Welcome to North Devon

Steve Pitcher

Chief Executive North Devon +

Introduction

Councillor Will MumfordPortfolio Holder for Economic

Regeneration & Strategic PlanningDevon County Council

Devon & Cornwall Business Council

Business Perspective

Tom Jones

Chairman

Economic Development Policy: Where we are?

Pippa Ferguson

Government Office for the South West

16 August 2010

What does LEP stand for?

A. Lancashire Evening Post

B. Large Electron Positron (Collider)

C. Local Enterprise Partnership

D. London Energy Partnership

What does LEP stand for?

A. Lancashire Evening Post

B. Large Electron Positron (Collider)

C. Local Enterprise Partnership

D. London Energy Partnership

Context – the changing landscape

RDAs/ GOsCentralismBig Government

Localism Localism Localism

LEPs

But it’s not that straightforward

• RDA abolition is not just about “going local”

• Some things may be for “national leadership” instead:– Key Sectors

– Innovation

– Trade

– Inward investment

With sub-national delivery

mechanisms?

So – what do we know 1?• ROLE for LEPs

– “Provide the strategic leadership in their areas to set out local priorities”

– “Create the right environment for business and growth”

– Tackle issues such as:• Planning and housing• Transport & infrastructure• Employment & enterprise

So – what do we know 2?• GOVERNANCE

– Normally equal representation of:

• Business• Civic leaders

– Normally Business chair– But scope for variation

So – what do we know 3?• SIZE & COVERAGE

– Generally – smaller than the English regions, but regional focus acceptable

– Generally – more than one upper tier authority

– Generally – linked to functional economic areas

– No presumption of 100% coverage

– Particular focus on economically vulnerable areas

– But all very loosely defined

So – what do we know 4?• FUNDING

– Likely to be:• No core funding• Bids into funding pots

– Regional Growth Fund already announced:

• £1bn over 2011-12 and 2012-13• Focused on areas where business

employment and growth needs stimulation

• Not new money – likely to be drawn from regeneration, housing, business growth, transport, etc

– Anything else subject to CSR

Back to the Future?Regional Growth Fund• Key focus:

– Private sector driving of growth and jobs

– Areas and communities dependent on public sector

• £1Bn over 2 years• Formula (e.g to LEPs) and or Bid

Funding and/ or Loans and Investment

• National Evaluation• 2 Traches:

– Ist Bidding by end of year, decisions to allow spend from April

• Consultation to 6 September– 5 Questions– 8 Criteria

Timeline

2010 2011

June: Budget confirms RDAs to be abolished

September: Introduction of Public Bodies Reform Bill

April: Earliest feasible date for winding up RDAs

Summer: Public Bodies Reform Bill could be enactedJune: LEP communication issued

Oct?: White Paper on economic growth

September: Expressions of interest on LEPs due in; enabling legislation introduced if needed. Plus consultation responses on Growth Fund

April: Regional Growth Fund becomes available

End Year: First Tranche Bids submitted

Tensions & balances 1

More hands on …

Economy still stuttering

Economic stakes are high

Anxiety that can not afford to leave local economies to chance

More hands off …

Localism, localism, localism

Leave it to local businesses and Local Authorities to decide whether

they want LEPs, what they should do and where they should be

Tensions & balances 2

National realities …

RDAs are being abolished

A good bit of the funding will be clawed back by HMT …

… and some RDA functions may not sit well with very local delivery: Aerospace, Composites, Automotive

Local aspiration …

RDAs are being abolished

This is our chance to get RDA funding, staff …

Tensions & balances 3

Functional economic areas …LEPs will be most effective if they make sense to local businesses for who administrative boundaries often seem irrelevant LEPs should be created around functional economic areas (& local authority boundaries do not equate to functional economic areas) LEPs should not follow local authority boundaries

Administrative boundaries …

Local authority boundaries already exist and already work for many

issues

LEPs should be created along local authority boundaries

And what about Simplification?

• LSPs• SEPs• Eco Towns• Growth Points• LIPs• ERDF• LESBs• FEMAs• LEAs• EDCs• URCs

So What Matters?• Planning• Housing• Business Support• Innovation• Sector Development• Transport• Employment/ Worklessness• Skills• Culture/ Tourism• Regeneration• Trade• Technology Strands• Finance• R&D

And what about Results?

• On the Economy• On Whitehall policy• On Funding• And Lean• And Intended?

Honey, I just….

• Regen SW?• Sustainability SW?• SW Observatory?• Science Parks/

Incubators?• Knowledge Networks?• SW Brussels Office?• Primare?• Wave Hub?

RDA Role• The One Neutral

Player?• A Quarry for insights

into key issues?• A Focus for reflection

of what might inadvertently be lost?

Devon and the Peninsula – A Unique Economy

Rob Hetherington

Chief Economist

Devon County Council

Anything but Average

• National policy deals with national averages

– Balances national priorities

• Regional structures deal with regional averages

– Compromises over regional issues

Devon Stands Out• Four times more agricultural activity

• Over one third of employees work part time

• A quarter of all business below the VAT threshold

• One third less employment in the finance sector

• Twice as many tourism businesses

• One third of all employment is in the public sector

Common Threads

• Characteristics shared across the peninsula

• Over 53 thousand commuters

• Around 10 Million visitors each year

• Home to almost 50 thousand students

• HQ functions

• Broadband connectivity

Productivity

Cornwall£33,100

Plymouth£36,700

Torbay£33,000

Dorset£38,300

Somerset£38,000

Devon£35,700

A Growing Population

• 10 year growth rates – 7.6%; 5.3% UK• Over 65 growth rates – 11.8%; 8.9% UK

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Standing Together

• A population of over 1.5 million• Around 700 thousand workers• £24 Billion output • Around 10 Million visitors each year• Over 70 thousand businesses• 23% of people work in a large company

(over 30% nationally)• Over 26% work in firm of less than 10

employees (less than 21% nationally)• Strong learning and research base

The Peninsula

Peninsula Partnership

Ian HarrisonDeputy Executive Director of

Environment, Economy & CultureDevon County Council

Principles for Partnership

• Giving business a real influence on strategy

• Adopting a common strategic approach across the whole area

• Putting delivery at the lowest possible level (subsidiarity)

• Avoiding creation of bureaucracy

Partnership Objectives

• Create the conditions for businesses to prosper

• Capitalise upon the natural advantages of the area

• Use our USP to best advantage

Common Needs

• Improved infrastructure for community (transport, ICT)

• Over dependence on public sector employment

• Skilled workforce

• Affordable housing

Opportunities

• Shared appetite for growth

• Track record on science and innovation

• Low carbon, particularly marine renewables

• Visitor economy

• Experience of European funding

Partnership Governance

• Business led board

• Local government

• Higher education

• Local delivery framework

QuestionsConsultation –

www.devon.gov.uk/lep Councillor Will Mumford

Portfolio Holder for Economic Regeneration & Strategic Planning

Devon County Council

Consultation QuestionsWhich of these functions do you think need tackling at a local level, peninsula level, or national level: Local level Peninsula Level National level

• Enterprise and business support • Employment • Skills development • Research and analysis • Agreeing local growth priorities • Sector development • Coordinate local funding • Inward Investment • Marketing and Promotion • Planning (development control) • Local economic infrastructure (e.g. strategic transport) • Housing • Broadband access • Supporting the marine industries • Support for the tourism Industry • Transition to low carbon economy • Representation at national level

Consultation Questions

Do you think it appropriate that Devon County Council works on enterprise partnership issues with our neighbours?

Yes, many issues need a wider collaborative approach

No, Devon County Council should only tackle issues within Devon

No, growth must be driven at a national level

Not sure

Consultation Questions

Which of the following statements do you agree with? The enterprise partnership should be:

A mix of business people and the public sector

Democratically accountable through the local authority

Limited in its public sector role

Only run by the private sector

Not sure

Consultation Questions

• What would you like to see a peninsula enterprise partnership achieve over the next 5 years?

Closing Remarks

Councillor Will Mumford

Portfolio Holder for Economic Regeneration & Strategic Planning

Devon County Council