Written evidence from Furness Enterprise
1. SUMMARY OF
MAIN POINTS
The summary points that we would like to make
based on our experience of operating a Local Enterprise Partnership
in a deprived area, is the need for a Local Enterprise Partnership
to:
(1) Be a "natural" self sustaining
one rather than an artificial construction to meet a perceived
Government agenda. Hence the necessity to build upon partnerships
already successfully developed.
(2) Focus on a clear, achievable plan commensurate
with the resources available and with the Local Enterprise Partnership
having a well understood and valued remit.
(3) Be pro-active and add real value, not a talking
shop.
(4) Have committed private sector representation.
(5) Be understood as a means to an end ie: enterprise/economic
regeneration.
In addition, the Government must continue to
maintain a distinction in its economic/enterprise regeneration
policy approach between affluent and deprived areas rather than
having one policy that fits all.
2. FURNESS ENTERPRISE—SUMMARY
DETAILS OF
THE PARTNERSHIP
Furness Enterprise was set up as a public/private
sector partnership in 1991 (in effect a Local Enterprise Partnership)
as a consequence of massive job losses from the local nuclear
submarine shipyard and job losses from other major local employers.
As a consequence of these job losses, Barrow in Furness is the
29th most deprived local authority in England with high concentrations
of worklessness, particularly Incapacity Benefit claimants. As
the area is remote from the "engines of growth" in the
North West, tackling worklessness has depended very much on seeking
to work locally with the private sector to create jobs and diversify
the economy. Helped very much by Assisted Area status and hence
the ability to attract investment and job creation using financial
incentives, significant private job creation has been achieved
and these results have been confirmed in the Ekosogen North West
Index of Economic Resilience Report 1997-2007, which identified
major improvements in Barrow between 1997-2007 in Enterprise,
the Labour Market and Economic Dynamism. The results from Furness
Enterprise demonstrate that a local public/private sector partnership
with resources can work effectively with the private sector to
create jobs even in a deprived area.
3. VIEWS ON
THE NEW
LOCAL ENTERPRISE
PARTNERSHIPS AND
THE REGIONAL
GROWTH FUND
The views of Furness Enterprise are obviously
based on the limited information provided on the role and scope
of both the Local Enterprise Partnership and the Regional Growth
Fund. However, based on our experience of operating a Local Enterprise
Partnership, we see a number of issues:
3.1 The need for a Local Enterprise Partnership
to be a "natural" self sustaining partnership rather
than an artificial construction to meet a perceived Government
agenda
The concept of a Local Enterprise Partnership
or Local Strategic Partnership is not new and there is significant
evidence and research as to what makes for a successful approach.
An Audit Commission report some 10 years ago on Local Authorities,
Economic Development and Economic Regeneration made the clear
point that many councils lead local and sub-regional partnerships
with substantial private sector involvement, generating and then
implementing a regeneration vision for their area. One of the
Audit Commission's key findings was that in getting a partnership
right, what matters is a clear, common understanding of the way
in which the local economy works, that distinct roles for the
different partnerships are clearly agreed but, with enough shared
membership and communication to ensure coherence. Hence, it is
important that the Government's approach to Local Enterprise Partnerships
is designed to build upon the relationships and partnerships that
already exist, with a track record of success in an economic area,
rather than perhaps unknowingly break up existing partnerships
to create new ones designed to meet a perceived Government view.
For instance, the comment in the Government's letter of 29 June
to Local Authorities and business leaders, that partnerships would
include groups of upper tier authorities could mean Local Enterprise
Partnerships formed which take a considerable period to "bed
in" and be effective due to a lack of previous relationships
and common interests.
3.2 The need for a Local Enterprise Partnership
to focus on a clear achievable plan commensurate with the resources
available, and having a well understood and valued remit
The Government guidelines see Local Enterprise
Partnerships tackling a wide range of issues, planning, housing,
local transport, infrastructure priorities, employment, enterprise,
transition to a low carbon economy and supporting small business
start ups. The concern we would have is that given such a large
scale of activities which to a greater or lesser extent are already
carried out by the relevant local authorities and local business
support agencies, what exactly are the Local Enterprise Partnerships
expect to deal with? We understand the philosophy of reforming
the system of sub-national economic development by enabling councils
and businesses to replace the existing Regional Development Agencies,
but are not sure how the success of Local Enterprise Partnerships
will be measured, particularly given that the resources available
to them will, by necessity of public expenditure cuts, be much
reduced.
3.3 The need for a Local Enterprise Partnership
to be pro-active and add real value
The private sector, in particular, will not
actively support a public sector dominated talking shop, producing
a series of strategies and action plans which have very little
chance of implementation. The Regional Growth Fund, while much
smaller than the resources currently deployed on regeneration
through the RDAs, obviously offers some potential resource but
it is going to be critical that the Regional Growth Fund is focused
on encouraging private sector enterprise and sustainable private
sector employment, particularly in those areas and communities
currently dependent on the public sector. The danger is that given
the wide scope of Local Enterprise Partnerships and significant
reduction in public sector regeneration funding , these objectives
for the Regional Growth Fund ie: private sector employment, particularly
in public sector dependent areas, will be substantially diluted.
We think it right though that Local Enterprise Partnerships should
not be the only route for applications to the Regional Growth
Fund.
3.4 Committed private sector representation
matters
Finding private sector representation willing
to give up valuable time to discuss broader regeneration and enterprise
issues is difficult. It will be made more difficult if a clear
and valued role for the Local Enterprise Partnership is not developed
and articulated. The wider the area a Local Enterprise Partnership
covers the more difficult it is for local business people to relate
to it.
3.5 The Local Enterprise Partnership is a
means to an end
When Furness Enterprise was set up to cover
the Barrow Travel to Work Area ie: the Furness Peninsula, it was
clear that as a self contained Travel to Work Area, private sector
job creation and safeguarding were crucial to enable the area
to regenerate. Hence, it was determined that only a public/private
sector partnership of sufficient weight with the three relevant
authorities and major private sector members would be able to
lobby for resources and work effectively with the private sector
ie: the area started with its objectives and then determined the
most appropriate structure to carry these out.
3.6 An Economic/Enterprise Policy distinction
must be drawn between affluent self sustaining private sector
job generating areas eg: London and the South East and deprived
areas with potentially good access to jobs created elsewhere eg:
Greater Manchester and job poor deprived areas remote from "engines
of growth" eg: Barrow in Furness
One of the key criticisms made of the Regional
Development Agencies is that they failed to narrow the GDP per
head gap between the North and the South. Hence, if there is still
an objective to narrow the gap, then coming from a lower GDP base
the North has to grow faster than the South. Whether this is achievable
is very debatable, but if the Government do not, for instance,
continue with the current economic policy approach that distinguishes
between deprived and affluent areas through for example Assisted
Areas, and relies instead on a more generic, favourable business
environment approach, then the chances of success for northern
Local Enterprise Partnerships will be very much reduced.
11 August 2010
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