Press Release- Funding for economic development is not reaching practitioners who need it, CLES finds at the launch of their Network for Local Economic Assessment
4 Mar 2010
At an event held by the Centre for Local Economic Strategies (CLES) [1] to mark the launch of their Network for Local Economic Assessment, it was revealed that, in many cases, funding earmarked for local authorities to undertake the Duty to construct Local Economic Assessment (LEA) is not reaching economic development departments.
Budget constraints and a move to reduce corporate policy and research activity, has meant that these dedicated funds (£65,000 for upper tier authorities, and £6,000 for district authorities), are being pooled and effectively ‘lost’ as part of the wider Area Based Grant. The money is un-ringfenced, so it is up to the local authorities as to how it is spent. Nevertheless, the failure to use the resources for the specific purpose of constructing an economic assessment is worrying. Indeed, it could undermine strategic economic thinking in the future and the broader recovery.
The revelations emerged at the successful launch of CLES’ Network for Local Economic Assessment on 25 February 2010. The Network aims to provide capacity building and support in relation to the LEA. The event included presentations from key practitioners around economic development and an assembled audience of 80 delegates, many from local authorities.
From April 2010 all top-tier local authorities will have a Duty to produce a Local Economic Assessment. Authorities and partners will be expected to detail in evidence and strategic terms the shape and function of their economy. With LEAs expected to be produced by March 2011, and with authorities expected to gather and analyse a broad range of data and intelligence, there will clearly be a number of challenges along the way.
Neil McInroy, Chief Executive of CLES, commented: “We at CLES need to do more work on this worrying revelation from our network, but it is potentially very serious. Economic assessments are a great opportunity to reshape local economies for the better. They are the ‘base one’ in any recovery. It would be extremely disappointing if the potential of economic development, and the enthusiasm amongst practitioners, is lost due to the un-ringfenced funding being diverted elsewhere.”
For comment, please contact Neil McInroy, Chief Executive of CLES, on 0161 236 7036
[1] The Centre for Local Economic Strategies (CLES) is an independent thinking-doing organisation, with charitable status. CLES brings together a network of subscribing organisations involved in regeneration, local economic development and local governance. CLES undertakes a range of activities including policy research, production of publications, training, an information and briefing service, events and a consultancy trading arm – CLES Consulting.
Participation in the Local Economic Assessment Network is free of charge, with bespoke research activities being charged through CLES membership. The Network is open to all local authorities and sub-regions and subsequent meetings will be held across the country. For more information on the Network, including information on how to join, please click here or contact Matthew Jackson, Senior Policy Researcher, CLES on 0161 236 7036 or matthewjackson@cles.org.uk.
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