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Will LEPs be toothless tigers? |
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Local Enterprise Partnerships (LEPs) will need to inherit serious clout and power from the dismantled North West Development Agency (NWDA) and other Government bodies to have credibility with businesses, a leading lobby group warned last night.
The Private Sector Partners’ (PSP) members speak for 140,000 North West firms. Its leader, Len Collinson said the real debate over the virtues of LEPs replacing the NWDA had failed to ignite due to a lack of information about what responsibilities they will have.
“Businesses want facts,” he said. “So far we have had a rather dull debate over the geographical boundaries of LEPs, such as the absurd idea of having three separate LEPs for Lancashire. The reality is that it is the Government that will have the final say on what areas they cover anyway. Moreover, it is the Government who will decide, critically, on their powers and their funding. Until we know these facts the business jury will remain out on the value of LEPs. Cash-strapped Local Authorities will be unable to close the gap.”
Mr Collinson said businesses fear that the LEPs could be no more than talking shops as it seems the majority of the RDA’s powers will be transferred to national Government. ‘Localism’ might be a hollow proposition.
Mr Collinson pointed to a passage from a letter inviting submissions for LEPs, and sent to all local authority leaders and business leaders in June by the Business Secretary, Rt Hon Vince Cable MP and the Secretary for Communities and Local Government, Rt Hon Eric Pickles MP. In it, the two members of the Cabinet say, “We are reviewing all the functions of the RDAs. We believe some of these are best led nationally, for example, inward investment, sector leadership, responsibility for business support, innovation and access to finance such as venture capital funds.”
“Are they saying responsibility for these services to businesses will be moved lock, stock and barrel to national Civil Servants?” Mr Collinson said. “If so the concept of LEPs while superficially attractive is fundamentally flawed. There is little if anything left for LEPs to take on from RDAs. This is something that will probably please ‘local councils’ feeling of importance, but it makes a mockery of the idea of business-led local decision-making. Without real power, real influence and real money the LEPs will be toothless tigers and will struggle to win sustainable support from businesses.” |
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PSP builds a bridge with universities |
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Release date: 28 July 2010 BUSINESS pressure group Private Sector Partners has signed a deal to forge better links with the North West's academic community.
PSP, the brainchild of business veteran Len Collinson, already represents 24 professional bodies, made up of 140,000 companies employing 1.3 million people.
It has signed an agreement with the North West Universities Association - which represents 14 universities in the region with collective revenues of £2.2bn - to bring together the mutual interests.
The agreement will promote a knowledge transfer between the North West’s universities and businesses. A longer-term ambition is research to facilitate innovation by the region's firms.
Mr Collinson said: "Universities are an integral part of the economy. However, the task of universities is under intense scrutiny as the Government looks to cut funding in the sector.
"Therefore, there is a real need for greater focus on ‘knowledge transfer’ between businesses and universities. Directors and managers need to know how the universities are reacting to the cuts and how they wish to contribute to businesses."
NWUAs executive director Keith Burnley, added: "It is vital we communicate the university sector’s ability to assist economic expansion.
"Here in the North West we have a vast wealth of knowledge, skills and innovation for the private sector. We will be championing these through our work with PSP." |
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Entrepreneurs needed to save public sector towns |
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Release date: 22 July 2010 THE CREATION of scores of new businesses will be the only way for some of the region's major towns and cities can wean themselves off a dependency on public sector jobs, according to a business pressure group.
Private Sector Partners, an North West umbrella organisation representing 24 professional institutions and trade associations, said that towns such as Blackpool, Liverpool and Preston need to embrace private enterprise to avoid being devestated by public sector cuts.
All three towns were recently ranked by accountancy firm UHY Hacker Young in the top ten places to be affected by cuts due to the high proportion of public sector works in their economies. Liverpool was ranked as third in the list, with 39% of its workforce in the public sector. Blackpool (37%) and Preston (35% ) were ranked seventh and ninth respectively.
Manchester, however, has one of the lowest numbers of public sector workers among major northern towns and cities, with 29 per cent of its workforce employed by the sector.
PSP leader Len Collinson said the private sector has warned about an overreliance on public sector jobs for years.
“There will be many public sector job losses,” he said. “We cannot duck this uncomfortable truth. So we must do all we can to encourage the creation and growth of private businesses to take the strain and generate jobs and wealth.
“Small businesses are the engine room and backbone of our economy.” |
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Business group: Enterprise the only answer for NW towns over reliant on public sector |
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Release date: 20 July 2010
A leading North West business group is urging towns and cities across the North West to embrace the private sector and a culture of entrepreneurism to survive the looming losses of jobs in the public sector.
Private Sector Partners (PSP) which speaks for 24 professional institutions and trade associations representing 140,000 North West firms employing 1.3m people made its plea after a survey, published by accountancy firm UHY Hacker Young, found that Blackpool, Liverpool and Preston are in the top ten UK places set to be worst affected by the Government’s spending cuts.
The survey ranked Liverpool third in the national list, with Blackpool seventh and Preston ninth. It estimates that 39 per cent of the Liverpool’s workforce are employed by the public sector, 37 per cent in Blackpool and 35 per cent in Preston. Manchester, however, has one of the lowest numbers of public sector workers among major northern towns and cities, with 29 per cent of its workforce employed by the sector.
PSP leader Len Collinson said the private sector has cautioned for many years about over reliance on the public sector for job and wealth creation in parts of this Region. But he said “push had come to shove” and now towns and cities have no option but to embrace entrepreneurism.
“There will be many public sector job losses,” he said. “We cannot duck this uncomfortable truth. So we must do all we can to encourage the creation and growth of private businesses to take the strain and generate jobs and wealth. Businesses provide an opportunity as well for many public sector workers to find a new self-employed living. There is glittering opportunity here too. Business start-ups will rise with 20 pc more firms, an increase of around 6000, set up in the first quarter of 2010 compared to the same period last year. These figures are in part driven by redundant workers forming businesses, many from home. This is precisely the go-getting outlook the country should encourage.”
Mr Collinson said on Merseyside the overall public sector workforce figure is magnified by the number women in public sector jobs - 48% or 137,070 of the total female working population – work in the public sector. That compares to just 20% of men.
“Small businesses are the engine room and backbone of our economy,” he said. “Now more than ever we need to nurture it, understand it and recognise it. This means local and national Governments stimulating an environment for firms to start and then grow. The media and schools and universities ought to inspire young people to become entrepreneurs. Being in business is fun, exciting and rewarding. However, there is still huge ignorance about what it takes to create a business, despite its potential rewards to individuals and society.”
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Soaring cost of public sector pensions threaten attempts to cut deficit |
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Release date: 21 June 2010 A leading business group is warning that the soaring public sector pensions bill is the ‘elephant in the corner of the economy’ and threatens to undermine attempts to cut the £156bn deficit. Private Sector Partners (PSP) speaks for 24 trade associations and professional institutions covering more than 140,000 businesses with 1.3 million employees in the North West. Its leader, Len Collinson said he will be looking for clear and decisive action to tackle the pensions problem in next week’s emergency budget and the current spending review. He said the Coalition has claimed gold plated pensions in the public sector are unfair and unaffordable and now has to match its words with action. Mr Collinson warned Britain’s pensions liability could run to £2.2trillion as the baby boomer generation reaches retirement age. The problem is exacerbated, he said, by unfunded public sector pension liabilities which are estimated at anything between £770bn and £1trillion. (see pensions background) Mr Collinson made his remarks as the independent Public Sector Pensions Commission is due to present its recommendations next month. Already its chairman, Peter Tomkins, has suggested half the total of this country’s liability for pensions is being hidden from the taxpayer. “We should be clear about the gravity of the issues with public sector pensions and how that impacts on the attempt to cut the deficit,” he said. “Public sector pensions are unfunded so will be shouldered by future taxation. That creates a huge challenge as we attempt to cut the deficit and focus expenditure on front line services. It further places an unfair burden on future generations of taxpayers. We need to establish the best way to cap pension liability over time. This must be done in a way that is fair to those approaching retirement and give younger public sector workers time to make appropriate plans for their retirement. But the bottom line remains, as a country we simply cannot afford to bankroll these public sector pensions any longer. We have to have an approach in Government based on the principle you spend only what you can afford.” Mr Collinson then considered the practice of ‘double dipping’. He pointed to ast udy by a national newspaper which found that more than 10,000 employees of 200 bodies in the public sector simultaneously receive a pension and a salary. “This kind of thing makes a mockery of our public sector,” he said. “We know a lot of people in the public sector work enormously hard and do vital work. Nevertheless allowing staff to ‘double dip’ tears the credibility of public bodies to shreds in the eyes of businesses. You simply cannot continue a system that allows staff to claim a full pension in their 50s. This only encourages them to retire then seek re-employment in the same police force or council to boost their earnings at the expense of hard pressed tax generating companies and individuals. Double dipping must end as we seek to pay off national debt which has now soared to £893bn – 62.1pc of GDP – and is expected to sky rocket to £1.4trillion in the next four years.” Pensions factile
• In 2010-11, the amount spent by the taxpayer on public sector pensions will be £4 billion, rising to £5.5 billion the following year, according to a report from the Office for Budget Responsibility .
• The cost will then rise, on average, by 20 per cent each year until the commitment reaches £9.4 billion in 2014-15. This equates to almost £400 for each of Britain's 26 million households. The sharp increase, according to HM Treasury, is a result of Britain's ageing population.
• More people who have already retired are living longer and there is now a growing number of public sector workers who are retiring. There are also almost a million more public sector workers than a decade ago. |
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