Funding warning for local authorities

PUBLIC SECTOR: Local authorities in the region have been urged to reach a rapid decision on their new local economic partnerships (LEPS) in order to access development funding.

The Government has set a deadline of September 6 for plans on how companies and councils will replace the regional development agencies.

They have now revealed in a consultation document that new LEP's bid for a share in the £1billion Regional Growth Fund will need to be ready by the end of December.

Richard Kendall, policy executive at Hull And Humber Chamber Of Commerce, said: "The short deadline for the first bids shows how urgent it is that local authorities agree with business what form their LEPs will take so that they can hit the ground running.

"The risk if they don't is we will lose out to areas that have already decided how they want to work."

Mr Kendall pointed out that the size of the limited pot compared to past funding for the RDAs.

He said: "Given that resources are scarce, I would like to see a clearer commitment to targeting them at deprived areas that would benefit the most."