Mayor hopes revived in new White Paper
HOPES that Birmingham may get a directly-elected mayor have moved a staged further following the Government’s publication of its new White Paper on Local Growth initiatives.
Business Secretary Vince Cable announced the move yesterday in a statement to the Commons. The White Paper also revealed which of the new Local Partnerships would be progressed and further details of the new £1.4bn Regional Growth Fund.
The policy document outlines how power could be devolved to a local level with London-style local authorities being established around the country, with the mayors possibly chairing LEPs.
The RGF is designed to support the creation of private sector jobs and is aimed mainly at bolstering communities worst affected by the Government’s public sector spending cuts, helping them make the transition to private sector led growth and prosperity.
Labour has criticised the strategy and claimed that the £1.4bn allocated to the fund will be massively oversubscribed and could be swallowed up in the first round of bidding when it should have to last for three years.
The White Paper also gives further details on how the new LEPs will be set up.
One of the most important sections suggests that despite several LEP bids being rejected in the initial stages, there will be opportunities for rejected bids to be reassessed.
The move will give hope to those in the Black Country whose initial submission was among those rejected.
The White Paper further outlines how some of the current duties carried out by Regional Development Agencies will cease.
“These include the provision of new small scale Grant for Business Investment, regional workforce skills strategies and some sectoral activities,” stated the document.
The Government will also come up with a new mechanism to deliver the European Regional Development Fund (ERDF).
The new LEPs will have to fund themselves but whether they will get proceeds from the sale of large RDA-owned assets remains unclear.
The Government has said RDA assets will be sold off but it said there were no preferred buyers.
On planning matters, the new bodies will be more accountable for local decisions but Whitehall will have the final say on major projects.
There will also be a wholesale review of the business rates system, including possible power for councils to offer local discounts and retain money from increased yields.
Business rates from renewable energy projects will stay in the area they are generated.
Business support proposals will see the national network of Business Links replaced a website and national call centre. The other jewel in the RDA crown, the Manufacturing Advisory Service will be retained, reflecting the new emphasis on the importance of manufacturing for leading recovery.
