'Get your act together' call on the Humber

THE Humber risks "falling behind" and councils and businesses have been told to "get their act together" after rival bids to set up new economic partnerships were both dismissed by the Government.

Business Secretary Vince Cable sent the plans back because of a "strong division of opinion" over whether there should be a single Local Enterprise Partnership covering the north and south banks or two separate ones.

He warned it meant the area risked losing out on money from the 1.4bn regional growth fund as Hull – whose fragile economy is already vulnerable to hundreds of job losses as public spending is cut – is the region's only major city without an economic partnership, promoted by the coalition to boost local economies.

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But his comments sparked a furious response from Hull City Council leader – and fellow Liberal Democrat – Carl Minns who revealed the Government had failed to explain why the north bank bid was turned down. He and said yesterday's White Paper made clear the partnerships would get no special treatment in bidding for the money.

"Despite the White Paper saying we've already had written feedback we're yet to receive it," said Mr Minns. "That's not a good or productive way for a Government that believes in localism to behave."

While Hull, East Riding and Scarborough Councils teamed up to submit the North Bank bid to ministers, businesses have backed a rival bid for a cross-Humber partnership.

Yesterday Mr Cable said both bids had positive aspects and warned: "It's for local communities to get their act together. Those that have will succeed, those that don't will fall behind."

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He urged councils and business leaders to unite behind a single plan but said they must act "quickly" if they want to take part in the first round of bidding for money from the 1.4bn regional growth fund with its January deadline.

Mr Cable also said it was a "pity" North East Lincolnshire and North Lincolnshire councils had not joined a Lincolnshire partnership which was among those given approved yesterday.

In a joint statement, the leaders of Hull, Scarborough and East Riding councils said: "We are pleased that the Government has committed its ministers and officials to intensive discussions to ensure that this area is best placed to make the most of its opportunities.

"The Government acknowledged the hard work we put in to meet the nine-week deadline for the submission and we now look forward to showing ministers how a North Bank LEP can work to a common economic purpose and how we can work with the rest of the Humber outside of the LEP."

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They added: "The Government has made it clear that as an area not in an LEP we still have equal access to bid from the regional growth fund."

Richard Kendall, policy director of Hull and Humber Chambers of Commerce, said: "Vince Cable said he would consider new or revised applications at any time, so the important thing now is that business and the local authorities meet to find a solution that works for everyone. Some areas have a head start on us, but we can still come forward with a strong and effective LEP that is capable of helping businesses drive growth in our economy."

County-wide body idea backed

Vince Cable has backed business leaders who want to set up a Yorkshire-wide organisation to work alongside the new Local Enterprise Partnerships.

The Business Secretary said the pan-Yorkshire body was "exactly the way to make LEPs operational and effective" after being quizzed by Skipton and Ripon Conservative MP Julian Smith.

Senior business leaders want to form the community interest company to ensure there is region-wide co-operation on key issues so Yorkshire's voice is heard.

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