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ECONOMIC GROWTH

Budget 2023: LEPs to be scrapped

Local Enterprise Partnerships (LEPs) are to be effectively abolished within a year, chancellor Jeremy Hunt announced in the Budget.

Local Enterprise Partnerships (LEPs) are to be effectively abolished within a year, chancellor Jeremy Hunt announced in the Budget.

As part of measures designed to encourage an ‘enterprise economy,' Mr Hunt said in his speech he would transfer the responsibilities of LEPs to local authorities by April 2024.

All support from the Government will end within a year, with LEP functions to be 'delivered by local government in the future,' according to Government documents published today.

The documents added: ‘The Government is committed to empowering democratically-elected local leaders at every opportunity.

‘Empowered, accountable local leaders are best placed to take the decisions needed to foster local wealth creation and civic entrepreneurialism.'

The move is subject to the outcome of a joint consultation by the Department for Levelling Up, Housing and Communities and the Department for Business and Trade.

Welcoming the news, County Councils Network chairman Tim Oliver said: ‘County and unitary authorities are best placed to deliver local skills and business support programmes, in close collaboration with business partners, and we will work closely with ministers to develop their proposals through the consultation.'

But District Councils' Network chairman Sam Chapman-Allen said they should inherit the new role.

'Local Enterprise Partnerships' powers are best localised by placing them with the tier of local democracy which works closest with businesses and understands its local communities best,' he said.

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