Local Enterprise Partnerships and Infrastructure Planning

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Local Enterprise Partnerships and Infrastructure Planning Nick Tennant and Mide Beaumont

What are they ? :

What are they ? Joint DCLG\BIS policy…. Not Mandatory Key vehicle for delivering economic growth and rebalancing the economy Expected to take strategic lead in local economic growth Local partnerships for local people……. Coalition Programme - w e will support the creation of Local Enterprise Partnerships – joint local authority-business bodies brought forward by local authorities themselves to promote local economic development – to replace RDAs…

So where are we today…. ?:

So where are we today…. ? 34 partnerships now in place- covering approx. 94% of England’s population, business and employees Private sector is engaged, both on a Board level and through trade associations and representative groups (FSB, BCC, CBI etc) Pace, momentum and innovation are being demonstrated in Board creation and putting business plans in place – but the picture is patchy

Budget: Enterprise Zones:

Budget: Enterprise Zones Partnerships have the key role in the 21 Enterprise Zones proposed First round 11 : Birmingham, Leeds, Sheffield, Liverpool, Manchester, West of England, Tees Valley, North East, Black Country, and Nottinghamshire and Derbyshire. Second round competition for other 10 launched- likely announcement in summer Powers on offer: i)100% business rate discount- worth up to £275,000 over 5yr period ii) Retention of all business rates growth for at least 25 years- can be used across partnership area to support economic priorities. iii) simplified planning approach iv) rollout of super-fast broadband – guaranteed either through a supportive planning regime or government funding Lessons learned from the 1980’s- focus on areas of real opportunity to impact on the wider economic area. More information: EZ Prospectus on DCLG website- http://www.communities.gov.uk/documents/localgovernment/pdf/1872724.pdf .

So where next ?:

So where next ? Support emerging partnerships to review / firm up proposals Maintain momentum with new partnerships- dialogue on policy asks including funding, assets and liabilities. Consider opportunities to support nationally led functions Work towards longer term opportunities for local enterprise partnerships (e.g. transport funding) Moving to a bottom-up approach is challenging - calls for greater clarity of purpose and financial assistance. Key challenge facing partnerships now is to agree their top priorities to support private sector growth and create jobs

Strategic planning :

Strategic planning Government is committed to strategic, cross boundary planning But effective strategic planning must be flexible Government will not prescribe how to do it - it is for local planning authorities to decide when and how to work together Rather than setting rules the Government will remove barriers and provide tools to facilitate

The Duty to Cooperate:

The Duty to Cooperate Requires local planning authorities and public bodies (to be defined in Regulations) to engage constructively, actively and on an ongoing basis in relation to planning of sustainable development The Duty is intended to promote a culture change in the approach to strategic cross boundary working Duty itself does not apply to LEPs but we have included an enabling power in the Bill that will allow us to require those subject to the Duty to have regard to the activities of LEPs when preparing their local plans and related activities.

Strategic Planning – Role of LEPs:

Strategic Planning – Role of LEPs Working together, LEPs and their local planning authority partners could play a key role in ensuring economic activity and infrastructure delivery is coordinated across local authority boundaries We have not prescribed a role for LEPs but are keen to work with front runners on a number of potential roles: Providing a powerful voice of business in planning system Leading the production of strategic plans that identify and align strategic economic priorities and guide infrastructure delivery Providing a strong business role facilitating key infrastructure investment Producing evidence/technical assessments to inform decision-making Facilitating decision making on strategic planning

Strategic Transport:

Strategic Transport “..encourage partnerships working in respect to transport, housing and planning as part of an integrated approach to growth and infrastructure delivery . A major step forward in fostering a strong environment for business growth.” Local Growth White Paper (October 2010) “….. It may be, as I said earlier, that it is appropriate to think in terms of consortia of LEPs being formed for transport purposes around a geography which is appropriate to that function ” Philip Hammond, Oral Evidence to the TSC, (July 2010) “Once LEPs are formed, I want to see how far my Department’s local capital funding can de devolved [to LEPs] .” LEPs would be in a unique position to use their local knowledge to ensure that sustainable transport funding is targeted where it is most needed.” Philip Hammond, Conservative Party Conference (October 2010)

Strategic Housing:

Strategic Housing HCA will work closely with local authorities/partners to deliver their aspirations LEPs could play an important strategic role…. Co-ordinating activities across LA boundaries – linking housing needs to planning for economic growth Strong advocate for housing issues on behalf of business

To conclude……:

To conclude…… Need an integrated approach to infrastructure delivery - linking planning, housing and transport Government will not be directive about LEP role Individual approaches will depend upon local economic priorities Keen to hear views on how LEPs can best support an integrated approach to infrastructure delivery Want to work with a number of LEPs to test out ideas

Local Government Resource Review:

Local Government Resource Review Context : Existing business rates system provides no direct financial reward for growth Business rates: collected locally and redistributed through Formula Grant – Councils acting as collection agents. Local Growth White Paper – set out proposals to: allow local authorities to retain at least proportion of business rates – reward for growth introduce powers to allow local authorities to carry out Tax Increment Financing To be considered through Resource Review.

Local Government Resource Review:

Local Government Resource Review Retention of business rates will provide direct financial incentive for authorities to promote economic growth – benefit from increased business rate revenues. Will help also to make Councils less dependent on central government grant. Principles: Ensuring effective distribution of funding that provides incentives for all councils…… …..whilst ensuring adequate resources for councils with limited business rates income Protection for businesses – no locally imposed increases that they do not support Ensuring that all relevant tiers of authorities are taken into account – not just the billing authority. Proposals ready by July 2011.

Tax Increment Financing (TIF):

Tax Increment Financing (TIF) The Deputy Prime Minister announced in September 2010 that the Coalition Government would introduce TIF. As part of the Local Government Resource review we are considering how to deliver TIF. A TIF scheme allows: for borrowing for the up front financing of capital investment for a defined area to be developed, and without which the TIF would not proceed. The increment from the TIF area needs to be sufficient to be able to meet re-payments on borrowing. Authorities want to consider how the proposals for local retention of business rates and TIF schemes could support local growth.

A strategic approach to growth:

A strategic approach to growth What funding, powers & responsibilities do partnerships need to support their infrastructure ambitions ? Local Enterprise Partnership Enterprise Zone Capital Assets, inc public sector Transport Budgets CIL TIFs NHB RGF/ ERDF Funding Legacy Business rates retention