Page content Site navigation
Home > Case Studies > Local Economic Growth Initiative

Case Study 3

Local Enterprise Growth Initiative (LEGI)

LEGI was announced in the 2005 budget and became operational in 2006.  A joint initiative between DCLG, HM Treasury and BIS (then DTI), it aimed to 'release the economic and productivity potential of the most deprived areas across the country through enterprise and investment'. A competitive bid process resulted in round 1 funding being awarded to 10 area partnerships in early 2006, followed by a further 10 areas in late 2006.

Amion Consuting Ltd was appointed to undertake an evaluation of LEGI with Pion Economics detailed to provide an econometric assessment of the LEGI Programme and analysis concentrating on both levels of worklessness and growth in new firm formation

The econometric analysis consisted of identifying a 'control' group of areas against which to assess the performance of the LEGI areas via a technique called propensity score matching (PSM) and employing both the target and control group areas in a difference-in-difference analysis (DiD), taking account of the performance status of both groups prior to the intervention.

Reports detailing the LEGI programme, evaluation and technical results are available from the report archive of this website.