Government will end LEP funding

By Ged Henderson

04 Aug 2023

LEP

Government funding of Lancashire’s Local Enterprise Partnership (LEP) will come to an end next April, it was announced today. 

The government says instead it will support upper tier local councils and, where there is a devolution deal, combined authorities to take on the functions currently delivered by England’s 36 LEPs. 

Those functions include business representation, strategic economic planning and the delivery of government programmes. 

Debbie Francis, who chairs the LEP, described the government’s decision to cease its funding as “disappointing”. 

She added: “The need for business collaboration with local authorities remains crucial to enable the delivery of economic growth and prosperity in Lancashire.”  

And she went on: “We are working closely with our public and private sector partners to ensure there remains a strong business voice, which builds on the LEP’s significant expertise, experience, and legacy, that will help inform Lancashire’s future economic strategy.” 

A letter from levelling up minister Dehanna Davison to LEP chairs, combined authority mayors, local authority leaders and the mayor of London was made public today. It spells out the government’s plans. 

It revealed that the government will provide “some revenue funding” to local and combined authorities in 2024-25 to support them in delivering the functions currently delivered by LEPs.  

However, funding beyond 2024-25 is subject to “future spending review decisions”. 

Chancellor Jeremy Hunt announced in his March Budget that the government was looking at transferring the responsibilities of LEPs to local authorities. 

That was followed by “an information gathering exercise” by the Department for Levelling Up, Housing and Communities (DLUHC), which led to today’s announcement. 

In her letter, the minister said: “From April 2024, the government’s sponsorship and funding of LEPs will cease. The government will now support local and combined authorities to take on the functions currently delivered by LEPs.  

“Where not already delivered by a combined authority, or in areas where a devolution deal is not yet agreed, the government expects these functions to be exercised by upper tier local authorities, working in collaboration with other upper tier local authorities over functional economic areas as appropriate.  

“The information gathering exercise identified overlap between some of the functions being discharged by LEPs, local authorities and combined authorities, as well as confirming that there is already a high level of integration of LEP functions in Mayoral Combined Authority areas.  

“The exercise also highlighted the different perceived levels of benefit and engagement between LEPs and local authorities.  

“The government’s view is that there is likely to be scope for greater join-up, efficiencies, and clarity for the private sector by these functions being discharged within Mayoral Combined Authorities, devolution deal areas and upper tier local authorities, working together as appropriate.”  

There are three upper tier local authorities in Lancashire – the county council, Blackpool and Blackburn with Darwen. They are currently involved in talks with the government aimed at sealing a devolution deal. 

The minister added: “The government remains committed to our goal that by 2030, every area in England that wants a devolution deal will have one.  

“By empowering local democratically elected leaders to deliver these key local growth functions from April 2024, we are accelerating the integration process set out in the Levelling Up White Paper.”  

Tim Oliver, who chairs the County Council’s Network (CCN), said: “Today’s decision by the government is a decisive one and very welcome, drawing a line under recent uncertainty and allows us to get on with integrating Local Enterprise Partnership functions into upper-tier councils and combined authorities.” 

He added: “While the government have clearly set out that LEP functions should be transferred to upper-tier councils, it still allows LEPs to continue to operate independently without government support.  

“While recognising these are private enterprises which the government cannot abolish, this could create duplication and confusion locally, and therefore they should only continue to function following consultation with the relevant upper-tier council.” 

Lancashire’s LEP, a strategic collaboration between business, universities and local councils, was formed in 2011, with a remit to direct economic growth and drive job creation. Since then it has played a central role in coordinating the county’s economic priorities. 

Debbie Francis, LEP chair, said: “While the government’s decision to cease the funding of Local Enterprise Partnerships from April 2024 is disappointing, the need for business collaboration with local authorities remains crucial to enable the delivery of economic growth and prosperity in Lancashire.  

“The business community’s sector-specific and unique industry insights will help to ensure investment and policy interventions will have maximum impact which will benefit both residents and businesses as Lancashire realises its economic growth ambitions. 

“As such, we are working closely with our public and private sector partners to ensure there remains a strong business voice, which builds on the LEP’s significant expertise, experience, and legacy, that will help inform Lancashire’s future economic strategy.” 

Enjoyed this? Read more from Ged Henderson

Latest news

1

Barnfield Construction transitions to an Employee-Owned Business Staff Cheer Photo.jpg.jpg

Barnfield Construction transitions to an Employee-Owned Business

24 Jan 2025

2

Wallsauce looks to grow B2B customer base with increased trade focus Martin Emmott Rosebud and Andy Gerraty Wallsauce

Wallsauce looks to grow B2B customer base with increased trade focus

24 Jan 2025

3

CBP goes into administration Community and Business Partners in Blackburn with doors shut

CBP goes into administration

23 Jan 2025

4

Plan moves forward for new £13.2m Innovation Hub Councillor Phillippa Williamson and Coun Aidy Riggott

Plan moves forward for new £13.2m Innovation Hub

22 Jan 2025

5

Record turnover as Napthens continues to grow Stephen Faulkner

Record turnover as Napthens continues to grow

22 Jan 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
The Lancashire Festival of Business
FOB 315
Exhibitions
30 Jan 2025

The Lancashire Festival of Business

Impact Conferencing, Burnley, BB12 6QP

09:30 - 16:00

Skills Bootcamp in Procurement - Cohort 3
Blue-Modern-Land-Travel-Youtube-Thumbnail-2-1024x576.png.png
LBV Hub Awards
14 Jan 2025 - 18 Mar 2025

Skills Bootcamp in Procurement - Cohort 3

Community & Business Partners CIC, Blackburn, BB2 3UA

09:30 - 13:00

North West Holiday Home Show
PLG - NWHHS - Social - Jan 2024.jpg.jpg
LBV Hub Exhibitions
18 Jan 2025 - 26 Jan 2025

North West Holiday Home Show

South Lakeland House Showground, Yealand Redmayne, LA5 9RN

09:00 - 14:58

The Marketing Meetup IRL: Lancashire
LBV Hub Event Image.png.png
LBV Hub Networking
30 Jan 2025 - 30 Jan 2025

The Marketing Meetup IRL: Lancashire

Strawberry Fields Digital Hub, Chorley, PR7 1PS

18:00 - 20:00

February Preston Tech Connection Meet-Up: Tech & Our Planet
PRESTON TECH CONNECTION jan.ai.png.png
LBV Hub Networking
12 Feb 2025 - 12 Feb 2025

February Preston Tech Connection Meet-Up: Tech & Our Planet

Society1 Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Police Apprenticeship event
Student Centre Autumn 2022.jpg.jpg
LBV Hub Social
12 Feb 2025 - 12 Jan 2025

Police Apprenticeship event

University of Central Lancashire, Foster Social Space , Preston , PR1 2HE

16:00 - 19:00

The Business Network Central & East Lancashire
LBV Hub Networking
13 Feb 2025 - 13 Feb 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Sub36 Networking - Behind the beans
Sub36 Social1200Atkinsons New
Networking
14 Feb 2025

Sub36 Networking - Behind the beans

Atkinsons Speciality Coffee, Lancaster, LA1 1 EX

09:00 - 11:30

Red Rose Awards 2025
Red Rose Awards 2025
Awards
13 Mar 2025

Red Rose Awards 2025

Winter Gardens Blackpool

18:00 - 11:59

Lancashire Business Day 2025
241122lbvlancashiredaylhp0647web
Networking
27 Nov 2025

Lancashire Business Day 2025

12:00 - 17:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV120 Online Graphic 1
Subscribe now

Weekly news bulletin