EY - Transition of Local Enterprise Partnership functions to CCN members: principles for success

This report, produced by EY, examines the government’s plans to transfer Local Enterprise Partnership (LEP) functions to local authorities.

It assesses the economic rationale, risks and opportunities of the transition, and sets out principles to ensure continuity of growth activity, democratic accountability and effective delivery.

Drawing on economic analysis and stakeholder engagement, the report concludes that County Councils Network (CCN) member councils are well placed to assume LEP responsibilities and use the transition to strengthen place‑based economic leadership – making the case for government to implement this policy.

Key findings from the report include:

• LEPs received around £12bn of public funding, including £9bn through the Local Growth Fund, leveraging £1.76 of additional investment per £1 spent.  

• CCN members have partial or full coverage of 27 of 38 LEP areas and account for around 72% of GVA, employment and population within those geographies.
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• CCN‑LEP areas have experienced a slower post‑pandemic recovery than non‑CCN‑LEP areas, reinforcing the need for renewed strategic focus.
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• Upper‑tier authorities already act as accountable bodies for all LEPs, providing a strong foundation for transition and continuity.

Ahead of the transition, the report recommends that government:

• Provide clear decisions and timelines on the scope and route of LEP transition.
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• Ensure long‑term, ring‑fenced funding for economic growth functions, including coverage of transition costs.
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• Establish a national framework enabling locally led, place‑based economic strategies.

It recommends that local authorities:

• Retain a strong, independent business voice within new governance arrangements.
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• Support collaboration across boundaries and avoid fragmentation of growth activity.

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