Treasury ministers John Healey and Ed Balls have welcomed a new report which sets out ways to overhaul the governance of England's regions.
A report from the New Local Government Network (NLGN) suggested putting enhanced regional development agencies at the forefront of regional development.
The rebranded 'regional executive agencies' could take over other policy areas currently managed separately in the regions, such as environmental, spatial planning and housing, said the NLGN.
But that would have to be linked to an improvement in accountability and scrutiny, with local authority leaders and regional MPs potentially becoming more involved.
Local authorities could have greater sway over regional decisions, perhaps with powers to 'call in' or delay decisions.
Chris Leslie, director of NLGN, said that "clarifying both the leadership and accountability in England's regions is unfinished business".
"In many regions the leadership of the regional development agencies could be built upon through enhancing their role and functions, perhaps creating a single RDA-plus style 'regional executive agency' which draws together more of the currently disparate regional activities spread across several separate bodies at present," he added.
"In order to achieve this, we suggest the transfer of certain functions from government offices to a more accountable REA, and that the comprehensive spending review considers whether activities currently led by Whitehall departmental outposts in each region could be better led if integrated into a regional executive agency."
And in a foreword to the report, Healey and Balls said the government is currently reviewing "how best to improve accountabilities, governance and co-ordination arrangements of regional and local economic development policies".
"While we cannot prejudge the outcome of the review currently under way, it is useful to see the various arguments and questions considered in detail, with the advantages and disadvantages of so many of the options for reform set out in this way," they added.
"If regional institutions are to develop the confidence and legitimacy to show strategic leadership, then it is essential we discuss and deliberate how in practice their governance might evolve in the future.
"Without necessarily condoning all the recommendations made by the authors of this report, it is clear that the RDAs and other regional bodies must constantly explore how best they can work together to affect inward investment, enterprise, innovation, skills development and an improved infrastructure to respond effectively to the challenges and opportunities of globalisation, all within the most cost-efficient manner possible.
"If these tasks are clearly defined, then any additional legitimacy offered by the support of local authorities and regional MPs can only help ensure the success of the policies to be pursued."
