£270m Yorkshire agency to escape cull of quangos

The body, which has an annual budget of 270m, will be one of the regional development agencies (RDAs) spared the axe when Ministers announce a bonfire of public sector organisations today as part of a package of 6bn in spending cuts aimed at stabilising the economy.

Prime Minister David Cameron and Vince Cable, the Liberal Democrat Business Secretary, have recognised that RDAs still have a key role to play in the economy in the North of England – despite their well-document scepticism in recent years.

However, the former Minister for Yorkshire, Doncaster Central MP Rosie Winterton, has accused the new coalition Government of reining in the region's influence in Westminster.

In a letter to the Yorkshire Post, she said: "In the wake of election defeat it is important to show humility and I recognise where Labour made mistakes, however I simply do not accept that there was a bias against Yorkshire and the Humber from the Labour Government.

"Far from Yorkshire's voice being enhanced by the new Government, it has been diminished."

There is an acceptance, however, that the agency will not be immune from spending cuts set to hit all parts of the public sector. There are also concerns that the English regions, including Yorkshire, are suffering cuts while funding for Northern Ireland, Wales and Scotland remains unaltered.

Meanwhile, the Government is expected to use its first Queen's Speech tomorrow to set out an ambitious 18-month programme of at least 21 Parliamentary Bills.