Agenda item

To note and comment on the content of the Government’s Strengthened Local Enterprise Partnerships report.

David Smith (Director of Economic Development) was in attendance for this item.

1.    Mr M Dance (Cabinet Member for Economic Development) introduced the report that set out the Governments review on the ‘Strengthened Local Enterprise Partnership.’ The review identified a series of reforms that would need to be implemented by the Local Enterprise Partnerships (LEPs) before they could access Government funding beyond 2019. Mr Dance reminded Members that failure to implement the Governments proposed reforms would have a significant impact on the LEPs ability to secure future funding, noting that demonstrated in the report, the general consensus from local businesses suggests that a move away from the existing SELEP governance structure would be detrimental. Mr Dance welcomed comments from the committee on the content of the Government’s Strengthened Local Enterprise Partnerships report.

2.    Mr Smith said that the findings of the Government’s LEP review published on 24 July 2018 concluded that some LEPs in specific parts of the country fell below the required standard of public conduct. The South East Local Enterprise Partnership (SELEP) had a federated governance model which met the standards required but would not conform to the detailed membership requirements the Government were looking for. A response was being drafted to send to the Secretary of State by the end of September 2018.

3.    In response to concerns raised regarding appropriate representation, Mr Dance said that the Business Advisory Board consisted of thirty successful business people and one elected Member (Mr Dance) who was responsible for ensuring that the comments of the Advisory Board were presented to the Kent and Medway Economic Partnership (KMEP). KMEP membership consisted of a majority of business representatives plus the Leaders of the Kent’s District and Borough Councils, Kent County Council and Medway Council and was chaired by a Business representative. Mr Dance confirmed that KMEP delivered effective outcomes.

4.    Mr Smith said that democratic accountability and accessibility of the current SELEP arrangements had not been criticised by the review. The Local Authorities who were Members of the SELEP Accountability Board approved all major funding decision and monitored and managed SELEP’s capital programme.  SELEP was responsible for ensuring that investments decisions were made in a transparent and public forum with full due process. 

5.    Mr Smith confirmed that the Government’s Strengthened Local Enterprise Partnership report had been discussed and approved by the Cabinet.

6.    In response to the proposals set out within the Strengthened Local Enterprise Partnerships report, the committee made the following comments:

(a)  Businesses were primarily accountable to their shareholders and would not necessarily take into consideration the views of the local community. The committee would like KCC to make strong representation to Government that democratic accountability and transparency needed to be included as a major component of the LEP (as exists within the current model) and dilution of Local Authority representation would weaken democratic balance and risk disengagement.

(b)  The timeframe in which stakeholders were required to put forward their proposals for LEPs geographical boundaries (28 September 2018) was unacceptable. 

7.    Mr Dance agreed to include these points in the response to the Secretary of State and copy this to the Party Group Leaders.

8.    RESOLVED that the content of the Government’s Strengthened Local Enterprise Partnership report be noted.