ECONOMIC GROWTH

LEPs in the slow lane, argues report

One year on, local enterprise partnerships (LEPs) have made ‘alarmingly slow progress’, study by Centre for Cities claims.

Local enterprise partnerships (LEPs) - the new bodies set up to oversee economic growth across communities - have made ‘alarmingly slow progress', according to a study by Centre for Cities.

Out of the 24 LEPs the Government approved last October, only two have produced long-term strategic plans, eight haven't had their boards recognised by the Government, and five haven't got a website, the think tank reported on 28 October.

The Government established LEPs to replace the Regional Development Agencies (RDAs), to co-ordinate work between businesses and local authorities. However, the think-tank's report found they were in danger of being undermined by ‘bureaucracy and process' as their ‘huge boards and advisory teams' could hamper decision-making.

The report also raised concerns that the working boundaries of some individual LEPs - ranging across local authority areas - do not match up with the ‘political and economic reality' of the regions.

Andrew Carter, director of policy and research at Centre for Cities, said: ‘Many are struggling to come close to meeting the objectives that were set to them by Government this time last year. Some are too small, some are too big and several have boundaries which do not recognise important economic patterns.

‘The Government has some difficult decisions to make about some other LEPs, hamstrung by lack of funding or leverage and influence. If they want them to deliver national priorities, they should ensure they receive the help they need to get their houses in order.'

Publicly available information on the LEPs' plans is ‘patchy', Centre for cities found, damaging their role as go-to organisations on local skills, investment and growth.

The Government rejected the report's findings. A spokesman said they were ‘simply not true'.

‘Local enterprise partnerships now cover 98% of all businesses in England. They are breathing new life into local economies by driving forward innovative projects that are stimulating business growth and job creation because they know their area best.

‘The Government believes local people, who really understand what is needed to drive local growth, should be at the helm and that is why each partnership decided its own boundary based on natural economic areas,' he said.

Centre for Cities recommends that where LEPs are ‘capable' - the Leeds body has been cited as an example – the Government should devolve responsibility for transport and skills and provide financial support for their administration.

The Centre for Cities study is based on the first 24 LEPs to be approved, although there are now 38 covering most of the UK.
 

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