Background
LEPs were established to develop
a local growth agenda, locally driven by businesses that had a buy-in to a
distinct geography, supported by Local Authorities and other influential institutions,
FE Colleges and Universities. LEPs developed strategic plans, recognised skills
deficiency and suggested ameliorative processes to enhance their growth
programme.
This was all fine and dandy, with
government programmes being routed through the process, focusing such activity
through the development plans, business plans being reviewed and evaluated with
a business eye, and then along comes Europe!
In November 2012 after some
deliberation, but coming as no surprise to those who had read Lord Heseltine’s
report ‘No Stone Unturned’, The Department for
Business, Innovation & Skills (BIS) announced that the EU Structural Funds
2014 -2020 were to be directed through the LEPs.
While they waited for the initial
guidance which eventually arrived in April and July 2013, LEPs went about their
business, merrily developing their strategic plans within their initial
structures, business orientated growth programmes targeting, predominantly,
private sector enterprise, acknowledging the growing sound bites that it was
the private sector, and not the public sector, that creates the wealth.
LEP and VCS
engagement – a stalled start
In their initial development LEPs
had little, and in some cases, no contact with Voluntary and Community Sector (VCS)
organisations. From November 2012 there was an increased flurry of activity by
some LEPs with VCS organisations as they began to discuss how LEPs and the
Sector could benefit each other.
What didn’t help matters was the
variety of names and terminology used to describe the activities of VCS
organisations:
·
Civic Society
·
Civil Society
·
The Third Sector
·
Non Government Organisations (NGOs)
·
The Voluntary Sector
·
Social Enterprises
·
Charities
·
Community groups
Adding to the confusion of titles
was the variety of perceptions of where the Sector gets its money from.
Some basic statistics
VCS organisations constitute an
important sector of the economy, creating jobs and economic value, as well as
social and environmental benefits.
According to research by the National Council for Voluntary
Organisations (NCVO), there are over 162,000 voluntary organisations in the
UK. These organisations employ 793,000
people (around 2.7% of the UK workforce), and additionally they spend around
£18.1bn on goods and services each year. At the same time there are over 60,000
social enterprises in the UK, and 5,950 co-operatives employing 230,000
people.
LEPs and Europe
With the announcement that LEPs
were to ‘oversee’ the 2014-2020 structural funds, LEPs had to begin to
accommodate new concepts and partnerships in order to deliver EU programmes.
Whilst ESF and ERDF were known
programmes, terms like social inclusion, social innovation, community lead
local development were unfamiliar. These concepts were to be accommodated into
new strategic plans that would outline how the LEP would deliver a European
funded programme, and so consultation began.
LEP and VCS
engagement – a second bite
While an LEP is capable of delivering economic growth, it will be
necessary for it to develop strategic partnerships with VCS organisations in
order to fulfil, not only EU requirements, but also to enable them to deliver a
growth agenda that accommodated the socio-, as well as the economic, growth
agenda.
In some cases, the LEP
journey of partnership with VCS was easier than in others - some sought out
partnerships, some had partnerships within their existing agenda, and others
continued without any partnership plans.
Those LEPs that recognised
the importance of an ‘inclusive economic growth’ programme have recognised that
the delivery of any growth agenda requires the engagement of those furthest
from the labour market, people who, for whatever reason, take longer to become,
or in some cases cannot fully become, economically active, and are continually
excluded from accepted ‘norms’ and mainstream activity. For this engagement to
be achieved, community lead organisations need to be involved.
LEP and VCS – issues to be addressed
confusions to be clarified
The most common prejudice faced by the sector in any engagement is the
focus on the charitable aspect of the sector, and not on the business aspect.
There is often a misguided view that organisations receive grants to deliver to
those in need. Much less is known or appreciated of the new commissioning and
procurement aspects of public services, and the sometimes onerous open
tendering process which organisations need to go through to win contracts, even
small ones.
The concept of ‘Social Enterprise’ was often confused with ‘charitable’
delivery and, therefore, in some cases, ignored. There is evidence throughout
the country, through information sharing at VCS network meetings, of sparse appreciation
of the activity and role of the VCS.
This ignorance or lack of appreciation has prevented significant
partnerships being developed, and while the role of LEPs was purely economic
growth, stimulated only by the private sector, the management of European Structural
Funds brings wider responsibilities.
The most successful LEPs and VCS partnerships occur where there is a
historical connection between local and regional infrastructure organisations
and the current European Management processes in Local Management Groups.
What
therefore does the sector bring to LEPs?
While there is little argument
that local, regional and national economic growth policies are a necessity,
where such activity can be lead by business, it can be supported by public
sector funding. However, the lack of penetration and engagement of public
sector programmes has consistently failed to engage a certain percentage of the
population. Whatever title we give this, or these groups, (for they are not a
homogeneous community, geographically, culturally or socially), if we are to
develop a fully integrated socio-economic growth programme, they must be
engaged to their fullest potential, and at a pace that maintains and sustains
their engagement.
We cannot assume that all individuals are
capable of full time employment within the labour market. Are then these
economically excluded individuals not to be included in mainstream developments
and provision, or just managed/cared for, within other provision?
Are we to ‘lump’ all these
people together or, building on the concept of the individual, develop
communities of geography or interest, with civic activities that can include
the individuals, starting the journey from their own specific capability and
journeying, at their own pace, arriving at a destination with which they are
comfortable?
What the VCS offers the LEPs is access to such groups, and the ability
to engage them in relevant, developmental and sustainable programmes that will engage
them, over a period of time, in the socio-economic development of an area.
There is significant evidence throughout the country where community and
civically lead programmes have stimulated local engagement in economic
regeneration and growth activity. Social innovation programmes can develop a social
economy, and can generate sustainable activities that can accommodate developments
which facilitate the necessary engagement outlined above.
This process is not one of ‘charity and care’, ‘handouts and
management’, but one of business, humanity, and compassion, with an
understanding of the individual’s journey, place and circumstances, and an
appreciation of the economy, targets and their achievement capability, matched
to a support programme to accomplish set and agreed targets and activities.
Ted
Ryan
Policy Associate, RAWM
Strategic Development Director, RnR Organisation
©August 2013 