AN investigation has cleared the head of a key job-creation body for the region over his close links with a Conservative backer.

Paul Woolston, the chairman of North-East Local Enterprise Partnership (LEP), came under fire after he was hired by the venture capital firm Middleton Enterprises.

The company is owned by Tory backer and business financier Jeremy Middleton – who also heads up the LEP’s business investment section.

Kevan Jones, the North Durham MP urged the Government to look into the tie-ups, arguing it raised questions about whether spending decisions by the LEP were “accountable”.

The Labour MP also pointed out that former chief executive Edward Twiddy had left the LEP to work for Atom, a digital bank in part financed by a six-figure Middleton investment.

Mr Jones raised the controversy in the Commons again today (Thursday), saying: “Devolution of expenditure needs to be transparent and beyond reproach.

“I raised with the Minister the role of the chair of the North East LEP, Paul Woolston, who had just been appointed to the chairmanship of Middleton Enterprises, a company owned by Jeremy Middleton, a Conservative party member and donor - who is now also on the investment board of the LEP.

“The minister promised me to look into that arrangement. Is he satisfied with it?”

In reply, cities minister Greg Clark said: “I did indeed look into it. Paul Woolston is the chairman of the LEP, which has members from all the local authorities in the North-East.

“I think he is doing a very good job. I also raised this matter with my officials and I was assured that there were no questions at all to be addressed.”

Meanwhile, a meeting will be held on Monday to decide whether to appoint a new chief executive of the LEP on a rumoured £150,000 salary.

The organisation is believed to want to appoint an Australian trade envoy to the role, offering a wage higher than that paid to most council chief executives in the region.

But local authority leaders at the North East Combined Authority (NECA) are thought to oppose such a large salary being paid from the LEP’s limited funds.

A LEP spokesman said: “The appointment of the new chief executive will be discussed.

“We have taken external expert advice on the market rate before beginning the recruitment process and this position is advertised at the market rate for such a post.

“It is a high salary and that’s why we are working so hard to appoint the right person, an outstanding leader who will head the delivery of such an important programme of economic investment for the North East.”