Blog written by David Ralph, CEO of the Heart of the South West LEP
The recent administration of Wilko serves as a stark reminder of the ongoing struggles that many businesses face in the midst of the cost of living and cost of doing business crises. It also highlights the post-Covid impact on our places, particularly our towns and high streets.
Against this backdrop, following three reviews spanning four years, the Government has now confirmed that Government funding and sponsorship for LEPs will cease after April 2024. LEP functions will transfer to local democratic institutions, namely upper-tier local authorities. This conversation has been going on too long, but is clearly one of evolution. The letter from Ministers and their supporting guidance points to the continued importance of a partnership approach, with the business voice being front and centre, and to the need for strategic economic planning. It also underlined that there is a responsibility to manage any legacy funds or assets in an appropriate way, and ensure a smooth and orderly transition of these key functions as well as services like Growth Hubs and Careers Services.
The Heart of the South West is complicated, as the preferred geographies being proposed are split into the wider Devon area (through a Devolution Deal) and Somerset. As a Community Interest Company any HotSW LEP assets are subject to an asset lock, including agreement from the Regulator. Notwithstanding this complexity, the LEP remains supportive of greater devolution, seeking localised powers that would help deliver the opportunities of net zero and tackle the challenges of poor social mobility, as well as driving clean growth..
As well as these core functions, over the past couple of years the LEP has focused on bringing forward particular transformational opportunities set out in our Build Back Better plan. These initiatives have been instrumental in advancing clean and inclusive growth. Focused on digital, energy and high value manufacturing, we have continued to support the Hinkley Point C supply chain, the South West Marine Cluster including the Plymouth and South Devon Freeport and Plymouth Smart Sound, Floating Offshore Wind, the Maritime and Environmental Science Accelerator, and the establishment of both the Great South West and South West Mobility Commission.
I’m convinced that Government expects partners to deliver transition in an orderly and timely manner, aligning service delivery with a coherent economic plan and priorities. I doubt there will be more funding around, and as we are only 12-18 months away from a general election, certainty about future priorities and the longer term outlook on ways of working are still not entirely clear.
The Government announcement does put our democratic institutions in the lead and there is no major issue with that; we all recognise the democratic deficit of the existing arrangements. However, as leaders, we bear responsibility, not only for our staff, but also to the Board Members who have dedicated countless unpaid hours over the past dozen years. Equally, we owe a duty to our region – to champion productivity, and to tackle the challenges and opportunities that continue to face our business community.
