LEP leaders applaud Heseltine recommendations

LOCAL Enterprise Partnership leaders have applauded recommendations by Lord Heseltine to devolve more responsibility for delivering economic growth to the regions.

Andy Street, left, chairman of the Greater Birmingham and Solihull LEP, which collaborated with the report, said he welcomed recognition the regions had a vital part to play in delivering economic change.

“This is something we have been working to demonstrate here in Greater Birmingham since we were established and we firmly support the idea that only a powerful private and public sector partnership can deliver the step change we all aspire to,” he said.

“If we are to unlock this potential, regions need more control over their economic destinies.

“We therefore welcome the concept of a ‘single pot’ for economic development suggested in the report.”

He said the LEP’s hope – and expectation – was that the report would lead to decisive action in future years.

Mr Street’s counterpart in Stoke-on-Trent and Staffordshire, Ron Dougan, was equally enthusiastic.

He said the proposals supported the LEP’s plan to drive economic growth and job creation in its area.

“Local business leaders and local authority partners know how their areas should move forward based on their experience and knowledge and it is right that important decisions on future growth are made here,” he said.

“Our area will see a range of projects deliver growth and jobs as a result of the high quality submissions to the Regional Growth Fund and we are confident that boosting this programme would bring us further benefits.”

He said the success of the RGF bids would be followed next year with the start of LEP-backed projects stimulated by the Growing Places Fund.
In his report No Stone Unturned, the former Deputy Prime Minister makes 89 recommendations to inject stability into the economy, create the conditions for growth and maximise the potential of high growth businesses.

Speaking at the launch of the report in Birmingham, Lord Heseltine said: “Our ability to create wealth has suffered. Each day more and more of the leading economies are enhancing their skills, adding to their strengths and grasping larger shares of the world’s wealth. We need to strain every sinew to get back up there with the world’s best. There have been initiatives and experiments for many decades. But successive governments have failed to set out a comprehensive long-term implementation strategy to turn thought into practice.

“My recommendations do not single out a few headline proposals for areas we need to improve on. What we need is a new partnership between the private and public sectors, between local communities and central government. Only in this way will we get the best use of our limited public funds and leverage in private investment. I have not left the Government with easy decisions. Some may paint my report as a set of criticisms – that is the wrong approach. To invite criticism is a sign of strength. What I have proposed is an opportunity on a grand scale.

“I have looked across the board at how we create wealth, and spoken from my own experience in business and government. What I have outlined today points the way towards prosperity. We will not just need the determination of government, but of every business, every local leader and every individual to deliver this vision.”

Recommendations made by Lord Heseltine include:

• The Government to set out clearly a comprehensive national growth strategy which defines its role and that of local leaders and the private sector in the creation of wealth.

• A National Growth Council, chaired by the Prime Minister.

• Each Whitehall department to commit to play its role in support of the national growth strategy, including how it will work with its key sectors. They will be held to account for this by the National Growth Council.

• Local Enterprise Partnerships (LEPs) to develop their own tailored local economic plans. From 2015-16 they would compete for a share of a single national pot to support growth over a five year period. Under the current spending review this would account for £49bn of central public spending on skills, local infrastructure, employment support, housing, business support services and innovation. This would be supplemented by the current approximate £9bn of European common strategic framework funds.

• Government and private sector to work together to create a strong, locally based business support infrastructure. The Chambers of Commerce would have an increased role building a stronger relationship between businesses and LEPs in their area.

• All sectors of industry to have a formal relationship with a government department, building on the examples in the automobile and aerospace industries.

• Regulators to be required to take account of the economic impact of their decisions. This would include a restructuring of the regulatory regime.

• The planning system to be injected with greater urgency.

• Government procurement to be improved by employing an experienced chief procurement officer in every department.

• Departmental Non-Executives to be given an enhanced role in departments while a cross-government management information system should be put in place.

The Government will now consider the recommendations.