crimeandlaas.html

Local Area Agreements and Business Crime

June 2007

Introduction

Business crime is holding up the regional economy- and harming lives

The Government Office for the West Midlands has estimated that business crime costs the West Midlands region £123 million per annum or £10.3 million per month or £2.4 million per week or over £335,000 per day or £14,000 per hour (Business Crime in the West Midlands Region, Government Office for the West Midlands, 2005).

These figures do not even touch the pain and trauma caused by the criminals -and still only reflects what is known and reported.

That is why this guide has been produced to help councils gain funds to combat business crime.

There is a disconnect in a number of areas between the recognition of business crime in holding back the local economy and the Local Area Agreements (LAAs) response to this issue.

That is the conclusion that has been drawn after contact with the majority of Crime and Disorder Reduction Partnerships (CDRPs) across the West Midlands region within the last few months.

While some local authorities do incorporate business crime in the package of measures that need to be addressed via LAA funding others do not.

This is an understandable state of affairs as the guidance issued by the Department for Communities and Local Government (DCLG) to councils on how to prepare LAA applications allow a broad interpretation of the role of business crime in the application process.

The impact that business crime has on the West Midlands region is based on statistics which are a specific measure of business crime. These are shop theft, fraud, vehicle theft, burglary. This is therefore a conservative estimate if other forms of crime that directly impact on everyday business activity, such as violent crime, is added.

Therefore there is no doubt that business crime is holding back the creation of jobs and holding up the regional economy.

This document can be presented to local authorities to give practical advice on how LAA applications need to be drafted so investment is channelled into tackling business crime.

LAA Blocks

Applications for LAA funding are divided into policy blocks. The blocks that will be considered in this guide are:

Safer and Stronger Communities
Economic Development

A straightforward reading of the DCLG guidance would not demonstrate where the two blocks are aligned but, in reality, and as stated earlier in this guide, the two issues are inextricably linked.

Safer and Stronger Communities rightly highlights the need, for instance, to "reduce the number of first time entrants to the youth justice system". However specific measures geared specifically at tackling business crime are not present.

Therefore we propose that items in the Safer and Stronger Communities block is directly linked to the Economic Development block so that security equipment and advice as well as schemes such as Shop Watch can be sustainably provided for in the long term and not prone to short term financial vagaries.

So, for instance, the suggested target in the Safer and Stronger Communities block to "reduce the number of first time entrants" to the youth justice system can be linked to the suggested target in the Economic Development block of "reducing the number of young people not in education, employment or training".

Another suggested target in the Economic Development block is local "SMEs business survival rate". As earlier statistics have shown, SMEs are struggling in the face of business crime and, therefore, security measures for SMEs would inevitably help with business survival rates.

Neighbourhood Renewal

Another aspect that will assist local authorities in bidding for LAA funds to combat business crime is in the area of neighbourhood renewal. As the DCLG guidance states:

"LAAs are expected to be a major tool in delivering neighbourhood renewal, in particular in addressing disadvantage and improving the quality of life in areas facing the greatest challenge".

One of the issues that must be addressed, the DCLG guidance states, is rates of economic activity. While a range of factors clearly impact in this area, the debilitating impact of business crime is a clear local issue that can be specifically catered for in LAA applications other than factors such as changes in business dynamics in various sectors – which are often regional and national, if not global, matters rather than local issues.

Equality and Diversity

The DCLG guidance states:

"Partners will need to consider how the delivery of their LAA commitments is impacting on different minority groups and how they are measuring that".

In some localities, crime problems may be in areas where disadvantage exists including minority ethnic communities, though this may not be case.

According to the Birmingham Chamber of Commerce and Industry, "young, non white and older white British individuals" are two "demographic groups which currently demonstrate proportionally lower average rates of economic activity" (Demographic Situation in Birmingham, Birmingham Chamber of Commerce and Industry, 2006).

A national report has stated that while the national employment rate stands at 75% the national employment rate for people of Black African origin stands at 55% and for people of Pakistani origin it stands at 47% (Fair Cities: Employer Led Efforts that Produce Results for Ethnic Minorities, National Employment Panel, Department for Work and Pensions, March 2004).

While disadvantage and crime are not automatically linked, statistically an area will suffer more from crime if it is deprived and, statistically, prejudice has led to some minority ethnic communities living in deprived areas. Therefore tackling business crime in some deprived areas will help tackle prejudice and inequality by improving the overall economic environment. Therefore this section of LAA guidance can be cited when seeking investment to combat business crime.

Regional Development Agency

DCLG guidance states:

"It is important that the economic development fourth block is developed within the framework provided by the Regional Economic Strategy".

The current Regional Economic Strategy developed by the Regional Development Agency, Advantage West Midlands, specifically states business crime as an issue that must be tackled to improve regional competitiveness.

Therefore when seeking funds to tackle business crime, reference to the Regional Economic Strategy can be referred to.

Conclusion

This guide provides practical advice to enable local authorities to gain LAA funds to tackle business crime – a must if additional jobs and extra prosperity are to be delivered in every part of the West Midlands region.

West Midlands Business Council

Albert House

Quay Place

92/93 Edward Street

Birmingham

B1 2RA

T: 0121 245 0140

F: 0121 245 0141