Written evidence from the East of England
Business Group
INTRODUCTION
The East of England Business Group (EEBG) is
a strong strategic alliance of the region's major business membership
associations. The 12 epresentative bodies work together to provide
an informed, coherent and collective voice of business on aspects
of regional economic development and business competitive.
We represent firms of all sizes and sectoral interests
from across the region.
As a regional organisation we have taken the
view that it is inappropriate for the EEBG to make detailed comments
about the optimum number of LEPs, their size, functions and governance
arrangements; all are matters best addressed by individual business
membership associations with local members and executive resource
on the ground. Instead, the EEBG seeks to make a number of comments
from the regional perspective.
THE CONTEXT
AS WE
SEE IT
— Companies in this region acknowledge
that the economic recovery is under way; as yet not all companies
are feeling the benefits of this resurgence but there is overall
economic growth.
— The business community generally recognises
that the new government must cut public expenditure if it is to
reduce the UK's debt burden in a robust and timely fashion.
— However, we also need assiduous investment
of the monies that are available to facilitate and nurture the
economic growth that will create wealth and generate the revenues
to the Exchequer that will, in turn, also contribute to reducing
the UK's sovereign debt and, further, resourcing the broader functions
that government must support eg education, health, defence.
OUR POSITION
IS TWO-FOLD
— We think there continues to be a strong
case for public investment in the region. The region has a strong
track record as a net contributor to the UK's economy and, for
a number of reasons, sectoral diversity, strong representation
from emerging sectors, and high levels of private sector investment
in R&D, this robust economic performance is set to continue.
It is also true to say that the region has received less than
its fair share of public investment in recent years. We are concerned
that this trend may continue given a number of the new government's
recent decisions favouring regions in the Midlands and North.
— The EEBG notes the new government's resolve
to move towards localism and away from models of regional governance
and delivery mechanisms. We stand ready to work with the new arrangements!
Our member associations are already engaged and very active in
emerging Local Enterprise Partnership (LEP) arrangements and are
enthusiastic to contribute further. However, whilst we have no
brief for current regional governance and delivery arrangements
in themselves, we do have a view that a number of economic development
functions may have greatest impact and provide best value for
money if undertaken at the regional level as opposed to being
offered locally or nationally ie regional arrangements are not
necessarily inferior in terms of effectiveness and efficiency;
if the greatest added value and impact is offered by a regional
function it should be maintained, developed or both.
INVESTING IN
THE REGION
We have been invited to respond to the government's
consultation on Regional Growth Fund (RGF) and will be doing so
before the deadline of 6 September. However, we are concerned
about core funding of LEPs and believe consideration ought to
be given to an element of Regional Growth Fund being allocated,
not via a bidding regime but on a formula basis providing underpinning
monies for LEPs wherever they are in the country. The consultation
document refers to helping "private sector enterprise thrive
in areas of greater need" and of supporting "areas which
have become overly reliant on public sector employment".
If, as suggested, the RGF utilises a bidding system to allocate
monies, there is a concern in this region that the major beneficiaries
will be elsewhere.
ECONOMIC DEVELOPMENT
FUNCTIONS BEST
UNDERTAKEN AT
THE REGIONAL
LEVEL
There is a belief amongst our members that there
is a place for some regional economic functions but, equally,
there is a strong concern that `regional for its own sake' is
not good enough and, therefore, a regional function has to be
better than the alternatives at the national and local levels
in terms of impact and value for money.
Amongst our members there appears to be some
consensus around a number of points.
First a general point: where one or several
regional functions are regarded as being valuable they are envisaged
as being a "thin layer" ie low cost/high return.
Secondly a handful of functions have broad support:
— Collection and analysis of economic intelligence
eg in this region, an intelligence unit, "Insight East",
has been able to provide regional intelligence and drill down
into local data; providing analysis readily accessible to policy-
and decision-makers both regionally and locally.
— European funding requires a regional
mechanism able to seek and administer funds effectively.
— Strategic overview in areas such as Skills
and Infrastructure—business representative bodies recognise
the importance of both local and national tiers of activity and
are ready to engage with them but there is a strong feeling that
a regional strategic framework of priorities re infrastructure
and the development of the potential and existing workforce is
necessary to inform the best use of the limited public resources
available. On "skills" particularly we have had a decade
of change and transitional arrangements; we wish to see established
a settled robust arrangement that is given chance to mature and
develop.
— Business support, similarly: some elements
can be conducted nationally, some locally but there are several
functions best tackled regionally, offering economies of scale
and knowledge and relationships on the ground. It is the case
that the current model, which is organised regionally but delivered
locally, has proved to be most efficient. Some of the functions
are specialist; where regional critical mass allows them to be
most effective.
SUMMARY
— Business acknowledges that the government
and the UK faces a difficult challenge and will do all it can
to nurture a return to the strong economic growth that will contribute
to debt reduction and delivery of essential services.
— The East of England does need public
investment and distribution of the Regional Growth Fund via a
formula, at least a portion of it, may provide the best means
of the region receiving support for economic development.
— Business notes the new government's momentum
towards localism and stands ready to contribute to new arrangements
as a joint partner alongside local government.
— Business has no ideological loyalty to
regionalism but is open-minded enough to support a regional function
if, in fact, it is best in terms of effect and value for money.
— There is a sense that whatever emerges
at the regional level, it ought to be a thinner tier than now.
— Candidates for functions retaining a
powerful regional contribution include intelligence gathering
and analysis, EU funding, strategic overview of skills and infrastructure
(including concerns about planning) and some components of business
support.
12 August 2010
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