Commenting on the announcement by Danny Alexander, chief secretary to the Treasury, that a total £20bn of funding will be available to LEPs between 2015 and 2020, Kru Desai, who leads KPMG’s Local & Regional Government practice said:
“It’s unsurprising that, despite - finally - getting their hands on money to invest in local economic growth, £2bn of single local growth funding annually from 2015 seems a small sum to the country’s LEPS, given Lord Heseltine’s - admittedly ambitious – ‘opening bid’ of £70bn over four years. Indeed, there is already fresh lobbying for this ‘single pot’ to be larger.
“This means City Deals remain of huge importance to those City Regions with a vision for reinvention. But their plans will have to stand out in a crowd given the government has reiterated there will be a competitive element to securing a share of the £500m City Deal fund.
“We know other City Regions are looking at the progress made in Greater Manchester, which has its funding agreed, including an innovative earnback, so it will receive a share of the tax revenue to come on the back of local economic growth. This represents new, additional funding which will be of interest in an ‘every penny counts’ context.”
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