Welcome to North Devon Steve Pitcher Chief Executive North Devon +

Introduction Councillor Will Mumford Portfolio Holder for Economic Regeneration & Strategic Planning Devon County Council

Devon & Cornwall Business Council Business Perspective Tom Jones Chairman

Economic Development Policy: Where we are? Pippa Ferguson Government Office for the South West 16 August 2010

What does LEP stand for? A.Lancashire Evening Post B.Large Electron Positron (Collider) C.Local Enterprise Partnership D.London Energy Partnership

What does LEP stand for? A.Lancashire Evening Post B.Large Electron Positron (Collider) C.Local Enterprise Partnership D.London Energy Partnership

Context – the changing landscape RDAs/ GOs Centralism Big Government Localism LEPs

But it’s not that straightforward RDA abolition is not just about “going local” Some things may be for “national leadership” instead: –Key Sectors –Innovation –Trade –Inward investment With sub- national delivery mechanisms ?

So – what do we know 1? ROLE for LEPs –“Provide the strategic leadership in their areas to set out local priorities” –“Create the right environment for business and growth” –Tackle issues such as: Planning and housing Transport & infrastructure Employment & enterprise

So – what do we know 2? GOVERNANCE –Normally equal representation of: Business Civic leaders –Normally Business chair –But scope for variation

So – what do we know 3? SIZE & COVERAGE –Generally – smaller than the English regions, but regional focus acceptable –Generally – more than one upper tier authority –Generally – linked to functional economic areas –No presumption of 100% coverage –Particular focus on economically vulnerable areas –But all very loosely defined

So – what do we know 4? FUNDING –Likely to be: No core funding Bids into funding pots –Regional Growth Fund already announced: £1bn over and Focused on areas where business employment and growth needs stimulation Not new money – likely to be drawn from regeneration, housing, business growth, transport, etc –Anything else subject to CSR

Back to the Future? Regional Growth Fund Key focus: –Private sector driving of growth and jobs –Areas and communities dependent on public sector £1Bn over 2 years Formula (e.g to LEPs) and or Bid Funding and/ or Loans and Investment National Evaluation 2 Traches: –Ist Bidding by end of year, decisions to allow spend from April Consultation to 6 September –5 Questions –8 Criteria

Timeline June: Budget confirms RDAs to be abolished September: Introduction of Public Bodies Reform Bill April: Earliest feasible date for winding up RDAs Summer: Public Bodies Reform Bill could be enacted June: LEP communication issued Oct?: White Paper on economic growth September: Expressions of interest on LEPs due in; enabling legislation introduced if needed. Plus consultation responses on Growth Fund April: Regional Growth Fund becomes available End Year: First Tranche Bids submitted

Tensions & balances 1 More hands on … Economy still stuttering  Economic stakes are high  Anxiety that can not afford to leave local economies to chance More hands off … Localism, localism, localism  Leave it to local businesses and Local Authorities to decide whether they want LEPs, what they should do and where they should be

Tensions & balances 2 National realities … RDAs are being abolished  A good bit of the funding will be clawed back by HMT … … and some RDA functions may not sit well with very local delivery: Aerospace, Composites, Automotive Local aspiration … RDAs are being abolished  This is our chance to get RDA funding, staff …

Tensions & balances 3 Functional economic areas … LEPs will be most effective if they make sense to local businesses for who administrative boundaries often seem irrelevant  LEPs should be created around functional economic areas (& local authority boundaries do not equate to functional economic areas)  LEPs should not follow local authority boundaries Administrative boundaries … Local authority boundaries already exist and already work for many issues  LEPs should be created along local authority boundaries

And what about Simplification? LSPs SEPs Eco Towns Growth Points LIPs ERDF LESBs FEMAs LEAs EDCs URCs

So What Matters? Planning Housing Business Support Innovation Sector Development Transport Employment/ Worklessness Skills Culture/ Tourism Regeneration Trade Technology Strands Finance R&D

And what about Results? On the Economy On Whitehall policy On Funding And Lean And Intended?

Honey, I just…. Regen SW? Sustainability SW? SW Observatory? Science Parks/ Incubators? Knowledge Networks? SW Brussels Office? Primare? Wave Hub?

RDA Role The One Neutral Player? A Quarry for insights into key issues? A Focus for reflection of what might inadvertently be lost?

Devon and the Peninsula – A Unique Economy Rob Hetherington Chief Economist Devon County Council

Anything but Average National policy deals with national averages –Balances national priorities Regional structures deal with regional averages –Compromises over regional issues

Devon Stands Out Four times more agricultural activity Over one third of employees work part time A quarter of all business below the VAT threshold One third less employment in the finance sector Twice as many tourism businesses One third of all employment is in the public sector

Common Threads Characteristics shared across the peninsula Over 53 thousand commuters Around 10 Million visitors each year Home to almost 50 thousand students HQ functions Broadband connectivity

Productivity Plymouth £36,700

A Growing Population 10 year growth rates – 7.6%; 5.3% UK Over 65 growth rates – 11.8%; 8.9% UK

Standing Together A population of over 1.5 million Around 700 thousand workers £24 Billion output Around 10 Million visitors each year Over 70 thousand businesses 23% of people work in a large company (over 30% nationally) Over 26% work in firm of less than 10 employees (less than 21% nationally) Strong learning and research base

The Peninsula

Peninsula Partnership Ian Harrison Deputy Executive Director of Environment, Economy & Culture Devon County Council

Principles for Partnership Giving business a real influence on strategy Adopting a common strategic approach across the whole area Putting delivery at the lowest possible level (subsidiarity) Avoiding creation of bureaucracy

Partnership Objectives Create the conditions for businesses to prosper Capitalise upon the natural advantages of the area Use our USP to best advantage

Common Needs Improved infrastructure for community (transport, ICT) Over dependence on public sector employment Skilled workforce Affordable housing

Opportunities Shared appetite for growth Track record on science and innovation Low carbon, particularly marine renewables Visitor economy Experience of European funding

Partnership Governance Business led board Local government Higher education Local delivery framework

Questions Consultation – Councillor Will Mumford Portfolio Holder for Economic Regeneration & Strategic Planning Devon County Council

Consultation Questions Which of these functions do you think need tackling at a local level, peninsula level, or national level: Local level Peninsula Level National level Enterprise and business support Employment Skills development Research and analysis Agreeing local growth priorities Sector development Coordinate local funding Inward Investment Marketing and Promotion Planning (development control) Local economic infrastructure (e.g. strategic transport) Housing Broadband access Supporting the marine industries Support for the tourism Industry Transition to low carbon economy Representation at national level

Consultation Questions Do you think it appropriate that Devon County Council works on enterprise partnership issues with our neighbours? Yes, many issues need a wider collaborative approach No, Devon County Council should only tackle issues within Devon No, growth must be driven at a national level Not sure

Consultation Questions Which of the following statements do you agree with? The enterprise partnership should be: A mix of business people and the public sector Democratically accountable through the local authority Limited in its public sector role Only run by the private sector Not sure

Consultation Questions What would you like to see a peninsula enterprise partnership achieve over the next 5 years?

Closing Remarks Councillor Will Mumford Portfolio Holder for Economic Regeneration & Strategic Planning Devon County Council