A major business figure in Coventry and Warwickshire is supporting a campaign to give legal powers to local councils for economic development in their region.
The Institute of Economic Development (IED) has launched a manifesto urging local authorities to be given statutory powers over economic development in the countdown to next year’s anticipated General Election.
And its proposal has been backed by Craig Humphrey, the chief executive of Coventry and Warwickshire Growth Hub which became a stand-alone organisation this year following the government’s decision to transfer the roles and responsibilities of all LEPs in England to local government from next April.
Over the last nine years, CW Growth Hub support has led to the creation of over 10,800 jobs, added over £400 million in gross value to the local economy, and leveraged over £300 million in private sector investment for businesses in Coventry and Warwickshire.
Craig said the value of providing high-level advice and support to businesses across all sectors to boost regional economies should not be underestimated.
He said: “Up and down the country, we’re seeing a change in the business support landscape particularly with the integration of LEPs into local democratic institutions or stand-alone organisations.
“It is now over six months since we became an independent organisation with our new shareholders – Coventry City Council and Warwickshire County Council – and it is important we still have the autonomy and operational control to deliver against their objectives and those set by government to promote opportunities and growth across Coventry and Warwickshire.
“We have managed the transition smoothly through collaboration and the established close relationships we have developed with our local authority partners.
“But quite often, economic development can become the victim when budgets are being tightened which can be a backward step in job creation and attracting investment to an area.
“The ideas put forward by the IED to ask for local authorities to be given statutory powers for economic development and to continue the Growth Hub model led by upper tier local authorities is welcome and is exactly the model we have in Coventry and Warwickshire.
“If there was an accountability structure giving local authorities a legal duty to deliver economic development it would ensure local needs of businesses were taken into account since these vary from area to area and would help the UK to increase its productivity.
“The Growth Hub model has proved to be successful and an enhanced local focus after the next General Election will be important if we are to tackle stagnant growth and inequality through well resourced business support. We need to address the social, regional and financial inequalities that exist between places, delivering the productivity our economy so desperately needs.
“Having a single point of contact for businesses is paramount so that companies know who to contact for advice and information and our ethos of employing commercially experienced account managers has been instrumental in our success.”
One of the current objectives of CW Growth Hub is to target scale-up companies throughout the sub-region.
The ScaleUp Institute’s annual review identified 365 businesses in Coventry and Warwickshire that met the criteria of having employment and turnover growing by an average of more than 20 per cent every year for three consecutive years with another 185 having the potential to scale-up.
CW Growth Hub Account Managers Justine Chadwick and Jim Clark have been tasked with contacting these high-growth businesses and helping to provide the support they need.
Craig added: “We have worked closely with the ScaleUp Institute to identify our regions scaling companies. Extra resources would allow us to provide further help to these businesses since they are different to ordinary small and medium sized companies who benefit from government funding programmes.
“Whilst making up only 0.5% of the SME population they generate 58% of the total output which makes them significant generators of wealth across all sectors.
“Scale-ups add more value to the economy because of their ability to continue high-level growth and create high-value jobs as well as build an area’s profile which can attract inward investment.”
CW Growth Hub is supported by funders including Coventry City Council, Warwickshire County Council and Warwickshire’s District and Borough Councils.
Caption: Craig Humphrey, CEO at Coventry and Warwickshire Growth Hub