​Scrapping the South West Regional Development Agency would be a “kick in the teeth” for the Gloucestershire economy, says Lord Mandelson.

The Tory pledge to abolish the regeneration body would set back economic growth in the county, warned the Business Secretary.

The Conservatives have proposed Local Enterprise Partnerships instead, made up of councils and business leaders, covering smaller areas.

The Government has put the RDAs at the centre of economic recovery plans despite slashing its budget, leading projects to be ditched or scaled back.

Criticising the Tory plans, Lord Mandelson said: “They would be kicking in the teeth every region in the country that needs the sort of effective planning speed of decision making use of resources and joining up of Government that RDAs bring.

“If they maintain their determination to close down the RDAs if they are elected then they will be setting back the cause of economic growth in every region of the country.

“It’s no use people demanding economic growth or praying for economic growth and then saying they are going to abolish the RDAs.”

“Where is the hard-wiring going to come from? We are backing the RDA’s very strongly indeed. We are investing more money, more responsibility, more hope in the RDAs in order to be prime drivers of regional growth strategies.”

The South West RDA was already wrestling with year-on-year budget cuts when it was revealed last year it was to have its spending slashed even further in a Government drive to bail out the ailing housing market. On top of other cash cutbacks, The RDA also saw its income plummet from land sales because of the recession.

Lord Mandelson has already been tackled by MPs over the “apparent contradiction” over his backing for RDAs and budget cuts.

In evidence to the Commons Business and Enterprise Select Committee he said the RDAs were doing a “first rate job and a job that is becoming all the more important in the economic conditions we are facing in the country now”.

Rather than budget cuts, Lord Mandelson insisted the Government was “dipping into” them for “specific tasks and reasons”. But he also admitted that this had “become a bit habitual”.

And he conceded the reductions would impact on the ability of the RDAs to support businesses.