November 02, 2012 - Rachel Miller
Lord Heseltine has set out an economic plan to improve the UK's ability to create wealth. He makes the case for a major rebalancing of responsibilities for economic development between central and local government, and between government and the private sector.
The report, No Stone Unturned in Pursuit of Growth, makes 89 recommendations that aim to create the conditions for growth. At the heart of the proposals are measures to unleash the potential of local economies.
Lord Heseltine said: "What we need is a new partnership between the private and public sectors, between local communities and central government."
His recommendations include:
Chancellor of the Exchequer, George Osborne, said: "I wanted Lord Heseltine to do what he does best: challenge received wisdom and give us ideas on how to bring government and industry together. He has done exactly that. This is a report bursting with ideas and we will study it very carefully."
Responding to the recommendations, Simon Walker, director general of the Institute of Directors (IoD), said: "We welcome the idea of encouraging more devolution to the local level."
John Walker, national chairman of the Federation of Small Businesses (FSB), said: "Lord Heseltine raises many good points about letting people get on with running their business. The FSB has said that Local Enterprise Partnerships (LEPs) should discuss growth ideas with local stakeholders and should have more resources to identify local economic shortfalls.
"However, the boards of LEPs must represent all sizes and sectors of local businesses, otherwise they will fail."