BASINGSTOKE’S council leader believes the borough could still get a slice of a £1.4billion funding pot despite the Coalition Government rejecting its initial Local Enterprise Partnership (LEP) bid.

Conservative Councillor Andrew Finney has struck the positive tone in a written response to a letter from borough Labour group leader Cllr Laura James, who called the whole LEP situation “a mess that puts our local economy at risk”.

As previously reported in The Gazette, Cllr Finney was one of the driving forces behind a prospective LEP for Basingstoke, north Hampshire and the M3 corridor.

The bid, if successful, would have put the Enterprise M3 LEP group in a position to bid for Government money to help improve job prospects and infrastructure in Basingstoke and north Hampshire.

But the Coalition Government announced in October that the local bid had been unsuccessful, and it instead favoured bids covering neighbouring towns and cities including Winchester, Newbury and Reading.

Following the setback, Cllr James has called for decisive action in an open letter to Cllr Finney.

She said: “The failure of the ‘Enterprise M3 LEP’ bid is a major blow to our local economy and we are anxious to learn what action you intend to take to sort out this complete debacle.”

She added: “This whole process of bids for, and establishment of, LEPs is a disaster. It’s our businesses and residents that are set to lose out because Basingstoke’s bid failed.

“We cannot afford to let our competitors steal a march on us in such a difficult economic climate – Basingstoke jobs and businesses are under threat because of this decision by the Coalition Government.”

The letter stated that local authorities can now reapply for LEP funding but approval will be granted on an ad hoc basis. Cllr James – who pledges that her group wants to work with the Tories on the LEP issue for the “good of our local economy, jobs and businesses” – said: “The next steps for Basingstoke need to be set out publicly so that we can all have confidence in the way forward.”

In his reply, Cllr Finney wrote: “I do not regard the current position as either a failure or a debacle. The feedback we have received from Government is positive, and I have good reason to believe that our ambition will be realised, perhaps in modified form.

“I know that we made a strong expression of interest, and that it was received as such.”

Cllr Finney said he was not in a position to publicly answer 11 questions posed by Cllr James, as discussions with the Government and other partners are ongoing, but he has assured her that “key relevant points” raised by her questions have been covered.

The borough leader added that officers at the borough council “deserve great credit and not unjustified criticism on what was a high-quality” LEP bid document, and that group leaders would be briefed on an update as soon as the position is clarified.

Cllr Finney, who criticises Cllr James for not giving input into the initial LEP bid, said: “I agree that there is strength in working together, and I hope that next time you will participate positively.”

The idea for LEPs – partnerships between local authorities and key businesses – came after the Coalition Government decided to abolish regional development agencies.