Responding to Office for National Statistics (ONS) figures released today on economic growth in local enterprise partnership (LEP) areas, Luke Raikes, Research Fellow at IPPR North, said:
“Growth in Greater Manchester is really showing the city-region’s potential. New figures on GVA show the economy grew 5% between 2012 and 2013 - faster than any other part of the country, including London. This is a clear sign of the significant potential for economic growth and prosperity in the north of England.
“But questions remain about economic resilience. This growth did not feed through to significant job creation during that same period, and the link between economic growth, wages and jobs has become more tenuous.
“If Greater Manchester – and other city regions – are to really flourish then economic growth must be combined with resilience to withstand future recessions and long-term structural changes, and steps must be taken to ensure that social benefits follow on from that growth. The relationship between devolution, economic growth and public service reform will be key.
“With that in mind, the governance of the city is now crucial, especially ahead of the mayoral election in 2017; there is a real opportunity to use both existing and new powers to ensure Manchester's citizens are included in the economic growth of the city.
“This has already begun with the limited powers granted to the combined authority, but the Greater Manchester Agreement presents a step change in devolution, which would enable this to go much further, and help some of those currently excluded from the economy to participate.”
The figures come as IPPR North publish a new report Developing resilient local economies: Good practice among local enterprise partnerships. The report examines case studies of good practice among LEPs who are promoting economic resilience within local areas – including Greater Manchester - and makes recommendations for reform.
The report concludes that LEPs are not yet engaged in the kind of longer-term thinking that more resilient local economies depend upon; nor are they sufficiently accountable or transparent to enable this to happen. The authors call for a debate about the limitations of the current set-up and to address these issues, the report sets out five broad recommendations:
- Central government should create a further window of opportunity for the formation of a new wave of combined authorities, based on clear functional economic geographies.
- Combined authorities, counties or other upper-tier authorities should publish sub-national partnership plans which clearly set out their partnership structures and dynamics at the sub-national level, and which include a clear role for LEPs.
- Government should clarify the purpose and functions of LEPs while allowing them the freedom to pursue their own arrangements and priorities.
- Local authorities within combined authority areas, should promote greater cooperation between officers from the chief executive down.
- LEPs and their wider partners should adopt a series of locally-determined economic resilience principles as part of their strategic planning processes.
