Since 2011, local enterprise partnerships (LEPs) and growth hubs have delivered large capital investment schemes and key programmes. But in the Spring Budget 2023, the government announced it was withdrawing central government support for LEPs from April 2024 and that LEPs’ functions would be transferred to local authorities, where appropriate.

Neil Rutledge is a Director of Amberside Advisors and a chartered accountant (formerly with KPMG and Grant Thornton); he is also Deputy Chair – Hertfordshire LEP; Chair – Assessment Panel; and Chair – Herts IQ Board. He says that the LEP was set up to represent a business view of how economic growth should work. “We’ve been a common point at channelling central government funding into the local economy across areas such as skills, business support and infrastructure.” 

That emphasis on infrastructure has now shifted. Herts LEP was officially rebranded as Hertfordshire Futures in July, reflecting its newly integrated status with Hertfordshire County Council. It will have a new focus, says Rutledge: “The remit will be more around inward investment, innovation, business support, business growth, skills and training.” 

The LEP will be much more integrated into the local authority, but will retain a separate identity. The focus on inward investment in Hertfordshire builds on existing success, especially in relation to specific sectors such as life sciences, film and media, aerospace and defence.

Rutledge says that for Hertfordshire, the shift away from central government enables a focus on the county’s own programmes for the benefit of the local area. “There will be much more support for people and businesses in the districts, upskilling them and building their capacity, or acting on their behalf to run programmes. Skills programmes will be a big theme,” he explains.

LEPs and growth hubs across England will be going through similar initiatives to rebrand, refocus and plan their next steps as champions of business, academia and local communities.

What’s in store from the political parties?

ICAEW hosted a debate in conjunction with the Federation of Small Businesses and Enterprise Nation prior to the general election, in which the three main political parties discussed their policies for small businesses. 

When asked about business support in England going forward, there was plenty of enthusiasm from all parties for the work LEPs and growth hubs have performed to date, but views on what might come next varied.

Labour’s Jonathan Reynolds said they would keep and renew the Shared Prosperity Fund. And he emphasised the importance of greater devolution. “We are very proud of Labour's mayors up and down the country. I find that business likes those structures; it likes the convening power of a mayor.” He said stability and national objectives like energy transition should be the focus at the top of government but this has to be delivered in a way that works for business locally.

As to where the opposition parties stand, Kevin Hollinrake of the Conservatives said the LEPs and growth hubs did a fantastic job and reassured a significantly small business audience that the support is still there, just being carried out within local authorities. He also talked of other business programmes promoted by the previous government, such as those helping management to grow their skills. 

Sarah Olney of the Lib Dems emphasised the role LEPs played in developing skills related to the local region to ensure young people are encouraged to develop the skills that local sectors need. And she emphasised the importance of the Lib Dem’s ideas for a green investment programme to local economies.

Enterprise drives regional economic growth

John Boulton, Director, Policy at ICAEW, says: '‘ICAEW members see firsthand the importance of enterprise to regional economic growth. For entrepreneurs starting or scaling in business, a strong local business environment is crucial.”

From investment to skills and infrastructure, businesses are reliant on the wider environment in which they operate, he says. “We hope that with the transfer to local authorities the opportunity for dialogue around these matters will continue. Partnerships between government and the private sector have potential to play a bigger role in providing new solutions and shared focus in the areas critical to growth.”