Supplementary memorandum submitted by
the CBI
INTRODUCTION
1. The CBI is the premier lobbying organisation
for UK business on national and international issues. We work
with the UK government, international legislators and policy-makers
to help UK businesses compete effectively. We are an independent,
non-party political organisation funded entirely by its members
in industry and commerce and speak for some 240,000 businesses
that together employ around a third of the UK private sector workforce.
2. The CBI supported the Government's aims
for the Sub National Review, in particular the attempts to streamline
the regional tier of government. The CBI also sees merit in RDAs
taking a key role in developing the single regional strategy,
on the understanding that they comprise strong private sector
representation. We did however have some concerns relating to
specific aspects of the original proposals. We are pleased therefore
to see that many of our concerns around the proposal for leaders'
forums to sign-off the single regional strategy have been mitigated
by a more collaborative approach, although much of the detail
is still to be decided.
3. More fundamentally, CBI members expect
to see tangible results from this reorganisation in terms of a
genuinely streamlined structure, more efficient processes and
a real focus on economic development.
REGIONAL STRATEGY
AND REFORMED
REGIONAL GOVERNANCE
STRUCTURES
4. The CBI supports the creation of a single
regional strategy to ensure that regional economic and planning
goals are developed in a coherent and integrated way. We also
support RDAs taking a key role in the development of the strategy.
However, RDAs must not lose sight of their key role—enhancing
economic development. This focus must be injected into all aspects
of the regional strategy rather than becoming diluted by the widened
remit.
5. CBI argued in its original submission
that it was essential that the final Governance arrangements for
producing the single regional strategy retained a strong business
voice. The proposal for a leaders' forum to "sign off"
the single strategy was a considerable concern. We believed that
it would dilute the business voice and would (effectively) transfer
more power over strategic regional planning to local authorities.
We are therefore pleased to see the more collaborative approach
outlined in the Government's response. Giving RDAs and Local Authority
Leaders' Boards joint responsibility for drafting the strategy,
devising an implementation plan, and monitoring delivery, enables
a more balanced consideration of objectives. Crucially it should
ensure democratic legitimacy for the strategy without diluting
the focus on economic development.
6. It is however, important to note that
the exact process for formulating and agreeing the single strategy
is not set out in detail. Therefore emerging arrangements will
have to be monitored very carefully to ensure that the goal of
collaborative working operates effectively and that the key imperative
of enhancing economic growth is maintained. In light of this,
whilst we recognise the desirability of enabling processes to
reflect local circumstances, we believe that there should be some
common principles. Specifically ensuring a focus on business not
just as one "stakeholder" but as the key driver of economic
growth in the region, and seeking more innovative ways to engage
a broad spectrum of businesses will be very important in ensuring
a successful process.
7. Crucially, CBI support for the aims of
the Sub National Review depends fundamentally on the premise that
RDAs are genuinely business led organisations. The CBI has expressed
concern in the past about the degree of private sector representation
on RDA boards. For the SNR to meet its objectives RDAs must be
genuinely business led with a majority of their board membership
drawn from the private sector, and with business engagement as
a central part of their work.
LOCAL AUTHORITY
ECONOMIC ASSESSMENT
DUTY
8. The CBI supports the objective to ensure
local authorities fully consider opportunities for promoting economic
development across their areas. We equally support an evidence-based
approach to determining how that can best be achieved. The announcement
that there will be guidance on what this assessment should cover
is important as we have concerns about what outcomes this evidence
will be used to support, and whether local authorities have the
skills and resources to carry out a meaningful assessment. We
would welcome further clarity on the key objectives/outcomes of
the duty and business should be involved closely in the consultation
on the guidance.
COLLABORATION BETWEEN
LOCAL AUTHORITIES
9. The Multi-Area Agreement (MAA) provides
the promise of truly joined-up policy outcomes. To ensure that
this promise is delivered MAAs must be: strategic; outcomes focused;
engaged with business from an early stage; vertically integrated
with the strategies of RDAs; and with the vision of the MAA effectively
communicated to operational managers in local authorities. Therefore
the proposals to support local authorities to establish MAAs are
welcome where they can demonstrate broad stakeholder support.
Setting these arrangements within a statutory framework will provide
some necessary clarity.
10. The Government's response also includes
plans to enable the creation of Economic Investment Boards (EIBs)
focused on improving the economic conditions of the area. Whilst
greater focus on economic development at the sub-regional level
would be welcome, we question whether it is necessary to have
another new body to deliver this.
DELEGATION OF
DECISION-MAKING
BY RDAS
11. We support decisions being taken at
the most appropriate spatial level, this will obviously vary depending
on the issue and function in question. It is also important that
RDAs retain a strategic perspective and do not become bogged down
in detailed delivery of services. Therefore we support, in principle,
the ability of RDAs to delegate functions to local authorities.
However, every potential delegation must be considered carefully
with an objective assessment of the value added by such a delegation.
CONCLUSIONS
12. The CBI welcomes the key objectives
of the sub national review to streamline and improve the governance
and processes at the regional level. But CBI members expect to
see tangible results from this reorganisation in terms of a genuinely
more streamlined structure, more efficient processes and a real
focus on economic development.
13. It will be important to monitor the
detail of arrangements for producing the single regional strategy
as they emerge to ensure that they fit with the Government's objectives
as set out in its response to the consultation.
14. However, if these proposals are implemented,
Government should not underestimate the challenge the new role
will pose to RDAs: they are being asked to assume a raft of new
roles and responsibilities that they were not originally designed
to fulfil. It they are to be able to perform these new tasks efficiently
and effectively it will be essential that they are provided with
the skills and funding that will be required.
5 December 2008
| 
