Latest on London LEPs

The Government's deadline for Local Enterprise Partnership ("LEP") proposals came and went yesterday without further clarification for the status of LEPs in London.

Given the lack of Government guidance throughout, and the shifting regional picture, it has been unclear from the outset what role, if any, LEPs are expected to play in London. The initial letter sent to local authority leaders and business leaders concerning LEPs noted that "in London, separate arrangements will apply, where separate discussions are already underway with the Mayor of London on how we can further decentralise powers...". Yet we know that the London Borough of Croydon, for example, have teamed up with West Sussex County Council and Brighton and Hove City Council to put forward a proposal, and I understand that others, such as the North London Boroughs of Enfield and Barnet, were considering proposing the transfer of the existing North London Strategic Alliance into a LEP structure.

So what does that mean for London, and those Boroughs that have put forward LEP proposals? Boris Johnson is currently pushing for the abolition of the London Development Agency as an independent organisation, and wants the housing and regeneration powers of the London Homes and Communities Agency to be transferred to the GLA. Together with proposals to incorporate bodies such as the Olympic Park Legacy Company into City Hall, these changes would represent a significant strengthening of regional government in the capital.

This runs contrary to much of the rest of the Coalition's economic development policy across the UK, where the very term "regional" is no longer on the agenda. Could LEPs provide a critical interface between local and regional Government in the capital, enriched by the direct involvement of the private and third sectors, and reflecting the distinct, local economies of different parts of the capital? Or, given the Mayor's plans, do they simply not fit in the London context?

It seems we will have to wait for more details on the Coalition's broader economic development plans, and the new London governance settlement, before we will know the answer. With the white paper on sub-national economic growth due at around the same time as the Comprehensive Spending Review, (expected on 20 October) we may not have that much longer to wait.

Ben H
FoL