Government funding arrives, averting fears from partnership

The Marches Local Enterprise Partnership covers Herefordshire, Shropshire and Telford and Wrekin, distributing grants and helping businesses set up and grow.

At their last meeting, board members heard a “going concern” review, that could have led to the dissolution of the LEP’s limited company, was pencilled in for September if the Whitehall department responsible had not handed over “core funding” by then. Chairman Mandy Thorn MBE said employees were in a “disruptive and unsettling” limbo.

But, since then, the first part of the two-part £500,000 award has arrived. Ms Thorn said this would help the LEP “continue to deliver a significant number of high-impact local projects”.

A report, prepared for The Marches LEP Ltd’s July board meeting by then-chief executive Gill Hamer, said the Ministry of Housing, Communities and Local Government had still not released the £500,000 funding, “and this matter is now a key risk”.

“Senior civil servants have been told how disruptive and unsettling this position is for all LEPs and their staff,” she added.

She said the LEP was using reserves of approximately £1.2 million, brought forward from 2020-21, but this was not sustainable longer-term.

The Cities and Local Growth Unit (CLGU) is carrying out a review of LEPs for the Government.

Minutes of the July board meeting say Nick Francis, CLGU deputy head for the West Midlands and South West regions, apologised for the funding delay but said it would be “resolved shortly”.

The minutes continue: “Mr Francis said he understood the frustration and that things had become unavoidably political this year and, because of the LEP review, ministers were taking a much closer look at things.”

Herefordshire Enterprise Zone chairman Andrew Manning Cox “asked about the potential winding up of Marches LEP Ltd”, the minutes say. Marches LEP corporate services director Ilia Bowles said “if the situation remained the same by September, a review would be required of whether the LEP remained a ‘going concern’ as a company, as it may not be in a position to meet its financial obligations next year”.

The minutes add: “Ms Thorn said that, if there was still no clarity by the September board meeting, some difficult decisions would have to be made.”

But, speaking after the money was released, Ms Thorn said: “We are pleased to receive the first part of this year’s core funding to add to the funds already approved for our LEP Growth Hub network. This will enable us to continue to deliver a significant number of high-impact local projects including from the Getting Building Fund.

“The Marches LEP and wider LEP Network are working very closely with Government officials to review how best LEPs can build on our track record and play our part as catalysts to help deliver the Plan for Growth, Net Zero and the Levelling Up agenda.

“We respect that Government wishes to align the review with the plans they intend to announce in the autumn and we are confident that LEPs will have a major role in their delivery, together with securing the funding settlement we need and our talented people deserve.

“Although the review is still ongoing, we have been heartened by some of the positive comments to have emerged from Government about the impact LEPs have made.”

Mark Bretton, who chairs the England-wide LEP Network, said it was also working with the Government’s review.

“As part of this alignment LEPs have had the first of two tranches of their core funding released, with the second due in autumn,” he said.

“Both parties are keen to ensure there is sufficient core funding payment to ensure the delivery of committed projects.”