A regional Government agency could be scrapped with the loss of 200 jobs in the West Midlands, it emerged today.

The Government Office for the West Midlands faces an uncertain future under the new coalition Government which has revealed it is considering ditching the body, which helps to deliver and develop Government programmes.

It claims to be the “ears, eyes and a local voice” for Whitehall in the region.

It spends £8.8 million a year of taxpayers’ money – 97 per cent of which goes towards staff salaries.

It was set up in 1994 along with eight other Government Offices – one for each English region.

The network has a combined workforce of 1,700 and received funding of £118m in 2010-11, overseeing the expenditure of £241m for Whitehall departments in 2009-10.

However, a programme for government published by the new Government promises to “abolish the Government Office for London and consider the case for abolishing the remaining Government Offices”.

Shadow business secretary and Wolverhampton South East MP Pat McFadden said: “Yet again we have another review. Just a few months ago, the then opposition parties were attacking the Labour Government for holding reviews.

“But the coalition agreement is littered with areas for review.”

The ex-Cabinet minster, who has also been outspoken against the Government’s plans to replace regional development agencies with local community partnerships, added: “Our economy is not just driven by London and the south east, it is also driven by the regions.

“Therefore, it is vital to have a structure that can deliver growth.”