Yorkshire Forward cuts could cost region £270m

THE cuts imposed on Yorkshire Forward’s budget by the Government could end up costing the region’s economy more than £270m, according to figures seen by TheBusinessDesk.com.

The regional development agency is making £40.27m cuts from its £270m budget this financial year as the Government considers its long term future, TheBusinessDesk.com’s James Reed reports.

An assessment of the impact of those cuts suggests that Yorkshire Forward expected the programmes affected to create more than 7,000 jobs and almost 1,600 new businesses.

Business Link – which will be scrapped, the Northern Way and Marketing Leeds among the high profile organisations that will be hit.

TheBusinessDesk.com yesterday revealed the extent of the cuts made by Yorkshire Forward.

Other spending in line to be cut includes a £1.4m scheme supporting manufacturing businesses facing reduncancies to give their workforce new skills and £120,000 earmarked to help make the case for increase transport spending in the region while £800,000 of funding to help the redevelopment of Scarborugh Spa has been affected.

The Northern Way, a partnership launched in 2004 to promote economic development across the North of England, is facing cuts in funding from Yorkshire Forward of £666,000.

John Rundle, director of the Northern Way, said: “The in-year cuts to northern RDAs will of course impact on programmes they are delivering together through the Northern Way partnership, and limit the scope for new projects.  The precise scale of that reduction is currently under discussion.”

A project to fund relocation costs and design work associated with the development of Huddersfield Waterside worth £1.3m is being defered while £200,000 of finance for the region’s food and drinks industry will be lost.

Financial Leeds, a private sector-led organisation promoting Leeds as a leading financial centre, is losing Yorkshire Forward support worth £100,000.

Chief executive Howard Kew said: “The organisation will not be materially affected although we will reduce some of our advertising spend that was being used to develop the brand of Leeds and Financial Leeds nationally and internationally.”

The announcement of cuts has led to fears that many Yorkshire towns and cities could be left as ugly building sites as the cuts halt regeneration and building projects which were seen as vital to the economic future of the region.

Yorkshire Forward chief executive Thea Stein said that the regional development agency would use whatever cash it could to ensure schemes are progressed.