The Chancellor, George Osborneand the Treasury Minister, Danny Alexander have announced further details ofthe Government's ambitious plans for LEPs over the next two years.
In the 2013 Budget the Chancellor accepted the majority of Lord Heseltine’s recommendations in his review of economic growth “No Stone Unturned” and announced measures that will devolve significant funding to LEPs to enable them to encourage growth in the regions of England.
The Government’s Response to the Heseltine Review set out ambitious plans for LEPs over the next two years, including:
Lord Heseltine has suggested that the funds mentioned above need to be in the region of £50bn. Over time this number has gone down but on Wednesday 26 June the Chancellor, George Osborne announced and the detail around this has been clarified by the Treasury Minister, Danny Alexander:
The Government have again made it clear that any funds going to the LEPs comes with strings attached. The main conditions are governance structures, accountability and cooperation between the LEPs.
LEPs need to have clear governance and accountability structures in place as they will be dealing with public funds. We have been advising LEPs on these structures and their funds.
Bevan Brittan are planning some seminars this Autumn on state aid, funding, governance and transport in relation to LEPs. If you think this would be of interest to you please email Jo.Denton@bevanbrittan.com.