Partner Article

Warwick professor recommends stronger links in the LEPs

A Professor at Warwick Business School has said Local Enterprise Partnerships (LEPs) will require major restructuring if the plans outlined in Lord Heseltine’s economic review are to work.

Lord Heseltine’s report, “No Stone Unturned in Pursuit of Growth”, which was presented to the Chancellor at the beginning of November, recommended that LEPs should develop their own plans for local growth, but are currently unequipped to do so.

The review suggested that LEPs must consider a central, nationwide structure for growth, but should also have individual strategies for their areas.

Professor Kevin Mole said the partnerships between businesses and local authorities which make up the LEPs need to be stronger and more cohesive, while management within companies must be improved.

Dr Mole said: “The LEPs will have to develop programs to improve the management practices of firms and that will require them to engage fully with companies.They will need to develop face-to-face contacts with these firms.

“With so many firms in their area, they can only do this with targeted companies. They will need to develop targets that fit with the way they see their area developing.”

The Professor warned that while improvements are essential, there is a risk of wasting taxpayers’ money on experimental initiatives that do not suit certain industries.

He said: “They will have to focus on change in the economic structure of their areas whether comparatively wealthy or poor.

“That means that they will have to support newer industries that face high uncertainty, which will leave them open to claims of wasting public money when inevitably some of these companies fail.”

Dr Mole added that Lord Heseltine’s metaphor for the UK economy of the “rain forest” was very fitting, as small firms, or plants, rely on the forest canopy of larger companies that shelter them.

He added: “I think Lord Heseltine was making the point that large firms are what matter but to continue his metaphor, when large trees fall it opens up light through the canopy for the plants at the lower levels to grow.”

Board member of Warwick Business School and former chair of Coventry and Warwickshire LEP, Denys Shortt suggested that LEPs need to have small, focused local bodies to work within the local area.

He commented: “LEPs by their nature are short of staff, have a small infrastructure and do not have the time or the energy to engage with SMEs.

“I have been working with my local area Stratford-upon-Avon and the two biggest issues with business are - lack of local affordable housing for employees and lack of employment land for growth.”

Mr Shortt suggested that LEPs also faced challenges to revive high street shops, improve transport infrastructure and reduce parking costs for staff working in town centres.

He concluded: “LEPs need to have this very local understanding to properly deliver growth.”

This was posted in Bdaily's Members' News section by Miranda Dobson .