Frank Peck

The Impact of Local Authority Procurement on Local Economies The Case of Cumbria, North West England

Public procurement has a significant impact on economic development in regions and localities. Previous research in the UK has focused on variations in government spending across regions, the effects of competitive tendering processes and EU State Aid rules on regional economies. Empirical studies of procurement at the level of local authorities have received less attention. Increasing pressure to be ‘efficient and effective’ in use of public resources can contradict the need to support local communities, particularly through a period of economic downturn. Until recently, there has been a paucity of relevant data at a local level to examine the impacts of procurement. This paper analyses the combined patterns of spend of eight Local Authorities in the County of Cumbria in North West England. The characteristics of the supply base are investigated using a two-stage survey of businesses that secure local authority contracts. Results show the characteristics of suppliers and their level of dependency on local authority contracts. Managers’ evaluation of the advantages and disadvantages of contracting with the public sector are also analysed. The findings suggest that many small and medium enterprises (SMEs) in Cumbria rely upon local authority contracts for business stability. The interviews confirm the vulnerability of SMEs to the current trend towards more formal approaches to public procurement and the use of a narrow definition of ‘value for money’. The paper concludes by considering the implications of the findings for the extent to which local authorities have retained a capacity to act to support local economic development.

Prospects for 'place-based' industrial policy in England: the role of Local Enterprise Partnerships

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.

Off-shoring in the contact centre industry and employment in the North West of England

The significance of contact centre employment has recently been the subject of renewed debate in regional policy-making of late, driven by media comment on the threat of off-shoring. Despite these concerns, empirical research on the scale of such activities in regions is limited. This article reviews available data on contact centre employment in the sub-regions of North West England. The evidence appears to show continued growth in the number of contact centres and employment totals. The concluding section reconsiders the significance of contact centres for Regional Economic Strategies that focus on developing high value-added activities.

Regulation and growth-oriented small businesses in North-West England

Purpose The purpose of this paper is to examine the ways in which growth-oriented small and micro-businesses (SMBs) are affected by regulations. Case studies from North-West England are used to investigate the relationship between attitudes and responses to regulation and the characteristics of business growth. Design/methodology/approach This research examines the relationship between regulation and growth using eight case studies of SMBs. The selected cases are proactive in seeking new market opportunities and innovative in terms of product development or business process. Findings Case studies confirm that owner-managers of SMBs experience high levels of regulatory burden. However, some growth-oriented businesses also recognise the advantages in being proactive in seeking regulatory knowledge. These advantages were particularly prevalent in cases where growth is driven by product innovation in relatively new product markets. Research limitations/implications The study is based on a limited number of case studies in one region of England. Even so, interviews facilitate probing to increase understanding of the underlying reasons for attitudes towards regulation. The cases demonstrate that even very small businesses can use regulatory knowledge as a basis for business growth. Practical implications The findings suggest that networking in order to engage with regulatory regimes can generate competitive advantages and open up new market opportunities for small businesses. Originality/value This research contributes towards the debate on the impact of regulations on the economy at the micro level and in doing so highlights important nuances in the relationship between business growth and the regulatory environment.

Cross-Border Collaboration in Economic Development: Institutional Change on the Anglo-Scottish Border

ABSTRACT This article considers how changes in institutional structures affect the motivations of policymakers towards collaboration across borders. The Anglo-Scottish Border is used to illustrate the varied motivations for cross-border collaboration using models of partnership working. Adapting recent frameworks of analysis based on the concept of cross-border regional innovation systems, the Anglo-Scottish border is used to show how institutional changes can alter the balance between symmetries and asymmetries that tend to characterize cross-border relationships. Due to progressive devolution of functions to the Scottish Parliament since the 1990s, there are increasing contrasts in institutional settings and policy frameworks across this sub-state border. The nature of cross-border collaboration in two time periods is compared and contrasted. The first took place during 2000–2004 under the banner of “Border Visions.” This is contrasted with the more recent attempts to stimulate cross-border collaboration in the context of the Referendum on Scottish Independence in 2014. It is shown that the motivations for cross-border working can shift in response to changes in the economy and also in response to interactions between policy debates that occur simultaneously at different spatial scales.

The Role and Significance of Rates Relief for Supporting Businesses in Wales

This paper reports on a study which seeks to evaluate the role of small business rates relief as a means of government support for small businesses, in terms of both the financial benefit for recipient businesses and the symbolic significance of rates relief as a form of state support for the small business community in general. In doing so, the paper engages with the theoretical debate regarding the effectiveness and targeting of support to small businesses and how best to achieve this. The paper is based upon a survey of 391 small businesses receiving rates relief in Wales. The study contributes to the literature by filling a gap in our knowledge of business perception of the impact of rates relief and identifying some of the positive and negative aspects of such support mechanisms.

Applying ‘Fair Trade’ to British Upland Agriculture

Fair trade seeks to ensure that disadvantaged farmers and workers in developing countries get a better deal for their produce on the world stage. A particular feature of the scheme is the setting of a minimum price between producer and purchaser. While many recognize the validity of such an approach for developing countries, the issues that fair trade seeks to address resonate strongly with the marginal farming communities of British uplands. This paper considers the validity of applying fair trade principles to the case of upland farm businesses in Cumbria. The authors consider the economic, environmental and social contexts of these businesses, followed by a critical appraisal of fair trade principles and the issue of local food production. Finally, they suggest possible mechanisms that could be adopted using fair trade principles to develop a more sustainable farming economy in this marginal area.