Further written evidence from the Local
Government Association
I am grateful to the Committee for asking me
to provide oral evidence on behalf of the Local Government Association
to the inquiry into local enterprise partnerships earlier this
month.
The Committee asked if there were issues upon
which we would like to submit supplementary evidence. There are
three.
ON STRATEGIC
DECISION-MAKING
Firstly, I would like to emphasise the importance
that local government attaches to local enterprise partnerships
acting as the strategic decision making body in the area for the
key decisions that underpin economic performance. The proposal
put forward by the Black Country, for example, is multi-dimensional
and far more ambitious than simply looking to be a business-support
mechanism. Many other proposals for LEPs call for the devolution
of responsibility for the decisions on economic development, skills,
employment support, business support, transport, other infrastructure
and in some cases housing—all areas intrinsically linked
with the economic development of an area. The ability to take
these decisions on these issues together in co-ordinated way,
to fit with local economic needs, will maximise the economic impact
of LEPs and ensure their abilities to plan strategically.
ON REGIONAL
COORDINATION
Secondly, there will need to be co-ordination
between local enterprise partnerships. Whilst functional economic
geography is important, it is not an exact science. Local enterprise
partnerships will need to manage the economic issues that straddle
their boundaries. The precise arrangements for co-ordinating local
enterprise partnerships will vary from place to place, depending
on the precise nature of the cross boundary issues—in some
places and for some issues this may require a degree of regional
co-ordination, which has been recognised, for example, by councils
in the North East. At my own council, Dudley, there is an all-party
agreement on the need for local LEPs to coordinate activities
at a level above or beyond themselves and this is something that
LEPs must be free to coordinate and take forward.
ON FUNDING
FLEXIBILITY
Thirdly, it will be important for local enterprise
partnerships to have the funding and financial flexibility to
help drive forward economic growth in their economies. I therefore
welcome the financial flexibilities announced in Liverpool by
the Deputy Prime Minister which will give local authorities the
freedom to borrow against business rates.
24 September 2010
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