Tory plans to boost prosperity in regions

The shadow minister said it is important "very good" work by the RDA, like supporting new industries, continued.

Lord Bates said: "We would want them to do more of that. However, they have been lumbered with a vast range of responsibilities, which were taken away from local authorities."

That means councils would be handed back planning powers, while Lord Bates highlighted how town halls already work together through the Association of North East Councils (ANEC) for the regional good.

The changes are also designed to tackle concerns about a lack of democracy surrounding the unelected One North East agency.

He said it made sense for the region's 12 councils to create a single partnership reflecting the North East's unique identity and geography size.

But Teesside might set up its own partnership sparked by frustration over local events, including the mothballing of the Corus steel plant.

"There is just a general feeling down on Teesside that this is a Tyneside centric exercise and they are being left out in the cold," said Lord Bates.

The partnerships could co-operate in areas of common interest, like securing foreign investment, according to the peer.