Local Enterprise Partnership asks for funding pledge to be honoured

Marches LEP chair Mandy Thorn says it is "absolutely vital" it receives the remaining funding it was promised

A body which promotes economic growth has said it is reaching a "crisis point" after only receiving half the money it expected from the government.

The Marches Local Enterprise Partnership (LEP), which operates in Shropshire and Herefordshire, is now using reserves because of the £250,000 shortfall.

It has asked for clarity on its future.

The government said it was "working with LEPs to refine their role" and ensure they are "fit for purpose".

LEPs were established in 2011 as partnerships between councils and businesses to support the local economy and distribute government funding.

'Anxiety and stress'

The Marches LEP, which is one of 38 around the country, said the government had agreed to give it £500,000 for the current financial year and it is urging the government to "act quickly to honour its funding agreement".

Its chair, Mandy Thorn, said using reserves was "clearly not sustainable in the long term and is causing a tremendous amount of anxiety and stress for our staff".

She said the LEP's directors were offered their time voluntarily, but added: "I simply do not know how long this goodwill is likely to be extended under the current circumstances."

The Department for Levelling Up, Housing and Communities said it was reviewing the role of LEPs and promised a decision soon on the second half of their funding.

It said: "The government is grateful to LEPs for their patience on the matter of core funding, and for their ongoing work to support local economies."

But Mrs Thorn said: "The review has been under way for several months and the publication of its findings have been pushed back a number of times.

"This is creating still more uncertainty and it is in everyone's interests that the government clarify the issue."

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