Growth Hubs: A New Opportunity for
Regulatory Services
1. Background
Over the last three years the provision of business support has become fragmented and patchy
with many businesses stating that they do not know where to go for support. There are many
agencies/organisations offering different types of support leading to general confusion. The
Government is seeking to address this by supporting the development of Growth Hubs in local
areas.
2. What are Growth Hubs?
Growth Hubs will be the central repository of information, advice and support for business within
a defined local area. The aim of the Hubs is to provide a holistic approach to business support.
Through a single point of contact a business will connect to the information, advice or support it
requires. It is envisaged that the primary method will be web-based with telephone and/or email
support.
The type of telephone support will depend on Local Enterprise Partnership (LEP) decisions. The LEP
will either have a local number operated by the LEP or use the BIS national number. Both systems
will ensure that there is an initial needs assessment of the business before signposting to the
appropriate support provider which may be a local or national agency. All LEP areas are in the
process of agreeing which model to adopt.
The Hub will function as a one-stop shop collating various facets of business support such as access
to training, finance and local authority services such as regulatory services. Growth Hubs will be a
signposting service.
The Government is making funding available for the development of Growth Hubs. They are likely
to be a component of each LEP’s Strategic Economic Plan (SEP), which is the document that sets
out what the LEP’s plans are for the area in terms of employment and economic growth.
3. Growth Hub concept
Depending on your local area, the Growth Hub development may be led either by a City or the LEP.
You will need to investigate who is leading on this in your local area. The approach to the
development of the Hub will differ depending on local priorities. However the principles of the
Hub will remain the same.
Growth Hubs – A New Opportunity for Regulatory Services
This is a simple version of the model developed by Leicester and Leicestershire Enterprise
Partnership (LLEP). You can see that the Growth Hub will act as a single point of contact for various
business support functions including regulation.
From this diagram you can see that LLEP sees the Better Business for All (BBfA) programme as part of
the business support solution for local businesses. This is good opportunity for local authority
regulatory services to demonstrate how they fit into the business support landscape.
4. Funding for Growth Hubs
The LEPs have developed their SEPs. These documents will be used to bid for the £2bn Local Growth
Fund allocation available to all LEPs. There are other sources of funding available to LEPs including EU
Structural Funds, City Deals and EZ Business Rates. The model below shows potential sources of
funding for LLEP.
Some LEPs have secured funding for Growth Hubs through their City Deal applications. In 2014-15 all
LEPs will be required to bid for BIS funding to develop and deliver their Growth Hubs.
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Growth Hubs – A New Opportunity for Regulatory Services
5. Will every area have a Growth Hub?
Every area will have a Growth Hub. Some areas are already operational and others are in the process
of developing theirs. You may find it helpful to establish where your LEP is in its journey.
6. What are the benefits for regulatory services?
Growth Hubs will coordinate all business support available in an area. Regulatory services routinely
provide a considerable amount of support to business and therefore should be considered as part of
the Growth Hub package. Being included within the Growth Hub will assist in embedding regulatory
services as a key business support function and part of the wider business support solution.
It is not envisaged that regulatory services are relocated to Growth Hubs. Growth Hubs, with the
knowledge of what regulatory services can offer to business, will act in a signposting capacity.
Being part of the Growth Hub may provide the potential to attract funding particularly if regulatory
services can define what they have to offer and how they can support local businesses to grow. For
example, work with local priority sectors could be highlighted:
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

Tourism – improving compliance of hotels and bed and breakfasts to make them more
attractive for tourists
Food and drink industry – improving compliance rates for restaurants and cafes so people
visit
Enterprise Zone – developing a regulatory offer to new or relocating businesses to make it
easier to start trading.
7. How can regulatory services become involved?
Regulatory services will need to approach their LEPs or those organisations leading on City Deal
applications for Growth Hubs. Before doing this you need to be clear what your ‘offer’ to the Growth
Hub will be. You also will need to demonstrate how your offer can help to deliver on Growth Hub
priorities and support local economic growth.
This can be done in a number of ways:
a) Developing links with economic development within your authority. The importance of a
strong relationship between heads of regulatory services and economic development should
not be underestimated. A regulatory offer being pitched to a LEP will yield a more successful
response, if supported by economic development.
b) Using case studies where regulatory services have helped business or industry to prosper or
grow through good regulatory advice and support. Any case studies that evidence work in the
LEP’s priority sectors would be valuable. These case studies can also help make links with
economic development as well as the LEP.
c) Using statistics – Highlight the number of operational staff who regularly visit business and
act as key contacts. Showcase that these officers can be utilised to deliver Growth Hub
messages and signpost businesses for assistance outside their scope of work. This can help
with conversation with economic development as well as the LEP.
d) Adopting the BBfA programme. This is a partnership approach to improving the way in which
regulation is delivered, and received, in a defined locality. A coordinated and consistent
approach to regulatory delivery will support the LEP’s local priorities. You could include an
outline on how the programme fits with the current Government agenda about improving
the relationship between business and regulators to create the conditions for growth.
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Growth Hubs – A New Opportunity for Regulatory Services
Michael Fallon, Minister for Business and Enterprise, speech on regulation and economic growth,
commenting on priorities for government reform:
“Developing better relationship between regulators and business and importance for growth.”
The All Party Parliamentary Group on Local Growth, Local Enterprise and Enterprise Zones October
2013 Report – Rising to the challenge: How LEPS can deliver local growth strategies stated:
“This enquiry encourages all LEPs to adopt this (BBFA) tool as it could also form a core strand of a
LEP’s business support role.”
The experience in LLEP is that including information of partnership working by regulators and
business through the BBfA programme has assisted in strengthening its City/LEP applications for its
Growth Hub and its SEP. Regulatory services could state that their partnership working with all
local/national regulators and business assists the City/LEPs in demonstrating commitment to
partnership working to facilitate growth.
8. Timelines
LEPs are currently making funding applications to Government and Europe for the Growth Hubs. It is
envisaged that Growth Hubs will come on line in 2014-15. The date for each Hub going live will vary
across the country.
Therefore starting your discussions as soon as possible is critical.
9. Who to contact in LEPs?
All LEPs have board members from local authorities, however with some LEPs covering upwards of
10 local authorities not all will be directly represented. However establishing how your authority is
represented should be your first consideration.
All LEPs have LEP managers or chief executives. Once you have determined what your offer to the
Growth Hub will be these are the people that you need to convince. They support the LEP Board who
will ultimately decide what the Growth Hub will include.
It is important to note that it is not a uniform picture and due to the various set ups of the LEPs
across the country, Growth Hub developments could be led by either a LEP or local authority or
chambers.
It would be helpful to understand who is on the LEP Board. There may be a member who has a key
focus/remit on business support and growth who you may wish to approach in the first instance.
Where the lead is a local authority, regulatory services being part of the authority make may it easier
to find key councillors who could be influenced and could be lobbied with your regulatory services
offer. You may also wish to utilise any contacts in economic development if you have them.
For further information, please contact:
Heena Prajapati – Better Business For All Programme Manager at Leicester and Leicestershire Local
Enterprise Partnership
[email protected]
Narinder Pooni – Economic Development and Investment Officer at Leicester and Leicestershire Local
Enterprise Partnership
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Growth Hubs – A New Opportunity for Regulatory Services
[email protected]
Further resources to assist in developing your offer and adopting the Better Business for All
programme can be found at:
https://www.gov.uk/government/publications/business-regulation-better-business-for-all
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