ITEM NO.
REPORT OF THE HEAD OF REGENERATION AND IMPROVEMENT
TO LEAD MEMBER BRIEFING
(CHIEF EXECUTIVE DIRECTORATE)
24th October 2005
TITLE:
Local Enterprise Growth Initiative
RECOMMENDATIONS:
That Salford and Manchester develop a collaborative bid. A further report to be submitted on the 5th
December 2005 to endorse the bid.
EXECUTIVE SUMMARY:
Salford has been in discussions with Manchester City Council with regard to a joint LEGI submission
with an integrated management group to plan the delivery and monitoring of the programmes. The
accountable body for such a proposal could be Manchester Enterprises although discussions are still
taking place.
BACKGROUND DOCUMENTS:
CONTACT OFFICERS:
Stuart Kitchen, Assistant Director of Economic Development 0161 793 3441
1. Introduction
Chief Executives from Greater Manchester discussed LEGI at their meeting on the 7 th October
2005 and decided to pursue separate local authority submissions which all include a Greater
Manchester component of activity.
Manchester Enterprises have been taking a lead on identifying generic programmes that could be
rolled out throughout the seven eligible local authorities and hence incorporated into the individual
bids. To date the following areas have been identified / suggested:
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Activities that would encourage Youth Entrepreneurship ie improve linkages between
enterprise and education
BME/culturally specific business support
Rationalisation of support services for businesses including consideration for the introduction
of a common branding to enhance provision and reduce confusion
Provision of CDFI including micro credit
Increasing procurement opportunities for SMEs and social enterprises
Sharing of good practice across the sub-region, to include establishment of ‘suppliers’
network. (Blackburn & Darwen implemented this practice with very positive results including
increased start-ups)
Business Start up
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2.
Update
A supplementary advice note to the initial consultation was published by GONW and NWDA on 14th
September outlining regional expectations of proposed LEGI programmes – the note was endorsed
by ODPM.
GONW in conjunction with RDA held a conference on the 17th October where a steer on collaborative
bids was given – in essence they are not a requirement but would demonstrate a more strategic
approach. If a collaborative bid was developed it should clearly identify the purpose for collaboration.
The conference also highlighted the fact that the initiative is all about fostering enterprise in the most
deprived areas, if LEGI activity influences other agendas such as worklessness, it would be viewed
as a by-product. David Higham, Competitive and Infrastructure Group Director GONW, stated that
there would be a lack of support for capital programmes, making the point that there are many
examples throughout the region of failed incubation units and enterprise centres and therefore any
such programmes would need to demonstrate an innovative approach.
GONW and the RDA have requested that an expression of interest be submitted by all Local
Authorities detailing which round the authority will be bidding in and if it is to be a collaborative or
stand alone bid. Manchester Economic Development unit are seeking authority to submit a
collaborative bid with Salford week beginning 24th October 2005.
A key feature of LEGI is to encourage business start-ups and increase survival rates within the most
deprived areas. Funding for this activity is in decline and as such a status report will be submitted 31st
October 2005.
3.
Salford/Manchester proposal for a joint LEGI programme
Key features:
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Consolidating the collaborative work undertaken on joint pathfinder HMRF, Irwell corridor EDZ
(ERDF measure 3.1), Irwell corridor media hub, M:KC, City Region Development Plan, joint
SRB work, etc - learning the lessons from cross boundary work.
Salford and Manchester have 2 URC’s and Salford sit on the Manchester City Management
Company Board and will be able to draw from the experience gained.
Regular events across Greater Manchester will inform and disseminate best practice enabling
a menu of bespoke and generic support programmes that can be duplicated or rolled out by
GM wide delivery agencies
A manageable, realistic and winnable bid – GM has 370 super output areas in the top 10%
most deprived nationally – 57% of these i.e. 210 are situated in Salford / Manchester.
Natural geography - cross boundary provision can easily be delivered and monitored.
Timescales for first round are very tight - shared resource is easier to organise between 2
authorities than 7.
Can incorporate and develop pan Greater Manchester activity
Kudos from the fact that both authorities are preparing bids ‘in house’ and will work
collaboratively.
Critical mass of funding to make a ‘step change’ is realised
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4.
LEGI Timetable
ACTIVITY
TIMESCALE
Government responds to consultation/guidelines issued
21 July 2005
Local authorities submit Expression of Interest to Government
Office to secure Pump Priming Funds
15 August 2005
Pump Priming funding will be made available to Local
Authorities as quickly as possible via GONW
August 2005
Government Office/RDA issue joint Guidance for Pump
Priming/LEGI proposals
August 2005
Government office/RDA to issue letter to sub-regional
partnerships informing them of LEGI and key contacts
August 2005
ODPM to issue National Guidance for LEGI
End October 2005
LEGI Seminar - GONW
17th October 2005
Expression of interest to GONW
28th October 2005
Local Authorities develop proposals in discussion with
Government Offices and RDAs
Sep-Nov. 2005
Deadline for Local authorities to submit proposals to
Government Offices for first phase of LEGI investment
9th December 2005
Application appraisal and recommendation of proposals which
meet criteria and regional Priorities
January 2006
Ministers decide which proposals will receive funds in first
phase of LEGI
End of Jan. 2006
Successful local authorities negotiate outcomes (as part of
Local Area Agreements process, if appropriate)
Feb/March 2006
Funds issued to successful local authorities in LEGI phase 1
3rd April 2006
Begin discussions with local authorities on proposals for phase
2 of LEGI (to include proposals not funded in phase 1)
From April 2006
Hold discussions with unsuccessful local authorities
From April 2006
5.
Next Steps
Once agreement has been obtained from Manchester City Council to submit a collaborative
bid the two working groups are amalgamated to draw up proposals for a joint programme.
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