The single growth fund the government has recently announced is welcome in the respect of it being a boost to economic growth, devolved down to the local level, where decisions can be more responsive to local needs and opportunities.
There is, however, cause for real concern. The big question is how much of the fund is new money and at just £2bn per year for five years, the fund falls hugely short of the £70bn Lord Heseltine called for in his review of how to get the economy moving.
The size of the fund appears to reflect the ongoing refusal of the government to grasp the scale of the economic challenge facing the UK, develop an ambitious growth policy to stimulate the economy and recognise the case Heseltine sets that cities and surrounding regions are best placed to deliver growth but need the resources to do it.
Not only has the government failed to grasp the nettle on Heseltine's growth plan but it has also failed to recognise the vital role that local authorities will play if the devolution growth agenda is to be realised.
Although the funding for a single growth fund would be devolved to Local Enterprise Partnerships (LEPs), work needs to be done with local authorities to deliver what it set out to achieve.
In Sheffield, the council has worked with key partners to develop a coherent economic strategy for the city and create new growth policies. For example, we are launching a new £1m small business loan fund this week. The council also worked with the LEP to develop a new framework to allow small and medium enterprises to successfully bid for and access the regional growth fund.
The role for local authorities, of working in partnership to deliver growth, is clear. This capacity is even more important at the city region and regional level if Heseltine's growth agenda is to work. In Sheffield local authorities work closely with the LEP to provide the capacity to deliver our plans for growth.
Much of the knowledge and capacity to develop Sheffield's groundbreaking city deal apprenticeship scheme that puts private businesses in control of the purchasing power for apprenticeship training and delivery, was delivered by local authorities.
The reason we are seen as having one of the highest performing LEPs in the country is because of the strong working relationship between our LEP and our local authorities.
LEPs need to remain lean, private sector-focused organisations – they should not become quangos or risk losing the very role they were set up to perform. That's why the local authority and LEP partnership is so important.
However, local government has faced the heaviest cuts in the spending review and the government is quite literally destroying the very foundations necessary for Heseltine's growth plan to be delivered.
Leigh Bramall is Sheffield city council's cabinet member for Business, Skills and Development.
• What do you think? Email sarah.marsh@theguardian.com if you want to contribute an article to this debate
Not already a member? Join us now for more comment, analysis and the latest job opportunities in local government
