Birmingham LEP demands clarification on powers

BUSINESS leaders setting up the Birmingham-led Local Enterprise Partnership have demanded the Government clarifies the extent of powers which will be available to the new bodies in order to attract high class business representation.

Business Secretary Vince Cable has been told in a letter sent on behalf of West Midlands business leaders that he urgently needs to clarify the situation regarding LEPs so they can attract quality business involvement.

Mr Cable has been asked to give the LEP board adequate decision-making powers and influence in order to provide a full service to its designated area.

Bridget Blow, interim chairman of the LEP Development Board for Birmingham and Solihull with East Staffordshire, Lichfield, Tamworth, Bromsgrove and Cannock, said: “In order to attract the very best business leaders to the LEP board, we need to demonstrate the LEP has decision-making powers and influence. This makes securing relevant powers very important to us.

“In these early stages we are identifying short and long term priorities, and the best way of delivering them. What powers are needed will become clearer as these priorities are firmed up.

“But it is clear that LEPs will only attract the quality of business involvement that we are all seeking if the LEPs have substantial capacity to invest, or facilitate investment, in economic and business growth.”

She said the LEP should also have legal status enabling local authorities to delegate their powers and resources up to the new body – for example pooling part of their capital budgets.

Related to this, there is the power for local authorities to use their budgets in other parts of the LEP, like Accelerated Development Zones (ADZs), she added.  

“Business representatives on the LEP Board must be given the power to vote on decisions involving spending public money. As I understand it, the current situation is that only local authority members of a LEP Board can vote on matters involving public funds.

“It is important for the Government to establish a mechanism and procedures so that it can respond quickly when new issues emerge that may require further delegation of powers,” said Ms Blow.

The introduction of the new LEPs following the Government’s decision to abolish regional development agencies has been muddled.

Even the Business Secretary himself has been critical of the process calling it “Maoist and chaotic” at a meeting in Birmingham last month.

Privately, even senior representatives on the new body are uncertain about what the new partnerships will be able to do and until the situation is clarified the situation will only get worse.

Business leaders in the Black Country and Worcestershire will be watching with interest the response to the Birmingham letter. Both areas received belated approval for their LEP bids on Monday.