A top business analyst at Coventry University has welcomed the Conservative Party's plans to rethink their policies on Regional Development Agencies (RDAs).

Professor David Bailey of the Coventry University Business School said that the backlash from business groups to Tory plans to scrap RDAs has now forced the Tories to review their plans.

He added: "The Conservatives sparked much incredulity last December when they said they would scrap RDAs, except in London, as they thought it was a tier of government which was not needed.

"Well judging by the angry reaction from the CBI and British Chambers of Commerce, it appears a change of heart is indeed on the cards as Ken Clarke, the Shadow Business Secretary has ordered a review of policy on the issue and has admitted that Tory policy on this is 'not clear.'"  

This is potentially good news for RDAs like Advantage West Midlands as it was suggested by the Conservatives that they should be replaced with local authority led "local enterprise partnerships" with businesses.

Under their original plans, the legislation that created Advantage West Midlands and other RDAs across England would be scrapped. It was unclear as to what would happen to funding for business support.

Professor Bailey continued: "The Conservatives are now saying that a level of government below the national level is needed to bring knowledge and expertise together in a proper partnership but whether that means the regional or local level is still not clear. At least they now appear to acknowledge that some RDAs do good things and play an important role."

The Leader of the Opposition is said to be intending to issue the chapter in his manifesto on communities and local government (which includes RDAs) within the next three weeks.

Professor Bailey continued: "The Conservatives have failed to understand fully the key business support role provided by RDAs and think that resources can be saved by cutting and centralising. They fail to realise the genuine economic and business benefits of RDAs and the need for a regional tier of business support.

"Cutting and re-centralising support doesn't really make sense in the short or long term. In the short term as companies come out of the recession, they will need continuing business support which RDAs are best placed to deliver.

"Longer term regions like the West Midlands face structural change and an industrial policy to support manufacturing is best delivered via RDAs. Reforming them would be one thing, scrapping them would be a huge mistake.

"The Conservatives have just a few weeks to show that they are listening to the business community and to come out with a clear and effective policy on the future of RDAs if they genuinely want to help the regions. The clock is ticking."