Press Story

Deputy Prime Minister Nick Clegg and Business Secretary Vince Cable announced plans today for regional growth as set out in a white paper.

On the Regional Growth Fund Ed Cox, Director of ippr north said:

"The Regional Growth fund is trying to be all things to all people. Given how constrained spending is, it is essential that public money to spur growth is focused on those areas that most need support. The fund should be more tightly focused, not just on areas more reliant on the public sector, but those where unemployment is already higher. This is particularly important in the North given that spending cuts will have a disproportionate impact on the North and will deepen the North-South divide.
The Regional Growth Fund is £1.4 billion over three years, but RDAs had a similar amount to spend each year. It is clearly not going to be able to fund everything. It's essential that Local Authorities are able to raise money in other ways".

Well North of Fair: The implications of the Spending Review for the North of England by Ed Cox and Katie Schmuecker argues that spending cuts will deepen the North-South divide, and will have a disproportionate impact on the North.

On Local Enterprise Partnerships Ed Cox said:

'LEPs are a huge challenge for local government and business. It's clear from the white paper they are unlikely to be well resourced so it is absolutely essential that they are powerful - otherwise they will be toothless tigers. This means local leaders need to be bold and creative in their thinking about how their area can develop.
'But it also means commitment to this form of bottom up economic growth must extend beyond the Department for Business and the Department for Communities and Local Government if it is going to work. Other Whitehall departments - like transport and Work and Pensions - must also sign up to this agenda and support LEPs to achieve their economic vision for their area.
'It is also extremely concerning that some areas with high economic development needs have not yet established LEPs - places like Tyneside, Hull and Humber and Lancashire - unless they hurry up they will miss the boat on this round of the Regional Growth Fund.'

Four Tests for Local Enterprise Partnerships by Katie Schmuecker and Michael Johnson outlines four tests that the proposals for LEPs should be assessed against.

On incentives for local authorities to grow their economy Ed Cox said:

'The white paper makes encouraging noises about giving local authorities more fundraising powers and incentivising them to grow their local economy. But some areas are more attractive to developers and in a better position to grow their business base compared to others. These plans must be taken forward with fairness in mind.'

Rebalancing Local Economies: Widening economic opportunities for people in deprived communities by Ed Cox and Katie Schmuecker found that targeted investment and sustained economic growth, as well as active involvement by local people and collaboration with agencies in the wider area, can improve prospects for the North's most deprived communities.

Contact:

Tamsin Crimmens, Media Officer: 0191 233 9051 / 07800 742 262 / t.crimmens@ippr.org