A GROUP set up to boost economic growth in Lancashire is being dramatically scaled down with the loss of 28 jobs.

The Lancashire Economic Partnership (LEP), based in Accrington, will be all but scrapped in its current guise at the end of March following major cuts in funding.

It means 28 out of 42 staff at its Globe Centre headquarters, including chief executive Dennis Taylor, have either already left or been served with redundancy notices.

The LEP’s £1.6million budget has been slashed by £1million, after councils cut funding by £220,000, North West Develop-ment Agency cash dropped by £250,000 and other streams dried up.

The body’s main functions, including helping businesses and bringing together Lancashire’s 15 councils, will now be partly merged into Lancashire County Council.

Mr Taylor said: “It is a sad consequence of the recession but in many ways inevitable.

“I am very proud of Lancashire and what we have achieved and the seven years I spent at the LEP have been some of the best of my working life.

"My focus now is helping staff find other jobs.”

As part of the scaling down, eight LEP staff will join the county council’s rural and European business development teams.

The final six will stay on as officers at a scaled-down LEP with no chief executive or directors.

It will, however still be based in the Globe Centre.