The New Local Enterprise Partnerships: An Initial Assessment - Business, Innovation and Skills Committee Contents


Written evidence from the Campaign to Protect Rural England (CPRE)

INTRODUCTION

  1.  We welcome the opportunity to submit evidence to the Business, Innovation and Skills Committee on the proposed new Local Enterprise Partnerships (LEPs). As a leading environmental charity, CPRE has worked to promote and protect the beauty, tranquillity and diversity of rural England by encouraging the sustainable use of land and other natural resources since our formation in 1926. In the past an important part of our work has been undertaken at the regional level, in particular helping to shape regional plans.

  2.  While we welcome the revocation of the top-down housing targets we believe there is a need for some form of strategic planning. The letter from the Secretaries of State for Business, Innovation and Skills and Communities and Local Government, dated 29 June, suggests that the Partnerships could provide strategic leadership on economic growth within their area. In developing proposals for a new mechanism for strategic planning, however, we believe that it is important to ensure that equal weight is placed on environmental, social and economic considerations. The emphasis should not be on economic growth with little or no regard for its wider impacts.

EXECUTIVE SUMMARY

  3.  CPRE recognises the need for local authorities and other stakeholders to work collaboratively on strategic issues that cannot be adequately considered at a solely local level. But achieving sustainable economic growth should not be considered in isolation. Other issues that should be taken into consideration in developing a strategy include mitigating and adapting to climate change, protecting the landscape, restoring and enhancing the natural environment, securing urban regeneration and providing good services for rural settlements.

  4.  To achieve the best quality of decision-making, stakeholders with experience and expertise from both the social voluntary and the environmental sectors need to be involved at the heart of Local Enterprise Partnerships. This will have the added benefit of providing direct connections back to the local communities and organisations that will be delivering the "Big Society", as well as improving transparency and accountability.

THE FUNCTIONS OF THE NEW LOCAL ENTERPRISE PARTNERSHIPS

  5.  CPRE supports developing a strategic approach to, and maintaining an overview of, economic development at an appropriate level. The focus of the new LEPs should, however, be on delivering "sustainable growth", defined as economic growth that can be "sustained and is within environmental limits, but also enhances the environment and social welfare, and avoids greater extremes in future economic cycles".[16] As part of this LEPs will need to develop strategies in the context of reducing carbon emissions, take full account of the fundamental role of an attractive landscape and a healthy natural environment in underpinning a healthy economy and address the social needs of communities, particularly in rural areas.

  6.  The need to take account of the role of the natural environment in underpinning a healthy economy has been highlighted in a number of studies, including the work of Natural Economy North West. Between 2006 and 2009 the Natural Economy North West partnership worked to identify, demonstrate and promote the economic value of the region's natural environment. The work found that the environmental economy already generates £2.6 billion Gross Value Added within the regional economy every year, and employs 109,000 people. In addition, it contributes towards economic security, the conditions for sustainable growth, and provides the natural services that are fundamental for economic and environmental sustainability. The partnership concluded that a well-managed natural economy underpins the social, cultural and economic prosperity of the region.

  7.  While we recognise the usefulness of work by partnerships such as Natural Economy North West, we do not believe that this should mean that LEPs should only consider the countryside within their area that they can place an economic value on. We welcomed the policy presumption in Planning Policy Statement 4: Planning for Sustainable Economic Growth that the countryside should be protected for its intrinsic character. We believe that this policy should be retained in the forthcoming National Planning Framework and underpin the work of LEPs and local planning authorities.

THE REGIONAL GROWTH FUND AND FUNDING ARRANGEMENTS

  8.  There will always be a balance between attempting to maximise short-term economic growth and directing investment to the most sustainable options that will provide the greatest public benefit over the longer term. It is clear, however, that achieving balanced growth, and particularly ensuring deprived areas do not continue to lag behind, requires a certain amount of intervention in the wider social interest.

  9.  From the current consultation on the Regional Growth Fund we are aware that the Government intends to use it to encourage private sector enterprise and, in particular, to support "those areas and communities that are currently dependent on the public sector [to] make a transition to sustainable private sector led growth". We believe that LEPs, using funding from the Growth Fund if appropriate, should support growth in areas of deprivation, which would otherwise struggle to compete to attract investment. The Regional Development Agencies (RDAs) have targeted investment in this way in the past, for example, pump-priming the development of strategic sites on previously developed land.

  10.  The Black Country Study is also an example of what should be supported in the future. Work on the Study began when the Black Country's political and business leaders recognised the need to consider radical change in the sub-region to counter the process of decline over the last 30 years. The Study supported a sub-regional strategy for the Black Country, outlining the priorities for regenerating its physical, environmental, social and economic fabric. The strategy set out why the area needs to change, what change is necessary and where it should take place, and how that change will be delivered. This study has fed in to the Black Country Joint Core Strategy.

  11.  When submitting applications to the Growth Fund LEPs should be required to demonstrate how they have considered, and if necessary minimised, the impact of their proposals on the environment and, in particular, the open countryside. The Independent Approval Panel, which will consider proposals, should have adequate expertise to ensure that environmental and social impacts have been properly considered. The Panel should also ensure that the views of local communities and local experts have been sought as the proposals have been developed.

  12.  It will be important that decisions on funding projects are open and transparent. The Panel should also ensure that if funds are to be managed by LEPs they have adequate staff, with sufficient expertise, to deliver projects.

ARRANGEMENTS FOR COORDINATING REGIONAL ECONOMIC STRATEGY

  13.  LEPs will need to communicate with neighbouring bodies to coordinate their activity. A key aspect of both the Regional Spatial Strategy and Regional Economic Strategy was ensuring investment, regeneration and business support were directed to the areas where they were most needed. We would not want to see, for example, development on a greenfield site in one area being promoted by a LEP when there are alternative viable opportunities for development on previously developed land across the boundary. This would both needlessly damage the countryside and divert limited investment out of urban areas where the wider social and economic returns would be significantly higher.

  14.  To ensure this communication happens there needs to be a requirement that Partnerships take account of the work of adjoining Partnerships, but also the local development plans in adjoining areas. It may be possible to use the proposed "duty to cooperate", which Open Source Planning has suggested would be placed on local authorities, to require LEPs to work across their boundaries. The Government has not yet published details on how this duty might work and we would want to ensure that LEPs are required to do more than merely consult neighbouring bodies on draft strategies.

  15.  Due to the scale of the areas they covered RDAs have been able to take a strategic approach to supporting projects which have implications across the region. An example would be the redevelopment of Longbridge in Birmingham following the collapse of MG Rover, which has implications for the whole of the West Midlands. The new system will need to include appropriate mechanisms for dealing with such strategically important sites. Equally, development agencies can hold considerable landbanks of regeneration sites, which we would expect would continue to be used to pump-prime urban regeneration. These may not be the same as landbanks held by local authorities and yet may be of equal or more value in achieving urban and rural regeneration.

  16.  Following the abolition of the Leaders' Boards some regions are intending to retain a smaller regional body. These bodies will have no statutory role, however, and so their authority and their inclusiveness is likely to vary. They could, however, play a useful role in maintaining an overview of a number of LEPs.

  17.  If individual LEPs are narrowly focused on their own economic advantage this could be a recipe for greater disjointedness between economic development and social and environmental outcomes. All LEPs that cover a certain area, for example within a region, could, therefore, be required to meet on a regular basis. This would help them maintain a strategic overview of the proposals of LEPs in the area, but also the likely impacts of those proposals. If these meetings are inclusive and have a strong sustainable development agenda this could strengthen the outcomes delivered by the new bodies.

STRUCTURE AND ACCOUNTABILITY OF LEPS

  18.  We support the Government's ambition to release the potential of individuals and communities to shape their own futures through the "Big Society" programme. The creation of LEPs should not contradict the Government's attempts to get more people to engage in local decision-making processes. For the "Big Society" to be effective, it will be vital for members of the community to be able to feed into, if not be involved in, the Partnerships' strategic-level discussions and decision-making. This will improve the quality of the work of the LEPs by ensuring decisions are informed by experience and expertise and based on a wide range of evidence.

  19.  We welcomed the acknowledgement in the recent consultation on Draft Statutory Guidance on Economic Prosperity Boards and Combined Authorities that there was a need to engage environmental and rural interests. As well as engaging with local people we believe that it remains important for LEPs to draw on the knowledge and expertise of relevant members of both the social voluntary and environmental sectors, not just that of the business community. The new bodies will be most successful if they develop strong partnerships with all elements of civil society and act in an open and transparent manner.

  20.  CPRE was concerned, therefore, that the invitation to begin to develop proposals for LEPs was sent to business leaders and local authorities, but not to other interested parties. We hope that this does not mean wider interests will not be fully engaged in this important process.

  21.  We understand that the Government will want to ensure as much flexibility as possible in how LEPs emerge to reflect different local circumstances. Our experience, however, is that without some formal requirement in sub-regional and local arrangements the engagement of wider interests, and the commitment to wider objectives, tends to be inconsistent. To ensure that the new bodies help, rather than hinder, the delivery of the new localism agenda we believe it is essential that Government gives clear guidance on the role and involvement of local people and civil society. This should include representation on Partnership Boards both from the voluntary social and from the environmental sector.

  22.  A requirement for standards of transparency and accountability should be set out by the Government at the national level. The transparency of LEPs will be crucial. If local people do not understand what LEPs do, and how decisions that affect their local areas are being made, the new bodies could compromise the achievement of the Government's broader "Big Society" aims. To ensure transparency and accountability, meetings and agendas should be publicised in advance and open to the public where possible. Minutes should be published, and decision-making should be open to genuine community participation at appropriate times and levels.

CONVERTING RDAS TO LEPS AND TRANSITIONAL ARRANGEMENTS

  23.  RDAs have commissioned and accumulated substantial amounts of information, research and evidence that will continue to be of use to local authorities, business and other stakeholders. Arrangements should be put in place to ensure that this store of evidence is not lost and remains readily accessible.

11 August 2010







16   Definition from CLG and BERR (March 2008) Prosperous Places: taking forward the Review of Sub-National Economic Growth and Regeneration Back


 
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