Business groups slam LEP plans

The government had hamstrung LEPs by handing their control to a single organisation, warned the Federation of Small Businesses. The government said the British Chambers of Commerce came forward with a "very strong proposal" to run LEPs- which aim to drive economic growth through sharing of business best practice. However, business groups cried foul over the unilateral nature of the appointment process. John Walker, national chairman, Federation of Small Businesses, said: "By simply picking a single business organisation to run it in this way, with no consultation with the rest of the business community, risks isolating both those businesses which are not a member of any membership body and those who are members of the groups that haven't been included from LEPs." Mike Templeman, director general at the Institute of Directors added: "We are surprised and disappointed that the Government has appointed the British Chambers of Commerce to head this £300,000 quango with no consultation or discussion with other business groups." A strong existing business network made the British Chambers of Commerce the ideal choice to head LEPs, the government claimed. Eric Pickles, communities and local government secretary said: ""British Chambers of Commerce came forward with a very strong proposal and with its existing business network across the country it is really well placed to anchor business at the centre of new local enterprise." The British Chambers of Commerce voiced delight over its appointment. The organisation was determined to run LEPs in an inclusive way, said David Frost, the organisation's director general. He said: "Our priority now is to listen to local business leaders - this is their network. It will only succeed if it delivers a supportive forum to exchange ideas, a way to engage with Ministers, and the data and information that partnerships need to support local growth."