Rural and county economies in England are recovering far more slowly from the coronavirus crisis than urban and city areas.
Research by EY with the County Councils Network show the 11 Local Enterprise Partnerships covering urban and city areas in England recovered economic output lost from the pandemic in 2022, with gross added value forecast to grow by 6.7%, or £60bn, by 2025, compared with 2019.
By contrast, the report, due to be published today, forecast that 27 LEP areas covering county and rural areas will grow at a more sluggish rate of 3%, or £29bn, between 2019 and 2025. They would only recover lost economic output from the pandemic in 2024, it said.
The CCN said this was further proof the LEPs need to be scrapped.
“For too long, councils in county areas have been hamstrung in their ability to drive economic growth, lacking the powers enjoyed by urban and city authorities with mayors,” said Tim Oliver, leader of Surrey County Council and chair of the CCN.
The Department for Levelling Up, Housing and Communities said earlier this year it would scrap LEPs and allow their functions to be absorbed into county and unitary councils, as they have been already in areas with combined mayoral authorities such as Manchester and London.
Oliver added: “There is a real risk that the government fudges the decision, leaving county areas at an economic disadvantage. This is why we are calling on ministers to be decisive — and quick. We need all the tools in our armoury to try and close the gap.”
