Local Enterprise Growth Initiative

Abstract

During Summer 2006, the contest to secure substantial enterprise support for deprived areas in England began in earnest as the mid-September deadline for Round 2 LEGI bids loomed. Details of the successful (and unsuccessful) first-round bidders were forensically dissected by secondround hopefuls scouring the evidence for pointers towards producing winning bids, and four of the successful bids are showcased in the following In Perspective articles.LEGI represents the most significant source of economic development funding currently on offer when the alternatives have begun to dramatically dry-up. ESF and ERDF are winding down in many regions where RDA Single Programme funding has also tailed-off after several years of growth. So, local authorities are casting around with some urgency for a major source of financial support in future years.In late February 2006, the Government announced the ten successful schemes that would be financed from LEGI-a joint programme of the ODPM (now Department for Communities and Local Government (DCLG)), plus the Treasury and Department for Trade and Industry. LEGI was announced in the 2005 Budget and is worth £300 million over the three years to 2008-2009 subject to the comprehensive spending review.The Government says that LEGI is 'a long term commitment' and this was reflected in many of these bids, which outlined plans lasting for up to 10 years. All 10 schemes had the first three years of their bids funded in full

Supporting entrepreneurship in deprived communities: a vision too far?

“…In recent years, the key mechanism for providing support in deprived communities has been the Local Enterprise Growth Initiative (LEGI) (Convery, 2006; Huggins and Williams, 2009). LEGI aims to provide investment in deprived areas – such as the community studied in this paper – to support locally developed proposals that stimulate economic activity and productivity through enterprise development (HM Treasury, 2005, 2007).…”

Between Economic Competitiveness and Social Inclusion: New Labour and the Economic Revival of Deprived Neighbourhoods

“…This aimed to release: "the productivity and economic potential of our most deprived local areas and their inhabitants through enterprise and investment -thereby boosting local incomes and employment opportunities" (HM Treasury, 2005, p.47). A key assumption underpinning LEGI was the existence of a significant untapped entrepreneurial talent within communities that have traditionally experienced deprivation which local interventions could release (Convery, 2006). Local authorities successful in the competitive bidding process were encouraged to use LEGI funds for initiatives aimed at developing enterprise awareness and education, improving access to finance and business premises, as well as assisting underrepresented groups such as women, young people, or various ethnic minority groups to start their own businesses.…”