MPs back calls for LEPs to be better funded

A GROUP of MPs has backed calls for Local Enterprise Partnerships to be better funded.

Their report urges the Government to provide enough money to cover “a basic level of staffing” and to make sure they can act independently.

The All Party Parliamentary Group on Local Growth has also called for more LEPs to benefit from the city deals negotiated with the Leeds and Sheffield City Regions which see Whitehall handing over funding and powers in areas such as transport and skills.

Earlier this week, Sheffield City Region LEP chairman James Newman told a Commons select committee hearing that regular and stable funding of LEPs was important to ensuring they remained independent of both private sector and local authority interests.

Since they were established, LEPs have received a small amount of start-up funding and had support from councils. The LEP Network has argued partnerships should receive around £250,000 in “core funding” every year.

The All Party Group report says that “modest” funding could “help ensure that individual partners, particularly local authorities but also potential business organisations, did not dominate the LEP’s agenda”.

It warns that forcing LEPs to compete for money from different Government initiatives is “counterproductive” and “too resource-intensive”.

The report also suggests the Government should “clarify expectations of LEPs”.