Enterprise hubs ‘key to boosting regional growth’

Party members yesterday agreed a tranche of new policies designed to support parts of the country where the economy is struggling.

The party’s new “sustainable growth” programme calls for City Deal-style devolution packages for partnerships of district and county councils so councils in shire areas can enjoy similar new powers to those recently handed to the Leeds and Sheffield city regions.

It also calls for local enterprise partnerships – the business-led bodies set up to replace regional development agencies – to be given a portion of the Government’s regional growth fund which they could then allocate themselves to firms locally which are looking to expand.

The policy criticises both Conservative free-market approaches to fostering growth in the regions and traditional Labour support for public sector jobs – suggesting a “third way” is required to boost struggling parts of the country.

“Many regions are far from vibrant, do not feel in control of their own destiny and offer limited opportunities,” the policy paper states. “Market failures mean that free market economic policies often bypass such areas; and centralist interventions, like creating public sector jobs, often prove unsustainable.

“Our proposals are based on the belief that local areas, working through people, institutions and local government, need sufficient freedom, resources and support to build robust and sustainable local economies.”

The package of measures would empower local authorities through further City Deals and also by permitting them to keep hold of business rates locally.

It promises to pioneer new small business zones to “provide a space where new businesses, co-ops and social enterprises are encouraged”, and set up new enterprise hubs to “improve the success rate of business start-ups”.

It also calls for a UK investment bank to get major schemes off the ground and a strengthening of the Green Investment Bank to support renewable energy sectors such as offshore wind and carbon capture.

The chairman of the Lib Dem policy working group, Duncan Hames, said: “As we rebuild our economy it is crucial that green jobs and industry are at the heart of our recovery. Britain has the opportunity to be a world leader in clean, renewable technologies. Going green is good for business, good for consumers and good for the economy. Liberal Democrats want future generations to inherit a prosperous economy that is fair, sustainable and where every individual has a stake in society.”