Business stakes claim for enterprise role

Business groups have staked their claim for a role in the Government's plans for its Local Enterprise Partnerships (LEPs).

The British Chambers of Commerce (BCC) appeared in front of the Business, Innovation and Skills (BIS) Select Committee to demonstrate the role it says it can play in the implementation of the schemes, which are designed to replace the axed Regional Development Agencies.

BCC director of policy Dr Adam Marshall gave evidence on the coalition's plans after the Government received more than 50 bid proposals from various stakeholders last week, who hope to establish LEPs.

Speaking ahead of the session, Dr Marshall said that LEPs "must be transformative", adding that they need "an innovative and clear vision for local economic change, driven jointly by private and public sector actors".

He also warned against them becoming "a new vehicle for 'business as usual', either as consultative talking-shops or day-to-day delivery bodies". Were this to happen, Dr Marshall said, LEPs would fail in what he characterised as the "fundamental shift toward private sector-led growth" which he said was essential across the country.

And the BCC is not the only group advancing plans that fundamentally challenge the status-quo.

Last week, the Federation of Small Business (FSB) voiced concerns that business engagement to date has not reflected the Government's call that companies be fully involved in developing the proposals. The group, which said that small and micro businesses are the "drivers of the local economy", challenged the Government to 'stand firm' on giving the green light to proposals which do not demonstrate sufficient business involvement.

Meanwhile, the Forum of Private Business has warned that training and business support should stand at the core of LEPs.

Bid proposals revealed

In the wake of the warnings from the business world, it emerged this week that a number of the bids came from the private sector or councils or a mixture of the two, with some conflicting private and public sector bids also on the list.

The result of the chosen LEPs is said to give a clear indication on exactly where the new Government sits on the ideas of regeneration, inward investment and development and who should handle them - the private or the public sector.

Meanwhile, the publication of the white paper on sub-national economic growth and the Localism Bill are planned to be published in the autumn. The legislation also is also set to map out the process for the introduction of elected mayors in the 12 largest regional cities and how their leadership will fit with the LEP framework.

Local Government Secretary Eric Pickles said: "These partnership proposals are just the beginning of a new radical way of delivering prosperity and rebalancing the economy.

"The bureaucracy of RDAs gave local authorities little reason to engage creatively with economic issues; LEPs are a way of tying council and business interests together, and creating the conditions for business to thrive and prosper."

IMAGE AP Photo/Alastair Grant

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