Member News
16th January 2012The business secretary, Vince Cable, has emphasised the important role local authorities have to play in promoting economic growth.
Whilst Cable acknowledged the tensions excessive decentralisation could cause in the current fiscal climate, he admitted his heart was very much in "powerful local government with real energy and drive".
Speaking at the Local Government Summit 2012, attended by 200-300 senior professionals from the public, private and voluntary sectors, Cable outlined the way in which a new, more decentralised local governance structure can work alongside central government in order to deliver the growth agenda.
The Growth Review, Cable argued, "has led us to widespread reforms, some of which involved government doing less, notably deregulation", however he emphasised the need to accept the role of central government in certain areas.
Cable said: "There are areas where there has been a serious market failure where government has an important role to play, for example skilled development, innovation and trade and investment policy."
Cable stressed the importance of structures to deliver economic growth at a local level. He praised the creation of Local Enterprise Partnerships (LEPs) and argued: "We are beginning to see something strong and effective emerging."
And he highlighted the success of LEPs beginning to develop serious specialisms.
He said: "North Yorkshire is focusing on micro companies and rural enterprise whilst East Anglia has developed the green economy model in its area. Both of these, and many more, are examples of successful LEP models."
He went on to outline the work of apprenticeship hubs, regions where vocational education would be vital to the future of skills, and to highlight the need to take into account regional supply chains when addressing public procurement issues.
And the MP for Twickenham, a former Glasgow city councillor, expressed his optimism for the future of localism.
Cable said: "I am optimistic that a real localism agenda, with the backing of government both central and local, will be a success."
Dods Parliamentary Communications Ltd