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Financial Close is in the Wedding: The LEP is the Marriage...10 Key Points

The fourth annual Partnerships for Schools conference was held on 18 September 2008 providing an update on the progress of the Building Schools for the Future and Academies programmes. The talk which David Padwick of PWC gave on the subject of Operational Local Education Partnerships was very illuminating and it is clear that there is a strong body of evidence emerging as to best practice. Some of the key points arising from this talk, and from the presentations at the workshop by the two LEPs (Leeds and Waltham Forest) were as follows:

1 The LEP is a vehicle which should be designed to deliver outcomes; it is not a mechanical process. The majority of activity is post financial close; some Authorities think it is all over at financial close when in fact it is just the beginning.
2 The process is complex and the governance issues should not be underestimated. Independent chairs are perceived in a positive way.
3 There is evidence that people can see the benefits of the LEP, and there is a general commitment to make it work. The capacity issue is critical - you need to have the right people. Traditional contractual stances are outmoded and do not work in the post-LEP world.
4 Co-location of the LEP and Authority teams is viewed positively and thought needs to be given to creating a good team spirit. Don’t look for the perfect LEP but pick up tips from others as to what works best.
5 The Authority needs to carefully consider what resources will be made available both on the Board, and supporting the Board. The LEP members need to be imbued with the spirit of “What is in the best interests of the LEP?”. Look at the size of the Board - 20 is far too many. About 7 is a better number. The LEP needs to have a cultural affinity with both organizations however this is not easy to achieve. The officer team is typically likely to comprise about 7 posts: general manager, commercial manager, new projects director, construction manager, project co-ordinator, commissioning manager, admin support posts etc. Need to consider whether the LEP personnel should be employees or secondees.
6 The Authority needs to consider in advance the risk of insolvency if the deal flow is not there. The timing has to work for the LEP.
7 The LEP must develop a role as a mediator, and not be a forum for confrontation!
8 Linking LEP objectives to Authority objectives - many saw the LEP’s objectives as needing to closely align with the Authority’s. The Authority needs to understand what it wants from the LEP. A number of LEPs have been hampered by too limited restrictions in the original OJEU process. The Authority’s aspirations have grown over time but there have been limitations due to procurement rules.
9 Setting up shadow roles and responsibilities during the final stage of the procurement and making sure that the right individual is identified early on who will represent the Authority on the LEP Board. That individual must not have any conflicts of interest. Do not underestimate how long it takes to get the shadow Board up and running.
10 There is no one model - it has to be right for the Authority and its PSP partner. It will not be successful just by following a process and adopting the standard documents. LEPs have found they have had to make it work later and were disappointed by the limited size of their ambitions at the outset.
For More Information Contact:
Graham Burns
TPP Law Limited
53 Great Suffolk Street
London SE1 ODB

t 020 7620 0888
f 020 7620 0778
e info@tpplaw.co.uk

Email: Graham

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Friday, 10 September 2010