Growth Hubs – A New Opportunity for Regulatory Services

/ Growth Hubs: A New Opportunity for
Regulatory Services /
1. Background
Over the last three years the provision of business support has become fragmented and patchy with many businesses stating that they do not know where to go for support. There are many agencies/organisations offering different types of support leading to general confusion. The Government is seeking to address this by supporting the development of Growth Hubs in local areas.
2. What are Growth Hubs?
Growth Hubs will be the central repository of information, advice and support for business within a defined local area. The aim of the Hubs is to provide a holistic approach to business support.
Through a single point of contact a business will connect to the information, advice or support it requires. It is envisaged that the primary method will be web-based with telephone and/or email support.
The type of telephone support will depend on Local Enterprise Partnership (LEP) decisions. The LEP will either have a local number operated by the LEP or use the BIS national number. Both systems will ensure that there is an initial needs assessment of the business before signposting to the appropriate support provider which may be a local or national agency. All LEP areas are in the process of agreeing which model to adopt.
The Hub will function as a one-stop shop collating various facets of business support such as access to training, finance and local authority services such as regulatory services. Growth Hubs will be a signposting service.
The Government is making funding available for the development of Growth Hubs. They are likely to be a component of each LEP’s Strategic Economic Plan (SEP), which is the document that sets out what the LEP’s plans are for the area in terms of employment and economic growth.
3. Growth Hub concept
Depending on your local area, the Growth Hub development may be led either by a City or the LEP. You will need to investigate who is leading on this in your local area. The approach to the development of the Hub will differ depending on local priorities. However the principles of the Hub will remain the same.

This is a simple version of the model developed by Leicester and Leicestershire Enterprise Partnership(LLEP).You can see that the Growth Hub will act as a single point of contact for various business support functions including regulation.

From this diagram you can see that LLEP sees the Better Business for All (BBfA) programme as part of the business support solution for local businesses. This is good opportunity for local authority regulatory services to demonstrate how they fit into the business support landscape.

4. Funding for Growth Hubs

The LEPs have developed their SEPs.These documents will be used to bid for the £2bn Local Growth Fund allocation available to all LEPs.There are other sources of funding available to LEPs including EU Structural Funds, City Deals and EZ Business Rates. The model below shows potential sources of funding for LLEP.

Some LEPs have secured funding for Growth Hubs through their City Deal applications.In 2014-15 all LEPs will be required to bid for BIS funding to develop and deliver their Growth Hubs.

5.Will every area have a Growth Hub?

Every area will have a Growth Hub.Some areas are already operational and others are in the process of developing theirs.You may find it helpful to establish where your LEP is in its journey.

6. What arethe benefits for regulatory services?

Growth Hubs will coordinate all business support available in an area.Regulatory services routinely provide a considerable amount of support to business and therefore should be considered as part of the Growth Hub package.Being included within the Growth Hub will assist in embedding regulatory services as a key business support function and part of the wider business support solution.

It is not envisaged that regulatory services are relocated to Growth Hubs.Growth Hubs, with the knowledge of what regulatory services can offer to business, will act in a signposting capacity.

Being part of the Growth Hub may provide the potential to attract fundingparticularly if regulatory services can define what they have to offer and how they can support local businessesto grow. For example, work with local priority sectors could be highlighted:

  • Tourism – improving compliance of hotels and bed and breakfasts to make themmore attractive for tourists
  • Food and drink industry – improving compliance rates for restaurants and cafes so people visit
  • Enterprise Zone – developing a regulatory offer to new or relocating businesses to make it easier to start trading.

7. How can regulatory services become involved?

Regulatory services will need to approach their LEPs or those organisations leading on City Deal applications for Growth Hubs.Before doing this you need to be clear what your ‘offer’ to the Growth Hub will be.You also will need to demonstrate how your offer can help to deliver on Growth Hub priorities and support local economic growth.

This canbe done in a number of ways:

a)Developing links with economic development within your authority.The importance of a strong relationship between heads of regulatory services and economic development should not be underestimated.A regulatory offer being pitched to a LEP will yield a more successful response, if supported by economic development.

b)Using case studies where regulatory services have helped business or industry to prosper or grow through good regulatory advice and support. Any case studies that evidence work in the LEP’s priority sectors would be valuable.These case studies can also help make links with economic development as well as the LEP.

c)Using statistics – Highlight the number of operational staff who regularly visit business and act as key contacts.Showcase that these officers can be utilised to deliver Growth Hub messages and signpost businesses for assistance outside their scope of work. This can help with conversation with economic development as well as the LEP.

d)Adopting the BBfAprogramme.This is a partnership approach to improving the way in which regulation is delivered, and received, in a defined locality.A coordinated and consistent approach to regulatory delivery will support the LEP’s local priorities.You could include an outline on how the programme fits with the current Government agenda about improving the relationship between business and regulators to create the conditions for growth.

Michael Fallon, Minister for Businessand Enterprise, speech on regulation andeconomic growth, commenting on priorities for government reform:

“Developing better relationship between regulators and business and importance for growth.”

The All Party Parliamentary Group on Local Growth, Local Enterprise and Enterprise Zones October 2013 Report – Rising to the challenge: How LEPS can deliver local growth strategies stated:

“This enquiry encourages all LEPs to adopt this (BBFA) tool as it could also form a core strand of a LEP’s business support role.”

The experience in LLEP is that including information of partnership working by regulators and business through the BBfA programme has assisted in strengthening itsCity/LEP applications for its Growth Hub and its SEP.Regulatory services could state that their partnership working with all local/national regulators and business assists the City/LEPs in demonstrating commitment to partnership working to facilitate growth.

8. Timelines

LEPs are currently making funding applications to Government and Europe for the Growth Hubs.It is envisaged that Growth Hubs will come on line in 2014-15.The date for each Hub going live will vary across the country.

Therefore starting your discussions as soon as possible is critical.

9. Who to contact in LEPs?

All LEPs have board members from local authorities, however with some LEPs covering upwards of 10 local authorities not all will be directly represented.However establishing how your authority is represented should be your first consideration.

All LEPs have LEP managers or chief executives.Once you have determined what your offer to the Growth Hub will be these are the people that you need to convince. They support the LEP Board who will ultimately decide what the Growth Hub will include.

It is important to note that it is not a uniform picture and due to the various set ups of the LEPs across the country, Growth Hub developments could be led by either a LEP or local authority or chambers.

It would be helpful to understand who is on the LEP Board. There may be a member who has a key focus/remit on business support and growth who you may wish to approach in the first instance.

Where the lead is a local authority, regulatory services being part of the authority make may it easier to find key councillors who could be influenced and could be lobbied with your regulatory services offer. You may also wish to utilise any contacts in economic development if you have them.

For further information, please contact:

Heena Prajapati – Better Business For All Programme Manager at Leicester and Leicestershire Local Enterprise Partnership

Narinder Pooni – Economic Development and Investment Officer at Leicester and Leicestershire Local Enterprise Partnership

Further resources to assist in developing your offer and adopting the Better Business for All programme can be found at:

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