Hull MP warns over cuts to business support

Hull North MP Diana Johnson today warned that the Government's proposals for regional economic development means more bodies chasing less money, no matter how they are organised on the map.

Following the announcement of the abolition of Yorkshire Forward and England's other Regional Development Agencies (RDAs), the Coalition Government came forward with new bodies to be called Local Enterprise Partnerships (LEPs). Ministers asked local authorities and businesses to produce plans for the geographical areas that LEPs should cover. 58 plans have now been submitted.

Hull and Humber Chamber of Commerce and a majority of local businesses have been supporting the idea of a LEP that unites business development on both sides of the Humber, but this has been opposed by Hull's Lib Dem Council.

Diana Johnson MP said: "I appreciate the effort that local councils and businesses have made in drawing up these plans and note the debate about the areas that should be covered by the Local Enterprise Partnerships. But in the end it's the ability to deliver regeneration, skills and lasting jobs on the ground that matters.

"These 58 bodies across the whole of England will struggle to pack the punch that Yorkshire Forward had - whatever its faults. LEPs will have no new budgets of their own and will be forced to bid for funds from a Regional Growth Fund, which itself marks a big cut in support for business compared what was available under the previous Government.

"These bodies will also have to contend with the impact in the private sector of wider Coalition cuts to public services.

"No matter how LEPs are drawn geographically, more bodies will be chasing less money at a time when there is an urgent need for jobs and growth. Because of this Hull's MPs want to ensure that we make the most of the reduced investment that will be available for regeneration, and to focus on the skilled jobs in growth industries on both sides of the Humber.

"However, in doing this we should not pretend that LEPs will be able sustain the rate of progress achieved since 1997."

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