Mixed fortunes for professionals’ groups as RDA cuts bite

A BUSINESS support network for professional firms in Liverpool has lost 80% of its funding as a result of the government cut-backs – while its Manchester equivalent is unaffected.

Professional Liverpool works to promote the city as a viable inward investment proposition for companies.

Earlier this week, the Northwest Regional Development Agency (NWDA) told the organisation that it would not be giving it a £200,000 grant as a result of the coalition government having its budget slashed by £52m.

TheBusinessDesk.com understands that the equivalent organisation in Manchester – Pro.Manchester – will receive its funding from the NWDA as usual.

Steven Broomhead, NWDA chief executive, said: “The coalition Government has asked the NWDA to find savings of £52m from this year’s budget (2010/11).

“Any North West programme or project that has not had their NWDA funding contracted or has yet to apply for funding for this current financial year will not secure funding from the agency.

“Stakeholders and delivery partners involved in programmes and projects will be consulted to identify savings for this year and will be kept fully engaged and informed as specific decisions are made.

“The NWDA has been a major supporting partner of Professional Liverpool and sees the growth of this sector in Liverpool and the North West as crucial to the growth of our regional economy.

“The funding for Professional Liverpool in 2010/11 had not been committed before the budget freeze and subsequent budget reduction.

“Unfortunately Professional Liverpool has become an early casualty of the government cuts to our budget as we are now not in a position to approve funding for Professional Liverpool for 2010/11.”

Pro.Manchester has secured its NWDA funding – which accounts for less than 30% of its total revenues – in advance of the government cut-backs.

John Ashcroft, chief executive of Pro.Manchester, said: “Funding from the NWDA is less than 30% of total revenues in the year and in January of this year we presented our plans to the board to be completely self funded in 2012.

“We are in discussions with the RDA as to how we can assist with their financial objectives in the current year but any change is unlikely to have a material effect on the organisation.

“Our funding is mainly derived from membership subscriptions, advertising, sponsorship, dinners, events, conferences.

“Later this year we will introduce a series of commercial educational courses to provide an additional income stream.

“In the current year, we are currently undertaking a significant research project for AGMA, the Greater Manchester Authority and the Commission for the New Economy as part of the Innovation and Entrepreneurs initiative in the city.

“In all, some 20 workshops are planned – it is an extensive research project.

“Membership of Pro.Manchester has increased by 25 per cent in the current year following the success of MPEG, the private equity group and our corporate finance group.”