LEPs vow to work together to attract funding

However, delegates at a major networking event were warned that significant public sector job cuts were inevitable, and the days when businesses could apply for a vast range of Government grants were gone forever.

The comments were made at the Big Debate, which was part of Venturefest, an event held at York Racecourse to highlight the strength of Yorkshire’s technology sector.

Three LEPs – covering Leeds, Sheffield, York and North Yorkshire – are being established by leaders of the public and private sectors to devise strategies to help Yorkshire’s economy grow following the announcement that the regional development agency, Yorkshire Forward, is being axed as part of the coalition Government’s spending cuts.

During the debate, Carl Hopkins – the Calderdale-based businessman who is a member of Business Secretary Vince Cable’s Entrepreneurs’ Forum – warned that the influence of the Yorkshire brand could be lost with the decision to scrap Yorkshire Forward.

He was also concerned that many initiatives that supported young people and start-up businesses were being “canned and closed”.

Mr Hopkins said he didn’t want the LEPs to focus exclusively on the major cities, adding: “Not everybody is Leeds-centric. These little places will think, ‘Will it represent me as well?’ ’’

He was worried that “unsexy” sectors could lose out unless steps were taken to include a wide range of businesses in the LEPs.

However, Kersten England, the chief executive of York City Council, said the LEPs would collaborate to ensure growth was achieved by Yorkshire businesses in a range of sectors, including healthcare, adding: “Economies don’t observe administrative boundaries.”

Gary Lumby, Yorkshire Bank’s director of small business banking, said: “We have still got some strong brands under the Yorkshire umbrella, such as Welcome to Yorkshire and Finance Yorkshire,”

Andrew Palmer, the Confederation of British Industry (CBI), regional director, said: “We mustn’t fragment the region. We should play our cards to get a net win.”

James Newman, the chairman of the Sheffield City Region LEP, said: “Our job is to create the right environment so the public and the private sector can work together to encourage industry to grow.”

He said a lot of public sector staff would be made redundant and need retraining, and, the LEPs could influence Government policy at a time when public money needed to be used intelligently. He added: “The grant culture has gone forever.”

John Walker, the national chairman of the Federation of Small Businesses, told the members of the new LEP boards; “Please have practical ideas rather than strategic planning jargon. A lot of people being made redundant may want to set up in business themselves instead of being on the dole.”

He said there would be more “enforced self-employment” with members of the armed forces also likely to lose their jobs soon.

Barry Dodd, the group chairman of the GSM Group, called on the York and North Yorkshire LEP, which is looking for board members, to act as a champion for rural businesses.

Venturefest, which was first held in 2004, attracted 1,600 delegates, compared with 2,000 last year. The event is 80 per cent funded by the private sector, including contributions from Lord Sainsbury and local businesses.

Tony Hardy, the Venturefest chairman, said Lord Sainsbury had offered “very solid support” for a number of years.

“People say it’s challenging from an entrepreneurial point of view at the moment, but the trick is to turn a challenge into an opportunity,’’ he said.

Those exhibiting included Dr Eileen McMorrow and Dr Sam Hoste, the joint founders of This Little Piggy Innovations, a York-based enterprise that helps small businesses gain access to major contracts.

Dr Hoste said businesses would find new ways of accessing finance in response to the public sector spending cuts.