In response to today's publication of the Industrial Strategy White
Paper, Localis chief executive, Liam
Booth-Smith, said: “The decision to give England’s
Local Enterprise Partnerships (LEPs) primary control for strategic
economic planning is a disappointing and sub-optimal option for
driving national growth and productivity.
“In March this year our
paper ‘The Making of an
Industrial Strategy: Taking back control locally set out
an immediate and practical roadmap for rebalancing the
post-Brexit economy.
“Our original recommendations, urging radical new powers to
revive moribund local economies in areas covering two-thirds of
England – many of which lack the strength and capacity to deliver
the Government’s Industrial Strategy - were endorsed by the
Conservative Party Manifesto and find a strong echo in today’s
publication.
“However, there must be concerns about LEPs, rather than
councils, gaining the central role in driving local industrial
strategy.
“Put simply LEPs are not the right groups for this task.
Earlier this year Communities and Local Government Secretary
told LEPs to ‘take a good look
at your corporate governance’ – echoing concerns about their
transparency and accountability previously voiced by public
spending watchdogs the National Audit Office and Public Accounts
Committee.
“Another concern is the wide disparity in leadership and powers
between LEP areas. Some LEPs do a very good job, with
excellent people involved on boards and leading them but others
are less well-equipped to leading local industrial strategies
effectively, democratically or accountably.
“There is no reason councils and LEPs can’t work successfully
together. Twenty-three LEPs fit exactly over strategic
authorities – existing combined authority or county council
areas.
“But the risk is that local industrial strategies will be years
in the making. This is time the nation cannot afford when
an area’s ability to respond to the combined economic challenges
posed by Brexit, automation and low-skills levels, depends on the
raw material of human capital.
“To accelerate the process, those areas without devolution deals
- covering more than two-thirds of the country and 36.1 million
people - should receive an ‘industrial compact’ allowing them to
take full and immediate ownership of a suite of economic and
fiscal powers, allowing them to compete globally.”
ENDS
Notes to editors
-
1. On
23 March 2017 Localis issued its
report ‘The Making of an
Industrial Strategy: Taking back control locally’ .
Containing a foreword from Secretary of State for Business,
Energy and Industrial Strategy (BEIS), , the report made the case for
a locally-led industrial strategy, arguing that to turn a
national industrial strategy into local economic renewal,
places and their leaders should be provided the space and
powers by government to lead from the front.
In short places should take control of their local industrial
strategy, with greater influence over the effects of
globalisation in their area and augmented powers to encourage
greater economic prosperity.
-
2. The
Conservative Party Manifesto, and subsequent Government
announcements on industrial strategy have incorporated
Localis’s recommendations, including a common framework for
devolution, the relocation of civil service and cultural
activities.
