04 November 2005
Councils that demonstrate the most imagination will be best placed to take advantage of the government's new local regeneration funds, a Treasury minister said last week.
Speaking ahead of the bidding process for the Local Enterprise Growth Initiative (Legi), financial secretary John Healey said the government would cast a favourable eye on applications that showed local authorities were open to new thinking and new partnerships with neighbouring councils, local businesses or regional bodies.
'We're looking for the best ideas and the best plans to implement them, and it is these that will get the Legi backing,' he told a New Local Government Network conference at the Treasury on October 27.
'We're looking for applications for Legi funds that draw strongly on local business involvement and we're looking for entrepreneurial activity and investment in local services to underpin the bids.'
Announced in this year's Budget, Legi will provide devolved investment for deprived areas to support schemes to revive economic growth. Funds will be devoted to solving problems identified as holding back local entrepreneurs, for example tackling crime against local businesses or boosting low aspirations.
A £50m funding package for the next financial year will rise to £150m by 2008/09, subject to the next Spending Review. As Public Finance went to press, the Office of the Deputy Prime Minister was due to publish application criteria for councils.
The conference also heard from local government minister Phil Woolas, who said it was incumbent on both central and local government to make Local Area Agreements work, particularly in a climate where 'attacks' on public services are likely to increase.
'Local Area Agreements are in my view the most significant change in public service and local funding that we have had since the Second World War,' he said.
'[But] if they hit choppy water, if they start to take decisions where differences between partners are real and difficult, then the enemies of Local Area Agreements will be very quick to criticise and vested interests and small 'c' conservatism will fill that vacuum.'
PFnov2005
