GOVERNMENT targets are failing to help the economy in Worcestershire and Herefordshire, according to a new report.

The National Audit Office (NAO) said regional development agencies (RDAs), including Advantage West Midlands, were failing to focus on long-term results because they had to focus on short-term benchmarks set by Whitehall.

The report also calls on the Government to involve regional development agencies in all areas of national policy making, so the impact on regional economies can be considered.

The West Midlands RDA was set up by the Government in 1999 to promote economic and social regeneration in the region, in partnership with central and local government and industry.

It is set long-term targets, such as increasing employment and productivity, but also given very specific short-term targets that are assessed annually.

Last year, Advantage West Midlands was told to create or safeguard at least 13,626 jobs, a target it narrowly missed, and to create or attract 119 new businesses to the region, which it beat.

Progress reports are published every quarter, which are often misleading.

The NAO report said short-term targets, set by central government departments in London, prevented the agencies agreeing priorities with local stakeholders, such as businesses or councils.

"The agencies believe that their targets do not help to direct activity to regional priorities, because regional economic strategies are developed with stakeholders, while targets reflect departments' national priorities."

The report added: "Short-term targets can compound the problem because an emphasis on them gives the agencies incentives to pursue immediate goals in preference to more strategic objectives.

"Because short-term targets are not designed to support long-term targets, achieving them is no guarantee of sustained success."

The report concluded that the agencies should be given fewer targets, and these should be based on regional economic strategies agreed with local stakeholders.