Discussions are taking place all over the West Midlands on what shape the new Local Enterprise Partnerships should take.
This is a brief summary of where I believe everyone stands at the moment, though it is subject to change at any time. It is gleaned mainly from the Local Enterprise Partnerships Conference at Aston Business School.
Business Voice West Midlands wants a single LEP for the existing West Midlands region with more local LEPs as and when necessary.
Birmingham Chamber of Commerce wants an LEP covering Solihull, Birmingham, the Black Country, South Staffordshire and North Worcestershire (Bromsgrove and Redditch).
The Black Country Chamber wants an LEP covering its four boroughs only, Wolverhampton, Walsall, Dudley and Sandwell.
Staffordshire County Council is working with Stoke City Council on one LEP for their area.
Coventry and Warwickshire are working on their own. It seems there will be separate LEPs for Worcestershire, Herefordshire or Shropshire, though one suggestion is Herefordshire teams up with Gloucestershire.
Coun Philip Atkins, leader of Staffordshire County Council and chairman of the group of council leaders in the region, said six LEPs were being put together though the geographical boundaries are, obviously, still open to debate.
But he added there had to be a “powerful guiding coalition that is regional”, suggesting he supports the BVWM proposal for a regional LEP.
Sir Roy McNulty, chairman of Advantage West Midlands, seems unimpressed with the progress so far. He told the conference: “Business will want to see if we can get our act together in the new form. Government will want to see us get our act together. What will be damaging is if we fail to come up with the proposals by September 6. I hope we can quickly agree a coherent set of regional responses.”
Issues include how to secure business representation and how to make businesses core to the coalition. LEPs should be 50-50 business and local authorities.
He said LEPs would not have responsibility for EU funds, the development of business sectors, trade and investment, venture capital funds, business support or skills.
There will be a £1 billion regional growth fund. The money will be made available to those regions hardest-hit by public spending cuts. LEPs will have to bid for money for specific projects.
Sir Roy said: “My view is that some form of two-tier structure is what will work best. The LEPs will bring the benefits of being closer to local action but there are a lot of questions, such as the high speed rail link, which you can only look at on a wider basis than individual LEPs.”
John Ryder, of Business Voice West Midlands, questioned whether the Government’s policy of “localism” was really local at all. Many decisions would be taken away from the region and made in Whitehall.
He said: “Over the last few years, AWM created or saved 12,500 jobs as a result of inward investment. UK Trade and Investment produced 1,800 for us. UKTI is London-based and their track record isn’t good.
“The decision has been made that the Manufacturing Advisory Service has to be centralised. We are the home of manufacturing. We need the Manufacturing Advisory Service locally.”
Mr Ryder claimed the centralisation of the European Regional Development Fund at Whitehall could result in the EU refusing any further payments.
“All the tools to allow us to get out of the problems we have got seem to be being pushed to one side or taken to Whitehall.
Mr Ryder said “localism should mean local” and said the Government should “turn round some of the crass decisions”.
A spokesman for the Government’s department for business said: “When Ministers talk about some of these things being done nationally they don’t mean being delivered nationally. The delivery will be done at whatever level is appropriate.”