Local Enterprise Partnerships (LEPs) will each receive core or transition funding of £375,000 for the financial year 2022-23, the government has confirmed in a letter to LEP chairs, combined authority mayors and the Mayor of London.
LEPs bring together businesses and local leaders to drive economic growth across England. The letter, from levelling up minister Neil O’Brien and minister for small business Paul Scully, confirms that current funding levels will be maintained while some LEPs prepare for a transition into local democratic institutions.
“To provide clarity and certainty to LEPs and local democratic institutions, we can confirm core/transition funding will continue at a rate of £375,000 per LEP for financial year 2022/23, reflecting their revised role and functions and subject to business case approvals,” the ministers wrote.
The levelling up white paper called for the integration of LEPs and their business boards into mayoral combined authorities, the Greater London Authority and county deals where they exist. If none of these structures are in place or planned, then LEPs can continue to exist.
The letter said the government wanted to “manage as smooth a transition as possible”. Where LEPs are to transition, an “integration plan” will need to be submitted to government by 29 July 2022 or, if more time is needed, by 27 January 2023.
“Our priority in the recent LEP review has been to balance the accountability of local growth institutions, our objectives on devolution and the need to retain a local, independent, business voice.”
Mark Bretton, chair of the LEP Network, said: “The guidance confirms the future value and role LEPs will have in the devolution agenda and the contribution they will make to levelling up outcomes and supporting local businesses through LEP Growth Hubs.”
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