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Heseltine?s steps: what do the LEPs think?

No stone unturned: Heseltine’s report made sure to shine a light into the quarters of the local enterprise partnerships.

He suggests, as many other commentators have previously, that LEPs are well placed to drive growth but lack the resources and strength to really deliver.

In the report there is criticism of the LEPs. Heseltine notes his “surprise” that some had not set out a robust plan, and said this was needed in order to bring discipline, order, and “buy in” to the final objective.

He suggests that LEPs should lead development of a long term strategy and business plan for their area that can be used to bid for economic growth funds from Whitehall.

However, Heseltine says they should adhere to a central framework that focuses on high level outcomes so as not to hamper the creativity of local areas.

As such, LEPs would need to demonstrate how bids contribute to national growth priorities; how bids will leverage private sector funding; how local people and businesses have been consulted; how the delivery will be governed; and how they will “learn from what they do”, and share that learning with other LEPs.

Alex Pratt, chairman of the Buckinghamshire LEP, and speaking for LEPs across the South, said: “Whilst the focus for economic development has to be at a local level, central Government has a critical strategic role. It should ensure our competitiveness and maximise value for money, whilst enabling local areas to create mechanisms for growth. We urge government to endorse this report so that everyone can implement the actions that are needed for this country to stay ahead of overseas competition.”

Elsewhere, the report calls for increased funding for the LEPs, to be used for hiring professional private sector planners. A sum of £250,000 should be delivered in 2013/14 and 2014/15.

Stewart Towe, chair of the Black Country Local Enterprise Partnership, said: “We are proud of the achievements of the Black Country LEP to date but the proposals are exciting in that they recognise LEPs as the body to continue driving forward local economic growth.

“Of course to do this we will require funding and the proposals over the next five years would give LEPs scope to further deliver economic plans specific to our areas.”

Drawing on the example of the Cornwall and Isles of Scilly LEP, and its successful Regional Growth Fund bid, Heseltine outlines how the funding will be allocated in model of best practice.

Here, £13m of RGF money is estimated to leverage £43m of additional funding, to be delivered in one guise as capital grants and investments for businesses and social enterprises to grasp superfast broadband opportunities; and in a second form as funding for infrastructure projects in the marine, mineral, renewable energy and aerospace industries.

Chris Pomfret from the Cornwall & Scilly Isles LEP pointed out “The value of rural areas such as ours across the South is also to be acknowledged. As an area, we have demonstrated amply that strong economic performance and the safe custody of our natural environment can combine to boost prosperity across all our communities.”

The composition of LEP boards is also touched upon in the document, as Heseltine suggests more private sector individuals “from the shop floor” should be involved.

Diane Savory, chair of Gloucestershire’s LEP, which is driven by economic development company GFirst, said: “Many LEPs now have positive engagement and support from business membership organisations including the FSB, IoD, CBI, Chambers and others. The recognition of their contributions is particularly welcome, but we favour the voluntary active involvement and support of all collective business organisations, not just one.”

James Newman, chairman of the Sheffield City Region LEP, said: “We completely agree with the report’s overarching principle of localism – devolving powers and funding to local politicians and business leaders, who work together for the benefit of the City Region, is critical in rebalancing the UK’s economy.

“We also agree that strong public-private partnerships, such as the Sheffield City Region LEP, are ideally placed to prepare the strategic plans for our local economies.

“The report’s recommendation about public-private representation in LEPs is already reflected by the strength and balance of our Board. It is this true collaboration that will deliver substantial economic growth and real jobs to the Sheffield City Region and to LEP areas across the country.”

Alex Pratt added: “We are delighted that Lord Heseltine has reinforced the importance of private sector led economic growth to the UK economy. This reflects the entire rationale for the establishment of LEPs and the vital role they are playing.

“The UK can only realise a step change in economic growth if it is led by local businesses working in partnership with the local community to innovate and create wealth and jobs. The Heseltine report clearly recognises this fact.”

Chair of the Leeds City Region LEP said: “Lord Heseltine’s report includes some bold, transformative proposals that would be a step-change in enabling places like Leeds City Region to take charge of their own economic destiny. The devolution of real powers and significant, flexible budgets to LEPs would cement the progress we have made with our City Deal, with future investment in all areas key to growth driven by local decisions and following local priorities.

“In the Leeds City Region we would also be confident in facing Lord Heseltine’s radical proposal of a competition between LEPs for this devolved funding. Whether or not Government embraces that, I urge them to respond positively to the thrust of his recommendations to give LEPs extra flexibility and firepower to deliver on our ambitions.”

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