Letter from the Economic Secretary to
the Chairman of the Committee
In the light of your committee's inquiry into
regional productivity, I am writing to highlight how today's Pre-Budget
Report reflects the Government's continuing commitment to a strong
regional dimension to policy making.
PBR2004 includes a number of measures that will
support economic growth in the regions, including:
Publication of a consultation document
setting out Government proposals to involve the regions more in
decision making on regional transport, economic development and
housing. The Government proposes to provide clearer funding assumptionsincluding
providing regional transport allocations for the first time and
planning assumptions for the longer termto provide a better
basis for regions to plan and to give them a stronger voice in
the next Spending Review. Devolving Decision Making: A consultation
on regional funding allocations is publicly available on our
website, and a copy is enclosed.
An initial response to the Northern
Way Growth Strategy: final report published by the three Northern
RDAs in September, which sets out a strategy to establish the
North of England as an area of exceptional opportunity with a
world-class economy and a superb quality of life. The Government
welcomes this report and will respond in full in January. The
Pre-Budget Report builds on Northern Way recommendations in a
number of ways:
rolling out Employer Training
Pilots across the North, as part of a National Employer Skills
Programme;
significantly extending the successful
Pathways to Work pilots in the North, meeting the Northern Way's
recommendation;
ensuring the Northern Way proposal
can take full advantage of support from the national strategy
for Enterprise in Education; and
welcoming the commitment of the
three northern Regional Development Agencies (RDAs) to promote
science cities, starting with Manchester, York and Newcastle.
Announcing that, in light of the
changing role of the Government Office, the Treasury is working
with ODPM to examine ways of making the Government Office network
more effective and efficient; and
Building on their input into last
year's Budget, asking the RDAs to provide policy advice to feed
into Budget 2005, in a number of areas: aligning regional transport,
housing and economic development strategies and associated funding;
business support; establishing the concept of science cities;
the role of the Voluntary and Community Sector in regeneration
of deprived communities; creating a culture of enterprise for
all; sustainable development; strengthening regional partnerships
in adult skills provision.
As part of our continuing commitment to improve
our communication with regional stakeholders, we will shortly
be distributing leaflets that explain more fully what the PBR
means for each nation and region.
I hope that you find this information, and the
enclosed consultation paper, useful in the context of your inquiry.
2 December 2004
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