Local enterprise - Potentially powerful new Partnerships will need to engage with communities

Just when you thought that life was becoming simpler, and the Coalition’s great experiment in localism was about to begin, twenty-four new organisations appear – and they will probably consult like mad ...

Surely not, you say! Isn’t the point of Local Enterprise Partnerships that they are an antidote to the Regional Development Authorities (RDAs)? These were seen to be too bureaucratic and to impose top-down policies on reluctant local authorities. The new Partnerships are meant to be leaner and private-sector minded. 62 applications were made for areas of England outside London, and it will be interesting to see if the fine words of these submissions can become reality.

There may not be a universal blueprint for LEPs but they all seem to have got the key messages. New private sector jobs; Housing supply; Transport infrastructure; Business-friendly planning ; leverage of knowledge & skills etc. In fact, the Government’s approach is well documented in the White Paper that accompanied the LEP announcement. It’s called Local growth: realising every place’s potential, and a quick look at this confirms that much is riding on Local Enterprise Partnerships to perform.

So why are we so certain they will have to engage so heavily? Here are five reasons.

1. New bodies of all kinds have to establish their credibility. In this case, they will be heavily dominated by Private Sector figures, many of whom will be relatively new to high-profile public roles. Only the foolish will rush into these matters without ensuring that key stakeholders feel comfortable with what they propose. A willingness to listen – and be guided by the many experienced individuals and organisations already involved in economic development - will attract support. Arrogant, ‘we-know-best’, will simply alienate. 2. Look at the small print – especially pp 49/50 of the Growth White Paper, which makes it clear that LEPs will be free to develop strategic planning frameworks. It will catapult them straight into the midst of the most contentious local issues imaginable, but without direct democratic accountability. Smart Partnerships will definitely engage extensively – to avoid being seen as top-down as their predecessors. 3. Although designed to harness the enthusiasm and talents of the private sector, LEPs will still have to balance competing commercial interests. The sector is not homogeneous; the interests of small business can be very different from that of major international manufacturers or even out-of-town retailers. Developing agreed LEP policies will require sensitive consultative machinery with the Sector’s stakeholders. Some are already planning Business Forums 4. Enterprise Partnerships are essentially collaborations between Councils and the commercial world; each brings different things to the party. For Councils that have run professional consultations for years, part of their value-added is the insight that they have obtained to the preferences and anxieties of local people. A sensible LEP will want to absorb this material, and build on it. 5. Finally, let’s remember that the aim is to change the culture of local decision-making by involving different kinds of people, and no self-respecting industrialist or entrepreneur would embark upon a significant new venture without doing market research. Indeed many of the tools and techniques we use in public engagement come from the market research industry. If the leaders of LEPs were to march into their new exciting roles without checking the views of the relevant communities and key stakeholders, they would be acting strangely out of character. And will mess up!

Of course LEPs will engage differently. There may be less public consultation, and more stakeholder consultation. Budgets will be tight ... and timescales more ambitious. But there will have to be dialogue, and it starts immediately. Shadow Boards are already in place, and those who commit their time to these new Partnerships will need to move quickly to establish momentum and to influence local decisions.

Right now, those decisions involve expenditure reductions and a re-appraisal of what can be expected from public efforts. This needs dialogue, and if LEPs are part of the answer, they need to be fully engaged in it.

Trigger points

• Is one of the 24 LEPs near you? (Even if not, there soon will be; if you are outside England, much of the same thinking is likely to migrate across the devolutionary divides)
• If yes, contact the Shadow Boards immediately and establish what help they might need re public engagement?
• Consider carefully the implications of LEPs on Local Strategic Partnerships
• The Institute – together with Sauce Consultancy - is preparing an analysis of all 24 LEP bids, and will shortly publish its view on the implications on public engagement.
• We are considering a special Training course/workshop on Engagement Skills for LEPs. Email if you are interested.

This is the 174th Tuesday Topic; a full list of subjects covered is available for Institute members and is a valuable resource covering so many aspects of consultation and engagement