Local Approaches to Employment Development: England National Policy Context

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Local Approaches to Employment DevelopmentEnglan
d National Policy Context

• IDELE Seminar
• 1-2 June, 2006
• Alastair Johnson
• Senior Economic Adviser

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• National Policy
• Rural Economy
• Rural Policy
• Local Delivery

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National Policy

• Stable macroeconomic climate
• Low inflation
• Low interest rates
• Stable currency
• Flexible markets
• Appropriate microeconomic policies
• Developing skills
• Promoting enterprise
• Supporting science and innovation
• Encouraging investment
• Strengthening competition

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National PolicyTargeting Local Areas

• Local Enterprise Growth Initiative (LEGI)
• To support proposals in Neighbourhood Renewal
  Areas that stimulate new business start ups and
  franchises, grow existing businesses or attract
  inward investment.

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The Rural Economyor the Economy in Rural Areas
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Contemporary Rural Economies

• At least 310,000 rural residents of working age
  are inactive and want to work
• A further 200,000 are unemployed
• High self employment rates may reflect lack of
  opportunities
• New business start rates are lower than in urban
  areas
• Average earnings are about 10 lower
• Pockets of low pay/low skill
• An ageing workforce (median age of a rural
  resident is 6 years more than an urban resident)

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Economically Poorly Performing Rural Areas
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Rural Strategy 2004

• Three priorities
• Economic and Social Regeneration
• Social Justice for All
• Enhancing the Value of our Countryside

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Local Delivery Pathfinders

• Identifying and building on the best mechanisms
  to devolve delivery as close as possible to rural
  communities.

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Devolution of Policy Delivery

• Double Devolution
• Central to Regional
• Local to Community

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Delivery at the local level requires

• to be evidence based.
• the ability of local players to be able to
  deliver.
• the need to take into account scale.
• the measurement of value for money.

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To conclude

• National policy is probably the most important
  factor in economic development
• but local approaches have an important role to
  play where national policy cant solve all the
  problems.