Written evidence from Sheffield City Region
Forum
The partners of the Sheffield City Region (SCR)[97]
are pleased to respond to the Business, Innovation and Skills
(BIS) Inquiry into the new Local Enterprise Partnerships (LEPs).
The Sheffield City Region Forum sees the general
direction being set by Government as creating the right conditions
to accelerate and continue to drive forward its economic priorities.
As a strong alliance of local authorities we
welcome the focus on rebalancing the economy and stimulating private
sector job growth. We believe that by working in genuine partnership
with local business, local communities and the Government we can
contribute to tackling the key challenges facing the UK economy.
Our current priority is working with local businesses
and other key stakeholders to enable us to submit a strong LEP
proposition to Government by the 6th of September. As we move
towards the LEP submission deadline we see responding to this
BIS Inquiry and setting out our current thinking as an important
stage in the development of our LEP.
We have structured our response to the BIS Inquiry
around the six mains topics the Committee will be considering.
1. The functions of the new Local Enterprise
Partnerships and ensuring value for money
— The main focus of our LEP will be on
rebalancing the economy and stimulating private sector job growth.
— Key to getting it right will be engagement and genuine
partnership with the private sector, working collaboratively to
develop the LEP propositions and deliver the interventions needed
to rebalance the economy.
— A LEP should not be constrained by function,
but should focus on anything that will stimulate private sector
growth—a key role of the LEP will be to agree locally what
the most appropriate functions are to drive economic change in
the functional economic area.
— Some functions and activity will be best
carried out at a district level, however, by working across a
wider economic area there are opportunities for the LEP to remove
duplication and deliver better value for money across a range
of public sector services.
— In the Sheffield City Region the LEP
is likely to focus its activity around the broad themes of economic
development, skills, housing and transport, allowing us the opportunity
to maximise the impact of major assets (eg the Advanced Manufacturing
Park, Digital Region, Robin Hood Airport) on the wider area.
- The LEP also gives us an opportunity to expand
control over other key areas, including tourism, innovation and
business support.
2. The Regional Growth Fund, and funding
arrangements under the LEP system
— Within the wider context of a reduction
in public sector spending we see the Regional Growth Fund (RGF)
as a key mechanism to "pump prime" a range of initiatives
that will deliver private sector jobs growth. — We welcome
the principle that the RGF should support areas that are the most
economically vulnerable and those areas that have the maximum
potential to restructure their economies away from dependence
on the public sector.
— LEPs should have a key role in endorsing,
coordinating and illustrating the added value of bids which are
submitted to the RGF.
— We are broadly supportive of the government's
approach to the RGF, particularly the focus on the need to show
private sector leverage, and feel that an approach that fosters
innovation and provides a competitive system will deliver maximum
value to the national economy.
— We are currently working on our RGF consultation
response which we will be submitting to government in the next
few weeks. Our approach to the RGF is part of the wider fast moving
LEP agenda with lots of work ongoing until 6 September.
— Current thinking is that the LEP will
make use of Local Authorities as the primary funding vehicles
for any activity; with appropriate structures and governance in
place to ensure that the objectives of the LEP are delivered (this
is subject to change as we further develop our LEP and RGF responses).
This will have the advantage of keeping the LEP organisationally
and structurally light.
— In our RGF consultation response we will
be seeking clarification on a number of issues. For instance the
consultation document states that there is the expectation projects
would be received by partnerships in "packages" of proposals.
However with only a £1 billion pot to bid in to, clearly
some packages won't be successful. Clarity needs to be given on
whether whole packages will be rejected or whether elements will
be fundable.
3. Government proposals for ensuring co-ordination
of roles between different LEPs and arrangements for co-ordinating
regional economic strategy
— At a national level there should be a
framework for major infrastructure projects (eg airports and ports).
— Some generic functions (eg web and telephone based business
support) could also be delivered most efficiently and effectively
at a national level.
— Within a national framework we would
want the powers and resources to deliver local solutions that
we know will deliver our agreed economic objectives, examples
include localised business support and innovation systems.
— An effective economic strategy needs
to be at the level of a natural/functional economic area, and
not at an arbitrary regional level.
— Taking the example of the current Sheffield
City Region, this area is made up of 11 local authority areas
which fall in to two regions, this has inevitably led to barriers
(eg constraints on activity due to regional funding arrangements
around tourism and inward investment). It is our belief that many
of the potential activities of the current Sheffield City Region
Forum have been hampered by the inflexibility of present regional
funding arrangements and constrained by differences in RDA priorities.
— Any national economic structures need
to acknowledge this type of issue, with localism as the key principle
underpinning the national/regional approach where such an approach
is felt necessary.
— In the majority of cases LEPs should
be left to decide on the issues that will deliver the economic
objectives in their particular area.
4. Structure and accountability of LEPs
— Different areas will require different
structures and accountability mechanisms in order to respond to
the different challenges they face.
— The structure of our LEP has not been
the starting point for its development. We have focussed initially
on what the economy needs. It is only at a later point that we
will start to work up the detail of the structure and governance
we need to deliver our economic aspirations. A key consideration
will be ensuring local accountability of a body that includes
both public and private sector representatives.
— A starting principle for the development
of an appropriate structure will be to minimise the cost and organisational
size of any executive function required to deliver the LEP objectives.
— At this stage it is envisaged that existing
organisations (eg local authorities) will deliver functions and
projects for the LEP, where they are best placed to do so (eg
where they have particular sector strengths). This has the potential
to help deliver public sector efficiencies, remove duplication
and ensure that maximum resources can be used to deliver the objectives
of the LEP. However, this will require further consideration in
terms of how these functions will be co-ordinated and how the
LEP will be supported in doing this (this is subject to change
as we further develop our LEP and RGF responses).
5. The legislative framework and timetable
for converting RDAs to LEPs, the transitional arrangements, and
the arrangements for residual spending and liability of RDAs
— We want a say in the transition from
RDA arrangements, including which powers and responsibilities
should transfer to the LEP.
— We need freedom, flexibilities and investment
powers to deliver the change that our local economies need.
— The outline timetable set out in the
letter from the Secretaries of State on 29th June seems to be
a sensible one.
— The critical issues to bear in mind are
around not losing momentum, deciding in a timely way what functions
will be delivered by which bodies, and ensuring that talent and
expertise is retained.
— RDA assets and liabilities are also key
issues. It is important to acknowledge that assets were acquired
by RDAs for strategic reasons. In many cases that rationale is
still relevant, and it is important to reassess the position before
disposing of any assets. It is also important that where a decision
is made to dispose of any assets, that we ensure best value for
money.
— Through our LEP submission we hope to
open up a discussion with Government about how our LEP could help
provide a home for some of these ex-RDA assets. Our proposals
(yet to be finalised) around new financial mechanisms (eg JESSICAs,
business rates, ADZs) will set out more sustainable funding
options for future projects that will deliver the infrastructure
we need to transform our local economy.
6. Means of procuring funding from outside
bodies (including EU funding) under the new arrangements
— At a strategic level LEPs should decide
on investment priorities across its area of operation and direct
all major economic development funding and activity towards these
priorities.
— At an organisational level, and as set
out earlier in this response, we do not see the LEP as an entity
that applies for or administers funding. Although the LEP will
have a key role in endorsing, coordinating and illustrating the
added value of any funding that public or private sector organisations
apply for within the LEP area.
— Our proposed LEP area currently has two
ERDF Programmes, one is Yorkshire and Humber wide (with a South
Yorkshire ring-fenced programme) and the other is East Midlands
wide.
— We see our LEP as having a key role in
the alignment and prioritisation of all ERDF funding which impacts
on the LEP geographical area (including the ring-fenced South
Yorkshire ERDF Programme).
97 The Sheffield City Region (SCR) geographically covers
Sheffield, Doncaster, Barnsley and Rotherham Metropolitan Boroughs
in the Yorkshire & Humber region; the District Authorities
of Bolsover, NE Derbyshire, Chesterfield, Derbyshire Dales and
Bassetlaw in the East Midlands region; and parts of the Peak Park
Planning Authority area. Nottinghamshire and Derbyshire County
Councils are also members of SCR Forum. Back
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