Leps Network chair warns of closure after over-worked chief executive resigns amid lack of resources

The organisation that oversees the work of Local Enterprise Partnerships (Leps) is in crisis following the resignation of its chief executive, prompting a call for more funding.

The Lep Network chair Alex Pratt, above, has written to all 39 partnerships to warn the network could close without more government support, and to announce that boss Alison Porter is to leave the organisation on December 8 because of over-working.

Chuka Umunna MP
Chuka Umunna MP

In the letter, which has been circulated by Shadow Business Secretary Chuka Umunna, left, after he raised concerns about the network in the House of Commons, Mr Pratt warns that growing interest in the network in the wake of pledges to devolve responsibilities, including skills, to local areas, means its workload can no longer be completed.

Mr Pratt also revealed that the network, currently funded with a £5,000 grant from each Lep as well as funding from central government, planned to go cap-in-hand to Cities Minister Greg Clark to seek more funding and support.

In a statement sent to FE Week, Mr Pratt said: “Inevitably the work loads of Leps themselves and the Lep Network have increased considerably.

“This means that the workload of the Leps and the Lep Network has increased substantially. The Lep Network chief executive was recruited in a part-time capacity which is now unsustainable given the demands on the role, the devolution discussions and the additional planning required in advance of an election.

“Our chief executive is not in a position to take on the necessary full time, full-on role and has decided to step down next month. We are in discussion with Government around the need for increased support in line with demands now being placed on the Lep Network.”

In the letter, he said: “We have concluded that the Lep support for the Lep Network of £5,000 per annum plus the proposed funding from Greg Clark is insufficient to pay for a team of three plus the minimum additional support needed to cover off the role (circa £500,000).

“As a result we have entered into discussions with Greg Clark to explain the situation and to suggest that without more support from the centre it would be our proposal to close the LEP Network and pass the roll to Civil Servants or AN Other, which could for example mean the LGA or DCLG taking it on (neither is ideal).”

Speaking in Parliament on Thursday, Mr Umunna pressed Business Secretary Vince Cable, right, on the letter, but was told all was well.

He said: “Four years ago, the Secretary of State said that the regional policy was Maoist and chaotic. Does this not demonstrate that very little has changed?”

But Dr Cable said: “It demonstrates nothing of the kind. The Lep network is working exceedingly well. Leps are voluntary organisations; some are outstanding and innovative and others struggle, as this one has done.”

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4 Comments

  1. Give a Northerner The Role?

    Because it’s well known as being one the most productive parts of the UK, why not employ a northerner to do this role?

    After all, there’s little fear of over-working the average northerner – they’ll just roll their sleeves up and get on with the job in hand!

    But banter aside, given that policy mostly flows from the Capital, why not close the network in it’s current form and seek setting something up that is run with the full support of the existing LEPs, rather than just being tokenism or something that is too southern-centric?

    With 39 LEPs, a network board can be formed from these with the support of each member LEP. This is done already with many other organisations such as the National Enterprise Network and in this way it could a small but effective support team.

    Half a million pounds is more than enough if it’s constructed correctly and not just another nice role for somebody to have – that just grows and grows and then grows out of hand.

    One of the LEPs might host the network (yes for free – it’s our money you are spending) and meetings could be hosted in each of the English regions in turn more fairly than at present.

    We could construct something that not only does the job well, and has a social value, but can demonstrate amazing public value and of real use to the network that aid the flow of opinion and policy in a more open and direct two-way stream from local areas and government at all levels.

    I hope this isn’t tendered for though and picked up by those who just want to make more money out of the system, no matter how it’s dressed up. For that reason I’d never put too much in to a public forum like this as some of the big players seem to be fresh out of ideas.

    Apparently there’s a Social Value Act, so why not commission some fresh ideas in a different way?

    Added to this, of course, is the fact that the cost of living in the northeast is amazingly competitive and it’s also a fantastic region!

  2. Barry Deller

    What an excellent proposal from Mike Storey – base national organisations such as LEP Network in the NE and benefit both our poorest region and gain the corresponding savings from locating in a low-cost attractive location.

  3. Alison Porter

    Mike I’m a Midlander myself and no stranger to long hours but working five days a week for three days pay isn’t fair by anybody’s standards. There is already a LEP Board so you could put your suggestions to them but I don’t think any of the LEPs will do this for nothing as there’s a lot of time involved.