To establish required arrangements to transition functions from the Marches Local Enterprise Partnership (LEP) to commence from April 2024, following government’s announcement in August 2023 that they will no longer provide funding to LEPs with functions to be alternatively led by Local Authorities.

Cabinet members considered a report to establish required arrangements to transition functions from the Marches Local Partnership (LEP) to commence from April 2024, following the Government’s announcement in August 2023 that they will no longer provide funding to LEPs with functions to be alternatively led by Local Authorities. 

The Cabinet member for Economy and Growth introduced the report, the principal points were raised.

The Government communicated on 4 August their decision to longer fund Local Enterprise Partnerships and functions to transfer to Local Authorities from April 2024. The recommendation proposes establishing a joint committee of the Local Authorities made up of the leaders of the three Councils to provide the government structure required by the Government to oversee the transition arrangement. 

Shropshire Council remain the accountable body for now and going forward through the transition period.  It was confirmed there are no financial implications for the creation of a joint committee. 

It was noted that this is an opportunity to ensure the future services are locally focused in meeting the needs of the county’s heritage business.

There were no comments from Cabinet members. 

Group leaders gave the views of their groups. The transfer of central government funding to Local Authorities was welcomed.  It was raised that there was no long term funding to Local Authorities and it results in a competition, with only a small number receive the funding. Fairer funding should be achieved between Local Authorities and also within Herefordshire, with more areas of the County benefitting from funds being returned to the Local Authority. It was requested for the Leader to lobby central Government for more direct transfer of funding to Local Authorities and for a more transparent allocation of funding.  It was also expressed that consistency of funding streams is required from central Government. 

 In response to queries it was noted that:

• The comments have been taken on board and agree in the past, it has been set up for Local Authorities to compete against each other.  It is right to ask central Government for a framework regarding funding arrangements. 

It was unanimously resolved that;

a)     A Joint Committee is established with Shropshire Council and Telford & Wrekin Council to (i) oversee, manage and distribute the assets, functions and responsibilities of the Marches Enterprise Partnership during the transition period and (ii) exercise executive functions as required to enable the transition of LEP functions.

b)     Delegate to the Corporate Director for Economy and Environment, in consultation with the Leader of the Council, authority to agree the final Terms of Reference with partner councils.