Prospects for ‘place-based’ industrial policy in England

The English regions have witnessed a dramatic shift in institutional structures for economic development since the new UK Coalition Government took office in 2010, involving the formation of 39 Local Enterprise Partnerships that have replaced the former Regional Development Agencies. These changes in the English context have occurred simultaneously with a radical review of regional policy at the European level which has focused attention on the significance of ‘place-based’ policies that are sensitive to, or even constructed upon, the nature of geographic differences. While there are parallels between the principles that underpin localism and place-based policy, in practice recent experience in the UK has been marked by increased centralisation of policy making. A review of the current priorities of the Local Enterprise Partnerships as set out in available strategies and policy documents tends to emphasise supply-side support for businesses alongside a role in place promotion. Sector groups are identified by many Local Enterprise Partnerships but very few are currently in a position to develop sector-based interventions or cluster policies that might ultimately contribute to the delivery of UK national industrial policy. Increased centralisation of industrial policy in the UK contrasts with policy directions at the European scale that have involved place-based approaches and the application of the principles of smart specialisation. It is concluded that there is a need for greater place-sensitivity in UK industrial policy and consideration of the role that Local Enterprise Partnerships might play in the design as well as delivery of national and sub-national economic strategies.