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Local Enterprise Growth Initiative (LEGI)

The Local Enterprise Growth Initiative (LEGI) aims to release the productivity and economic potential of our most deprived local areas and their inhabitants, through enterprise and investment, thereby boosting local incomes and employment opportunities, and building sustainable communities.

Announced by the Chancellor in 2005 as a joint programme between Communities and Local Government, HM Treasury and BIS, LEGI provides local institutions with flexible, devolved investment and the freedom and authority to best determine the needs, options and solutions for stimulating economic development in their areas. LEGI areas have made progress in establishing their programmes, using a variety of methods to increase local entrepreneurial activity and, support the growth and reduce the failure rate of locally-owned businesses.

Funding for LEGI currently runs at approximately £100m a year and is paid through the Area Based Grant, a non-ring fenced funding stream, with Capital payments paid through Capital Grant Determinations.

All local authorities eligible for Neighbourhood Renewal Fund (NRF) were eligible to apply for LEGI funding. They were encouraged to work in partnership with their regional Government Offices (GOs), Regional Development Agencies (RDAs) and other key local stakeholders to develop studied proposals focusing on sustainable projects that would bring lasting change to their areas.

Two competitive bidding rounds were held in February and December 2006 with funding awarded to 20 areas (see archived content below).

The Department has commissioned an independent, objective two year evaluation to be carried out on LEGI.

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