by business editor Trevor Sturgess

Urgent talks have begun between business leaders and the public sector about bidding for a Kent and Medway local enterprise partnership (LEP).

The Coalition Government is to do away with regional development agencies, including the South East England Development Agency (SEEDA), and replace them with LEPs.

Ministers have asked businesses and local councils to come up with ideas for the new organisations, what areas they should cover and what functions they would carry out.

SEEDA has played a key role in regenerating rundown parts of Kent and Medway, and funded innovation and enterprise, including, for example, Canterbury Innovation Centre.

With a local base in Chatham Maritime, it has also supported inward investment and other schemes designed to boost the economy and business ventures.

Sources confirmed that Kent County Council and business organisations such as the Institute of Directors have begun talks about LEP, but a detailed plan is some way off.

Bids have to be with Business Secretary Vince Cable by early September.

Meanwhile, EEF, the engineering employers' federation, says support for manufacturing must be a LEP priority.

It wants the new bodies to have strong business leadership and a clear purpose that will convince firms to engage with them.

Jeff Alexander, EEF head of external affairs and previously with SEEDA, said: "Rebalancing the UK economy is of paramount importance.

"The south east has more manufacturing companies than any other region, with more than 18,000 manufacturers contributing £18.2b to the regional and national economies and employing 289,000 people.

"It is very important that the LEPs that are established are focused on creating an economic environment that is supportive of manufacturing growth.

"In the south east, this is essential in order to maintain and grow the international competitiveness of our strong manufacturing base and the contribution it makes to the UK economy."