Devon and Cornwall Business Council

Economic Development Policy: Where we are?

R D BAYLYGOSW

2 July 2010

A Brave New World

• Coalition Policy Statement

• Budget• RDA Abolition• LEPs *• Regional Growth Fund• Green Paper on Business

Finance• White Paper on Sub

National Growth• GO Review• CSR

SoEverything you always wanted to know about LEPs …

… but were afraid to ask!

What does LEP stand for?

A. Lancashire Evening Post

B. Large Electron Positron (Collider)

C. Local Enterprise Partnership

D. London Energy Partnership

What does LEP stand for?

A. Lancashire Evening Post

B. Large Electron Positron (Collider)

C. Local Enterprise Partnership

D. London Energy Partnership

Context – the changing landscape

RDAs

LEPs

But it’s not that straightforward

• RDA abolition is not just about “going local”

• Some things may be “going national” instead:– Key Sectors– Innovation– Trade– Inward investment

With sub-national delivery

mechanisms?

So – what do we know 1?• ROLE

– “Provide the strategic leadership in their areas to set out local priorities”

– “Create the right environment for business and growth”

– Tackle issues such as:• Planning and housing• Transport & infrastructure• Employment & enterprise

So – what do we know 2?• GOVERNANCE

– Normally equal representation of:

• Business• Civic leaders

– Normally Business chair– But scope for variation

So – what do we know 3?• SIZE & COVERAGE

– Generally – smaller than the English regions, but regional focus acceptable

– Generally – more than one upper tier authority

– Generally – linked to functional economic areas

– No presumption of 100% coverage

– Particular focus on economically vulnerable areas

– But all very loosely defined

So – what do we know 4?• FUNDING

– Likely to be:• No core funding• Bids into funding pots

– Regional Growth Fund already announced:

• £1bn over 2011-12 and 2012-13• Focused on areas where business

employment and growth needs stimulation

• Not new money – likely to be drawn from regeneration, housing, business growth, transport, etc

– And all subject to CSR

Timeline

2010 2011

June: Budget confirms RDAs to be abolished

September: Introduction of Public Bodies Reform Bill

April: Earliest feasible date for winding up RDAs

Summer: Public Bodies Reform Bill could be enacted

June: LEP communication issued

July: White Paper on economic growth

September: Expressions of interest on LEPs due in; enabling legislation introduced if needed

April: Regional Growth Fund becomes available

Tensions & balances 1

More hands on …

Economy still stuttering

Economic stakes are high

Anxiety that can not afford to leave local economies to chance

More hands off …

Localism, localism, localism

Leave it to local businesses and LAs to decide whether they want

LEPs, what they should do and where they should be

Tensions & balances 2

National realities …

RDAs are being abolished

A good bit of the funding will be clawed back by HMT …

… and some RDA functions may not sit well with very local delivery: Aerospace, Composites, Automotive

Local aspiration …

RDAs are being abolished

This is our chance to get RDA funding, staff …

Tensions & balances 3

Functional economic areas …

LEPs will be most effective if they make sense to local businesses

LEPs should be created around functional economic areas (& local authority boundaries do not equate to functional economic areas)

LEPs should not follow local authority boundaries

Administrative boundaries …

Local authority boundaries already exist and already work

LEPs should be created along local authority boundaries

And what about Simplification?

• LSPs• SEPs• Eco Towns• Growth Points• LIPs• ERDF• LESBs• FEMAs• LEAs• EDCs• URCs

So What Matters?• Planning• Housing• Business Support• Innovation• Sector Development• Transport• Employment/ Worklessness• Skills• Culture/ Tourism• Regeneration• Trade• Technology Strands• Finance• R&D

At What Level?

• National• Partnership• Local Authority• Community

And what about Results?

• On the Economy• On Whitehall policy• On Funding• And Lean• And Intended?

Honey, I just….

• Regen SW• Sustainability SW• SW Observatory• Science Parks/

Incubators• SW Brussels Office• Primare• Wave Hub

RDA Role• The One Neutral

Player?• A Quarry for insights

into key issues?• A Focus for reflection

of what might inadvertently be lost?

GO role• Translating the policy position for

partners? (where you want it)

• Facilitating dialogue between partners? (ditto)

• Navigating through a developing policy position?

• Orchestrating partners to enable formulation of LEPs? ???

• Problem solving where LEPs are coming up against barriers? ???

• Negotiating LEPs on behalf of Government? x

Questions & suggestions