Heseltine Report

Implications for the VCS

Outline of report

Government [public] expenditure should be focused on facilitating the growth of the economy.

“in the good old days......” Promotes local innovation, led by inspirational

local leaders (e.g. Joseph Chamberlain) supported by national funding

Worst economic crisis in modern times - Growth through business and export

Lord Heseltine argues that it is business that will drive the recovery through manufacturing and not, as has been the case in previous recessions, [where]public sector services have driven development

No distinction between private sector or VCS SMEs, SEs or micro businesses.

Promotes the role of Chambers of Commerce and Trade Associations, and outlines the necessity for the development of skills.

Localism and local control

Local Enterprise Partnerships (LEPs) as the appropriate vehicle to lead the growth

Challenges the ‘geographic’ spread, coverage and capacity of LEPs - too co-terminus with local authority boundaries and these [LA boundaries] “bear no relation to modern patterns of economic activity”(2.12).

Redraw boundaries to Functional Economic Management Areas (FEMAs)

Changing the way government acts and makes decisions

Advocates a radical rethink as to how decisions concerning public expenditure are made [far too central]

Questions the skills and ability of the Civil Service, and suggests private sector appointments and secondees to support developments.

Single budgets

Impact [of public expenditure]can be maximised if expenditure is clustered into a ‘single budget’.

These can be applied for, by the LEPs, based on their strategic plans and focused on economic development.

Skills and ........

LEPs need control over the skills agenda to ensure that FE provision fulfils the local skills need - which is related to the local employment requirements.

Chambers of Commerce providing business support

Trade Associations and Industry Councils have specific role in developing, accrediting and monitoring quality of skills and support.

Private sector and VCS business

Makes no distinction between businesses in the private sector and VCS

Raises the issue of privatisation, out sourcing or the transferring of services to ‘mutuals’

Autumn Statement 2012

Announcement LEPs to lead and receive funding to develop

capacity Single Budgets 2015 Skills Budget - LEP control Support LAs who wish to combine authority

and other forms of collaboration

Are LEPs here to stay?

Simple time line - 2010 /11 LEPs developed and created 2010 / 11 Skills policy agenda developed 2011 / 12 LEPs created, allocated development funds and given

responsibility for other budgets March 12 Heseltine report commissioned Oct 12 Heseltine report published Nov 12 Government EU Road show reference ‘post Heseltine’ Dec 12 Autumn Statement - LEPs to manage single Budgets from 2015 as

recommended by Lord Heseltine 2013 LEPs to develop strategic plans 2013 Budget - add to Autumn Statement proposals 2013 EU Budget agreed, including structural funds ? 2014 EU structural funds to commence ! ? Apr 2015 Single Budgets to start ( LEPS having submitted bids) May 2015 General Election

LEPs strategy for growth ...

Being written now How do we engage? Are we engaged? Lunchtime activity to develop agenda for this

afternoon

Thank You

Ted RyanPolicy Associate (Europe) europe@rawm.co.uk