LEPs are being introduced following the demise of Regional Development Agencies (RDAs) and local Business Link services. Tasked with fostering economic growth, more than 50 bids have been tabled by collaborations of councils, city regions and business leaders. However, the way LEPs will operate – and how they will be funded – is far from clear.
In its consultation response on LEPs, submitted to the Government, the forum indicated that the services provided by bidding authorities should include localised business support, supplier matching and inward investment, export preparations, regional infrastructure investment and skills and training information and promotion
Criticisms levelled at the proposed bodies include that, because there are so many bids, they could be too small to be effective, and that they could be too parochial or even toothless ‘talking shops’.
Some businesses would value being given information and advice when choosing training courses but feel they should retain autonomy in selecting providers. They believe they should be able to purchase training like any other service, supported by tax incentives or providing grants direct to the business.
Others want the current system of training and skills provision to be enhanced in order to reduce costs while improving access.
The forum’s new training and skills member panel survey asked members which elements of business support they would like LEPs to deliver.
In total, 56% want them to provide local, named advisers who can help with training needs.
Half (50%) want the new bodies to integrate training providers with business support and 46% called for regular consultations on local training and business support issues.
A further 44% want more resources to be provided online to save on management time.
Local training provided in one place is desired by 42% of respondents and 38% want access to training courses provided by larger companies locally. Finally, 37% called for the creation of group training networks.
The forum’s chief executive, Phil Orford, said: "It is right that LEPs should be chaired by a prominent business leader, and that there should be co-operation between the public and private sectors.
"However, independence is key when it comes to delivering information, advice and guidance about the help that is already easily available to business owners through dedicated support organisations in the private sector.
"The focus should be on allowing businesses to choose their own forms of business support from a fair and open marketplace, rather than competing to sell them services through a system which would be devoid of choice. Independent organisations like the forum, which have to delight their customers simply in order to survive, are already out there, ready and willing to provide a complete range of business support services to small and medium-sized enterprises."
"The danger is a return to the parochial approach to business support of the 1980s and 1990s. Close-knit networking is not enough and prescribed, vaguely-defined business support is not practical or cost-effective.
"We want business owners to be armed with the full information they need to exercise proper choice. We simply want LEPs to provide a useful service that business owners want.
"Impartial guidance on the real support that is available would be one such service. Helping businesses to access the right training would be another, particularly as firms seek to recruit and grow."
