In a recent letter Pat Ritchie urged community business leaders to prevent housing from being excluded from multi-million pound plans for economic growth.
LEPs are partnerships between councils and businesses and other stakeholders, which are used to drive economic growth and create jobs at a local and/or sub-regional level. They were launched in June 2010 by deputy Prime Minster Nick Clegg and effectively replace regional development agencies.
However, despite the often cited role of housing in supporting economic development, LEPs do not recognise this link, said Ritchie, according to an Inside Housing report.
According to the report, Ritchie said that there should be a greater link between housing and economic growth in England to make the most of Government funding for housing through the £500 million Growing Places Fund.
That Fund was launched in the Government’s recent housing strategy (88-page / 967KB PDF) and was designed to be allocated exclusively through LEPs, said Ritchie. "We want to help LEPs think how housing and economic development come together".
The role of housing in supporting economic development was cited by the Government in its letter inviting local groups of business leaders and councils to put forward proposals for a LEP.
"Partnerships will want to create the right environment for business and growth in their areas, by tackling issues such as planning and housing," the letter said (2-page/ 81KB PDF).
"We’ve been encouraging LEPs to think whether or not [a lack of] housing is a barrier to achieving growth in their area. Is housing supply lagging behind demand, is it restricting growth in an area?" said Ritchie.
A Government white paper (56-page / 1.43MB PDF), on local growth recognised the role of housing in supporting growth and economic recovery, yet LEPs are not committed to housing, according to Ritchie.
"Housing can be an important source of economic growth, particularly at a local enterprise partnership level. It could play a major role in leading the economy back towards growth and improving the long-term competitiveness of the UK economy," the White Paper said, "Housing can also play a key role in supporting an efficient labour market, which is critical to economic growth."
LEPs should have a "key role" in the Growing Places fund and the HCA is committed to supporting LEPs in submitting bids, Ritchie said.
The Growing Places Fund is being set up to support infrastructure growth to help housing development.
