Give LEPs more power, says report
LOCAL Enterprise Partnerships (LEPs) need to be given powers to develop spatial strategies and local plans (including Enterprise Zones) if they are to have any real clout, according to a new report by think-take Centre for Cities.
The report, titled Sink or Swim? argues that LEPs should co-ordinate spatial plans, planning policies and even transport strategies in order to place them at the heart of local economic decision-making.
“Businesses, their time limited and expensive, will need to be convinced of the value of LEP membership soon if their commitment is to be secured,” it said.
“They will not be convinced unless local authorities genuinely embrace the principle of close working with business. If they set up partnerships that avoid real engagement and joint decision-making, the goodwill of businesses will be short-lived.”
It argues that LEPs should primarily focus on economic growth and should therefore let businesses decide where future Enterprise Zones are set, as well as having final approval for which projects should be put forward for funding from the second round of cash from the Regional Growth Fund.
In the longer term, it suggests that LEPs should oversee skills funding within their local areas, with bodies such as employment and skills boards and even transport authorities being integrated into these organisations.
It also argues that LEPs should be given genuine financial powers, including an ability to set a business rate supplement and to access tax increment financing to fund projects.
Alexandra Jones, chief executive of Centre for Cities, said: “LEPs are absolutely central to the government’s growth agenda, and it is critical that they work.
“This means LEPs need to be strategic bodies focusing on prioritising and co-ordinating a plan for economic growth and jobs growth. Our research shows that LEPs have real potential, but that some face greater challenges than others when it comes to supporting private sector jobs growth.”
In the North West, there has been substantial progress made on establishing LEPs. Cheshire and Warrington, Cumbria, Greater Manchester and Lancashire have all appointed LEP boards and held their first meetings, while the first meeting of Liverpool city-region’s LEP board is set to take place later this month.
It has yet to appoint a new chairman after an approach to board former Tesco boss (and LEP board member) Sir Terry Leahy was turned down.
In other areas, George Beveridge of Nuclear Management Partners (Sellafield) has been named Cumbria interim chair, Christine Gaskell of Bentley Motors was appointed as Cheshire & Warrington chair, Mike Blackburn of BT was appointed Greater Manchester chair and Edwin Booth of Preston-based supermarket chain FH Booth & Son was appointed as Lancashire chairman.
A spokesman for the Knutsford-based pressure group The Forum of Private Business said that thus far there has been a lack of clarity over what LEPs do and how they will operate.
“In principle, if they can prove they are fit for purpose, we would like the LEPs to be given all the powers they need to drive enterprise in the regions.
“While LEPs are not directly replacing Regional Development Agencies, there are lessons that can be learned from them.
“One of the criticisms of RDAs was that they suffered from ‘mission creep’ leading to confusion over their remit. The Government should make sure the focus of LEPs is clear from the start and that this is communicated properly to everyone concerned.
“Certainly, it is important that they do not become aimless networking bodies populated by the same old faces but are a resource providing entrepreneurs with guidance on business support, particularly given the imminent demise of local Business Link services.”
