Consultation on ending funding for LEP functions

Closed 10 Feb 2025

Opened 20 Jan 2025

Contact

English Devolution & Institutions

lepfundingconsultation@communities.gov.uk

Results updated 20 Mar 2025

Announcement of decision - 20 March 2025

On 30 October 2024, it was announced at the Budget that Government was minded to end central government funding for the core functions formerly delivered by Local Enterprise Partnerships – namely business representation, local economic planning, and the delivery of government programmes where directed. The announcement also indicated that the Government was minded to end central government funding for the Business Board Network. The funding for Careers Hubs and Growth Hubs is separate.

MHCLG carried out a public consultation between 20 January and 10 February 2025 to invite comments on the impacts of the withdrawal of funding. We received responses from a number of stakeholders, including local authorities, Combined Authorities, Chambers of Commerce, the Local Government Association, and the Business Board Network.

We have carefully considered the responses to the consultation. The decision has now been taken to proceed with the withdrawal of central government funding for former LEP functions and for the Business Board Network. We recognise that the withdrawal of funding will have local impacts, which will be for local authorities and Combined Authorities to consider and manage. Following the decision at Spring Budget 2023 by the previous government to defund core LEP functions and integrate them into local authorities and Combined Authorities, the government has provided funding in 2024/25 to local authorities and Combined Authorities for the integration of LEP functions. We have written to affected local authorities, Combined Authorities, and the Business Board Network.

The withdrawal of funding should not be interpreted to mean that it is government’s view that delivery of similar functions should not continue, either in local authorities or Combined Authorities. The English Devolution Accountability Framework sets out that all institutions with devolved powers should embed strong, independent, and diverse local business voices into their decision-making processes; and as set out in the English Devolution White Paper, Mayors will have a statutory duty to produce Local Growth Plans. We expect the development of Local Growth Plans to be informed by engagement with the private sector.

Overview

On 30 October 2024, the Chancellor announced that Government is minded to end the funding for the core functions formerly delivered by Local Enterprise Partnerships – namely business representation and local economic planning, The ‘minded to’ decision does not affect funding for programmes such as Careers Hubs and Growth Hubs. The Government is also minded to end funding for the Business Board Network.

This questionnaire will be open for the next 3 weeks to gather information about the impacts that this proposal would have if taken forward, and before a decision is confirmed. The questionnaire closes on 10 February 2025.

Why your views matter

We want to hear your views in order to understand how activities currently carried out by local authorities, Combined Authorities, and the Business Board Network might change or cease in the event of defunding.