New approaches to local economic growth

1. Grow Your Own Skills and infrastructure for local economic growth Monday 16th April 2012Joe Manning

2. New approaches to local economic growth • “Our businesses need the space to grow” and this requires “a localist plan from a localist party,” Prime Minister, David Cameron. • Local government is the “last man standing” in driving local growth. • The total spend of the RDAs from 2006 – 10 was £9 billion whilst over the period of the spending review LEPs can access up to £4.1 billion.

3. Low confidence in the tools How councils rate the new tools for driving jobs and growth

4. Misaligned incentives… Skills funding bodies and allocations 2011 - 12

5. …require more local direction Apprenticeship programme starts from 2005 - 2010

6. Rising construction industry output... Construction industry output by region 1991 - 2011

7. …does not meet increasing infrastructure demand • Net public investment in infrastructure as a proportion of GDP declined from approximately 8 per cent in the 1970s to less than 1.5 per cent in the late 1990s and is still recovering. • HM Treasury estimates that over £250 billion of investment in infrastructure is required over the next five years.

8. Investment requires collaboration… Greater Manchester: Highways and Transport Total Expenditure 2007 - 11 West Yorkshire: Highways and Transport Total Expenditure 2007 - 11

9. …and new financing models A model for a ‘Revolving Investment Fund’

10. Recommendations • The DfE should devolve 5 per cent of post-16 funding to be conditional around fulfilling the economic priorities of the local area. Further money could be devolved on a match-funded basis. • LEPs should provide local authorities with support to pool money and assets to create significant capital for Revolving Investment Funds. • ‘LEP Deals’; Linking learner records with National Insurance records; Using planning policy to encourage business skills reviews