Pictured above: Professor David Bailey
A leading economist has cast doubt on the Government's plans to
support regional economies and labelled their policy on LEPs as
nothing short of a 'shambles'.
Professor David Bailey from Coventry University's Business
School said:
"It's not just me saying it. A number of economists, leading
lights from the business world and even those high up in the CBI
are all of the same frame of mind.
"The government had pledged to replace Regional Development
Agencies with new local bodies, supposedly accountable to local
people, with local councils working with local businesses to help
the local economy develop.
"Needless to say, local authorities and chambers of commerce
rushed forward in a kind of 'land grab' to claim powers and (they
hoped) resources in the wake of the demise of RDAs.
"And despite the rhetoric of excitement from local authorities
and chambers, how disappointed in private they must now be given
how much has been recentralised and what little in the way of
resources they will have."
Professor Bailey is concerned that Local Enterprise Partnerships
will not get funding to run anything of note and that the assets
from the Regional Development Agencies could be claimed back by
central government to cover the costs of closing down the regional
bodies.
Professor Bailey added: "The budget-less LEPs will have to
bid in to a centralised 'Regional Growth Fund' for money. That fund
will dole out money centrally in a top down way and will have
vastly reduced resources compared with the old RDAs.
"Advantage West Midlands and other RDAs weren't faultless but
they provided a key role in trying to diversify regions like the
West Midlands economy. Given the huge cuts in funding available to
the LEPs and the loss of powers to the centre, I'm sceptical that
LEPs will be able to do anything comparable and what they do
provide will be fragmented.
"Of course, I genuinely wish the LEPs well, especially here in
the West Midlands, but the fault-lines in new government policy
need to be made clear by independent commentators.
"There is only one thing worse than toothless talking shops with
no money and that's fragmented toothless talking shops with no
money."
For more information about Coventry University, please visit
their website here: www.coventry.ac.uk