The Government has been thoughtful in the way it has designed the new Enterprise Zones. By giving the decision to Local Enterprise Partnerships as to which Enterprise Zone is chosen, and more importantly giving decisions as to how revenues flowing from the Zone are to be spent across the LEP area, they have also taken the first major step towards ensuring that LEPs are serious bodies, not just talking shops. It also forces these new economic partnerships to begin to see themselves as a functional geography, with EZ funds being pooled across administrative boundaries and used in areas that will generate the best economic results.

However, the ability of the newly-formed LEPs to rise to this and other challenges still depends on their having some capacity to support their private-sector led Boards in carrying out their functions, and the lack of dedicated funding remains a constraining factor.