The Review of Local Enterprise Partnerships, CEDOS Position on the Review
July 2021
For the past decade, Local Enterprise Partnerships (LEPs), have brought together business, Local Authorities, the public sector, Higher and Further Education and other economic stakeholders as a conduit for stimulating and investing in economic growth. The experiences of most CEDOS members has been that LEPs across England have been a positive force for economic growth. Most recently, LEPs, working closely with Local Authorities and other partners, have provided critical intelligence into the economic challenges of the pandemic and have been able to rapidly translate that intelligence into stabilisation and recovery strategies.
Should, as has been the case with Community Renewal Fund and Levelling Up Fund, the programme management of future Government investment programmes return to Local Authorities, this is an area our members already have expertise and some capacity which can be scaled up quickly. Many of our members undertake the Accountable Body function for elements of programme funding for Local Enterprise Partnerships and understand the territory. This approach would align the lead agency for place making with investment programmes – and allow LEPs to co-ordinate more business focussed activities including business growth, sector development and skills.
Across the board, there have often been capacity issues within LEPs, with staff often seconded, funded through programme management fees or covering joint roles within host Authorities and specific tasks within LEPs. Going forward, depending on the future role of LEPS, there needs to be a clear contract with Government to allow effective resource planning and to understand what can then be achieved.
Over the past decade, LEPs have been re-organised to reduce overlap and to cover more pragmatic economic geographies. CEDOS members would stress the importance of ensuring after this review that LEPs retain sensible geographies that can operate effectively across economic and political boundaries, have the ability to focus on smaller areas that are falling behind yet have the critical mass to engage key private sector figures, develop effective interventions and operate where required at scale.
The emphasis of Local Enterprise Partnerships has largely been driven by productivity led growth, with the economic inclusion and anti-poverty agenda often a secondary priority. In some instances, some LEPs lacked the capacity and levers in areas such as the rural economy or decarbonising growth. Going forwards, a balance and blending of these agendas at a strategic and operational level can hopefully ensure fewer areas get left behind during growth cycles, more people can contribute to economic prosperity and communities are safer, healthier and wealthier as a result.
There also needs to be more clarity as to the long-term role of Local Enterprise Partnerships within the devolution agenda, which sets both opportunities and challenges for local areas. As devolution and wider Levelling Up hopefully expediates further powers, freedoms and resources to local areas, accountability of LEPs to local governance frameworks would need to follow. There also needs to be clarity within any future structures about who owns and leads the economic vision, rather than further fragmentation.
It is critical to economic development that all actors that have the potential to guide and unleash local growth are engaged around a shared vision and a common set of priorities and Local Enterprise Partnerships have been a positive catalyst to achieve this, especially in areas with coherent geographical alignments.
Whilst Industrial Strategies have been downplayed by rapid changes brought by the COVID-19 outbreak, our members have received value from working closely with LEPs over the past decade on shaping economic strategy and framing plans for investment with the private sector. The ability to provide a vehicle for consistent and ongoing private sector leadership and input is critical to the future economic success of all areas.
We would urge as part of the LEP review that the relevant bodies within Local Government are able to provide an input into form, function and geography debates to ensure what comes out of the review is practical, can focus on ‘who is best placed’ to undertake specific roles and reflects local needs and circumstances. The key element of LEPs is the ability to drive what is needed ‘locally’.
With the UK Shared Prosperity Fund, the Levelling Up White Paper, the Skills and Post-16 Education Bill and an unwinding of support on the economy all imminent, it is critical that the review is completed, consulted and delivered in a timely manner. It is also important that when it is completed, there is a period of stability and continuity.
About CEDOS
CEDOS is the representative voice of senior Economic Development professionals from the public sector across England. We aim to share knowledge and good practice, engage with senior decision makers and sector experts and influence economic development policy.