Government will end LEP funding

By Ged Henderson

04 Aug 2023

LEP

Government funding of Lancashire’s Local Enterprise Partnership (LEP) will come to an end next April, it was announced today. 

The government says instead it will support upper tier local councils and, where there is a devolution deal, combined authorities to take on the functions currently delivered by England’s 36 LEPs. 

Those functions include business representation, strategic economic planning and the delivery of government programmes. 

Debbie Francis, who chairs the LEP, described the government’s decision to cease its funding as “disappointing”. 

She added: “The need for business collaboration with local authorities remains crucial to enable the delivery of economic growth and prosperity in Lancashire.”  

And she went on: “We are working closely with our public and private sector partners to ensure there remains a strong business voice, which builds on the LEP’s significant expertise, experience, and legacy, that will help inform Lancashire’s future economic strategy.” 

A letter from levelling up minister Dehanna Davison to LEP chairs, combined authority mayors, local authority leaders and the mayor of London was made public today. It spells out the government’s plans. 

It revealed that the government will provide “some revenue funding” to local and combined authorities in 2024-25 to support them in delivering the functions currently delivered by LEPs.  

However, funding beyond 2024-25 is subject to “future spending review decisions”. 

Chancellor Jeremy Hunt announced in his March Budget that the government was looking at transferring the responsibilities of LEPs to local authorities. 

That was followed by “an information gathering exercise” by the Department for Levelling Up, Housing and Communities (DLUHC), which led to today’s announcement. 

In her letter, the minister said: “From April 2024, the government’s sponsorship and funding of LEPs will cease. The government will now support local and combined authorities to take on the functions currently delivered by LEPs.  

“Where not already delivered by a combined authority, or in areas where a devolution deal is not yet agreed, the government expects these functions to be exercised by upper tier local authorities, working in collaboration with other upper tier local authorities over functional economic areas as appropriate.  

“The information gathering exercise identified overlap between some of the functions being discharged by LEPs, local authorities and combined authorities, as well as confirming that there is already a high level of integration of LEP functions in Mayoral Combined Authority areas.  

“The exercise also highlighted the different perceived levels of benefit and engagement between LEPs and local authorities.  

“The government’s view is that there is likely to be scope for greater join-up, efficiencies, and clarity for the private sector by these functions being discharged within Mayoral Combined Authorities, devolution deal areas and upper tier local authorities, working together as appropriate.”  

There are three upper tier local authorities in Lancashire – the county council, Blackpool and Blackburn with Darwen. They are currently involved in talks with the government aimed at sealing a devolution deal. 

The minister added: “The government remains committed to our goal that by 2030, every area in England that wants a devolution deal will have one.  

“By empowering local democratically elected leaders to deliver these key local growth functions from April 2024, we are accelerating the integration process set out in the Levelling Up White Paper.”  

Tim Oliver, who chairs the County Council’s Network (CCN), said: “Today’s decision by the government is a decisive one and very welcome, drawing a line under recent uncertainty and allows us to get on with integrating Local Enterprise Partnership functions into upper-tier councils and combined authorities.” 

He added: “While the government have clearly set out that LEP functions should be transferred to upper-tier councils, it still allows LEPs to continue to operate independently without government support.  

“While recognising these are private enterprises which the government cannot abolish, this could create duplication and confusion locally, and therefore they should only continue to function following consultation with the relevant upper-tier council.” 

Lancashire’s LEP, a strategic collaboration between business, universities and local councils, was formed in 2011, with a remit to direct economic growth and drive job creation. Since then it has played a central role in coordinating the county’s economic priorities. 

Debbie Francis, LEP chair, said: “While the government’s decision to cease the funding of Local Enterprise Partnerships from April 2024 is disappointing, the need for business collaboration with local authorities remains crucial to enable the delivery of economic growth and prosperity in Lancashire.  

“The business community’s sector-specific and unique industry insights will help to ensure investment and policy interventions will have maximum impact which will benefit both residents and businesses as Lancashire realises its economic growth ambitions. 

“As such, we are working closely with our public and private sector partners to ensure there remains a strong business voice, which builds on the LEP’s significant expertise, experience, and legacy, that will help inform Lancashire’s future economic strategy.” 

Enjoyed this? Read more from Ged Henderson

Latest news

1

Panache Cruises makes key hire ahead of Australian launch Julliana Nasmith and James Cole

Panache Cruises makes key hire ahead of Australian launch

12 Mar 2026

2

Blackburn bids to become the UK’s first Town of Culture Blackburn Town of Culture bid taken by Robin Zahler

Blackburn bids to become the UK’s first Town of Culture

12 Mar 2026

3

New chapter for Guy’s Thatched Hamlet after Bowland Inns and Hotels acquisition Thatched Hamlet Terrace at Guys

New chapter for Guy’s Thatched Hamlet after Bowland Inns and Hotels acquisition

11 Mar 2026

4

Heritage manufacturers embrace digital technology with Made Smarter Siddique Rasul digital project manager and Steve Allen of Darwen Terracotta

Heritage manufacturers embrace digital technology with Made Smarter

11 Mar 2026

5

BAE reaches pay deal with striking workers Typhoon production Warton

BAE reaches pay deal with striking workers

11 Mar 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV127 March/April Magazine Networking Event
Jan/Feb Networking Event - Closer up
Networking
19 Mar 2026

LBV127 March/April Magazine Networking Event

Salmesbury Hall, Preston New Road, Lancashire, PR5 0UP

08:30 - 10:30

AI & Cybersecurity Summit
AI and Cybersecurity Logo
Summit
28 Apr 2026

AI & Cybersecurity Summit

Dunkenhalgh House , Blackburn Road, Clayton Le Moors, BB5 5JP

08:30 - 11:00

Sub36 Networking - Outdoor Elements
Sub36
Networking
29 Apr 2026

Sub36 Networking - Outdoor Elements

Outdoor Elements, Pump House Dean Wood, Trapp Lane, Burnley, BB12 7JD

09:00 - 11:00

LBV Magazine Networking Events - SAVE THE DATES
Jan/ Feb Networking Event - Talking
Networking
14 May 2026

LBV Magazine Networking Events - SAVE THE DATES

Lancashire

08:30 - 10:30

Could your business be a King’s Award winner?
King's Cross Awards
LBV Hub
18 Mar 2026

Could your business be a King’s Award winner?

11 Victoria Street, Preston, Lancashire, PR1 7QS

16:00 - 18:00

Preston Freelancer Meet-Up and Coworking Day: March
March Freelancer Square.png.png
LBV Hub Networking
19 Mar 2026 - 19 Mar 2026

Preston Freelancer Meet-Up and Coworking Day: March

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 12:00

The Business Network Central and East Lancashire
LBV Header (30).png.png
LBV Hub Networking
19 Mar 2026 - 19 Mar 2026

The Business Network Central and East Lancashire

Barton Manor, Preston, PR3 5AA

11:30 - 14:15

Exploring Debt Finance: Unlocking SME Growth
LCC Event Logos
LBV Hub Exhibitions
24 Mar 2026

Exploring Debt Finance: Unlocking SME Growth

Farleys Solicitors, 3 Mead Way, Shuttleworth Mead, Padiham, Burnley, BB12 7NG

09:00 - 12:00

Invest in Pendle: A Live Celebration Event
Northlight photograph
LBV Hub
25 Mar 2026

Invest in Pendle: A Live Celebration Event

The Leisure Box, Northlight Mill, Glen Way, Nelson, BB9 5NH

12:00 - 14:00

The Marketing Meetup Lancashire
TMM Lancs - 27th Jan.jpg.jpg
LBV Hub Networking
25 Mar 2026 - 25 Mar 2026

The Marketing Meetup Lancashire

Six Connections, One Slater Terrace, Burnley, BB11 1BU

18:00 - 20:00

The Employment Rights Act 2025: What you need to know
Logo.jpg.jpg
LBV Hub Seminars
26 Mar 2026 - 26 Mar 2026

The Employment Rights Act 2025: What you need to know

Lancaster & Morecambe College, Lancaster, LA1 1TZ

08:00 - 10:00

Lancashire Business Expo 2026
SE, Lancashire 2025.png.png
LBV Hub Exhibitions
27 Mar 2026 - 27 Mar 2026

Lancashire Business Expo 2026

Sir Tom Finney Sports Centre, Preston, PR1 2HE

09:00 - 15:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin