Summary
Parliament has established Regional Select Committees
to provide accountability for those regional bodies that make
decisions affecting millions of people throughout England. The
South East Regional Committee want to make sure that these bodies
in the South East are accountable to Parliament, and we feel this
would be improved by elected representatives in the region putting
aside any political disagreements regarding the establishment
of Regional Committees and joining us in this important work.
The Committee felt it was important, in the current
economic climate, that the first inquiry of the Committee should
be into the role of SEEDA and the Regional Economic Strategy.
This is not only because the region is feeling the effects of
the current downturn, but also because the structures of regional
government are undergoing change.
We support the Regional Economic Strategy emphasis
on global competitiveness, smart growth and sustainable prosperity,
and its role as a single framework setting a long term vision
for the region. The Regional Economic Strategy has developed with
an emphasis on sub-regions and places with broadly similar potential—the
hubs and diamonds for growth areas. We welcome this and the working
relationships that have been built up between SEEDA, local authorities
and other partners in the diamonds for growth areas.
SEEDA was originally established to provide strategic
economic leadership but it has had to accept new responsibilities
since it was formed. It is important that SEEDA does not allow
its new responsibilities to distract it from its core focus on
the regional economy. We urge SEEDA not only to focus on the disparities
within the South East but to support economic growth within the
region, particularly during the current economic downturn.
The Regional Assembly was dissolved in March 2009.
There is still a role for local authorities in regional government
through the South East England Leaders' Board. The Leaders' Board
will join with SEEDA to form the South East Partnership Board,
and together they will develop the Single Regional Strategy. We
welcome the establishment of the Partnership Board and the joint
working between local authorities and SEEDA. We welcome the move
to a combined Single Regional Strategy, support efforts by all
parties to ensure a smooth transition from two regional strategies
to one, and recommend that SEEDA provide us with a quarterly update
on the progress of this work.
We note the creation of the virtual team combining
some staff from the former Regional Assembly to provide expertise
in areas previously not the domain of SEEDA and will monitor how
this will work in practice.
For the Regional Economic Strategy to be effective
it needs to have the support of the many partner organisations
involved in delivering the objectives. The loss of the Regional
Assembly meant the loss of the Social, Environmental and Economic
Partners body that comprised the unions, business and third sector
organisations. These organisations no longer have a clear mechanism
to contribute their views. It is very important that there remains
a formal mechanism for such organisations to contribute and we
recommend that the virtual team working on the Single Regional
Strategy includes people working on behalf of trades unions, business
and the third sector to facilitate engagement with the Partnership
Board. We want the Government to report back to the Committee
what similar stakeholder engagement mechanisms have been put in
place in other regions as a result of the abolition of the Regional
Assemblies.
Drawing up the Regional Economic Strategy required
consultation with a wide variety of organisations. We heard concerns
that the consultation process used to draw up the Regional Economic
Strategy could be improved upon when it comes to drawing up the
forthcoming Single Regional Strategy. We recommend that SEEDA
and the Leaders' Board provide us with further information as
to how they will ensure broad engagement when drawing up the Single
Regional Strategy.
SEEDA has set itself ambitious targets. However,
we are concerned that some of the 'world class' regions that were
chosen for comparison are not realistic and ask that SEEDA make
clear how they chose the regions they compare themselves to, and
on what criteria they measure their performance against them.
As the role and responsibilities of SEEDA change,
so the way in which their performance is measured might need to
change. Any decision to review targets must be done with the full
engagement of partner organisations.
We note SEEDA's quick response to support business
during the economic downturn. We hope that SEEDA will continue
to talk directly with businesses to ensure the schemes and help
available is both what they need and widely communicated. It is
important that SEEDA finds the right balance in deploying its
resources between long term and short term support to withstand
the downturn, and we welcome SEEDA's efforts in prioritising and
focusing resource where it can add most value.
There is a perception in some parts of the region
that SEEDA always allocates funds to another part of the region.
SEEDA needs to review how it communicates its priorities within
the region, in particular with regard to regeneration projects.
The business community, in particular small businesses, needs
to be kept involved. SEEDA should develop a business model to
deliver the priorities of the South East and working with the
business community ensure infrastructure projects go where there
is a demonstrable need.
The future economy of the region will be based on
sustainable development. SEEDA should continue to work with the
relevant bodies and ensure the region retains the right skills
for a future low carbon economy.
We note that SEEDA has the least funding in comparison
to other RDAs. There is a strong argument that investment in the
South East will achieve greater return on investment than investment
in other areas of the UK and we would like the RDA funding formula
to be revisited and some evaluative work undertaken to determine
how RDA budgets might be best used to optimise value for money.
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