Government confirms transfer of functions and funding for LEPs to combined authorities

The UK Government has confirmed that it will withdraw core funding transfer functions of Local Enterprise Partnerships (LEPs) to local and combined authorities in April 2024.

The move was first outlined in the Chancellor’s March Budget earlier this year as part of a shift to giving greater powers to local leaders. Following an information gathering exercise on this proposal, Minister for Levelling Up, Dehenna Davison, and Minister for Enterprise, Markets and Small Business, Kevin Hollinrake have written to LEPs, local authorities and combined authority mayors to confirm the government’s decision.

The letter from ministers confirmed that the government will support local and combined authorities to take on the functions of LEPs in bringing together local government and the business community, and acknowledged there was already significant collaboration being done between councils and combined authorities and LEPs, as well as overlap between their work.

In a statement responding to the news, Chair of the city-region’s LEP, the Greater Manchester Business Board, Lou Cordwell, explained that work to integrate the Business Board and Greater Manchester Combined Authority (GMCA) has been ongoing since the March announcement and will maintain “strong business voice” that maximises economic growth across the city-region. She added:

“A key part of this approach will be for the Board to oversee a framework of Greater Manchester Strategy (GMS) priorities agreed annually with GMCA, with Board members leading on delivery through affiliated groups, bringing together officers and partners in areas where GMCA is already allocating considerable resource. As such, the withdrawal of core funding will have a limited impact on GM Business Board (LEP) delivery.”

Clare Hayward MBE DL, Chair of the NP11 group of northern Local Enterprise Partnerships and chair of the Cheshire and Warrington LEP, also welcomed the confirmation of the government’s intentions; she said:

“Today’s clarification on local economic development functions is an important step for the North. Strengthened public and private sector partnership-working will remain crucial to supporting the northern and national economy through current challenges.

“The NP11 looks forward to continuing driving public and private sector collaboration across the North as it looks to new pan-regional partnership arrangements, following confirmation of continued Government backing for our work last month.

“We are keen for the Government to accelerate conversations with those parts of the North currently without a devolution deal to ensure all parts of our region can benefit from enhanced local decision-making and investment.”