Local Enterprise Partnerships

An open letter from Cheshire and Warrington Enterprise Commission to local businesses.

I am sure that by now you will be aware that the new coalition government has confirmed that the Regional Development Agencies will no longer operate after March 2012, but that local authorities and businesses are invited to come together to bid for the opportunity to establish Local Enterprise Partnerships (LEPs).

The purpose of this letter is to update you on the roles that LEPs might perform and the approach being taken in Cheshire and Warrington.

Although there is still some uncertainty of the specific functions that LEPs can undertake, and this will not become totally clear until the White Paper is published in the autumn, recent communications from Whitehall provide reasonable clarity on their principal functions.

LEPs will need to be a genuine partnership between the private and public sectors with partnership boards having equal representation, but significantly, the Chair coming from the private sector.  The area covered by LEPs should reflect ‘functional economic areas’ – there is a feeling in some quarters that regions do not represent an appropriate geography.

Government now believes that some of the functions performed by RDAs are best led nationally.  These include: inward investment, sector leadership, business support, innovation and access to finance. In addition other RDA functions such as the production of Regional Strategies will be dropped.

LEPs will be required to provide strategic leadership, establish local economic priorities and create the right environment for business and growth, by tackling issues such as planning, housing, local transport and infrastructure priorities. Employment, enterprise, business start ups, and the transition to a low carbon economy will also fall within the remit of LEPs. The partnerships will need to work with the higher and further education sectors and the Chambers of Commerce given their importance to local economies.

Although project funding to support LEP priorities has yet to be announced, indications have been given that a national Regional Growth Fund of £1 billion over a two year period could be established.

I believe the introduction of LEPs is a great opportunity for the Cheshire and Warrington economy and for its businesses. This sub-region already out-performs all other sub-regions in northwest England and so offers government high rates of return in both jobs and GVA for public investment.

I am delighted to confirm that the three local authorities (Cheshire West and Chester, Cheshire East and Warrington Borough Council) will be working with the private sector to submit a submission for LEP status by the 6th September deadline and that the Enterprise Commission is to be positioned as the sub-region’s Local Enterprise Partnership.

I will be sending further updates on our bid between now and the submission date.

If you would like to become involved in the consultation process or if you would like any further information on Local Enterprise Partnerships or the current work of the Enterprise Commission then please contact me.

Yours sincerely

Aidan Manley
Managing Director, Cheshire and Warrington Enterprise Commission
T: 01606 734181
E: Email Aidan here