Before I get into the main subject of this blog post, let me take a moment to introduce myself.
This is my first entry as a guest blogger on BusinessWings.co.uk, so please excuse the extended preamble. My name is James Ollerenshaw and I sit on the committee for the Central London Branch of the Institute of Directors (IoD), as well as chairing its Young Directors’ Forum. I also own and run my own business, a public relations agency called Curzon PR, based in Mayfair, London.
I’ll mainly be writing with my IoD hat on, so for those who aren’t familiar with the organisation let me take a moment to explain. The IoD was incorporated by Royal Charter in 1903 and exists to support, represent and set standards for company directors. We have more than 40,000 members from organisations of all sizes, from single consultants through to board members of FTSE 100 companies.
Around 70% of our members are from SMEs and it’s among new and growing businesses where my passion lies. I’ll be writing about all sorts of topical issues related to SMEs as I come across them through my voluntary roles with the IoD and as a director of an SME myself.
The Conservative-Lib Dem coalition announced its intentions to abolish existing RDAs as part of cost-saving plans outlined in the June 2010 emergency UK Budget
The first is a matter that’s come up in several recent discussions at the IoD: the Business, Innovation and Skills Select Committee inquiry into the new Local Enterprise Partnerships (LEPs). These are intended to replace the Regional Development Agencies (RDAs); the Conservative-Lib Dem coalition announced its intentions to abolish existing RDAs as part of cost-saving plans outlined in the June 2010 emergency UK Budget (note that in Greater London, these responsibilities may be assumed by the Mayor of London).
The IoD has been asked to respond to the inquiry and I’m fully aware that issues surrounding sub-national economic development are of considerable interest to the SME business community. As such, I’d be pleased to receive the views of any BusinessWings.co.uk readers. I’ll be sure to pass them on to the IoD’s Policy Unit.
Here are some of the key issues/questions on our agenda:
- What support are you aware of from the RDAs in your part of the country? What was and wasn’t done well, and what functions do the LEPs need to replace or improve upon?
- Will the LEPs be an effective replacement for RDAs within the parameters of supporting local enterprise? Specifically, since the LEPs will be linked to local councils, could the council have too much influence on LEP agendas?
- How can the LEPs be made accountable for their success and should systems be set up to reward and therefore motivate achievement of their objectives?
- Should LEPs be limited by geography? While there is the primary goal of supporting local economies, should LEPs also be set up to champion specific projects or more short-term specific needs?
- How should LEP boards be composed?
- How much influence should the LEPs have; how much would they need to be effective?
My own views (and not necessarily those of the IoD) are that the RDAs tried hard to play a valuable role in supporting local economic development, but too often their broad remit (and it became ever broader) meant they lost focus and failed to deliver.
I like the idea of trimmed down bodies that have a singular purpose of local growth and wealth creation. They must be allowed to sit at the top table alongside other authorities where relevant so they can exert influence.
They should be composed 50%/50% of a representation of local businesses and elected councillors. And, should they be successful, a percentage of the growth they can demonstrate they’ve achieved should be directed back to local councils for the further betterment of the area – as business owners we work for reward and LEPs should be motivated in as similar way as possible.
Do you agree with me? What are your views on the questions raised above? Comment here or email me personally: james[at]curzonpr.com.
