Enterprise M3 and its fellow Local Enterprise Partnerships (LEPs) across the country have proposed a £30 billion ‘Recovery and Rebuild Deal’ with government as part of LEP plans to drive regional recovery at pace.
The deal, set out in the LEP Network’s submission to the Chancellor’s Comprehensive Spending Review, is part of a business led local recovery and says how LEPs will help unlock £30 billion of private sector leverage and secure a return on investment of around £100 billions in additional economic benefit.
In return for this, the government would agree a three year core-funding settlement of £120 million across all LEPs, who currently survive on “just in time funding” for the year ahead, and a three year government investment across business support and skills of £7.5 billion.
Chair of the LEP Network, Mark Bretton, said:
We face one of the biggest economic challenges of modern times. Balancing the wellbeing and health of the country against protecting the very livelihoods that enable it to function is a tough call. The deal we’re putting to government seeks to strike that balance in the most efficient and effective way to recover and rebuild our local economies.
LEPs led a rapid response to the immediate business impact of COVID-19, helping hundreds of thousands of businesses survive through their LEP Growth Hubs. That means we clearly understand first-hand how our communities are being impacted by the pandemic.
Our recovery plans are now well-advanced, and we stand ready to seal the deal with government to secure the recovery the country needs. This isn’t just another ask for hard pressed funds – we are offering a clear benefit return of more than three times the investment we seek.
LEP plans to create a business-led, local response to recover and rebuild the economy include:
LEP Boards have over 330 senior business leaders who sit alongside over 180 elected local authority leaders working in partnership to deliver locally led inclusive growth. This unique relationship has to date enabled LEPs to:
LEP proposals include an initial four year settlement of £20 billionithat would incorporate the Shared Prosperity Fund (UKSPF) and replace previous capital investment strands, including the Local Growth Fund. Individual LEP investments would be negotiated against a set of local outcome targets, with delivery reported through the government’s Mid-Year and Annual Reviews of LEPs.
LEPs have also adapted their proposals in the event of a one year ‘fast track’ CSR. Working towards the Recovery and Rebuild Deal outlined above, this would include; annual core funding of £40 million; an investment of £30 million for LEP Growth Hub business support; and commencement of the capital and revenue programmes identified in our CSR proposition with LEPs bidding to initiate the four year £20 billion capital fund.
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