Informal Workshop The new economic growth framework The new - - PowerPoint PPT Presentation

Gloucestershire Economic Growth Scrutiny Committee Informal Workshop The new economic growth framework

The new economic growth framework

• Local Enterprise Partnerships
• Strategic Economic Plan
• Local Growth Fund
• Local Growth Deals
• Statutory Economic Growth Joint Committees
• EU Structural and Investment Funds
• What happens next?

Local Economic Partnerships

• 39 business-led partnerships to enable and

promote economic growth;

• Chaired by a business leader;
• Council leaders serve on the board;
• Relationship with local government in terms of

strategy, policy support and delivery is critically important;

• Charged by government with producing a

Strategic Economic Plan, negotiating a Local Growth Deal and ensuring effective use of Local Growth Fund.

Strategic Economic Plan

• Ambition for the economy of the area;
• Opportunities for economic growth;
• Barriers to exploiting those opportunities;
• A mix propositions and programmes to address those

barriers and exploit the opportunities;

• Leads to the Local Growth Deal and access to the Local

Growth Fund;

• Must be owned more widely and underpinned by

partnership working and local accountability.

Local Growth Fund

• National pot to contribute to cost of delivering

the Strategic Economic Plan;

• The only source of funding for:

– Local transport capital; – FE skills capital;

• Less than envisaged by Heseltine and allocated to

specific projects with little local discretion;

• Government assumes other sources available

including local resources and private investment.

Local Growth Fund

• Nationally £12bn 2015-16 to 2020-12 (£2bn

pa);

• £1.1bn was already committed (local

transport projects);

• c£6.3bn of projects announced in July 2014;
• Possibility of additional resources being

announced in Autumn Statement.

Local Growth Deal

• Local Growth Fund allocation:

– Committed 2015-16; – Committed 2016-17 and beyond; – Provisionally allocated 2016-17 and beyond;

• Non-financial commitments on the part of

government and the locality;

• Scope of local flexibility.

EUSIF

• Government has allocated EU Structural and

Investment Funds for 2014-20 to LEPs;

• LEPs have 3 key roles in this area:

– Lead the development of a European Structural and Investment Funds Investment Strategy (EUSIF); – Consult and engage all interested parties; – Develop a pipeline of projects.

Statutory Joint Committees

• Meet government requirements in relation to

local accountability, collective decision-making and strong partnerships and collaboration;

• Key roles:

– Local accountability for use of LGF; – Collective decision-making necessary to enable growth; – Marshal local contribution to support action to enable growth.

Next steps

• Delivery of project to which funds are

committed including local contribution;

• Government monitoring requirements;
• In relation to the 2nd local growth deals it is

anticipated that:

– The process and timescale will be announced soon; – “bids” will be required late Nov/early Dec; – A announcement made linked to March budget.

The Growth Deal

• Previously committed: £23.8m
• Committee LGF: £28.3m (£11.7m in 2015-16)
• Provision allocation 2016-17 and beyond:

£10.4m

The Growth Deal

• The Growth Hub;
• GREEN (Gloucestershire Centre of Excellence

in Renewable Energy, Engineering and Nuclear Skills);

• Growth Zone (M5 corridor);
• Transport projects (A419, Berkley access, A40

Kings Quarter and Lydney)

How do we compare?

• High per capita allocation of LGF for 2015-16;
• Marginally below average in terms of overall

LGF allocation;

• Excellent in terms of share of ask received;
• Government confidence in governance and

delivery;

• More explicit non-financial commitments.

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