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Lancashire LEP row hots up
Insider Media | August 2010

Temperatures are rising over plans to establish three local enterprise partnerships (LEPs) in Lancashire. One business group has brandished the proposals as “absolutely ridiculous” and has written to government ministers in protest. But a main authority behind the push for a trio of LEPs, rather than a pan-regional one, told Insider the plans make “sound economic sense”.

After weeks of discussions, Lancashire County Council and the district and unitary authorities within it have agreed to submit three separate LEP bids to the government by 6 September. Bids will be submitted by Pennine Lancashire, led by Blackburn with Darwen Borough Council; the Flyde Coast, led by Blackpool Council; and Lancashire County Council, to cover the county council area.

Lancashire County Council favours a county-wide model, but authorities in Blackburn and Blackpool have objected saying the region would be better served separately. The move now heightens the prospect that three LEPs will be created, covering the Pennine area, mid-Lancs area and Fylde area.

Frank McKenna, chairman of business lobbying group Downtown Preston in Business, hit out at the "parochial" authorities within the county saying such a structure would only increase the amount of bureaucracy. He has now written a letter to business and enterprise minister Mark Prisk and communities secretary Eric Pickles to express concerns about the way in which the LEPs structures are being planned.

He said: “This decision of east Lancashire and Fylde Coast councils to declare a unilateral declaration of independence on this issue is absolutely ridiculous and has no support from the private sector. Lancashire councils have once again demonstrated parochialism over pragmatism and to create a bureaucracy of three partnerships where one would do is a nonsense.

"It will be a right dog's dinner and it will once again put the county at a disadvantage in comparison to Manchester and Liverpool who are proposing one LEP for their respective regions."

McKenna added: "The government has been clear that the new LEPs must have business representation and business support. The proposed model coming out from Lancashire certainly contradicts all that I hear from the business community."

Babs Murphy, chief executive of the North & Western Lancashire Chamber of Commerce, echoed his comments. She said: “The job of the public sector is to support that in every way they can. From listening to the views of Lancashire County Council, Blackpool Council and Preston Council last week, I had hoped that they had all fully understood that. Unfortunately, some of the authorities are completely appear to be ignoring what our business community has to say.”

However, Andrew Lightfoot, the deputy chief executive of Blackburn with Darwen Borough Council, has defended the authority's decision not to support a pan-regional model.

He told Insider: "We've taken this approach over the past few years on that footprint and we've got very strong governance relationships. We've also got the backing of the East Lancashire Chamber, local MPs and the Federation of Small Businesses.

"There are three distinct economic areas in Lancashire and bidding for three LEPs will mirror that. I think the county council's argument is an emotional and historical one about the concept of Lancashire - it doesn't reflect the economic reality.

"The economic stats demonstrate that areas like Blackburn, Burnley, Pendle, Rossendale and the Ribble Valley have a very strong economic relationship. There's very little overlap with Preston, Chorley, South Ribble and so forth. Similarly on the Fylde Coast there's a different set of circumstances and pressures."

He added: "We want this to work and so we want strong relationships with other LEPs. We're working closely with Manchester already, for example, and our submission will reflect that."

Business secretary Vince Cable and communities secretary Eric Pickles wrote to local authorities at the end of June inviting them to draw up plans for the business-led LEPs. The new partnerships will replace regional development agencies from March 2012 and will tackle issues including planning, housing, transport and infrastructure.

Earlier this month, Insider revealed that there could be as many as nine LEPs created in the North West.