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‘We are facing economic problems that need solutions from local communities. The secret to the success of LEPs will be working on the basis of local economic geography – gone are the artificial political regions of the RDAs – this will better serve the needs of local business.' Communities secretary Eric Pickles CLG ministers have announced 56 bids to form Local Enterprise Partnerships (LEPs) designed to revive England's beleaguered localities, but few could be approved in the first wave and questions remain over their scope and clout. Ministers and Whitehall officials will assess the 56 applications over the coming weeks as they prepare to replace England's nine Regional Development Agencies from 2012 with smaller, more ‘natural' local partnerships between councils and businesses designed to support economic growth. But a consensus appears to be forming over a likely outcome from the first phase of the LEP programme. Up to 15 of the strongest applicants for LEP status could be established as outriders, a move designed to ensure the initiative succeeds quickly. Policy experts contacted by The MJ predicted the first wave of LEPs would be those with a track record of close working between local public and private sectors, and operating at sub-regional – or sub-RDA – level. That could make the existing city-regions of Greater Manchester and Leeds, for example, strong candidates for early approval, as well as potentially dynamic county-based partnership submitted by Essex and Kent. The news coincides with a major BBC/Experian survey today (Thursday) showing economic differences between north and south remain marked. Several sources said they believed around 12 to 15 LEPs could emerge from the first phase. One suggested ‘a little more than a dozen' strong bids would gain approval. The coalition's communities and business secretaries, Eric Pickles and Vince Cable, announced the 56 bids for LEP status on 7 September. They said many of the proposals, which cover much of England, had ‘impressed' them and were ‘radical'. Mr Pickles views LEPs as a way of both reinvigorating localities by handing them powers to improve business and employment prospects, and of diluting England's reliance on the disproportionate economic power of the south-east. ‘These 56 LEP proposals are just the beginning of a new radical way of delivering prosperity and rebalancing the economy,' he said. ‘We are facing economic problems that need solutions from local communities. The secret to the success of LEPs will be working on the basis of local economic geography – gone are the artificial political regions of the RDAs – this will better serve the needs of local business.' Mr Cable said: ‘It is clear there must be a genuine partnership between business and local government, and that LEPs should be practical bodies for promoting enterprise, not talking shops.' Ministers are expected to develop the framework for LEPs in a White Paper this winter. But concern is mounting that some proposals may not reflect the public-private vision of ministers and many LEP bids overlap, or cover a geographic area similar to existing council boundaries. In the north east five LEP bids have been submitted covering just 12 council boundaries, including one bid covering Durham. LEP proposals reflecting single-county boundaries have also been submitted for Cumbria, East Sussex, Hampshire, Hertfordshire, Lancashire, Norfolk, Nothamptonshire, Surrey and Worcestershire. LEP proposals for some areas are so fragmented they also include plans for an over-arching regional body to co-ordinate aspects of the programme – potentially pushing the sector back towards RDA-style structures. The Institute of Directors business lobby warned against a ‘new wave of parochialism' and claimed in some areas business views had not been adequately considered. But Whitehall officials told The MJ existing proposals could be adjusted. Lawyers at Eversheds published a briefing warning that ‘the expected 50 [bids] is many more than the number originally expected and such a large number of bids could dilute the impact LEPs were intended to have'. There was also concern over the funding that could be made available and lingering questions over exactly how the partnerships could boost economic growth: ‘Will they be strategic bodies or have responsibility for delivering projects, or both?' Eversheds also suggested Treasury, BIS and CLG ministers must quickly make crunch decisions on the form and function of future LEPs – such as whether responsibility for inward investment will be ‘drawn upwards' from RDAs back to Whitehall, or fully devolved to localities.

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WHITEHALL

LEPs bids raise queries over regional blueprint

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