Funds warning to Minister on enterprise partnerships

Business Minister Mark Prisk announced the money yesterday as he addressed business leaders in Sheffield and said the Government was “moving up a gear” in its drive to get the economy growing across the country.

But with all 33 of the English partnerships – which bring together businesses and councils to create jobs – being invited to bid for funding for start-up costs such as office equipment and training, they will be left with an average of £150,000 each.

The chairman of the Sheffield City Region Local Enterprise Partnership (LEP), James Newman, welcomed the announcement but said it “probably isn’t quite enough”. He is lobbying to ensure that bigger partnerships like Sheffield – which covers eight council areas – and Leeds City Region get a bigger slice of the money.

“I’ve been making the point to Ministers that the large metropolitan LEPs like Sheffield, Leeds, Manchester and Birmingham are quite different propositions to run than one which may just have a couple of county local authorities to put together,” he said. “If the money is just doled out evenly I think that would be quite wrong.”

He also warned the bidding process would simply take more time and resources, but said yesterday’s business forum at which Mr Prisk spoke had been positive.

The partnerships, led by boards of business leaders and councillors, and a £1.4bn Regional Growth Fund are the centre of Government plans to boost economies outside the South-East.

The three in Yorkshire, which also includes one covering York and North Yorkshire, recently agreed a deal to co-operate on issues which are of importance across Yorkshire, easing fears they would be fighting each other to the detriment of the region. The offer of funding – on top of £4m over four years from a “capacity fund” to identify key issues and draw up action plans – was also a response to criticism they would lack the teeth to make a difference.

Mr Prisk said: “Today we are moving up a gear in promoting local growth. Over the last 10 months, business and civic leaders have risen to the challenge and we now have 33 partnerships in place covering 92 per cent of all businesses in England.

“The package of support opportunities I’ve announced today will help partnerships to translate their ideas and ambition into real action to help businesses in their areas and to unlock growth.”

Skipton and Ripon MP Julian Smith said: “I’m pleased with the announcement that there will be money to help fund LEP set-up costs but I will be continuing to represent the LEPs in Yorkshire to ensure that when Yorkshire Forward’s assets are disposed of the region gets as many of them and as much funding as possible.”

He is lobbying Ministers to let the region’s three LEPs to keep rent from the current Yorkshire Forward headquarters when the agency is abolished and it is rented out to new tenants. The building will be handed over to the Government, but the partnerships are keen to pocket the rent to give them an income stream to fund other job-creation work.