Written evidence from New Start Magazine
and Shared Intelligence
Last month, New Start magazine and Shared Intelligence
(Si) organised a roundtable seminar on Local Enterprise Partnerships
(LEPs).
The event brought together local practitioners, analysts
and national stakeholders including the Institute of Directors,
Work Foundation and Core Cities to identify the key factors and
drivers that will make the transition from RDAs to LEPs a success.
We agreed that one of the outputs from the event
should be the enclosed submission to you and your Business, Innovation
and Skills Committee colleagues, setting out the key questions
which we suggest you should follow in your inquiry.
There is significant scope for LEPs to drive
the economic prosperity of many localities, if they are given
sufficient freedom to shape and develop their own priorities,
functions and relationships.
There was clear consensus at the seminar that
LEPs needed to have clarity of purpose in the selection
of priority activities that will drive local economic prosperity.
As with other initiatives, there is a risk that LEPs become the
peg on which to hand the latest political and ministerial issue.
LEP partners must be clear about their purpose and priorities
and central government must respect their decisions.
To that end, central government must be consistent
about LEP freedoms and flexibilities, and encourage local
innovation and experimentation.
There will be many discussions over forthcoming
months about structures, roles and relationships. The long term
measure of success for LEPs will, however, be the extent to which
they can attract additional funding from a range of public
and private sources and direct it in ways that adds value to
local activity.
It will be crucial for everyone with a stake
in LEPs to maintain a focus on this long term measure of success.
Finally, there was a strong consensus among
participants that while enterprise growth is key there is still
a role for LEPs in tackling deprivation and driving regeneration
where it is appropriate to local needs. Promoting enterprise
growth isn't just for relatively prosperous areas.
15 KEY ISSUES
FOR LOCAL
ENTERPRISE PARTNERSHIPS
INTRODUCTION
New Start magazine and Shared Intelligence convened
a round table discussion on Local Enterprise Partnerships on 29
July, to consider how they can be made most effective and what
functions should be prioritised.
The note below summarises key points from that discussion,
attended by academics, practitioners and policy experts, and is
submitted to the Commons Business, Innovation and Skills Committee
as an indicator of issues that we would encourage the committee
to explore in more depth.
The 15 points below are the key messages from
the debate and have broad support from those who attended the
event.
We propose for each point a key question that
committee members could use to guide their work.
A list of attendees and contact details for
further information is at the end of this note.
PURPOSE
1. Are LEP proposals clear about what LEPs
should and should not do?
It is important to be clear about what LEPs
should or shouldn't do. This will avoid the risks of "mission
creep" and LEPs becoming a peg to hang every passing initiative
on. These parameters will vary from location to location depending
on local circumstances. Roles and responsibilities should be set
out in local memoranda of understanding between the key partners.
2. Will LEPs be empowered to drive private
sector growth through a range of measures and mechanisms?
There is a clear expectation from government that
the purpose of LEPs is to create private sector employment. There
needs to be acceptance that this cannot be done in some areas
without economic, social and physical regeneration and tackling
unemployment. There is an important role for community organisations
and social enterprises in making LEPs' activities effective in
disadvantaged areas.
FUNCTIONS AND
RELATIONSHIPS
3. Are LEPs clear about how and what level
they can add value to existing private and public sector activity?
LEPs should work at a strategic level, rather
than become involved in direct project delivery. But they need
to broker deals and make things happen, not just write strategies
or build empires. LEPs should identify the areas where they can
add value, such as advocacy, networking, commissioning, coordinating
and supporting the work of others where it is appropriate to do
so.
4. Are LEP proposals equipped to support
areas of low growth?
LEPs are not just a mechanism for improving successful
areas. They need to offer hope and help for areas that are struggling
and declining too. Some areas, such as former coalfields and industrial
communities, seaside towns, inner city neighbourhoods and some
rural communities, lack an enterprise culture. Survival rates
for new businesses tend to be low. Long term help will be required
to change this culture and provide new opportunities.
5. Do specific LEPs have a clear view of
what they want to do and what they want to support and influence
others to do?
LEPs' functions have to stem from local economic
opportunities and challenges—and from the form of partnership
that is created in each LEP. These are likely to include:
— Activities that LEP delivers or commissions.
— Areas where LEP seeks to influence others.
— Areas where LEP supports what others
are doing.
LOCAL BUSINESS
NEEDS AND
MARKET INTELLIGENCE
6. Are LEP activities clearly driven by the
needs of local businesses?
Core functions should be driven by the demands
and needs of local businesses, where the LEP is able to add value
at the local level. A LEP might not be able to add value in terms
of access to finance, but could do so on skills or transport.
7. Can the LEP present a clear "business
case" for its own work to local businesses?
There should be a clear articulation of the
private sector's position, while recognising that different sectors
of business have different needs and ambitions. Locally and regionally
owned and managed firms need to have a strong voice on LEPs. There
needs to be a clear expression from business partners of the value
LEPs can create, what objectives are likely to be helpful and
what delivery mechanisms are most likely to win businesses' confidence.
At the same time the private sector needs to show how it will
be accountable for its use of public resources through LEPs.
8. How is the LEP able to identify and act
upon intelligence about local market conditions?
Local intelligence is vital. LEPs need to understand
and predict local market trajectories and offer tailored advice
and solutions.
SUPPORT TO
PRIORITISE AND
DELIVER CORE
BUSINESS
9. Are LEPs structured and supported to rigorously
prioritise?
Prioritisation is essential. There is a need
for a rigorous approach to the selection of key areas of work.
This may mean partners need to provide "cover" for LEPs
to avoid taking on every local issue, despite legitimate pressure
from local communities and representatives.
10. Are LEPs structured and supported to
balance the demands for economic development and regeneration?
Prioritisation and delegation will be especially
important in areas where there is greater demand for regeneration.
Priorities should stem from the core building blocks for economic
development.
11. Are LEPs structured and supported to
secure significant additional investment from a range of sources?
It is worth remembering that one of the key functions
for LEPs will be levering in private investment as well as seeking
to secure public funding. This could end up being a full time
job.
SCALE OF
OPERATION
12. Are the operations of the LEP organised
at the right spatial scale?
LEPs should not be so big that they require
a substructure, nor so small that decisions need to be made at
a higher level. There needs to be clarity about what can be achieved
at what spatial level. This should draw on the evidence and intelligence
that informed the 2007 review sub-national of economic development
and regeneration. To avoid confusion and wasteful competition,
LEPs should relate to meaningful functional areas and build on
what is already being achieved through multi-area agreements and
sub-regional economic partnerships.
13. Are LEPs able to build local capacity,
despite moves to nationalise some functions?
It's important that LEPs make the most of existing
skills and expertise. There is a danger that delivering an immediate
economy of scale by nationalising some functions could lead to
reduced capacity and ability locally.
14. Have LEPs engaged the right people, from
a range of backgrounds and sectors including social enterprise?
The people who form the partnership shape the functions—so
this needs to be clarified. There should be a discussion of where
civic leadership and civil society can add value (in tackling
worklessness, for example).
15. How will LEPs ensure spending by other
parts of government complements their objectives?
There must be scope for LEPs to influence spending
by other areas of government so that it is aligned with local
priorities. Central government needs to ensure contracts with
major providers are let in a way that allows this to happen. DWP
welfare to work and employment programmes, higher education funding,
Highways Agency and environmental programmes all need to be aligned
with LEP priorities to ensure their success. A duty to collaborate
across government agencies may be required.
12 August 2010
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