Regional development agencies, whose role is to boost investment, business and infrastructure, are being forced to help to fund the Government's recent housing rescue scheme.

The nine agencies will have to divert money from regeneration towards housing rescue even though they do not have any responsibility for housing, The Times has learnt.

They will be made to contribute £300 million over three years towards the programme, which enables councils and housing associations to take stakes in properties where the homeowners get into financial difficulty.

The RDA's annual funding from the Department for Business is £2.2 billion, but it is already being reduced to £2 billion progressively under cuts imposed in the last Comprehensive Spending Review.

A spokesman for North West Development Agency, which chairs the group, said: “We want to support the housing moves, but we don't currently have responsibility for housing so it will mean taking money away from regeneration and other things.”

The RDAs are also concerned that they will not be able to get as much money from Europe because of the new demand. All European funding must be matched pound-for-pound and the less they have available to match, the less they can receive.

Concern among the RDAs has emerged as they may also face new responsibilities to do more for manufacturing under the Government's imminent manufacturing strategy.

The Government is likely to take its first steps towards an industrial policy on Monday with its manufacturing strategy.

Baroness Vadera, the Business Minister, is expected to say that ministers will consult on developing an industrial strategy to tap into low-carbon developments.

The move would be the first time the Department for Business has significantly stepped away from a free-market approach to industry. Richard Lambert, CBI Director-General, called this week for a more strategic approach to manufacturing amid concerns over shrinking supply chains and a lack of skills across industry.

The Government's manufacturing strategy will also include a manufacturing technology centre in the Midlands. Another key part of the policy will be a drive to raise the profile of manufacturing and to attract younger people into engineering.

The low-carbon industrial strategy will include support for new technology and possible tax incentives for those technologies.

The manufacturing strategy paper is likely to be welcomed by business groups and unions as a commitment to an agenda. However, they will be concerned about the speed of its actions and the fact that there are not many bold moves for industry.