Local Enterprise Partnerships: Cathy Francis Deputy Director Local Growth & Regeneration: Implementation 12 July 2011

Economic growth is at the core of our purpose and operations Ministers are leading a radical reform of policies to stimulate and support private sector growth at the national and local level. 1. We are creating the right environment for business to invest and grow. 2. We are introducing powerful new incentives to make communities and councils active agents of growth. 3. We are providing new opportunities for places to stimulate investment. 4. We are taking direct action to support growth:

Where do local enterprise partnerships fit? Joint DCLG\BIS policy…. Not Mandatory Key vehicle for delivering economic growth Expected to take strategic lead in local economic growth Local partnerships for local people……. Coalition Programme - we will support the creation of Local Enterprise Partnerships – joint local authority-business bodies brought forward by local authorities themselves to promote local economic development – to replace RDAs…

Where are we today…. 36 partnerships now in place- covering approx. 97% of England’s population, business and employees Private sector is engaged, both on a Board level and through trade associations and representative groups (FSB, BCC, CBI etc) Pace, momentum and innovation are being demonstrated in Board creation, putting business plans in place and developing RGF\EZ bids

A new environment to regeneration and growth Previous models of regeneration are now unaffordable - need a more innovative approach Government role is to be strategic and supportive i) Reforming and decentralising public services ii) Removing barriers that hinder local ambitions iii) Providing powerful incentives iv) Providing targeted investment and reform Simplified planning system Local Enterprise Partnerships are well placed to use offer to create conditions for growth and address strategic growth challenges

New incentives and opportunities Incentives are a vital part of the new approach to regeneration: New Homes Bonus – extra £200m in LG funding settlement /LAs incentivised to deliver housing and bring it back into use. Development Incentive (CIL) – over £1bn pa by 2016 from development with a meaningful proportion going to neighbourhoods. Commitment to Tax Increment Financing – up front borrowing to finance capital investment linked to increased business rate income Local Government Resource Review considering allowing local authorities to retain business rates.

New incentives and opportunities (2) Regional Growth Fund - £1.4bn to create new jobs and in areas with public sector reliance Asset management – making best use of the £380bn public sector assets to support growth Localism Bill - General Power of Competence for local authorities and duty to co-operate

New opportunities: Enterprise Zones Local Enterprise Partnerships have the key role in the 21 Enterprise Zones proposed First round 11: Birmingham, Leeds, Sheffield, Liverpool, Manchester, West of England, Tees Valley, North East, Black Country, and Nottinghamshire and Derbyshire. Second round competition for other 10 launched- 30 bids received with announcement this summer The offer: i)100% business rate discount- worth up to £275,000 over 5yr period ii) Retention of all business rates growth for at least 25 years- can be used across partnership area to support economic priorities. iii) simplified planning approach iv) rollout of super-fast broadband Lessons learned from the 1980’s- focus on areas of real opportunity. Bids keen to use growth to address social and economic issues across wider area.

New approach: strategic planning Government is committed to strategic, cross boundary planning But effective strategic planning must be flexible Government will not prescribe how to do it - it is for local planning authorities to decide when and how to work together Rather than setting rules the Government will remove barriers and provide tools to facilitate

Strategic planning – potential role for partnerships Providing a powerful voice of business in planning system Leading the production of strategic plans that identify and align strategic economic priorities and guide infrastructure delivery Providing a strong business role facilitating key infrastructure investment Producing evidence/technical assessments to inform decision-making Facilitating decision making on strategic planning

New approaches: role of strategic housing Homes and Community Agency will work closely with local authorities/partners to deliver their aspirations Partnerships could play an important strategic role…. Co-ordinating activities across local authority boundaries – linking housing needs to planning for economic growth Strong advocates for housing on behalf of business

What does this all add up to ? What funding, powers & responsibilities do partnerships need to support their growth and regeneration ambitions ? Local Enterprise Partnership Enterprise Zone Capital Assets, inc public sector Transport Budgets CIL TIFs NHB RGF/ ERDF Funding Legacy Business rates retention What you prioritise

Focus for partnerships: the right environment for growth? Is housing a barrier to achieving more local growth? i)is supply lagging behind growth or potential growth ii)is your local housing offer good enough to attract skilled people? Is the physical environment in your locality right for business growth? i)are there local assets that could work better for your area? ii)are there liabilities that are holding your place back? Are there cross-boundary strategic planning or infrastructure issues that are affecting your areas growth potential?

What next for local enterprise partnerships Support emerging partnerships to review / firm up proposals Maintain momentum with new partnerships- dialogue on policy asks including funding, assets and liabilities. Consider opportunities to support nationally led functions Work towards longer term opportunities for local enterprise partnerships (e.g. transport funding) Moving to a bottom-up approach is challenging - calls for greater clarity of purpose and financial assistance. Key challenge facing partnerships now is to actions that will unlock growth.

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