LEPs could be ‘toothless tigers’ warns business group

THE region’s Local Enterprise Partnerships (LEPs) must inherit serious clout and power from the dismantled North West Development Agency (NWDA) and other government bodies if they will have credibility with businesses, a lobby group is warning.

The Private Sector Partners (PSP) organisation – which represents 140,000 North West firms – believes that the real debate over the virtues of LEPs is being stifled by a lack of information regarding their responsibilities.

PSP’s leader Len Collinson said: “Businesses want facts. So far, we have had a rather dull debate over the geographical boundaries of LEPs, such as the absurd idea of having three separate LEPs for Lancashire. 

“The reality is that it is the Government that will have the final say on what areas they cover anyway. Moreover, it is the government who will decide, critically, on their powers and their funding.

“Until we know these facts the business jury will remain out on the value of LEPs and cash-strapped local authorities will be unable to close the gap.”

Mr Collinson said businesses fear that the LEPs could be no more than talking shops with the majority of the RDAs’ powers being transferred to Westminster.

Mr Collinson pointed to a passage from a letter inviting submissions for LEPs, and sent to all local authority leaders and business leaders in June by the Business Secretary,  Vince Cable and the Secretary for Communities and Local Government, Eric Pickles. 

In it, the two members of the Cabinet say: “We are reviewing all the functions of the RDAs.

“We believe some of these are best led nationally, for example, inward investment, sector leadership, responsibility for business support, innovation and access to finance such as venture capital funds.

Mr Collinson added: “Are they saying responsibility for these services to businesses will be moved lock, stock and barrel to national Civil Servants?

“If so the concept of LEPs while superficially attractive is fundamentally flawed. There is little if anything left for LEPs to take on from RDAs.  This is something that will probably please local councils’ feeling of importance, but it makes a mockery of the idea of business-led local decision-making.

“Without real power, real influence and real money the LEPs will be toothless tigers and will struggle to win sustainable support from businesses.”