Local Enterprise Partnerships set in the context of “The Big Society” Warwick Business School Friday 10 th December 10

“Thank You” for inviting me and in advance of your valuable time and engagement re: this ‘important’ agenda. Louise Bennett OBE

Today’s Presentation To brief the Warwick Business School “Business Cluster” on Local Enterprise Partnerships The Coventry Warwickshire Local Enterprise Partnership Set in the context of “The Big Society”! An opportunity for ‘debate’ and ‘discussion around the above…

Local Enterprise Partnerships An ‘invitation’ for Local Authorities and Business Leaders to “come together” to form Local Enterprise Partnerships (LEP) - issued by Cable and Pickles on 29 th June Councils and Business were invited to replace Regional Development Agency’s with proposals for Local Enterprise Partnerships – submissions by 6 th September 10. Coventry and Warwickshire submitted a (business led) LEP proposition and were successful as notified in November 10. …..and now the work begins...

Local Enterprise Partnerships Role Strategic Leadership – setting out local economic priorities A rebalancing of the economy towards the private sector (pull/demand led) Creating an environment for business and growth Tackling issues – planning, housing, transport & infrastructure, employment, enterprise and the move to a low carbon economy. Governance Business and Civic Leaders working together. Equal representation on LEP Board. Chair, prominent Business Leader. Variants – Elected Mayor if agreed by Civic Leaders and Business Leaders? Robust and transparent Partnerships required.

Cable and Pickles ‘Parameters’ Role Supporting small business start-ups. Local Enterprise Partnerships – of Business Leaders and Civic Leaders – to work closely with important stakeholders such as Universities and FE Colleges and others…. Some local LEPs may include ‘tourism’ as part of their proposition Centralist approach to:- Inward Investment Sector leadership Business Support Innovation Access to Finance ***We may not agree !!

Private Sector Thoughts – LEP Geography The private sector does not recognise Local Authority / Govt boundaries Proposed - Coventry, Warwickshire and Solihull – a functional economic area The Birmingham dimension? ‘Working together’ with other areas – Worcestershire, Herefordshire, Shropshire, Staffordshire, Oxford…..

Private Sector Thoughts – Role of LEP Local Enterprise Partnerships should:- Set out a 5+ year Economic and Enterprise Strategy; Have 3 key targets – GDP growth, job creation and economic diversity; Seek to create demand-led, ‘pull’ economies; Galvanise, direct, influence and ‘commission’ the ‘supply side’ – to get the right skills; the right infrastructure (housing, education, planning, health); the right enterprise support in place. Creating Conditions for Private Sector Growth and Removing Barriers to Growth. Add value to the local economy, be light touch and non bureaucratic and, with Partners, secure resources. Provide strong local leadership along side robust and successful influence into national Government.

Private Sector Thoughts – Governance Keep with the spirit of the joint BIS and CLG ‘invitation’ – Business Leaders and Civic Leaders. Equal representation. Business Chair and 50% of seats. Recognise that Civic Leadership has an important machinery behind it within Local Authorities. LA’s who discharge statutory functions. Recognise what lies outside LA machinery, but is a huge public sector funded resource that needs to be demand-led and influenced, e.g. Universities, Colleges, Health…. Recognise the need for a private-sector (light touch) machinery that supports the Business Leaders on the LEP Board, e.g. a private sector Council. No ‘talking shops’ – an action oriented focus on ‘growth’.

Private Sector – Why Engage? The Prize? An opportunity! A localised, demand-led approach to ‘growth’ – creating conditions for growth and removing barriers to growth. LEP to be utilised as a vehicle for leveraging / bidding for funds, e.g. Business Growth Fund. Hypothecated Business Rates (linked to growth in inward investment). Devolution of AWM resource. Place-based budgeting (joined up LAs) Accelerated Development Zones – revenue stream.

Questions and Discussion…  Does the Private Sector want to engage / provide leadership?  Geography?  Role ?  What should be a LEP’s immediate priorities – creating conditions for growth and removing barriers to growth?  Governance?

The Big Society “The Big Society is widely thought of as a political programme, but it is much more than that. It is a set of interlocking ideas, even a philosophy: a concerted and wide-ranging attempt to engage with the twin challenges of social and economic decline and to move us towards a more connected society. It rests on a bold conjecture that lying beneath the surface of British Society today is a vast amount of latent and untapped energy.” Jesse Norman The Big Society University of Buckingham Press, 2010

Constraints to “The Big Society” (or success of a LEP) State growth (e.g. £7bn state benefit system) Centralisation Legislation and Regulation Rigor Mortis economics A massive misunderstanding of human nature vs. human motivation! Behind which lies:- Giant areas of poverty Inequality and division Lack of political imagination. Jesse Norman The Big Society University of Buckingham Press, 2010

Next Steps  This is the ‘start’ of the process / work…  Establish a Shadow LEP Board.  Business Leaders – to step forward if interested in being part of the “LEP Voice”…  Continue the debate in your networks – ‘The Big Society’ and the ‘Local Enterprise Partnership’ – how do we make it work for the benefit of local people?  Please contact me directly on Thank You for Listening