Agenda item

Ministerial review of Local Enterprise Partnerships (LEPs) - Leeds City Region response

Minutes:

The Committee considered a report outlining the background, findings and implications of the recent ministerial review of Local Enterprise Partnerships (LEPs) and received a further verbal update on the latest progress relating to the Leeds City Region position and response.

 

After questions and discussion, the Committee learned that:            

 

·         Early discussions between the Leeds City Region and York, North Yorkshire & East Riding LEPs had been positive, recognising the economic case for a LEP covering West Yorkshire, York and North Yorkshire.

 

·         Details around operational, corporate and governance arrangements were still under discussion and would be progressed as final proposals are agreed. The two LEPs currently have different operating and governance arrangements in place.

 

·         Further clarity on North Yorkshire and York's position was expected after the York, North Yorkshire & East Riding LEP Board met that same morning on 14 September 2018.

 

The Committee noted the government's position that they will 'encourage areas to move towards coterminous LEP and mayoral combined authority boundaries' and their recognition that 'this will not be possible in all cases'.

 

After further discussion, the Committee agreed that:

 

·         Any geographical outcome arising from discussions should not become a long term obstacle to devolution.

 

·         Although, there were legitimate economic and strategic reasons for the current geographical overlap between the LEPs, the government's position seeking to eliminate overlaps going forward was supported.

 

·         Resolving the existing overlap between Leeds City Region and North Yorkshire and bringing together two separate organisations with different cultures and operating models is a challenge that must be carefully approached in a unifying, cooperative manner.

 

·         The use of unifying, cooperative language is equally important in gaining the support of the business community, the public and elected members. 

 

·         It is important that there is fair representation for all member councils in any governance arrangements and assurance processes.

 

·         The review's requirement that LEP Boards be a maximum of 20 persons (with 5 additional sectoral co-optees) and comprise of two-thirds private sector members presents an additional challenge to ensuring all member councils are fairly represented.

 

·         If fair representation was not possible at a LEP Board level, it is increasingly important to ensure there is fair representation on panels and committees reporting to the LEP Board.

 

·         A newly constituted LEP review scrutiny working group could help to resolve any differences between the concerned parties and that North Yorkshire and York members should be invited to participate in the working group if possible.

 

·         The LEP should consider frequently engaging more directly with all district councils, members, and scrutiny committees within their LEP area in future – not just the accountable body – to ensure all councils can contribute to developing the LEP's policies and programmes.

 

The Committee concluded that:

 

·         The current preference to unite the Leeds City Region, York & North Yorkshire LEP areas, with the West Yorkshire Combined Authority as the accountable body, be supported.

 

·         A West Yorkshire LEP, geographically coterminous with the West Yorkshire Combined Authority as accountable body, be recommended for consideration as the alternative option.

 

Resolved: 

 

i)     That the findings of the ministerial review of LEPs and the current Leeds City Region position be noted. 

 

ii)    That the current preference to unite the Leeds City Region, York & North Yorkshire LEP areas, with the West Yorkshire Combined Authority as the accountable body, be supported.

 

iii)   That a West Yorkshire LEP, geographically coterminous with the West Yorkshire Combined Authority as accountable body, be recommended for consideration as the alternative option.

 

iv)   That the 'SEP Working Group' be reconstituted as the 'LEP Review Working Group' and be assigned the tasks of:

(a)      Engaging with and monitoring the LEP's implementation plan with a focus on ensuring governance, assurance and scrutiny arrangements are robust, transparent and beneficial to all parties

(b)      Scrutinising the development of the Assurance Framework and risk management processes in compliance with new government guidance

(c)       Scrutinising the development of the Local Inclusive Industrial Strategy and policy framework, with a focus on measuring outcomes and performance indicators

(d)      Engaging with North Yorkshire and York scrutiny members

Supporting documents: