Regional Development Agencies and the Local Democracy, Economic Development and Construction Bill : Fourth Report of Session 2008-2009

The Local Democracy, Economic Development and Construction Bill proposes substantial changes to the way that economic development policies are delivered. The four main proposals relating to economic development are: merging the existing regional economic and spatial strategies into a single integrated regional strategy, with local authorities and regional development agencies (RDAs) being jointly responsible for its drafting and agreement; giving local authorities the duty to undertake an economic assessment of their areas; devolving funding to local authorities to enable them, rather than RDAs, to deliver economic development policies; and encouraging collaboration between local authorities in delivering these policies. The Committee notes the strong support for a level of governance between central government and local authorities for the delivery of economic development policies and business support. The Committee would have liked more evidence about the effectiveness of RDAs and it is surprised the Government has proceeded with plans to restructure the way regional policy is made before the review of RDAs the Government has commissioned from PricewaterhouseCoopers is available. The Committee expresses concern over some proposals contained in the Bill: most importantly, there needs to be a proper balance between RDAs' business focus and the role of councillors in representing the views of their constituents. The proposals in the Bill about the relationship between RDAs and local authorities place too much weight on the views of RDAs and business interests, particularly during the drafting and agreement of the single integrated regional strategy. The role of local authorities - and of the communities they represent - must be strengthened. Many of the provisions of the Bill need clarifying.

On cover and title page: House, committees of the whole House, general committees and select committees

This report focuses on the work of Yorkshire Forward, its use of resources (forecast to be around £360 million in 2009-10) and how the regional strategies it has developed benefit the region's population of over 5 million, especially in the current economic climate. Yorkshire Forward has led the development of three Regional Economic Strategies (RESs). Although developed by Yorkshire Forward it is felt that it is important that the RES is owned by the region and Yorkshire Forward is commended for its consultative and collaborative approach. It is important that full account is taken of the region's diversity and it will need to be ensured that this is reflected in the new Integrated Regional Strategy, but this should not mean that sub-regional concerns are put ahead of a balanced approach to the interests of the region as a whole and should not detract from Yorkshire Forward's original core economic focus. The Committee is also concerned about the impact of budget cuts and a reduction in funding on the work of Yorkshire Forward and they recommend that Yorkshire Forward's budget not be decreased further

This book reviews governance structures and decentralisation; delivering public services; economic development; and the importance of improving connectivity in rural areas of the UK.

This report indicates broad support for the creation of Local Enterprise Partnerships as a way of addressing local growth. In particular the potential of LEPs to offer a greater focus on local economic needs, and build on the affinity between business, local government and other partners at a local level is recognised. Whilst it is right that LEPs should compete at certain levels it is equally important for them to collaborate, particularly with the Regional Development Agencies, where it makes economic sense. Local Enterprise Partnerships are being introduced quickly and at a time of greatly constrained public funding. There is concern that in the short term LEPs will need know how and powers and in some cases financial resources to make a positive difference. Government will need to be willing to devolve power to LEPs and in certain cases be willing to support LEPs at inception. If LEPs are to be a success, the Department's transition team will need to focus in three areas: retain RDA know-how, realising the full potential of RDA assets, and leveraging potential EU funding

East Midlands Development Agency and the regional economic Strategy : First report of Session 2008-09