The decision of the government to this week to award a Regional Growth Fund bid of £10 million to Liverpool’s Local Enterprise Partnership, whilst at the same time rejecting Liverpool City Council’s £52 million bid is not only a slap in the face for Mayor Joe Anderson, but a further indication that the coalition has no idea which horse it wishes to back in the race for economic growth.

The introduction of a city mayor for Liverpool was encouraged by Government with a promise of extra resources to follow. The reason was a recognition that cities drive economies, and therefore it was seen as a political coup by many when Liverpool chose to opt for this new governance structure.

Unfortunately, at the same time, LEP’s were being established to fill the vacuum that was left following the hasty scrapping of Regional Development Agencies. The biggest criticism of LEP’s has been their lack of cash and resource – it seems that this is now being addressed with the delivery of some ‘funny money’ for the LEP to do something with.

But, here is the big problem. The LEP money awarded here CANNOT be spent in the region’s economic driver that is Liverpool. All the cash will go to St Helens, Knowsley, Wirral, Halton and Sefton. How does this square with the government’s belief that cities drive economies?

It is a further example of their lack of strategy, clarity and cohesion in the important area of economic development and business support. It is also a further demonstration of the need for a metro mayor for Merseyside. 

My branding of the new Liverpool Local Enterprise Partnership (LEP) as an “absolute joke” earlier this week has caused a bit of a stir in the media.

I am amazed that this ‘new’ organisation is simply a transfer of name from one bureaucracy, The Mersey Partnership (TMP) to the LEP.

Whereas Leeds has an LEP staffed by six people, and Cheshire just two, the Liverpool LEP will have 52 personnel, as well as secondees from the various local authorities who run Merseyside.

It is a shocking failure, and one born of the continued tribalism and parochialism that exists among a few of our political leaders across the city region.

LEP’s were established by the government to replace Regional Development Agencies. We were told that they would be lean and mean; cut back bureaucracy; be more cost efficient and be private sector led.

I am not sure who the private sector leaders are who have landed us with this structure, but certainly Downtown and our members were not consulted!

There was an an opportunity to clear an unnecessary tier of bureaucracy that has existed in Greater Liverpool for far too long, re-brand Liverpool Vision so that its remit extended to the whole of Merseyside, make some much needed savings and establish a much more business friendly structure.

Instead the old problems of Merseyside parochialism and the appetite to empire build have won the day over common sense.

In response to my comments the TMP/LEP said “the region has far too few businesses, not enough business activity and not enough jobs.”

I couldn’t agree more – and that is why the people responsible for that sorry record should not be getting extended contracts to continue to deliver more of the same.

I was wrong though. It’s not a joke. It’s far too serious to be funny. 

As we prepare for the Downtown summer ‘recess’ I thought this would be a good time to reflect on what has been happening in the county during the first part of 2011.

It would be fair to say that the year did not start too auspiciously for Lancashire with the spats over the structure of the new Local Economic Partnership (LEP) and the planning wrangle between Preston and Blackburn over Tithebarn dominating the headlines.

At one stage it looked as though we could end up with three LEP’s, then it appeared that Blackburn was about to declare UDI, but then at the eleventh hour, common sense prevailed, and a single LEP, which includes Blackpool and Blackburn, was agreed.

Tithebarn, too, has finally been resolved, though not as amicably. Following protracted, and expensive, appeals and counter appeals, planning permission for the multi million pound retail, office and leisure development has been approved, but the likelihood of the scheme being delivered on the scale as initially proposed, or indeed anytime soon given the current economic climate, is remote.

However, despite all these difficulties, the summer period has seen peace break out across the Red Rose county. The LEP agreed on a BAE led Enterprise Zone bid; it has also agreed a multi million pound regeneration bid for Pennine Lancashire as reported elsewhere in this bulletin.

Conversations with LEP Board members and leading politicians suggest that there is a new found spirit of unity and a sense of purpose to ‘do the right thing’. Finally, a recognition that collaboration rather than acrimony is the best way forward for Lancashire. Long may this culture of co-operation continue. We may just be on the cusp of the sleeping giant that is Lancashire finally waking up!