A bitter row has erupted over the running of a key organisation that was created to promote Cumbria's economic growth.

An independent panel which was set up to oversee the work of the county's Local Enterprise Partnership (LEP) says that it has proved to be ineffective and it is being wrongly dominated by Cumbria County Council.

Carlisle's MP John Stevenson supports a call from the Cumbria LEP Scrutiny panel that the organisation's chairman George Beveridge should immediately resign. He has rejected many of the criticisms, saying the board is private sector led.

If Mr Beveridge does not immediately resign, says Mr Stevenson, he will be forced to withdraw his support for Cumbria LEP. Local enterprise partnerships are the bodies through which the Government channels economic growth funding.

In its hard-hitting report, the independent Cumbria LEP Scrutiny Panel sets out its damning assessment after speaking to interested parties and commissioning an independent report of how the organisation operates.

The conclusions include:

  • The LEP board is not operating to high standards of governance and transparency, causing disillusionment and distrust
  • The organisation has not become a forceful engine of economic growth in Cumbria and has failed to attract expected government funding
  • Despite the government’s intention to have all LEPs led by the private sector, Cumbria LEP is public sector led
  • And too many Cumbrian business people have said they do not want to be associated with the county's LEP in its present form.

The report's final conclusion states: "Given the concerns around transparency, accountability, domination by Cumbria County Council, the ability of current structures to deliver what Cumbria needs effectively, immediate change is needed from the top to facilitate the structural changes seen as necessary."

The report makes 19 recommendations.

These include allowing two additional private sector board members; a new private sector sourced chairman; and fewer board places for local government politicians. The panel calls for an interim chairman to oversee initial changes.

The report says its conclusions are reinforced by recent developments.

These include the refusal of the LEP to accept its interim chairman; the launch of a recruitment to find a new chief executive, to be employed by Cumbria County Council, without consulting with partners, or taking into account the scrutiny panel's recommendations.

The report adds that LEP director Graham Hayward's recent public comments indicated a "total denial" of the panel's conclusions.

The document says: "Communications with and by certain members of the LEP Board indicate that they clearly perceive that everything is perfectly fine, which is totally at odds with our findings."

The report adds: "These subsequent developments reinforce our view and recommendations that an interim chair should be installed immediately and that decision making should cease until that interim is in post.

“We therefore require immediate action, without which we will unfortunately have no option but to go public in our view and the Board's 'response."


John Stevenson Mr Stevenson supported the scrutiny panel's report.

"The LEP should be led by the private sector, not the public sector," said the MP.

"There’s been a lack of leadership. The board needs to be reformed, with less council involvement, and much more from the private sector. That would be hugely beneficial, and would demonstrate to central government that we have a reinvigorated board.

“It could bring millions of pounds worth of investment into Cumbria."

Mike Starkie, Copeland's elected Mayor, agreed with Mr Stevenson and the scrutiny panel.

He said: "My feeling when I was with the LEP as a board member was that it was like observing a County Council sub committee.

"The LEP could be a force for the good, bringing in investment, but it should not be dominated by the public sector."

Mr Beveridge said that Cumbria LEP was quite evidently private sector led. He supported the proposal that there should be more directors from the private sector on the board.

Responding to the call for his immediate departure, Mr Beveridge said: "It's not about me. It's about the board's right to make decisions about the future of the LEP. At the last meeting a couple of weeks ago we had a full discussion about the review document and the board took all of that into account.

"The board took the view that the best way forward is for me to stay in post until a new chair has been recruited and I agreed to do that. I don't want to let the board down."

Mr Beveridge dismissed claims that the LEP had lost the confidence of Cumbrian business people, saying that he struggled to keep up with interest in the organisation from businesses across the county.

He added: "I see a lot of people in Cumbria who work hard for their county but partly because of our complicated structures, I do see a tendency for people to fall into some negative behaviours, but it's not something I engage in.

"It doesn't help wider Cumbrian interests."

The News & Star invited comments from Cumbria County Council Leader Stewart Young, who sits on the board, but he has not yet responded.

A year ago, Cumbria's LEP was awarded £12.7 million after it bid for £165 million from the Government Growth Deal bid. The cash given to Cumbria was the lowest amount given among the 11 LEPs which submitted bids.