LANCASHIRE has finally formed a Government-approved regeneration body after months of political rows.

The Department for Business tonight confirmed all parts of the county had signed to a local enterprise partnership (LEP).

LEPs are set to succeed regional development agencies, such as the North West Development Agency.

Blackburn with Darwen was the last borough to join the Lancashire partnership, following talks with Lancashire County Council aimed at boosting the representation of the east of the county on its board.

The deal follows months of wrangling over how many LEPs Lancashire should have, with East Lancashire bosses keen to have their own body.

However, Government ministers made it clear they would approve only a county-wide organisation.

It is understood the new Lancashire LEP board will be made up of 18 representatives, including one from the East Lancashire Chamber of Commerce, Blackburn with Darwen’s council leader and an East Lancashire-based business boss.

Blackburn with Darwen Borough Council chief executive Graham Burgess said: “This is a positive step forward for everyone as it recognises the diverse nature of Lancashire and the unique challenges facing Pennine Lancashire.”

However, two East Lancashire MPs were less enthusiastic about the deal.

Hyndburn and Haslingden’s Labour MP Graham Jones said the Lancashire-wide LEP was the ‘best of a bad deal’.

And Andrew Stephenson, Tory member for Pendle, added: “It is not what we wanted but we are happy with it.”

Local Enterprise Partnerships are being formed across the country to bid for Government regeneration cash.

The first round of £450 million funding, announced this week, handed cash to Merseyside and Manchester among others across the country but rejected all Lancashire schemes.

Last week, the Government was criticised for setting up a '£300,000 quango' to help new Local Enterprise Partnerships (LEPs) lobby them.