Select Committee on Treasury Written Evidence


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 assumptions—including providing regional transport allocations for the first time and planning assumptions for the longer term—to 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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