Local Enterprise Partnerships (LEPs) must place small businesses at the heart of their strategy for boosting UK growth, the Federation of Small Businesses (FSB) has said.

The partnerships have a budget of £17 billion of public money to spend up to 2021 and the FSB says this needs to “be accounted for”.

The organisation says LEPs are “the right vehicle” to deliver economic growth in the regions, but they should have more contact with businesses at the local level and more transparency overall.

Since the economic recovery began, small firms have led the surge in UK employment. Between 2010 and 2013, 84 per cent of new jobs were in SMEs, according to government figures.

But FSB research shows that large corporates have the biggest perceived influence on LEPs, with 39 per cent of local authorities agreeing that large firms make the biggest impact on LEPs’ activity.

To help small businesses get more involved, three-quarters of them said LEPs should provide clear procurement advice, yet only a quarter of the organisations are planning to do so.

John Allan, national chairman of the FSB, said: “Because the sums of money involved will increase substantially, it is vital that LEPs are more accountable and transparent so local authorities, businesses and the public can be confident they will deliver for the local economy and are using taxpayer funds effectively."