Chair of LEP says funding position is unsustainable
A regional economic body has still only received half of its Government “core funding” for this year and is running off its reserves, causing “anxiety and stress” for its staff, its chairman says.
The Marches Local Enterprise Partnership (LEP) – which covers Herefordshire, Shropshire and Telford and Wrekin and works to attract funding and drive economic growth – is entitled to £500,000 each year to cover staffing and operational costs. So far in 2021-22, it has only received £250,000.
Marches LEP chairman Mandy Thorn MBE said this position is “clearly not sustainable in the long term” and has called for clarity.
The Cities and Local Growth Unit is carrying out a review of England’s 38 LEPs for the Government.
Commissioned earlier this year, it has yet to report.
In a report for Telford and Wrekin Council’s Business and Finance Scrutiny Committee, Corporate Services Director Ilia Bowles noted that, in the borough alone, the LEP had channelled £44.1 million of funding Local Growth Fund, Getting Building Fund and Marches Investment Fund into projects since April 2015.
Across the wider region it has directed nearly £145 million into the region and attracted match funding worth £200 million in its 10-year existence so far and set up the Marches Growth Hub – a business support service – in 2015, which went on to help 52,295 businesses.
Chief executive Rachel Laver assured the committee the core funding delay only affected LEP operational costs, and would not impact programmes where money had already been allocated.
“The capital funding for programmes is secure, it’s all been paid,” she said.
“The funding we’ve lost is the core funding to the LEP to meet the operational costs.”
Mrs Thorn said: “All of the management of the £44 million that Telford has had plus all the other investment is through the LEP team. It’s actually very cost-effective. It’s a small team and it delivers.
“The other element of LEPs is that all the board members from business and academia are volunteers. We give our time to help support, challenge, use our on-the-ground knowledge. Their input is part of what we’ll lose as well.”
Mrs Thorn said the uncertainty was “causing a tremendous amount of anxiety and stress for our staff – hugely dedicated public servants working to ensure taxpayers get full value for their money and that our economy can recover from the dreadful impact of Covid”.
She called for clarity over the long-term future of LEPs, after the publication of the Government review was delayed again.
“The review has been under way for several months and the publication of its findings have been pushed back a number of times,” she said.
“This is creating still more uncertainty and it is in everyone’s interests that the Government clarify the issue.”
