AN “ideal partnership” between Wiltshire Council, Swindon Borough Council and businesses that had control of £169m of public money will end as the Swindon and Wiltshire Local Enterprises Partnership becomes a limited company.

The voluntary group will become a not for profit limited company, that will have the spending power to buy assets and recruit staff, despite Wiltshire Council keeping control of the purse strings.

The change is in response to Central Government recommendations, which has caused damage to the partnership according the leader of the Wiltshire Council Jane Scott, who said she was "saddened" by the change.

She will now move off of the board of directors as the unitary authority becomes SWLEP Ltd's accountable body.

The SWLEP has a public funding pot of £169m awarded through the Government's Local Growth Fund to improve the area and invest in business by 2021.

Some of its recent projects include investing £16m in the new Chippenham station hub project and the newly reopened Digital Mansion in Corsham.

Wiltshire Council will remain the banker for the organisation, and any large funding decisions will still need to be authorised by the public body.

Speaking during a cabinet meeting in County Hall, Cllr Scott said: "I’m saddened it has gone this way, I think it was an ideal way of doing partnerships with Swindon Council and businesses. I don’t think this change was necessary, I’m not sure the full implications have been understood. However Government didn't give the LEP a choice, they said they had to become incorporated. They didn't argue that maybe we were working extremely well we could have stayed as we were that's what I would have encouraged but when the government said they had to incorporate they did that with Government’s blessing.”

Cllr Alan Hill has been part of the scrutiny group the SWLEP for three years and said: “Government made it clear there were incentives to those LEPs that embrace financial incentives. It is not a case of LEP given free choice. Wiltshire was the first LEP to be scrutinised in the country, something we are proud of. We have a robust way of dealing and scrutinising the LEP and It should continue as long as possible.” Cabinet member Cllr Pauline Churchill committed to keeping scrutiny at the “highest level” of the now independent company.

Paddy Bradley of SWLEP said: “Working with Government and businesses we now have a business to business relationship. SWLEP Ltd will also take ownership of some roles we were previously unable to do as a voluntary partnership, including being an employer." Wiltshire Council is our Accountable Body and they will continue to have oversight of our decisions and use of funding to ensure we are compliant with our Governance arrangements. We will be inviting businesses in Swindon and Wiltshire to be part of this new development by becoming Members of our company.”