Local Enterprise Partnerships: New world, same old confusion?

Next Monday, 6 September, is a big day for small businesses in England. No, it's not because home-based entrepreneurs can finally get some work done as their kids go back to school but because it's the deadline for submissions from councils for the creation of the government's new Local Enterprise Partnerships.

LEPs are the coalition's replacement for the much derided Regional Development Agencies and ministers promise they will be much cheaper to run and will have greater involvement from local authorities on the ground and businesses themselves in the form of groups like chambers of commerce and the Federation of Small Businesses. 

The move is a welcome one as for two long small business owners seeking support and guidance have been confused by a myriad of schemes and initiatives run by all sorts of groups and associations. Then of course there is the millions of pounds of government money which has been used to fund the RDAs which critics say has generated little value for money with the fact that only nine regional bodies exist means that some areas have lacked support.

But in an effort to sweep away the failings of the old regime, could the government's efforts ironically be creating even more confusion? Some believe they are. 

Lobby groups such as the Engineering Employers Federation and the Confederation of British Industry have expressed concern that the local focus of the new plans means too many small partnerships will be created and councils will be unable to take forward regional work because of their need to focus on local priorities. Steve Radley, the EEF’s director of policy, said: "Our worry is that you end up with lots of little bodies with tiny amounts of funding that aren't able to make that much of a difference and are not able to take a strategic view of their area’s needs."

Councils all over England are scrabbling to get their submissions in on time and it has been reported that in many regions several competing plans from different groups with varying objectives are being discussed. Efforts are been made in some areas though to unite groups including in the North East where councils have been urged to come together to form one partnership.

All in all, it seems to be one big mess!

Admittedly, this is the consultation stage and analysing different ideas is what it is all about. However, it is vital that the government gives some clarity as to the process. Local needs definitely have to be taken into account - as that was the problem with many of the old initiatives which were too general - but it's also vitally important that authorities are united in their aims and objectives or entrepreneurs will face the same old confusion.

I await the outcomes of all the submissions but I hope that some clarity emerges and small business owners get the support structure they need and deserve.