28 November 2008
By Vivienne Russell
Regional development agencies have welcomed the government's vote of confidence in their ability to stimulate economic growth up and down England.
Following the publication of the Sub-National Review last year and a further consultation, the government this week promised legislation to devolve greater powers to local and regional level.
The proposals include a new duty on upper-tier local authorities to assess the economic conditions of their area; powers to help councils collaborate on economic developments; and a board of local authority leaders to provide direction at a regional level and hold RDAs to account.
Publishing the government's final response to the Sub-National Review's consultation along with the Pre-Budget Report, local government minister John Healey said: 'Every community, town, city and region needs to play its part in dealing with the current economic climate and also prepare for economic growth for the future… [These] reforms will bring together the expertise, the will and the decision-making powers to plan effectively for sustainable economic growth in all our English regions.'
Each region will have to produce a single plan for their area so that spatial and economic decisions are taken together and not separately. The role of RDAs is also to be boosted, and they will concentrate more on investment planning.
Bryan Jackson, chair of the East Midlands Development Agency, said it was important that RDAs continue to be able to use their resources flexibly. 'We are keen to both maintain our strong, business-led approach and also to work more closely with the local authority leaders' board in taking forward this new task,' he said. 'We view a more integrated approach to regional development as a real opportunity for the regions.'
The PBR also contained a devolutionary package for cities and their city-regions to help them drive economic growth and support sustainable development.
The government envisages city-region-wide control and influence over transport, housing and regeneration and employment and skills.
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