LEPs ‘need to look long term’

8 May 14
Many local enterprise partnerships are failing to address the long-term obstacles to growth and are not putting enough emphasis on tackling unemployment, a report by IPPR North has claimed.

By Richard Johnstone | 8 May 2014

Many local enterprise partnerships are failing to address the long-term obstacles to growth and are not putting enough emphasis on tackling unemployment, a report by IPPR North has claimed.

Examining the work of the 39 LEPs across England, the think-tank said only around 40% had specific plans to address levels of long-term worklessness.

IPPR North director Ed Cox said the recession following the financial crisis had been devastating for many areas of the country, but the government should not task LEPs with pursuit of short-term economic growth at all costs.

‘While it's tempting to rush for growth, the primary lesson of the downturn shouldn't be lost,’ he said.

‘We must build local economies that can withstand the kind of shocks that have been experienced in the recent past.

‘Many LEPs are independently building the solid foundations they know are necessary for long-term economic stability, but this appears to be despite, not because of, national government policy.’

According to the think-tank, the government has set up LEPs to compete for funding from Whitehall, including through the Local Growth Fund being launched next April for which each partnership must produce multi-year strategic plans.

This has resulted in the partnerships developing plans which play into the government’s attempts to boost economic output rather than focusing on long-term local sustainability, the think-tank said.

Instead, the business-led partnerships, which replaced regional development agencies under the coalition, should focus on boosting local resilience by tackling long-term unemployment and infrastructure problems, and improving business engagement.

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