SENIOR business leaders are being urged to get involved in the debate about Local Enterprise Partnerships, or risk a fragmented approach to economic development which could see the West Midlands fall further behind other regions.
The call came yesterday from Birmingham Chamber chief Jerry Blackett as a leaked letter suggested that Birmingham International Airport was seeking to form an LEP with Solihull rather than Birmingham.
The Government wants to introduce LEPs to replace Regional Development Agencies like AWM and has asked councils and businesses to submit outline proposals for their regions by September 6. LEPs will have access to only 25% of the total funding that goes to RDAs, and it is unclear exactly what powers and functions they will have.
Birmingham Chamber chief executive Jerry Blackett is developing a submission with Birmingham City Council, but told TheBusinessDesk.com that too few businesses were getting involved in the chance to shape economic development for years to come.
Business ‘big hitters’ had lost faith in old structures and institutions such as AWM, he said, but their involvement now was crucial.
He said: “Businesses are in no way engaged enough in this yet. I worry that we’ve had disengagement of businesses from the wider region over the years.
“It may be that big business leaders have had to concentrate on running and growing their businesses, but the unfortunate message can be that they don’t trust the structures and organisations that exist. They’re effectively saying ‘I’m too busy to get involved’.
“But we’ve really got to get them involved now and persuade them that they can make a difference – that the powers and structures to help businesses thrive are going to be there this time, and this is their chance to create a totally different environment.
“The business case for the region’s LEP needs to be written in the language of business, not the language of the public sector. The Government has said LEPs should be chaired by someone from business, so it’s essential we get the right people involved.”
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Mr Blackett was speaking as it was revealed that Birmingham International Airport had approached Solihull Metropolitan Borough Council in an apparent bid to start a discussion about the airport becoming part of an LEP linked to Solihull rather than Birmingham.
In a letter sent on June 30, which has been seen by TheBusinessDesk.com, a BIA representative says: “AWM’s ‘ecotec report’ on the M42 corridor is just one part of the evidence base that highlights parts of Solihull and the M42 Corridor as the ‘Jewel in the Crown’ of the West Midlands.
“By defining the strategy for ‘our’ own economic ‘footprint’, The Airport Company believes that there could be even greater opportunities and rewards for the area in the future. From informal discussions with other organisations we do not appear to be alone in our view.”
BIA has since played down the approach, saying it was a just a ‘common courtesy’ to talk to Solihull, as the airport is located within the borough, rather than Birmingham.
“We’re not hitching our wagon to any particular train,” said a spokesman, “but the deadline for submissions is approaching and as the airport sits within Solihull’s boundaries, it makes sense for us to have a conversation.”
Stephen Hughes, chief executive of Birmingham City Council, said: “The Government has clearly stated it wants LEPs to be based on functioning economic geographies. In our mind this means the logical foundation for an LEP would be based on the Birmingham and Black County City Region, which includes Solihull, the NEC, Airport and M42 corridor.”
Mr Blackett said: “I’m sure what the airport were doing is asking if there was a better way of organising things following the collapse of the RDAs, but there’s no way that Solihull and the M42 can exist as a standalone LEP.
“We have to create a way of doing business with local authorities in a speedy and efficient way. BIA is saying ‘we’re a major asset and we need to be central to this whole process.'”
But the airport’s approach will be seen as symptomatic of the sensitivities between local authorities, business groups and businesses as the find themselves in uncharted waters – with confusing and often contradictory messages coming from the Government.
In May, the document that set out the coalition’s plans for Government contained a statement that some RDAs such as AWM would be retained where there was demonstrable local support.
Business secretary Vince Cable repeated the pledge, but in the Budget in June, the replacement of all RDAs by new Local Enterprise Partnerships was given as a stated aim.
LEPs are expected to operate on a ‘task and finish’ basis whereby they will bid to Government for funds for specific projects, rather than handling the multi-million pound budgets that are currently given to Regional Development Agencies.
