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Government accepts most of Heseltine recommendations

The Government has published its response to Lord Heseltine’s 89 economic recommendations made in his report, “No Stone Unturned in Pursuit of Growth.”

The Treasury reacted positively to most of Lord Heseltine’s economic recommendations, and said it would follow his suggestions of localism.

Out of the suggestions, 81 have been accepted by the Government, five have been rejected and three will be considered in the upcoming Spending Round in June.

As a result of the review, action will be taken to devolve powers to the Local Enterprises Partnerships and give more control to local leaders around funding.

In addition, a new Single Local Growth Fund will be available from 2015, which will include the key economic drivers for skills, housing and transport.

The Business Secretary, Vince Cable, commented: “The plans will boost the UK’s competitiveness nationally and drive local growth through the local Growth Deals that we will be negotiating with every Local Enterprise Partnership.

“In line with Lord Heseltine’s report, today we have also announced a package of wider support that is a big vote of confidence for our industrial strategy, particularly the aerospace, automotive and agri- technology sectors.

“This support not only gives businesses certainty, but shows the Government is determined to back those sectors where Britain can deliver and compete on a global scale in partnership with industry.”

Nick Clegg, MP and Deputy Prime Minister, added: “Over the last few decades, central government has systematically deprived local government of control and power.

“Only half of the money spent locally is raised locally, robbing our cities and regions of both the power and incentives to drive local growth.

“That is why we’ve already allocated £2.6 billion through the Regional Growth Fund, forecast to deliver and safeguard 500,000 jobs and £13 billion of private investment. And through City Deals we are giving cities a core package of powers and freedoms.

“Lord Heseltine’s review is the icing on the cake. His local vision is the best way to foster local growth and stimulate the economy.”

The Government’s response to Lord Heseltine’s report was welcomed by left-leaning think tank IPPR North, although it questioned whether enough funding would be offered up to support its promises.

Ed Cox, director of the think tank, said: “Lord Heseltine said a fund of £49 billion was needed. Government sources are now suggesting the size of the pot will be in the ‘low billions’ - with a lot of that not released until after the next general election.

“We are also concerned that the whole process of how the share-out of money between individual LEPs is too centralised and potentially unfair to some LEPs.”

One LEP in the Sheffield City Region also welcomed the Government response, and said it broadly reflects its own priorities, and highlighted that Government recognised its own efforts to drive business leadership.

James Newman, chair of the LEP, commented: “Government has recognised that Sheffield City Region has solved the puzzle of how to integrate a LEP, a City Region Authority and local partners into a dynamic local partnership.

“We agree that the prosperity of this country was built on strong local leadership, and we intend to forge ahead, with all our partners, to create jobs and improve the quality of life of local residents.”

Andy Wood, chair of New Anglia LEP, which also welcomed the response, said: “We are pleased the Government is backing Lord Heseltine’s report which will enable more funding and decision making to be taken at a much more local level. Within the New Anglia LEP we are ready to embrace the opportunities these freedoms will bring our area.”

“We have begun consulting on our Plan for Growth which will be central to the Growth Deal we will negotiate with government.

“We are working closely with local authority colleagues on the City Deals for Norwich and Ipswich which will be a key element in this process.”

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