14/10/2011
Further news on the Growing Places Fund is emerging - and
indicates that Local Enterprise Partnerships will be at the heart
of local decision making on which projects will be funded.
As reported in Planning Resource
(7th October), LEPs will take a lead role in managing
the funds, with a Treasury spokeswoman quoted as saying: "It will
be for local areas to determine their priorities and allocate any
funding they receive accordingly. We expect LEPs to play an
important role in shaping these priorities."
So far then, the GPF bears a stronger resemblance to the process
of identifying and advocating Enterprise Zones, than the RGF
bidding process - where LEPs were encouraged to 'sponsor' bids, but
not required to play a part in their development or selection.
While we welcome the emerging approach, being broadly in line
with the Government's localism agenda, the very substantial
challenge for LEPs will be quickly and robustly identifying
projects which are capable of generating infrastructure and jobs,
and importantly, continuing returns which can then be re-invested
elsewhere. GENECON assisted a number of LEPs in the EZ development
process, so this is familiar territory for us.
And although it has emerged that the Departments for Communities
and Local Government and Transport will be responsible for managing
the Fund, there is as yet no clarity on how allocations will be
made - which areas will receive funding and to what scale. A
similar set of criteria to that which RGF operated may be possible.
It is also unclear whether LEPs will be given a pot of funding to
allocate themselves, or whether they will, as with Enterprise
Zones, be asked to put forward their proposals which will then be
judged by Government; and whether any returns on investment will be
allowed to be re-invested at the LEP level/by the LEPs.
Given that the Fund is intended to be fully allocated in this
financial year, time is of the essence. Government needs to ensure
that LEPs have sufficient clarity to tackle the process of decision
making over project funding, and the onus is then on LEPs to
quickly make robust decisions over which projects they intend to
support.
Our services to a number of LEPs in advising on the practicality
and potential impact of Enterprise Zone sites means we are well
placed to assist in the analysis of projects, helping LEPs to
understand where the greatest potential gains in terms of jobs and
economic growth might be realised. Please contact us for a more
detailed discussion about the potential of the GPF to contribute to
your objectives.