Partner Article

LEPs have yet to live up to hype

The Local Enterprise Partnerships have yet to live up to the hype according to the Institute of Economic Development.

In a recent report from the IED, authored by Lee Pugalis, John Shutt and Gill Bentley, it is suggested the challenge that LEPs have been set is unrealistic given their lack of genuine policy and “delivery clout.”

They suggest the LEPs need more traction across all central government departments if they are to help generate local economies, and should work to stretch the freedoms given to them by central Government.

A “new deal” for LEPs, the IED says, could be the mechanism to drive future local economic development.

The report investigates the path of the LEPS from the initial invitations by Vince Cable and Eric Pickles through the government’s ratification of LEPs from October 2010, through to the present.

It points towards a lack of financial support for the LEP network, a lack of momentum and insufficient involvement within government growth plans.

These shortcomings, it is suggested, are compounded by the lack of arrangements for transparency and corporate public sector governance.

Some LEPs are noted to have formed companies, enabling them to trade and hold assets, while others have opted for more informal partnership arrangements.

For LEPs such as the Liverpool City Region, the LEP policy experiment has been used as a platform to increase their profile; although the report notes they are doing so with a much reduced financial envelope.

It states: The metamorphosis from a ‘Labour-endorsed economic partnership entity’ to a ‘Coalition-approved LEP’ has tended to involve an internal relook at governance arrangements, specifically private sector board representation, and ways of working, such as interfacing with business.

“These LEPs can be viewed as ‘refashioned existing partnerships’. Alternatively, many prospective LEPs viewed the government’s invitation as an opportunity to operate at a different territorial scale, with a different combination of interests and/or guided by different priorities.

“These can be viewed as ‘new partnerships’. The ‘new’ and ‘refashioned’ partnerships each present opportunities as well as limitations.

“For example, ‘new’ LEPs may be more willing or open to new ways of working whereas ‘refashioned’ LEPs may find this harder to do.”

Leeds City Region LEP is highlighted as one of the larger ‘refashioned’ partnerships, which is leading the way with focus, business planning and engagement.

Chair, Neil McLean sees the lack of structure in coordinating 12 local authorities as an opportunity, and is making the case that LEPs require further power and decentralised funding.

Joint work between the Leeds, Sheffield, Manchester and North Eastern LEP in organising a strategic role for the north, on high speed rail, low carbon economy, skills and innovation, was highlighted as an example of good practice.

This was posted in Bdaily's Members' News section by Tom Keighley .