A WATCHDOG claims agencies tasked with regenerating towns are costing taxpayers about £600 a year per household.

The Taxpayers’ Alliance claims regional development agencies, set up to promote local industry and growth, have cost £15billion across the country since 1999.

The group is now calling for the groups to be scrapped.

In south Essex, the East of England Development Agency has helped Basildon fund the sporting village and Southend find money for the university site on the old Odeon cinema.

But the Alliance questions whether it is worth the money.

Ben Farrugia, policy analyst, said: “Regional development agencies have failed in their core mission to narrow the gap between the economic performance of England’s regions.

“At a time when businesses are increasingly over-regulated and over-taxed, the agencies have become a symbol of wasteful bureaucratic excess. They should be abolished before the Government hands them even greater powers.”

EEDA covers six counties – Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk, Suffolk – and the unitary authorities of Peterborough, Luton, Southend and Thurrock.

The Taxpayers Alliance says in 2006/07 the agency had 223 staff and received a £136million grant from the Government and just over £3.9million from the European Union. In total it’s spending was £149,015,000.

The group says abolishing all the agencies would mean their budgets could be used to pay for a 4p cut in the Small Business Rate of Corporation Tax.

However, Malcolm Buckley, leader of Basildon District Council, defended the organisations.

He said: “I think it’s fair to say there are too many layers of bureaucracy, but the agency has played a very important role in regeneration of Basildon.

“I understand where the Alliance is coming from, but in this instance we would have to say they have supported us in bids for resources for town centre regeneration and the sporting village and are helping us to achieve what we want.”

Edward Palferman, East of England Development Agency spokesman said: “The material in the report is inaccurate. EEDA is having a positive impact on the region’s economy with employment and business growth in the region increasing since 1999.

“Over the same period the agency has created or safeguarded nearly 42,000 jobs.

“In Southend, people can see the benefits of recent investments in the new Essex University Southend Campus and the improvements made to the Pier Hill area of town.”