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


Written evidence from the County Councils Network

  The County Councils Network (CCN) is a cross-party special interest group of the Local Government Association which speaks, develops policy and shares best practice for the County family of local authorities, whether unitary or upper tier. CCN's 38 member councils, with over 2,500 Councillors, serve 24 million people over 45,000 square miles or 87% of England.

  The CCN has undertaken extensive policy and good practice work on subregional arrangements, economic development, and local government action to tackle the recession. The CCN therefore welcomes the opportunity to engage with the BIS Select Committee's inquiry into the creation of Local Enterprise Partnerships.

  In the "CCN Manifesto" published in advance of the 2010 General Election, the CCN argued

    ... that powers, functions and funding should be devolved from unelected regional and sub regional bodies to elected local government, and to county authorities in continuing multi-tier areas. This would include responsibility for strategic economic development, regional planning (both spatial planning and economic strategy) and learning and skills. In continuing multi-tier areas county councils would take responsibility for sub-regional spatial and economic strategies, working with other authorities in the region to ensure that where needed there is an overall congruent regional strategy which relates both to the specific needs of sub regions and to national strategy.

  The CCN therefore supports the devolution of a wide range of economic and business support functions from the regional tier to a geographic scale which more accurately reflects functional economic geographies, and provides for a balance between local knowledge and strategic capacity.

  In much of England, the appropriate scale will be at the county level, whether unitary, two-tier, or metropolitan. This may be composed of a partnership between upper tier and unitary authorities, a partnership of unitary authorities, a partnership of neighbouring counties, an upper tier county and neighbouring unitaries, or some combination of the above.

  While the Government's initial expectation was that LEPs should have at least two upper tier or unitary members, the CCN believes that in some cases this is illogical—some wholly two-tier or wholly unitary counties form natural economic areas which are larger than areas with, for example, a two-tier county and a unitary county town. It is illogical, since the latter would be permitted to form a LEP, that the former should be forbidden in absolute terms from so doing. The CCN welcomes the softening of the Government's tone on this requirement.

  Given the important strategic economic functions of upper tier and unitary authorities it will often be appropriate to ensure LEPs follow these contours even where a strict economic geography may divert slightly from this, as in the map prepared for the LGA's "Vive la Dévolution" series. The study undertaken for this work generated a preferred sub-regional map[40] which showed that the economic geography of England maps well onto groups of district boundaries at the level of the city, city region and county.

  Whilst there is clearly not an exact fit between the sub regions developed on the basis of a best fit with economic data and the boundaries of counties the map does show that there is a strong relationship between county boundaries and the study's economic sub regions. Recognising this, and that different aspects and sectors of the economy will function on different geographic footprints, the CCN would argue for upper tier and unitary authorities to be treated as the default "building blocks" for LEPs in the overwhelming majority of cases.

  The CCN believes that LEPs, or structures operating at the scale of LEPs, also have the potential to fulfil a wider role, acting as "Local Economic Partnerships" rather than only "Local Enterprise Partnerships", where participants feel this would deliver better outcomes and can make the case for greater powers.

  These could for example fulfil the co-ordinating functions arising from the devolution of planning powers, ensuring that development and infrastructure are managed as part of a coherent programme of work, or take on commissioning functions around employment and skills. Some of these functions would require a parallel structure which had a democratic majority, as opposed to the `business-led' status of LEPs themselves.

  The CCN recognises that some areas will not, at least initially, form part of a LEP, and would argue for maximum flexibility to be granted to the authorities in this situation. There has also been a lack of clarity about whether an authority might, where appropriate, be able to participate in more than one LEP. The CCN would argue that this should be possible, but should be based on the full participation of the authority in both LEPs, rather than geographic partitioning of an authority between two adjacent LEPs.

  Dual membership of LEPs would be particularly appropriate if the LEPs had different priorities, such as urban regeneration in one, and specific transport improvements in another. The CCN has in the past argued for voluntary partnerships between local authorities on this model, citing the analogy of "parish clustering" as an example of how this can work, albeit on a very different scale. Because economic boundaries can vary by sector, by issue, and over time, LEPs should not be treated as irrevocably fixed administrative boundaries, but as flexible, outcome-focused, "coalitions of the willing".

  The CCN welcomes the Government's hands-off approach to LEPs, believing that fixed sub regional structures bounded by rules and legislative requirements may fit central government's past need for conformity and control, but that local government is capable of managing more flexible and adaptable structures, where form follows function, and which provide a better fit with local needs and allow for more innovation in the longer term. Where a formal relationship between LEPs and central government is necessary, the CCN would support a "single port of call" to ensure that policy is consistently applied between CLG and BIS, and participants in LEPs are not diverted by mixed messages.

12 August 2010







40   http://www.lga.gov.uk/lga/aio/21918 Back


 
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