650 million "growing places" fund and the newly-created local enterprise partnerships (LEPs).
Its report criticises the controversial decision to abolish regional development agencies (RDAs) – such as one for the South West – as it has caused a "significant dip in local growth funds and jobs created" across the regions.
Job creation estimates for enterprise zones by 2015 have dropped from 54,000 to between 6,000 and 18,000, the NAO said.
Ben Bradshaw, Labour MP for Exeter and a Cabinet minister in the last government, said: "LEPs are a pale and ineffective imitation of the regional development agencies without the capacity or strategic reach to deliver It was a damaging mistake by this Government to scrap the RDAs."
In the South West, there is a LEP covering Devon and Somerset and another for Cornwall and the Isles of Scilly, while there is an enterprise zone at Newquay airport. A City Deal is being worked up for Plymouth.
Amyas Morse, head of the NAO, said: "The transition from the old to the new schemes has not been orderly and there has been a significant dip in growth spending."
Direct central government spending on local economic growth fell from £1.4 billion in 2010/11 to £273 million in 2012-13, although it is set to rise to £1.7 billion in 2014-15, the NAO found,
But Chris Pomfret, chairman of the Cornwall and Isles of Scily LEP, said it has committed more than £11 million from the Regional Growth Fund – with more in the pipeline – and its expects those investments to create or safeguard 5,000 jobs and attract a further £30 million in match funding.
He added since Newqauy's Aerohub enterprise zone was launched there have been 160 jobs created and safeguarded.
He said: "I think the experience gained from successive EU investment programmes in Cornwall and the Isles of Scilly and the availability of EU funding means we have maintained momentum and I'm very proud of what we have achieved as a LEP.
"Our focus now is on the next European funding programme worth some £500 million over the next six years, and negotating a fair Growth Deal with Government."
