31/10/12

Businesses welcome Lord Heseltine's growth analysis

by business editor Trevor Sturgess

A chamber chief has welcomed Lord Heseltine’s call for a growth strategy with more help for local economies like Kent.

The peer and former trade secretary criticises the government in his wide-ranging review 'No Stone Unturned in Pursuit of Growth: One Man's Vision' published today.

He writes that big government does not work because officials and ministers are "not that clever".

"Government must now reverse the trend of the past century and unleash the dynamic potential of our local economies.

"The government is committed to a local agenda. Is that policy or slogan? There are encouraging signs to believe it is policy but so far we have only seen the first steps."

He calls on the government for a national growth strategy, with a national growth council chaired by the Prime Minister, better procurement, closer co-operation between government and business and a more urgent planning system.

Lord Heseltine, who visited Margate in May 2011 and was influential in gaining £35m of Regional Growth Fund money for east Kent, says more decision-making and resources should be devolved to Local Enterprise Partnerships like the South East LEP (SELEP)covering Kent, Essex and East Sussex.

They should develop their own tailored economic plans and compete for a share of a single national pot to support growth.

Chambers of commerce should play a bigger role in business support and local growth. They are "a constant presence, have a unique international status, are based in local businesses communities, are independent and have an existing structure that can be built on".

Jo James, chief executive of Kent Invicta Chamber of Commerce - an accredited member of the British Chambers of Commerce (BCC) with member businesses in Ashford, Canterbury, Maidstone, West Kent, Dartford, Gravesham and Medway, said: "Lord Heseltine’s review is impressive and wide-ranging which makes many important recommendations, all of which have the potential to impact significantly on economic growth – which is by far the most urgent problem that needs to be dealt with at present.

"It is therefore most welcome and I sincerely hope that the government will consider it carefully and act upon it where feasible."

She welcomed a greater role for chambers, working with SELEP. "We could end up with an economic infrastructure which is heavily influenced by the right place for that influence to spring from – local business communities. I very much look forward to any developments along these lines."

John Cridland, CBI director-general, said: "His key point is that we need more local action and leadership, which must be right. LEPs have so far lacked the power and resources to impact local growth. Given this review highlights a number of additional areas in which LEPs can help support private sector activity, it is even more vital that they are given appropriate resources to help them to meet this challenge."

BCC director-general John Longworth, said: “We welcome the fact that Lord Heseltine has recognised that Chambers of Commerce are local, resilient, independent, internationally-focused and pro-active in their communities. We are pleased that he believes Chambers can continue to play a central part in making local growth happen."

He thought Lord Heseltine's analysis compelling, but was concerned that his "prescription for action focuses too much on institutions, rather than on the fundamental barriers to business growth".

Business Secretary Vince Cable said his findings showed where government "can improve its performance in delivering better interventions".

Chancellor George Osborne said: "I wanted Lord Heseltine to do what he does best: challenge received wisdom and give us ideas on how to bring government and industry together. He has done exactly that. This is a report bursting with ideas and we will study it very carefully."