LOCAL Enterprise Partnerships (LEPs) will focus on growing small and medium-sized local businesses to replace public-sector jobs.

The chairmen of both of York’s LEPs, and a researcher from the Centre for Cities, discussed York’s role with city leaders at a York Economic Partnership meeting yesterday.

Tom Bolton, of the Centre For Cities, said that York’s skills base made it resilient between 1998 and 2008, when manufacturing jobs were replaced by the public sector and financial and business services.

But now the city faces 1,700 public sector job losses by 2014/15 – 1.7 per cent of the working population – it has no particular advantage over other cities, he said.

Barry Dodd, chairman of York and North Yorkshire LEP, which also includes East Yorkshire, said: “Our LEP is about business growth, not job growth. If you grow your business you might just be able to grow jobs.

“What went wrong with Yorkshire Forward was everything was related to job growth. If you go to any business in York and say, ‘I would like to help you grow your business’, rather than ‘We want you to employ more people’, people will listen”.

He announced the LEP has also set up a working group with banks to support start-up businesses in getting funding through a Certificate in Business Administration, with online modules covering what people need to know to start up in business.

The certificates will be adjudicated by the region’s business schools and help banks lend to inexperienced business people.

Neil McLean, chairman of the Leeds City Region LEP also it would also focus on indigenous SMEs rather than inward investment.

“What we don’t do nearly well enough is take eight to ten man businesses and grow them to 100 to 200 man businesses. The value added to the economy would be huge.”

He said the region could not count on Enterprise Zones to bring in new jobs and regeneration.

“There is far too much excitement about Enterprise Zones in terms of the benefits to occupiers, which are extremely limited. This isn’t going to be a huge driver for inward investment at all, the benefit of the Enterprise Zones is that LEPs can retain the business rates for 25 years and create a fund for effectively refreshing investment throughout the region,” he said.