Supplementary memorandum submitted by
One NorthEast
IMPLICATIONS OF THE SUB-NATIONAL REVIEW ON
REGIONAL DEVELOPMENT AGENCIES (RDAs)
REGIONAL DEVELOPMENT
AGENCY SUBMISSION
This note is submitted by One North East on
behalf of all RDAs, excluding the London Development Agency due
to its different governance arrangements, and represents collective
views.
The RDAs have broadly welcomed Government's
response to the public consultation on taking forward the Review
of Sub-National Economic Development and Regeneration (SNR): Prosperous
Places.
RDAs appreciate the acknowledgment that the
policy and economic landscape has changed significantly since
SNR was first announced in the 2006 Budget, and since the launch
of the consultation in July this year. The response also recognises
the key role RDAs have played in responding to the current economic
downturn. RDAs therefore welcome the changes that have been made
to the original SNR proposals, recognising RDAs' unique position
in responding to such challenges, as well as acknowledging arrangements
RDAs, working with their partners, have already progressed in
many of the regions. In taking forward the reforms there are a
number of issues which require further clarification and development
at both regional and national levels, a number of which are expanded
upon below.
REGIONAL STRATEGY
AND REFORMED
REGIONAL GOVERNANCE
STRUCTURES
RDAs strongly welcome the proposal to legislate
for a single strategy in each region, bringing together the current
Regional Economic and Spatial Strategies, as a positive opportunity
to develop a genuinely integrated regional approach to sustainable
economic growth.
The Regional Strategies provide an opportunity
to ensure sustainable economic growth is at the heart of investment
in regions by providing a framework for partners' plans and investment
decisions, for example the Homes and Communities Agency (HCA)
and local authorities. Linking economic and industrial development
activities more closely with physical regeneration, transport
and skills investment will strengthen sustainable economic growth
and increase opportunities for individuals. The strategies should
also provide traction over national programmes which impact on
regional economies, including skills and transport.
Regional flexibility, for example in agreeing
appropriate governance arrangements, developing suitable delivery
models and on regional strategy production, is vital to ensuring
arrangements meet the needs and priorities of each region.
RDAs welcome the default lead role in developing
and drafting the Regional Strategies, if agreement between partners
cannot be reached. It should be acknowledged however, that potentially
challenging negotiations to reach clarity on the "joint responsibility"
between the RDAs and Leaders' Board will be required in each region.
The ease by which these arrangements are agreed is likely to differ
across regions. RDAs are clear they have the expertise to take
forward this responsibility, and in some regions have made a positive
start, building on their capacity and successes in developing
the Economic Strategies, including the use of a robust evidence
base and sound stakeholder engagement mechanisms.
Key regional planning functions will pass to
RDAs and the Leaders Board, and RDAs welcome the regional flexibility
in determining arrangements in each region. However further clarity
is necessary particularly on what this means for current statutory
duties and for future arrangements.
RDA Business led boards will have joint responsibility
for the development of regional strategies ensuring the benefits
of the business led RDA model are sustained and maximised and
the business community has a strong voice in decision making.
And RDAs will work to ensure they do not lose the interest and
engagement of the business sector in the new SNR landscape—not
least through RDA business led Boards—at such a critical
time for the economy.
RDAs will build on their success in developing
the Regional Economic Strategies and the high levels of stakeholder
engagement and buy-in achieved in each region. In taking forward
the SNR reforms each region will produce a statement on how they
will consult and engage with key stakeholders.
DELEGATION OF
DECISION-MAKING
BY RDAS
It is vital that RDAs continue to have the flexibility
to use their own resources to drive economic growth, as demonstrated
by the success in improving regional economies over the last 10
years, as well as the recent rapid responses to the downturn.
RDAs therefore welcome Government's recognition of this in the
decision to not legislate for RDA delegation to local authorities,
with RDAs continuing to be the accountable body for single programme
resources.
RDAs have consistently been supportive of the
investment planning approach, building on existing strategic programme
management arrangements, advocated by Government as the appropriate
mechanism to ensuring effective delivery. The approach recognises
that different activities will be delivered at different spatial
levels and through a range of different delivery arrangements.
RDAs, as agreed with the LGA, consider there
to be three broad approaches to the delivery of economic development
activities:
(i) Regional direct delivery by the RDA, for
example responding to economic shocks, inward investment, and
innovation.
(ii) Regional or sub regional delivery through
contractual partnerships and extended enterprises for example
through Business Link.
(iii) Sub-regional and local delivery supported
by increased delegation to local authorities and other local delivery
bodies (eg Economic Development Companies, Urban Regeneration
Companies and other forms of Special Purpose Vehicles).
RDAs are committed to working with local authorities,
business organisations and other partners, such as universities,
to ensure interventions are managed at the most appropriate level
and will work to develop regional investment planning, ensuring
robust accountability.
RDAs will build on existing structures, relationships
and expertise to achieve this. Where there is a lack of capacity
in local authorities, RDAs will support them to develop it. RDAs
will ensure that appropriate capacity exists which does not distract
from RDAs' ability to work as proactively as possible to help
businesses particularly in the current economic climate.
SUB-REGIONAL
COLLABORATION
RDAs believe that sub-regional decision-making
can potentially add (and in many cases already is adding) considerable
value to economic growth. However the ability of local authorities
to effectively collaborate differs from place to place and it
is important to ensure that sub regional collaboration is, as
far as possible, based on fully evidenced strategic decision making
and an investment planning approach within the framework of the
regional strategy.
Proposals for statutory sub regional arrangements
are for local authority partners to consider, however RDAs suggest
that such arrangements must be optional and would need to demonstrate
clear added value in terms of improved prioritisation, economic
performance and efficiency.
Although this response represents a collective
view of the RDAs, there are clearly a range of regionally specific
issues which influence the way that SNR will be implemented region
by region.
December 2008
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