Ministers have been accused of covering up an independent report which shows a key local agency set for the axe provides vital support to the region’s employers.
Official watchdog the National Audit Office gave local body Advantage West Midlands a glowing review - and concluded that it helped create and protect jobs in the region.
But the Business Secretary Vince Cable has been accused of refusing to publish the report because the Government plans to scrap the agency, which spends £200 million a year.
Instead, Ministers have decided to keep it secret to avoid political embarrassment, it was claimed.
The National Audit Office concluded that for every £1 of public money spent by the agency, the local economy benefitted by £8.14.
This means it is helping to create jobs and keep businesses afloat by providing advice and services such as training.
But the coalition government has already announced plans to cut funding by around £33 million, and it plans eventually to scrap the agency entirely and hand its powers over to local councils.
The policy is part of Conservative and Liberal Democrat plans to scrap unelected quangos and put more power in the hands of local people, but it has been fiercely criticised by employers who argue Advantage West Midlands does a good job.
Labour MP Jack Dromey (Lab Erdington) said: “The National Audit Office has branded Advantage West Midlands as the best regional development agency in Britain.
“For every £1 of public money invested, the regional economy has benefitted by £8.14.
“Ministers boast of a new era of openness, yet they refuse to publish the National Audit Office report because they want to conceal the truth whilst they inflict savage cuts on a Midlands success story.”
A National Audit Office spokesman said the organisation had carried out “supplementary work” for the Department for Business looking at the performance of regional development agencies, and it was up to the department to decide when it should be published.
A Department for Business spokeswoman said the report was still being finalised and would be published when it was completed.