The UK Government, as a part of its move towards what it describes as its “Big Society” has set out a new approach to facilitating local economic growth. It is part of a range of policies to shift power from what is one of the most centralised systems of government in the OECD towards local communities, citizens and independent providers. The overriding principle is one which acknowledges that “where drivers of growth are local, decisions should be made locally”. In an economic context this means that the UK Government has committed to supporting local communities, through a revitalised local government system and enhanced participatory forms of governance, to become more responsible for their own economic futures.
A tall order given the history of regulation and control from Whitehall!
Nonetheless the thinking behind the policy provides a useful perspective on local economic development, something which should be of interest to policy-makers in Ireland. Their proposed approach “recognises that places have specific geographic, historic, environmental and economic circumstances that help to determine the prospects for growth…” This reflects the thinking of the Lyons Report in that it highlighted the future role of local government in pace-shaping and facilitating sustainable growth within such a context.
So what does the UK Government envisage?
They see local authorities taking a more substantive role in supporting local economic development. This, alongside a greater role for local business in the development of local strategies to deliver real economic progress, are seen as a means towards conditioning local development towards the expectations and needs of local communities rather than being driven by external policy considerations of national government. Easier said than done!
The White Paper sees the role of local government in supporting local growth as:
• Providing leadership and coordination to set out a clear framework for local development and in doing so helping to provide certainty for business and investment;
• Supporting growth and development through ensuring a responsive supply of land that supports business growth and increases housing supply;
• Using their significant land assets to leverage private funding to support growth;
• Directly and indirectly influencing investment decisions via the use of statutory powers, particularly through the planning system
• Supporting local infrastructure including transport investment, in particular, as a key enabler of growth.
• Supporting local people and businesses, including regeneration, business support and employment programmes, working with nationally led schemes;
• Providing high quality services, such as schools and transport;
• Keeping markets fair by maintaining trading standards and provide wider services and investment that increase the attractiveness of an area; and
• Leading efforts to support and improve the health and well-being of the local population, promoting independence and rehabilitation to ensure that all individuals have the maximum opportunity to benefit from work, and to contribute to the local economy.
Making the above happen is to be facilitated through local business partnerships which many in respects are parallel to the Economic Development Committees in the City and County Development Boards in Ireland, albeit that the proposed partnerships will extend across several local authorities in many instances. These new bodies will take on many of the functions of the Regional Development Agencies(RDAs) which are being abolished as part of the overall reform process.
The White Paper proposes that the local enterprise partnerships will take on:
• Provision of Business advice
• Supporting Innovation
• Moving towards a low carbon economy
• Supporting Inward Investment/international trade
• Tourism development
• Skills development
• Regeneration
Also in light of the role the RDA’s in England play in delivery of the LEADER Programme, the White Paper envisages the Enterprise Partnerships taking on this role post 2014. The work of the above will be part financed by an expanded Regional Growth Fund which is based upon competitive funding.
A lot of the ideas in the White Paper are now being examined by the Houses Of Parliament with the Localism Bill covered in another article in this month’s newsletter. What is of note is that much of the thinking in the White Paper does suggest a renewed local governance environment in England. This is something which, no doubt, many will welcome. From an Irish perspective there is thinking which is of relevance to the reform of the local institutional setting. The question of where local development should be placed, for example, along with a refocusing of local government from direct service providers towards facilitators for local development.
A critical aspect however must be the need for greater clarity on resourcing. The Lyons Report in 2007 was critical on the impact cost-shifting is having on local government in England. If this is not addressed there despite the many positive aspects of the White Paper, many will remain to be convinced as to its true prospects, something their Irish counterparts might share!
