Member Article

Region awaits full force of LEPs

In October 2010, the Government set out proposals for the introduction of Local Enterprise Partnerships (LEP), which were created in a bid to “realise every place’s potential”. However, their role in the economic revival of the region and the UK has come under immense criticism from business leaders and politicians alike, with many believing that they are unable to fulfill their mission statement.

Furthermore, many individuals still struggle to understand exactly what these bodies will do when their structure is finalised - so are they a replacement for Regional Development Agencies, a Council spin-off or something different all together?

In the North East there are two Local Enterprise Partnerships - Tees Valley Unlimited, and the North Eastern Local Enterprise Partnership. The former is well established in the south of the region, and their statement of ambition promises to ‘drive the transition to a high value, low carbon economy’, and ‘create a more diversified and inclusive economy’. The latter is still relatively embryonic, but both could add real value to the region if they are correctly implemented

Paul Woolston, chief executive of the North Eastern LEP explained more about his plans to build on two of the region’s strength areas, offshore and renewable engineering and electric vehicles.

“The early priorities we are working on are the enterprise zones around the North of the Tyne and at the Nissan site. We are also looking to extend the enterprise zone around the Blyth estuary, where we are trying to create jobs to offset the Alcan closure.”

While the LEP will not directly create jobs, Mr Woolston hopes to create cohesion to foster a positive growth culture within the region.

“Alot of support already goes on, but by pulling together with what already exists along with some support from Government, we will be able to coordinate it strategically through our partners.”

Indeed, this idea of coordinated working practices was echoed by Stephen Catchpole, chief executive of Tees Valley Unlimited, who was keen to stress the important role LEPs will play on both a regional and a national stage.

“The primary task of LEPs is to understand their own local economy and drive it forward to achieve growth.” He explained.

“However, each local economy has certain attributes which are different , but when you get beyond that into a bigger picture you have to coordinate with your neighbours, and then make a contribution to the national economy.”

Both individuals spoke confidently about their plans, and while they have supported businesses in the region trough a number of successful bids for Regional Growth Funding, the lack of visible evidence of action is a concern for many individuals in the region.

Nonetheless, Paul Watson, Leader of Sunderland Council believes that the region should accept the new regime, despite its current invisibility.

He commented: “This is what has been offered, so we will support and use them to benefit the region.

“There is going to be some confusion when a group if people get together, but I believe they have already done some fantastic work.

“I’m confident that they will use everything in their toolbox in order to work for the area which they serve.”

Despite supporting the idea of cohesion Cllr Watson also noted that a degree of self-sufficiency would also be required by other interested parties, as a lack of resources would make it impossible for LEPs to do everything themselves.

“The LEPs are sort of the interface between Government, Local Authorities and business. They are in effect, the Government’s baby.

“However, it is important that business and Local Authority learn to do some things for themselves.”

This idea, especially for small businesses who are struggling in the economic climate, is easier said than done. One Bdaily reader expressed concerns that the ‘self help’ proposition offered as an alternative support mechanism is impractical and of little value. Another was concerned that the lack of momentum behind the project means businesses in the region are losing interest.

James McRoy, a strategic consultant from Glass Frog Digital Marketing believes that the LEPs now need to start listening to businesses, rather than creating proscriptive solutions which could force them down the wrong path.

He commented: “Meetings with business group representatives on an informal, consultative basis, or even having business specialists on board as an ad hoc arrangement could resolve many issues.

2012 could be the year that the presence of the LEPs is truly felt, and businesspeople across the region now wait with great anticipation to see exactly how their plans will unfold. These organisations have been presented with an opportunity to determine the economic future of the region and the UK and now need to start making an impact - sooner, rather than later.

This was posted in Bdaily's Members' News section by Ruth Mitchell .