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Psst, got a LEP? Want one?

So, this whole LEP business – how has it been for you?

To begin with, the Pickles/Cable letter of invitation got some people quite excited.  It was a chance to finally define spatial areas that made sense in terms of economic development strategies, policies and activities.  It was therefore perhaps unfortunate that my own straw poll of contacts in economic development/regeneration in about a dozen local authorities around the country revealed that not one was involved in discussions about their LEP.

So far as most of them were aware, this was a matter for chief executives and leaders; in other words a decision seemingly based on a political and not necessarily economic development rationale.

Next came the partnering bit.  As might have been expected, there were some natural alliances between local authorities either with some history of collaboration or a longstanding ambition to work together on a more formal basis.  In a few instances, Tees Valley being a particularly good example, a shadow LEP was already in place, with the added benefit of having a Multi Area Agreement in its back pocket.

However, in many places, things were not quite so straightforward, with some local authorities unsure which way to turn.  In some cases, smaller authorities appeared to be lined up like kids in the playground hoping they might get picked by the big boys to be on their team.  Unfortunately, some are still standing there whilst a few others seem to have opted to play a half for both sides.

Interestingly, and so far as I am aware, none of the LEPs cross regional boundaries, which suggests that local authorities continue to think in terms of the RDA map and have been looking within regions for their LEP partners.   And there were those who suggested that the RDAs wouldn’t leave much of a legacy – shame on you.  Might there not have been merit in a conversation between some local authorities across a regional divide?  What about Cumbria and Northumberland, for example?

BIS and CLG seem to be expecting that the LEP map could be 80-90% complete by February.   All the LEPs have to do then is work out what exactly it is they’re going to do.  An obvious starting point is the co-ordination of Regional Growth Fund bids, albeit these are quite separate from the formation of LEPs.

Areas without a LEP are not working to a different process or timescale and will not be discriminated against in making an RGF bid.  As those familiar with the guidance will be aware, bids have to be from either private companies or private/public partnerships and aimed at helping to generate jobs in areas where a disproportionate amount of employment is accounted for by the public sector (especially where such jobs are under threat).

However, levels of unemployment or deprivation will not be among the selection criteria and additionality must be clearly demonstrated.  So, anyone looking to dust off an existing project that has lost RDA funding is going to have to think again.

Oh and there is the small point of who is going to work up these bids or indeed work on any other LEP-related activities given the absence of additional resources.  In case you hadn’t noticed, there’s a bit of a squeeze on in local authorities at present.  So, how are you all getting on?

Keith Burge
Keith Burge is a director of the Institute of Economic Development (IED)

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