LEPs secure vital state funds

Ministers announced yesterday that LEPs will receive up to £250,000-a-year in match-funding towards key administrative costs, in an effort to make them more effective in driving growth.

LEPs are business-led bodies set up by the Coalition to replace the now-defunct regional development agencies such as Yorkshire Forward.

Since their establishment in 2010, there have been persistent complaints that they lack the core funding to be truly effective, leaving them heavily reliant on over-stretched local authority staff.

Business Secretary Vince Cable told the Yorkshire Post last month that he accepted the criticism and an agreement had been reached with his colleagues in the Department for Communities and Local Government to offer financial support to the LEPs.

That plan was confirmed yesterday in a written statement from the Department for Business and Innovation.

Business and Enterprise Minister Michael Fallon, said: “It is crucial we arm Local Enterprise Partnerships with the tools and resources they need to play a prominent role in delivering growth and jobs for their communities. “This funding will help LEPs plan for the long term and ensure they can remain locally-led instead of dependent on central government support.

“We need to ensure LEPs remain voluntary business and civic partnerships so they are in the best possible position to deliver sustainable growth and job creation in their areas.

“Already we are seeing LEPs across England delivering innovative schemes in their communities. This financial support will help the partnerships to continue this work.”

Each LEP will be able to bid for up to £250,000 in core funding in each of the next two financial years, subject to them securing match funding locally, with an immediate payment of £125,000 to cover costs for the remainder of this financial year.

The figure matches the amount requested by the LEP Network in representations to the Government over recent months.

Local Growth Minister Mark Prisk said: “Today’s £25 million boost will give Local Enterprise Partnerships the financial stability they need going forward, to build on their early successes and tailor the support they offer to local needs.

“If matched by local support, this could mean that up to £45 million will be available to help LEPs turn their plans into jobs and growth.”

The decision has been warmly welcomed by LEPs across Yorkshire and around the UK, with business leaders confident the relatively small amount of funding would make a significant difference to their operations.

James Newman, chairman of Sheffield City Region LEP said the announcement was “good news” for the city region’s economic prospects.

“Although this is only a relatively small amount, this funding will give our LEP the resources it needs to develop its strategy based on high economic growth and job creation,” he said. “Through effective private-public sector collaboration, this LEP has achieved a lot so far with a very limited number of people.

“These new funds will give the LEP’s long term projects the resources they need.”

Mr Newman said it was important the Government now proceeds with its plan swiftly.

“Now the Coalition has acknowledged the need for this support, I hope they release the funds without too much delay so we can concentrate our efforts on stimulating economic growth,” he said.

Neil McLean, chairman of Leeds City Region LEP said: “Today’s announcement is excellent news and an important signal of Government’s commitment to the success of LEPs.

“I am delighted Ministers have listened to the messages they have received from LEP Chairs on this - a relatively small amount of additional funding will go a long way, empowering us to take forward work to drive growth and jobs at local level.”

Lord Haskins, chairman of the Humber LEP, said: “The funding is welcome and something we have called for. As with most LEPs, our modest resources to date have limited what we can do.

“This additional funding will enable us to increase our capacity to support the LEP’s key priorities.”