Everyone's talking about what areas LEPs should cover, and the lack of funding. We need more discussion about their powers. We think transport and housing are the key issues for LEPs.

 

To create the 2 million private sector jobs the OBR forecasts will be produced over the next few years will require effective collaboration between cities and their hinterlands. 

   

I've joined the Centre this month from Rocket Science, an economic consultancy.  My former colleagues are this week publishing the results of a survey of local authorities’ thoughts and progress on LEPs.  It  raises a number of important points that go to the heart of what 's important in driving economic performance of a place, and is a fascinating insight into the minds of the people who are spending this summer deciding which LEP to be in and what powers they should ask government for.

 

Nearly two thirds of the respondents strongly agreed that inward investment, employment support and enterprise support should be the main areas of focus for LEPs.  Only a third strongly agreed that planning and transport should be top of the list.  I'm surprised at this!! 

 

The Centre’s research on private sector jobs suggests that these priorities maybe out of kilter with the real drivers and constraints of economic growth. Improving transport and housing and being supportive of new development are more effective ways of growing a city’s economy than attempts to chase the latest flavour of the month idea, be it creative, biotech, sports, digital or renewable.  The Centre’s private sector jobs report highlighted that buoyant cities are often constrained from creating more jobs because of the planning and transport systems and the way these are configured, particularly across administrative boundaries.

 

That's not to sat that enterprise support and inward investment policies are not important – more that their significance to the future economic performance of cities will be marginal.  Both of these policies, which were previously largely delivered via the RDAs, have a mixed record and are unlikely to really change the fundamentals of a city’s economic prospects.

 

To hit OBR’s jobs number forecast LEPs need to be bold and make the case for having control over big new powers.  Step 1 in the our 6 step plan for LEPs sets out the powers that we think LEPs should be granted: 

  • Power to develop a transport strategy for the area, identifying local investment priorities. Also the power to introduce congestion charging.
  • A pooled skills budget, with powers to oversee skills funding allocation decisions, setting priorities for 16-19 and adult skills, and with skills commissioning powers.
  • Powers to aid co-operation over housing and planning decisions and, if desired, the ability to develop a binding housing strategy and spatial plan.
  • Real financial powers, including a greater ability to borrow to fund new investment and the ability to levy a sub-regional business rate supplement.
  • Bodies like Employment and Skills Boards and Integrated Transport Authorities should be integrated into LEPs. Some local authority departments, like planning and transport, could also be merged into an LEP. This would result in cost savings.
The fundamentals of economic growth remain planning, transport, housing and skills. Getting these right is the challenge for LEPs.