West London Alliance

Leaders Meeting

15th September 2010

Agenda Item 6. West London Local Enterprise Partnership

Summary

  1. This report reviews the current position with regard to Local Enterprise Partnership (LEP) proposals in London and West London. It notes the need to respond to the West London Business proposal for a LEP based on West London. It sets out some key issues and next steps for taking forward the development of a LEP in West London.

Background

  1. The government has invited all English local authorities to submit proposals for the development of Local Enterprise Partnerships (LEPs). Originally London boroughs were not included in this invitation but it is understood, following representations, that a letter from Ministers will invite proposals from London by the end of October 2010.
  1. LEPs will be partnerships between local government, businesses and other relevant partners (e.g. higher education institutions) to carry out local economic development activities, taking over some functions of the Regional Development Agencies. Governance should be through equal representation of civic leaders and businesses with a prominent business leader as chair (but this could be an elected Mayor where they exist). LEPs should have ‘significant economic weight’ and cover ‘real functional economic (not defined) and travel to work areas (TTWA)’ and should comprise groups of upper tier local authorities
  1. Guidance on what LEPs can do is very general. LEPs will provide strategic leadership to set out a clear vision for the economic priorities in their area. Their activities can include tackling issues such as planning and housing, local transport and infrastructure priorities, tourism, employment and enterprise and the transition to a low carbon economy. Supporting small business start up will also be an important function. They will have a key role in the government’s aim to rebalance the economy towards the private sector by creating the right environment for businesses and growth in their area. Further information is likely to emerge in the White Paper on ‘sub-national’ growth due out in the autumn/winter of 2010.
  1. LEPs can bid for the Regional Growth Fund (RGF) themselves and any other bids for RGF in a LEP area would need the endorsement of the LEP. The Regional Growth Fund (£1bn over 2 years starting in 10/11) was announced in the Coalition’s emergency June budget with the objective “to encourage private sector enterprise, including social enterprise, and capacity, and in doing so create opportunities for people and places to adjust to reductions in public spending”. First round bids for the RGF will be submitted by the end of December 2010.
  1. The current position is that there is no government money to support the operation of LEPs – although it they were a successful bidder for RGF it is thought that they may be able to top-slice some for administration.

LEP Proposals in Adjoining Areas

  1. Outside London LEP proposals have to be submitted by the 6th September 2010. It is understood that the Berkshire Unitary Authorities and businesses are proposing a Berkshire LEP and that Surrey County Council and Surrey Economic Partnership are proposing a Surrey LEP (with fuzzy boundaries possibly). In London North London Business and North London Strategic Alliance are leading on LEP covering three boroughs but apparently spreading over two corridors one of which is the A5 which overlaps into the West and Central London sub-regions. The Central London Forward borough partnership is developing a central London LEP based on the central London sub-region. The outcome of discussions that it is understood that Barnet in the north and Spelthorne in the West have had about overlapping LEPs are not known. CLG officials have verbally advised that they would not expect to see overlapping LEP areas and would expect partners to resolve such issues.

GLA-LEP Interface

  1. On 23 July 2010 the Mayor of London, London Councils and the London Assembly submitted a joint letter to Eric Pickles setting out a proposed devolution package for London. On future LDA related arrangements, the Mayor agreed in this letter to support boroughs’ ability to organise LEPs and bid for any available government funding. However, on the 3rd September 2010 boroughs received an email from London Councils informing them that the GLA had verbally said that it was no longer supporting LEPs in London.
  2. The existence of regional governance exerts a limiting factor on the potential of LEPs in London; some possible core LEP responsibilities as indicated by Government (for example: strategic planning and international promotion) would not be applicable to London LEPs as the Mayor intends to retain these responsibilities.
  3. The Mayor also hopes to obtain a strategic (and, if possible, commissioning) role for the GLA in national programmes such as the DWP Single Work Programme and the BIS agenda to support apprenticeships and high growth potential SMEs. A LEP in West London LEP would therefore need to consider carefully the appropriate interface with the Mayor’s programmes.

West London

  1. West London Business (WLB) Chamber Board has proposed to the WLA boroughs that there is a LEP for West London building on the existing West London Partnership model. Bearing in mind the key role given to businesses in the Governments LEP model and the prior relationship with WLB it is important that a considered response is made to this proposal. It makes a ‘do nothing’ option unfeasible.
  1. In any event it would be undesirable not to formulate a LEP proposal which represented West London business and resident interests. A number of reasons can be advance for this –
  • the process of forming a LEP provides a driver to re-energise and re-focus existing public/private partnership arrangements in West London
  • although competition for RGF will be fierce a bid for West London promoted by the LEP should not be ruled out
  • should other bidders for RGF emerge the LEP would provide the means of ensuring alignment with the boroughs and their partners’ priorities
  • LEPs are likely to be a key vehicle for employment and skills and other economic programmes subject to ‘double devolution’ following the folding into the GLA of the LDA.
  • there may well be future programmes coming from Government which will require a LEP to access them
  1. Consideration needs to be given to the geography of the LEP. It is proposed that LEP is based on the West London sub-region. This is because –
  2. It builds on the investment already made in West London in terms of organisations (WLA, WLB and WLN), joint programmes and strategies and the WLP
  3. Within the London context (and accepting there will not be a London LEP) it is of a scale which would correspond to a functional economic area (as opposed to regeneration areas say)
  4. It matches the current spatial and transport planning approaches of the GLA and TfL, in which the boroughs are already engaged
  5. It corresponds to the sub-regional approach being developed between London Councils and the GLA for ‘double devolution’ around employment and skills and potentially business support and also to the likely area of the DWP Work Programme contracts
  6. An alternative multi-LEP approach in West London would require more resources to maintain and may provide a confusing offer to businesses
  7. Overlapping and crossing LEPs are likely to be sent back for further work according to officials at CLG
  8. In proposing a LEP for West London it is necessary to consider what its key characteristics would be.
  • It would have limited or no core funding, relying on existing sub-regional organisations and the resources of their members to provide its basic support (however, if the West London Employment Commissioning Unit business case was agreed then this would be a valuable resource to support a key element of the LEPs likely priorities)
  • It would commission delivery through existing organisations
  • It would be business-led but recognising that the business engagement in West London through WLB needs complementing through drawing into the LEP other major businesses and senior executives, whilst in addition having strengthened links with borough-based business organisations
  • I would have formal, clear agreements and working arrangements with adjoining LEPs (possibly through a MOU) on important priorities of mutual interest – e.g. the Heathrow employment area, A5 corridor and Earls Court/Kensington

Role and Purpose of a West London LEP

  1. While eligibility to bid for RGF will be a key element in the drive to establish LEPs, it should not be considered the sole or primary motivating factor to creating one. As such, the following the West London LEP could have the following simultaneously potential roles to might fulfil:
  2. As a vehicle for focussing West London’s efforts on business growth, investment and development
  3. As the strategic vehicle for employment, skills and worklessness programmes and activity (essentially forming the ‘advisory board’ for the West London Employment Commissioning Unit should that proposal be agreed)
  4. As the forum for formulating West London policy and responses to Government and Mayoral strategy and programme development
  5. As the forum for inputting to, influencing and shaping transport strategy and planning in West London (in the context of the Mayor’s sub-regional transport plan and other Department transport planning)
  6. As a means of sponsoring and developing practical programmes to promote business growth, innovative businesses, employment and skills projects and programmes including the apprenticeships.
  7. As a vehicle for bidding for and marshalling funds including from the new Regional Growth Fund

LEP Priorities

  1. A submission to Government will require us to set out the vision, role and purpose and priorities for a West London LEP. This will also be a valuable opportunity to confirm that a LEP could really provide added value in West London. It is proposed to use the West London Economic Assessment as an underpinning for the development of the LEP proposal as well as the previous agreements about strategy and priorities. However, these will need to be framed in the context of the new and emerging Government policy context and the changed economic fortunes of the economy. A small working group of stakeholders in a West London LEP proposal should undertake the drafting for wider stakeholder consideration.

Statement of Intent

  1. In view of the letter from Ministers regarding LEPs in London and the extended deadline not being receive by the national date for submissions of the 6th September 2010 a letter was sent to BIS/CLG by that date stating the current position in West London and the intention to work together to develop a LEP proposal (without prejudice to what that proposal may look like).

Next Steps

  1. Chief Executives are asked to review the above analysis and indicate how they wish to respond to the WLB proposal and their views on developing a West London LEP as set out above.
  1. The position of the GLA and the Government response to that requires clarification
  1. In preparation for a decision by CEs on the LEP on 14th September and (subject to that being positive) following on from the meeting the actions for the WLA Director and borough economic development/regeneration directors/officers are to:
  • develop a five or six page proposal for submission to the Government which has clear business support and which includes the vision, role and purpose and priorities for a LEP
  • meet with WLB to develop the proposal in the light of their approach to the WLA
  • agree the actions necessary to enhance business engagement in the proposed LEP (recognising this does not need to be in place at the point of putting the initial proposal into Government)
  • Update report to Leaders on 15th September 2010