Written evidence from Central Bedfordshire
Local Strategic Partnership
1. RECOMMENDATION
The Board consider the options for the establishment
of a Local Enterprise Partnership, and supports the ongoing development
of a proposal to Government for a Local Enterprise Partnership
based on current MKSM working arrangements.
2. BACKGROUND
2.1 The Coalition Government, jointly through
the Departments for Business Innovation and Skills (BIS) and Communities
and Local Government (CLG), has Written to Local Authority Leaders
and Chief Executives setting out the Government's intention to
abolish Regional Development Agencies (RDA) and support local
authorities and business to form Local Economic Partnerships (LEP)
Initial proposals for LEPs have to be submitted by the 6th September
2010.
2.2 The Government states that LEPs will
provide strategic leadership to set out local economic priorities
and a clear vision for their area. Expected outcomes of a LEP
are:
— A better business environment through
new approaches to planning, housing, transport and infrastructure.
— A focus on employment and enterprise
and the transition to a low carbon economy.
— Renewal and transformation of the local
economy using initiatives proven to support enterprise and innovation.
— Supporting small business start ups and
working with universities and colleges will be an important part
of the LEP agenda.
2.3 The Government is clear that a LEP must
be consistent with the natural economic linkages of an area (Functional
Economic Market Area—FEMA). Appendix 1 provides details
of Central Bedfordshire's FEMA. Overall there are considerable
linkages, employment, retail, leisure, travel and housing with
the surrounding authorities, in particular Luton and Bedford.
There are also growing linkages with Milton Keynes, across a range
of measures, and housing and commuter links to North Hertfordshire.
The Government has made it clear that partnership working between
LEPs would be welcome and expected, where there are clear functional
economic linkages.
2.4 Business engagement with LEPS is seen
as an essential requirement by Government, as part of rebalancing
the economy towards the private sector. This should mean an equal
representation of business and public sectors bodies on the boards
of a LEP and that a prominent business leader should chair the
board.
3. ROLE OF
A LEP
3.1 The Government states that LEPs will
create the right environment for business growth by tackling issues
such as planning and housing, local transport and infrastructure
priorities, employment and enterprise and transition to the low
carbon economy, and work closely with universities and Further
Education colleges.
3.2 While Planning, Transport and infrastructure
activities are noted by the Government as possible functions of
LEPs, there is no guidance on what this entails. Careful consideration
of these functions and the relationship with the Council's statutory
roles will need to be given when considering the roles of a LEP.
3.3 In addition to the areas the Government
notes should be considered by a LEP, a range of areas have also
been highlighted that it considers are best dealt with nationally,
namely inward investment, sector leadership, and responsibility
for business support, innovation and access to finance, such as
venture capital funds. Other functions are not mentioned, but
have a considerable impact on local economic development include
skills development and community regeneration. In many of these
cases there will be a need for local activity to reflect local
business needs and opportunities, and as such a LEP will need
to seek to support additional activities that support the local
economy.
3.4 A current Government Consultation on
the £1 Billion Regional Growth Fund highlights the potential
role for LEPs in the delivery of the fund, through supporting
and co-ordinating local applications.
4. LEP PROPOSAL
4.1 The council is currently developing
a LEP with neighbouring authorities covering the South East Midlands
area (Central Bedfordshire, Bedford Borough, Luton Borough and
Milton Keynes unitary councils in addition to a number of surrounding
districts, including Aylesbury Vale, Northampton, Kettering South
Northamptonshire, Cherwell and Dacorum councils ) This partnership
has been based on existing partnership working between the councils,
but importantly existing business links (for example the South
East Midlands Chambers Alliance, between Chambers of Commerce
has been in operation for at least 15 years.
4.2 Under the emerging proposal The LEP
would have the high level
— Prioritisation of transport infrastructure.
— Improvements in skills and productivity.
— Improved digital and global communications.
4.3 This proposal supports the findings
of the analysis of Central Bedfordshire's Functional Economic
Market Area, as highlighted in appendix one, and the council is
actively promoting the need to work with neighbouring LEP's particularly
Hertfordshire on shared business needs.
4.4 Local Chambers of Commerce, Federation
for Small Business (FSB) and Institute of Directors (IOD) have
all been engaged on developing a LEP and a cross authority business
summit is proposed on 25 August at Cranfield.
4.5 Subject to agreement by the council
executive it has been proposed that the Leader of the council
approves the final joint submission on behalf of the Executive
to the Government in order to meet the deadline of the 6 September
2010.
13 August 2010
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