State of the Region: Lack of clarity on LEPs

NOT a single business person in the West Midlands is prepared to claim they fully understand the future role of the new Local Enterprise Partnerships.

As the Coalition Government continues its sweeping changes following 13 years of Labour rule, the region’s business community is left wondering what is going on and some are feeling very negative about the new administration.

The fears are a common trend running through the first ever West Midlands ‘State of the Region Survey’ run by TheBusinessDesk.com, in association with key sponsor, law firm DLA Piper.

Day three of our round up of the survey’s results looks at the West Midlands region as a whole and what businesses expect to happen here.

Completed by hundreds of people from across the region, the survey gives an indication of how the business community sees the future and what effect the Coalition will have.

When asked whether there was a “clear understanding around the future role of the LEPs”, not a single respondent said ‘yes’.

Almost half (48%) said there was very limited understanding of LEPs, just over a third (35%) felt there was a general understanding but that LEPs lacked detail while the final 17% said there was no understanding at all.

This lack of clarity is a recurring theme among the West Midlands’ business community with almost half (44%) saying they were not at all clear about new funding such as the £1.4bn Regional Growth Fund, whose deadline for applications is January 21. Half of respondents felt they had at least some idea.

David Brammer, planning associate at the Birmingham office of DLA PiperDavid Brammer, right, real estate/planning associate at DLA Piper in Birmingham, said: “It is not surprising people are confused about the LEPs and concerned about a funding shortfall. Last year regional development agencies received almost £1.4bn while the Regional Growth Fund will be £1.4bn over three years. So the regions are looking at a cut of about two thirds in funding.

“Meanwhile, areas that were previously working with the same investment bodies have formed separate geographical working partnerships for the LEPs and there is a danger that each partnership will focus on its own priorities, leading to a confused and divisive approach.

“On the other hand, LEPs will give talented and influential private sector figures the opportunity to be more involved in leading development and inward investment in their regions.

FURTHER ANALYSIS OF THE SURVEY:

DAY ONE: Austerity measures won’t stop growth

DAY TWO: Half of firms expecting to recruit in 2011

DAY FOUR: Firms braced for cuts

BLOG POST: Why our State of the Region Survey matters

FULL REPORT: Download DLA Piper’s analysis of the survey here

“Having worked closely with local government and other agencies throughout my career, I believe the West Midlands has come a long way in the past 10  years in laying the foundations of strong private/public sector relationships.

“If we involve the right people and they are given adequate resources then we have the opportunities to form some extremely effective partnerships.”

DLA Piper logoThe widespread cuts announced in the Government’s Comprehensive Spending Review in October are by far (46%) the biggest challenge facing the business community in 2011, followed by a lack of both private investment (20%) and skilled labour (16%).

Inevitably for the West Midlands, transport is the issue that needs addressing most when it comes to driving growth with almost half (48%) of respondents choosing it as their number one gripe.

This could explain why 39% say the region is a good place to do business but lags behind other areas of the UK.

Skills/training and access to finance are also among the hot topics which need to be addressed in the region.

Peter Taylor, national head of planning at DLA Piper in BirminghamPeter Taylor, right, national head of planning for DLA Piper, added: “The survey results show respondents in every region recognise transport and infrastructure are essential drivers for growth.

“In the West Midlands, we are lucky to have already secured approval for some transformational plans such as the redevelopment of New Street station, the Metro and the High Speed rail link to London. These plans have survived the cuts and are still earmarked for delivery.

“However, we are seeing caution expressed by our developer clients who are seeking sites that have already received planning permission because they are reluctant to try and engage with lengthy planning procedures and constantly changing policies.

“If the region is to reap the full potential of the schemes that are already approved, the Government need to clarify policies and procedures in order to encourage private developers to keep on building for the future.”

Tomorrow: The Economy
What do you think of the results? Are you confident about the future? Please leave your comments below.

 

 

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