Gloucestershire Economic Growth Scrutiny Committee Informal Workshop The new economic growth framework
The new economic growth framework • Local Enterprise Partnerships • Strategic Economic Plan • Local Growth Fund • Local Growth Deals • Statutory Economic Growth Joint Committees • EU Structural and Investment Funds • What happens next?
Local Economic Partnerships • 39 business-led partnerships to enable and promote economic growth; • Chaired by a business leader; • Council leaders serve on the board; • Relationship with local government in terms of strategy, policy support and delivery is critically important; • Charged by government with producing a Strategic Economic Plan , negotiating a Local Growth Deal and ensuring effective use of Local Growth Fund .
Strategic Economic Plan • Ambition for the economy of the area; • Opportunities for economic growth; • Barriers to exploiting those opportunities; • A mix propositions and programmes to address those barriers and exploit the opportunities; • Leads to the Local Growth Deal and access to the Local Growth Fund ; • Must be owned more widely and underpinned by partnership working and local accountability.
Local Growth Fund • National pot to contribute to cost of delivering the Strategic Economic Plan; • The only source of funding for: – Local transport capital; – FE skills capital; • Less than envisaged by Heseltine and allocated to specific projects with little local discretion; • Government assumes other sources available including local resources and private investment.
Local Growth Fund • Nationally £12bn 2015-16 to 2020-12 (£2bn pa); • £1.1bn was already committed (local transport projects); • c£6.3bn of projects announced in July 2014; • Possibility of additional resources being announced in Autumn Statement.
Local Growth Deal • Local Growth Fund allocation: – Committed 2015-16; – Committed 2016-17 and beyond; – Provisionally allocated 2016-17 and beyond; • Non-financial commitments on the part of government and the locality; • Scope of local flexibility.
EUSIF • Government has allocated EU Structural and Investment Funds for 2014-20 to LEPs; • LEPs have 3 key roles in this area: – Lead the development of a European Structural and Investment Funds Investment Strategy (EUSIF); – Consult and engage all interested parties; – Develop a pipeline of projects.
Statutory Joint Committees • Meet government requirements in relation to local accountability, collective decision-making and strong partnerships and collaboration; • Key roles: – Local accountability for use of LGF; – Collective decision-making necessary to enable growth; – Marshal local contribution to support action to enable growth.
Next steps • Delivery of project to which funds are committed including local contribution; • Government monitoring requirements; • In relation to the 2 nd local growth deals it is anticipated that: – The process and timescale will be announced soon; – “bids” will be required late Nov/early Dec; – A announcement made linked to March budget.
The Growth Deal • Previously committed: £23.8m • Committee LGF: £28.3m (£11.7m in 2015-16) • Provision allocation 2016-17 and beyond: £10.4m
The Growth Deal • The Growth Hub; • GREEN (Gloucestershire Centre of Excellence in Renewable Energy, Engineering and Nuclear Skills); • Growth Zone (M5 corridor); • Transport projects (A419, Berkley access, A40 Kings Quarter and Lydney)
How do we compare? • High per capita allocation of LGF for 2015-16; • Marginally below average in terms of overall LGF allocation; • Excellent in terms of share of ask received; • Government confidence in governance and delivery; • More explicit non-financial commitments.
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