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Gaping holes have been left across the West Midlands as three of its LEP submissions were rejected. Business secretary Vince Cable shocked the region yesterday by dismissing submissions from the Black Country, Worcestershire and its districts and Business Voice West Midlands.

George Lord, chairman of the Worcestershire Leaders' Board, said: "We're disappointed and surprised that a jointly agreed proposal developed by businesses and all local councils has been ignored. I believe that our submission represented the best interests of Worcestershire's economy and emphasised our ability, and our need, to work with a number of neighbouring LEPs to meet our county's unique variety of business needs.”

He added that councils and businesses spearheading the bid would now “seek the views of local businesses about how we should proceed”.

“We all agree that the interests of the local economy are best served when we follow the lead of our county's businesses,” he said. “Whatever proposal results from our discussions will be business-led, so we will explore all options carefully before suggesting a solution that, we hope, will satisfy national requirements as well as being suitable for Worcestershire."

The West Midlands was granted just four of its seven Local Enterprise Partnership (LEP) submissions. They were: Birmingham and Solihull with East Staffordshire, Lichfield & Tamworth; Coventry and Warwickshire; Stoke and Staffordshire and The Marches.

The partnerships were four of 24 to be accepted across the country.

However, ministers did announce that there would be a sub-national growth hub in the West Midlands that will be focused on strategic business support, a model which is similar to the proposal put forward by Business Voice WM.

Business Voice WM chairman Barrie Williams said: “Ministers have seen that our position made sense for business and we are absolutely determined to work positively with partners to make it succeed. What we put forward was in the best interests of the West Midlands and it remains in the best interests of the West Midlands.

“We need to move on from the disagreements that have occurred over LEPs. We should now respect the government’s decision and ensure we are united in ensuring economic change takes place in the West Midlands.

“The government is right to state that these arrangements can be a new start for jobs and growth at the heart of the country. We must not waste this opportunity for change.”

Elsewhere in the West Midlands, business leaders were celebrating the four successful bids.

Jerry Blackett, chief executive of the Birmingham Chamber of Commerce group, said: "We are delighted by today's decision. But this is the beginning and our eyes must remain firmly on the prize of making this LEP the easiest place in Europe in which to set up and run a business.

"The extensive consultation with business means we have a strong foundation. We must now deliver. We will quickly appoint the shadow board and prepare for business elections in the New Year.”

Brian Woods-Scawen, Chairman of the Coventry, Solihull and Warwickshire Partnership – one of the partners behind the Coventry and Warwickshire proposal, said: “We always felt that Coventry and Warwickshire was a very good fit for an LEP and the history of all parties working effectively together undoubtedly helped.

“This is just one of 24 to be approved across the country and that reflects extremely well on the way partners have worked together here in Coventry and Warwickshire from the public and private sector.

“There has been very good buy-in from everyone and that helped us to formulate a very strong proposal for Coventry and Warwickshire.

“This is only the first stage in the process and we still have a lot of work to do. This is a real opportunity to shape the future of our local area based on business growth and innovation and this is a very exciting prospect.”