RDA closures ‘too fast’ – report
THE Government is moving too quickly to close regional development agencies such as Yorkshire Forward with local enterprise partnerships not ready to fill the gap, according to a new report.
It claims Ministers have “overstated the case” against RDAs and “failed to build on their successes” and calls on the Government to properly fund LEPs and given them access to new funding tools being made available to councils such as tax increment financing.
The report, compiled by the Smith Institute with PwC and the University of Newcastle, urges business, universities and charities to create a ‘Council of the North’to argue the North’s case in Brussels and Westminster.
Roger Marsh, partner and northern leader in government and public sector at PwC, said: “From this research, it is clear the business community is worried that things will get worse as public spending cuts begin to bite.
“This report is about fairness, not favouritism. It is critical that we have a path for the future and it is clear that stronger partnerships between the public, private and voluntary sectors are therefore needed if we are to tackle long-standing regional disparities both within the North, and compared with other regions.
“Doing nothing is not an option for the future of the regional and national economy, people and communities.”
The report, ‘Rebalancing the economy: prospects for the North’, published this morning suggests the Government should restore the grants for business investment scheme and look to relocate more public sector jobs in the North including establishing the Big Society Bank and the Green Infrastructure Bank here.
It questions whether improved rail links across the North would provide better value for money than the proposed new North-South high speed rail link and argues that business and local government should lobby for the creation of a ‘northern infrastructure fund’.
Paul Hackett, Director, Smith Institute, said: “This report is a wake-up call to government. As the Chancellor prepares for the Budget he should recognise that cutting regional aid will widen the North-South divide and unbalance the economy.
“The Government’s localist agenda shows a southern bias and is pulling resources away from the North. It is time to establish a strategic ‘Council of the North’, with plans and resources similar to London.”
Councils in the North, the report says, should together draw up a ‘strategic plan’ covering areas such as housing, employment, infrastructure and skills.
Michael Ward, author of the report, said: “What we are seeing is a reversal of seventy years of policy to invest in sustainable growth in the North. The gap in economic performance between the North and the South is as wide as ever. Business and local councils in the North need to act now to ensure that their voice is heard loud and clear in Whitehall. What’s happening is not localism – it’s centralism. Rebalancing without resources is a recipe for failure.
