Local Enterprise Partnerships: Funding

Debate between Baroness Penn and Lord Leong

Monday 11th December 2023 Lords Chamber

[Lord Leong]

To ask His Majesty’s Government what assessment they have made of the ending of local enterprise partnerships’ funding and the impact on local economic development.

[The Parliamentary Under-Secretary of State, Department for Levelling Up, Housing & Communities (Baroness Penn) (Con)]

The Government are committed to empowering locally elected leaders to drive local economic development. From April 2024, government will support local and combined authorities to deliver the core functions currently delivered by LEPs; namely, the functions of strategic economic planning, business representation and ongoing delivery of specific government programmes. Revenue funding will be provided to local and combined authorities in 2024-25 to support this activity.

[Lord Leong (Lab)]

My Lords, Labour’s very successful regional development agencies were replaced with local enterprise partnerships in 2011. These will be abolished next year. From micro-businesses to multinationals, businesses cry out for certainty, consistency and competency, but, far from levelling up, all they get from this Government is chaos, confusion and closure. The best way to restore business confidence would be for this Government to shut up shop and call an election. Are these businesses wrong in their assessment?

[Baroness Penn (Con)]

Yes. I also disagree with the noble Lord’s assessment of RDAs. I would be interested to know, if they were such a successful way of delivering local growth, whether they would be re-established under future Labour plans. The Government are focused on empowering local leaders over geographies that make sense in local areas to deliver local economic growth. We are working to integrate the roles of local enterprise partnerships into local areas so that we have the best of both worlds, with local democratic accountability and strong business voices to drive economic growth.