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Heseltine gives evidence in parliament

Lord Heseltine gave evidence in the House of Commons on Tuesday morning, to support his economic report “No Stone Unturned in Pursuit of Growth”, which was published in October last year.

The Tory peer was quizzed on how his suggestion of localism would underpin economic growth, and how the Government should move forward with this plan.

Lord Heseltine reiterated what his economic report first stated; that Local Enterprise Partnerships (LEPs) must be given greater powers to decide their own fate, but must adhere to central government policy.

The economic review encouraged competition between the LEPs, which the Government has listened to by increasing the money available from a “single investment pot.”

Lord Heseltine said this cash injection’s effectiveness would depend on how much money was put into the pot, and the breadth of industry it would cover.

Speaking to the committee for Business, Innovation and Skills, headed by Adrian Bailey, MP, Lord Heseltine set out his key recommendations.

He said the key to economic growth was to give power to the local authorities, but encourage a strong dialogue between the regions with central government.

He added: “I’m arguing that we should create a local dynamic that is a big influence, not a deciding influence, in designing how the local economies benefit from public support money.

“My report is not a revolution. It is a big switch in emphasis to involve local people in the decision making process and to encourage them to add extra resources. That gearing is a very important part of the concept.”

The committee raised potential criticisms that Heseltine’s recommendations could bring in costly bureaucratic systems, which could come up against opposition.

The Lord batted off these suggestions, and said current bureaucracy is not a vacuum to which his proposals would just add.

He said: “I just think you need to put the local communities into a much more influential position and then expose them to the uncomfortable questions.

“You also do the skills agenda and the infrastructure and the wealth creation; all the big issues of public policy. But don’t let anybody say, ‘Well it’s all too difficult.’ “

“You make people sit down and talk these issues through, locally, so it’s all out there in the public domain. I can’t see how anyone can resist so obvious a process.”

Lord Heseltine added that a report into the Birmingham region that addresses all the issues raised by the committee on Tuesday will be available in two months time.

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