THE government is hoping to kickstart local economic growth with proposals for 24 local enterprise partnerships which have been given the green light.

The Department for Business said it was a landmark move that would see local business and civic leaders working together to drive sustainable economic growth and create new jobs in their communities.

Ministers also declared the £1.4bn Regional Growth Fund open for business.

The fund will support the creation of private sector jobs and will particularly support communities currently dependent on the public sector, helping them make the transition to private sector led growth and prosperity, the Department of Business said.

Business Secretary, Vince Cable, commented: “I was delighted that so many of the proposals for local enterprise partnerships showed real imagination and initiative and a genuine desire to drive local economic growth.”

Mr Cable continued: “The knowledge and expertise of the private sector, local authorities and their local communities will be crucial as we work to create a better environment for business and ensure that everyone has access to the opportunities that growth brings.”

The Coalition’s announcements form part of a White Paper on Local Growth, which sets out the government’s new approach to rebalance the economy and drive sustainable growth by focusing on three key themes:

• Shifting power to local communities and businesses – by establishing dynamic local enterprise partnerships of local business and civic leaders.
• Increasing confidence to invest – by creating the right conditions for growth through a consistent and efficient framework for investment, an effective planning framework and new incentives to make sure local communities benefit from development.
• Focused investment – by tackling barriers to growth that the market will not address itself and supporting investment that will have a long term impact on growth.

The Local Growth Plan also sets out new ways of increasing confidence to invest by creating incentives for Local authorities in England to promote business growth, including:

• Looking at proposals for local authorities to keep the business rates they collect locally, reducing central redistribution;
• a new simple, streamlined and planning system, which will give communities and neighbourhoods more power over decisions.

Mike Cherry, policy chairman at the Federation of Small Businesses, commented: “The FSB has always been an advocate of local businesses working in partnership with local authorities so setting up these business-led partnerships is the logical next step.

“However,” Mr Cherry continued, “it is now vital that these LEPs follow through with their promise to include small firms in the proposals and turn it into a permanent relationship. If these partnerships are going to be successful then they must genuinely involve local businesses to get things done – not fall into the temptation of merely paying lip service to the small business sector.”

Mr Cherry added: “The FSB must be involved in all LEPs as they emerge in order to ensure small businesses are at their core, as it is small firms that are at the heart of successful local communities.”

Photo credit: BIS gov uk. Government gives green light to local enterprise partnerships