Policy Review Section

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Abstract
In this Policy Review Section Keith Hayton of the Centre for Planning at Strathclyde University examines the consequences for local economic development policy of three major pieces of legislation which the government is currently in the process of introducing. The Local Government and Housing Bill sets out for the first time a clear and unambiguous power for local authority economic development, and also includes sections to bring under the scope of local government legislation various types of local authority company which have been increasingly used in recent years as a vehicle for economic development, perhaps the best known examples being enterprise boards. Keith Hayton also considers the content of two White Papers which herald far reaching changes involving the setting up of employer led, locally based bodies that are to be responsible for planning and delivering training and enterprise development services, including the Youth Training Scheme and Employment Training. In England and Wales over 100 Training and Enterprise Councils (TECs) are to be established with an initial emphasis on the delivery of Training Agency schemes. In Scotland, a new body—Scottish Enterprise, whose board will be dominated by businessmen appointed by the Secretary of State—is to be formed from the merger of the Training Agency and the Scottish Development Agency. This new body will oversee the work of twenty-two local agencies whose activities will encompass a wide range of economic development activities. Keith Hayton, in presenting a critique of these various developments, highlights the increased level of control that the government will be able to exercise over local authority economic development and the concomitant loss of flexibility and scope for local action. He also stresses the manner in which the private sector is increasingly being asked to provide the lead in the formation and implementation of local economic policy. These themes are explored further in the article by Mike Danson of Paisley College and Greg Lloyd and David Newlands of Aberdeen University who consider the problems which are likely to arise following the implementation of the Scottish Enterprise proposal. They point out that much of the thinking underlying the government's proposals draws from the American experience, specifically the Private Industry Councils which are regarded as having played a major role in the regeneration of American cities. However, they point out that, unlike the American model, the British proposals do not espouse collaboration with local government, moreover there is a failure to recognize the significance of public sector investment in the success of the United States model. Danson et al. point out that PICs have not always succeeded in addressing the problems of the most disadvantaged groups in the labour market and along with Hayton believe that the British proposals may suffer a similar fate. Both articles also query whether there will be an adequate supply of able businessmen to run the schemes and question the wisdom of marginalizing the input of local government. In the next issue of the Policy Review Section, Bob Bennett of the London School of Economics will edit a special issue on TECs based on papers presented at an Institute of British Geographers Industrial Activities Study Group Conference.

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