Uncertainty over Local Enterprise Partnership role (From Salisbury Journal)

Uncertainty over Local Enterprise Partnership role

9:36am Thursday 16th September 2010 in Business By Katharine Lawley

SEVENTY per cent of firms surveyed by business services company GWE Business West are unsure what is to replace Regional Development Agencies when they are abolished by spring 2012.

Most businesses do not know what the new Local Enterprise Partnerships are, what their functions will be, or what areas they will cover.

The response from the business community suggests that while it is early days in the development of the partnerships, the message about their promoting economic development and removing barriers to private sector jobs growth is not getting through to the businesses themselves.

Business News reported last month that the Federation of Small Businesses in Wiltshire and Somerset welcomes LEPs, saying they will support the development of businesses and bid for schemes which will promote economic growth.

Earlier this month, manufacturers’ organisation EEF – while welcoming the greater involvement of businesses has called for assurance LEPs will have “clearly defined objectives.”

In GWE’s survey, firms were asked about the main barriers to business growth.

Fifty-one per cent cited access to finance and excessive bureaucracy, while 19 per cent identified a lack of skills, transport, availability of employment land and affordable housing.

Other issues mentioned were the planning system, employment law and business rates, as well as the general state of the economy.

Phil Smith, managing director of GWE Business West, said: “What business wants to see is action.

“It is all very well talking about abolishing Regional Development Agencies and replacing them with Local Enterprise Partnerships, but what does this actually mean for the way we do business and operate at the moment?

“Will these partnerships bring about change and make it easier for businesses to grow and prosper?

“To do this, LEPs will need to address the key issues important to business and have the power and resources needed to take action.”

* The chairman of the South West RDA has said the involvement of businesses in LEPS is vital.

Sir Harry Studholme appeared last week with other RDA leaders before a government select committee to discuss the challenges for LEPs, which will be made up of local authorities and businesses.

These include responsibility for inward investment and how the groups will be funded, run and staffed.

Sir Harry said: “This was an important and welcome opportunity to outline to MPs a number of challenges which are going to be critical in the transition to a different way of structuring economic development.”