Government response: Appendix
Introduction
The South West Regional Select Committee published
its first report of Session 2008-09, Impact of the economic
downturn on the South West and the Government's response,
on 3 August 2009. The Government welcomes the Report and thanks
the Committee for its work.
The Government Office for the South West (GOSW) co-ordinated
the Government's response to the Inquiry, which was submitted
to the Committee in the form of a memorandum by the South West
Regional Minister, Jim Knight MP.
The Government responds specifically to the conclusions
and recommendations on page 33 of the Committee's First Report.
The paragraph numbers and relevant text has been reproduced from
the Committee's First Report and set in bold type above the Government's
response.
Enterprise Finance Guarantee Fund
1. We welcome Government's Enterprise Finance
Guarantee Fund but are concerned that the Fund appears to be not
widely known among small businesses. If the Fund is designed to
help small businesses then more must be done to inform them of
its existence. We are also concerned about the low success rates
of those that do apply for it. It is difficult to assess the success
of the Fund until more firms apply and we recommend that the Regional
Minister works with the SWRDA, Business Link and the banks in
the region to increase take up of the scheme and to identify reasons
why the success rate is so low. (Paragraph 25)
The Government welcomes the Committee's views on
the Enterprise Finance Guarantee Scheme (EFGS). Uptake of the
fund has increased in recent months. As of 9 September 2009 the
EFGS in the South West had offered 585 new loans to customers,
to a total value of £53.23m. We will be looking further to
see how the Scheme can have a greater impact on viable small and
medium-sized enterprises (SMEs), in the South West and other regions,
to support them in accessing the finance they need.
The Government will continue to work with the banks
in promoting the EFGS. We also expect SME demand for the Scheme
to increase as SMEs become more confident about their economic
prospects, and have viable business plans to help them prosper
and grow.
At regional level, the South West Regional Development
Agency (SWRDA) has reviewed EFGS with the major banks in the region.
All of these banks have ensured that their frontline staff are
aware of EFGS, and they feature EFG on their websites. Business
Link also feature EFGS in their communications, and have brokered
closer working between the banks and Business Link advisors to
improve coordination of business support and advice.
Late payment
2. We welcome the Regional Minister's and
South West Councils' efforts to ensure prompt payment. We note
that throughout the public sector there is an intention to pay
promptly and in some cases ahead of schedule. However, we are
also aware of evidence that it is not necessarily happening throughout
the region. We recommend that the new Regional Minister seeks
to identify the reasons why payments are not being processed within
10 days; that he repeats the commitment that the public sector
in the South West will pay within 10 days; and that he continues
to press it to honour this commitment. (Paragraph 29)
The Regional Economic Task Group (RETG) is promoting
the issue of prompt payment in the region as a priority. As the
Committee notes, a number of public sector organisations are already
paying their suppliers promptly. Good progress has been made by
the NHS South West, and key public sector bodies such as GOSW
and SW RDA are signed up to the Prompt Payment Code. Signing the
Code provides a means for both public and private sector organisations
to commit visibly to pay suppliers' invoices within the terms
agreed at the outset of the contract (it should be noted that
the 10-day payment commitment referred to by the Committee refers
only to central Government Departments).
The Regional Minister, in collaboration with the
South West Strategic Leaders' Board, wrote in September to all
local authorities in the region urging them to sign up to the
Code and to promote it through their supply chains. SWRDA is promoting
the Code via its Business Link service, through a combination
of marketing, leaflets and local events.
The RETG will continue to monitor progress on prompt
payment in the region.
Trade credit insurance
3. We recommend that the Regional Minister
and the Task Group to monitor the effectiveness of the Trade Credit
Insurance top-up and the number of insolvencies closely and continue
to make representations to central Government. (Paragraph 32)
The Government welcomes the Committee's views on
the Trade Credit Insurance Scheme. We agree that this is an important
mechanism for boosting business confidence. The scheme provides
targeted, transitional support to firms whose cover has been reduced,
thus allowing them time to talk to their banks and adjust their
business models to respond to the current climate.
Many businesses have found ways to adjust to the
lower availability of trade credit insurance; a positive impact
is that many businesses have developed closer relationships with
their buyers. The changes to the eligibility criteria announced
earlier this year mean that more companies will be eligible for
support. We will continue to keep the scheme under review and
the RETG will also monitor progress.
Tax
4. The Committee notes the positive consensus
about the work being done by Her Majesty's Revenue and Customs
to help businesses manage their tax payments through the recession.
However, we are concerned at the apparent discrepancy of service
to customers who use the business payment support service and
those who approach their local tax office. We recommend that the
Government investigate as to why there appears to be this inconsistent
service, and consider what lessons can be learned from the implementation
of the business payment support service that might be usefully
applied to other schemes. (Paragraph 34)
The Government welcomes the Committee's endorsement
of the support provided by Her Majesty's Revenue and Customs (HRMC)
to help businesses during the recession. There is no inconsistency
in the treatment of those customers who apply direct to the Business
Payment Support Service (BPSS) for Time to Pay (TTP) and the treatment
of those that come directly through to local offices. Each TTP
request is considered on its merits, with full consideration given
to the customer's ability to repay the debt that is soon to be
due or is overdue.
HMRC are using the lessons learnt from the BPSS to
explore the possibility of facilitating monthly payment schemes
for all debtors, and are working proactively with small businesses
as part of a structured campaign.
5. We recognise that where there is an issue
of pressing concern in the region that relates to national policy,
it is important that the Regional Minister can raise matters in
Whitehall on behalf of the region. We recommend that the Regional
Minister considers how he can more clearly demonstrate that his
influence, either alone or in coordination with the Regional Economic
Council, has brought about changes for the benefit of the South
West. (Paragraph 37)
The Regional Minister will continue to report back
to the RETG and other regional partners on his correspondence
and discussions with Ministerial colleagues regarding issues of
concern to the region. He will also continue to report on his
work as a member of the Regional Economic Council and the Council
of Regional Ministers.
Public procurement
6. We welcome the work of the regional agencies
and South West Councils to encourage and increase local procurement
and support the efforts to make sure that best practice is spread
throughout the region. We recommend that regional agencies and
local authorities make further efforts to explain their contract
requirements and examine how to build up the capacity of small
business to be able to apply for contracts. (Paragraph 41)
Every small business in the UK now has free access
to thousands of lower-value government contracts via the Government's
website supply2.gov.uk. Over the past three years the Government
has advertised thousands of public sector procurement opportunities
worth up to £100,000. This makes the website ideally suited
to small and medium-sized businesses.
Searching for lower-value contracts across the UK
was previously only possible as part of a commercial subscription
service, which cost up to £180 per year. The service is now
free of charge, providing firms with better access to public sector
contracts to help their businesses grow.
This is an important contribution to delivery of
a key Government target: that by the end of 2010, all public sector
contract opportunities should be accessible through a single online
web portal. At regional level, the South West Regional Improvement
and Efficiency Partnership (SW RIEP) and South West Councils have
launched a SW procurement portal, which all local authorities
are being encouraged to use. The portal is free, easy to use and
provides local businesses with a single point of access to a range
of public sector contract opportunities.
A South West Sustainable Procurement Network, which
will provide information, training and support to South West public
sector bodies, will also be developed. The Network will provide
clear guidance on how to encourage and support local businesses
to bid for public sector contracts, thereby building the capacity
of local businesses to bid successfully while avoiding any legal
pitfalls.
Green economy
7. We welcome the commissioning of the report
on green jobs that the Regional Minister presented to the National
Economic Council. (Paragraph 45)
The consultancy Arup was commissioned by the RETG
to undertake a study (Achieving a Green Economic Recovery)
to improve the region's understanding of key 'green' activities
that are being, or could be, undertaken to deliver immediate economic
stimuli.
The Arup Report has been important in developing
the region's understanding of the opportunities for green-led
recovery. The RETG has set up a sub-group (the Green Recovery
Action Group), to ensure that this report is now built on and
specific steps taken to realise some of the opportunities identified.
Of the initial list of 36 work areas identified by
the study, 15 were seen as potentially providing the greatest
economic impact on the region. Four work areas (domestic energy
efficiency, business resource efficiency, marine energy technologies
and new nuclear) were identified as high priorities that could
be taken forward immediately by regional partners.
A further four priority areas were identified through
phase two of the green recovery study. The additional work areas
are:
- Community based renewables
- Environmental business sector support
- Sustainable procurement
- Low carbon vehicles.
The Green Recovery Action Group will also have a
role in considering the regional position, and responding as necessary,
to new Government initiatives aimed at delivering a low carbon,
resource efficient economy.
8. We welcome SWRDA and the Task Group's
ambitions to bring about a sustainable low carbon economy in the
South West. However, we remain to be convinced of progress in
this direction. We expect to return to this subject in the near
future. (Paragraph 48)
Since the Select Committee reported, there has been
significant progress on low carbon economy issues. As the response
to Recommendation 7 above explains, the RETG has established a
Green Economic Recovery Action Group to take this agenda forward.
The South West was recently designated the UK's first
Low Carbon Economic Area for Marine Energy. This recognises, and
will enable the region to build upon its existing strengths, including
SWRDA-funded flagship projects such as WaveHub and Primare. SWRDA
is also an active player in the Severn Tidal Power Feasibility
study.
It will be vital to capitalise on these and other
green economic opportunities. To help ensure that this happens,
Environment iNet has been commissioned to provide support to the
region's environmental technologies businesses and in particular
to research and development intensive SMEs and high-value services.
The iNet will enhance connectivity across the sector, encouraging
cross-fertilisation of ideas and innovation and sharing of best
practice. It will also help to connect South West businesses with
the national and international markets necessary to fuel and fund
their growth.
Graduate unemployment
9. We welcome the partnership working between
Jobcentre Plus and universities in the region to cater for the
wider profile of people seeking employment opportunities during
the downturn. (Paragraph 59)
The Government welcomes the Committee's endorsement
of the region's approach to supporting a wider profile of job
seekers. We will continue to seek opportunities to tailor provision
to meet the needs of all clients.
Joint working arrangements have been established
between universities in the region and Jobcentre Plus (JCP) to
help cater for the significant numbers of redundant professionals
and executives. This was the subject of an ECIF (Economic Challenge
Investment Fund) bid to the Higher Education Funding Council for
England (HEFCE) by a regional partnership comprising JCP, HERDA
(the association of Higher Education Institutions (HEIs) in the
South West), and HEI careers services from Bristol, Bath, Bath
Spa and the University of the West of England. The bid was not
successful; despite this, the partnership, agreed with the Department
for Work and Pensions to trial a three-day course using Rapid
Response Funding. The trial has now been completed. The partnership's
work helped to demonstrate how existing support and training resources
could be adapted to the needs of graduates and those from a professional
and executive background. DWP officials are currently considering
how best to take the support for graduates forward.
SWRDA is collaborating with the National Council
for Graduate Entrepreneurship (NCGE) on the Flying Start: Make
IT Happen programme of events, which are aimed at encouraging
unemployed graduates in the region to become self-employed. SWRDA
is also working with the NCGE to develop a University Enterprise
Network which will promote business start-up to undergraduates
studying for degrees in the creative industries.
The SWRDA also supports the Gradsouthwest
website. On average the website advertises 1,200 graduate jobs
at any one time, including those in the region on the national
Graduate Talent Pool website.
Deferring redundancies and retaining skills
10. We see the Future Jobs Fund as an opportunity
to supplement skills in the region. We welcome the work of the
Government Office and Jobcentre Plus in co-ordinating bids for
the fund. We would also support the inclusion of those, such as
the trades unions, who may be able to help identify skills shortages
in the region that could inform stronger bids. (Paragraph 66)
We are pleased to note the Committee's welcome for
the Future Jobs Fund. GOSW has worked closely with Jobcentre Plus,
the South West Regional Employment and Skills Partnership, SWRDA,
the TUC and South West Councils to promote the Fund in the South
West and to support local partners in developing their bids.
A joint event was held on 10 June 2009. The event
was attended by local authorities, the TUC, social enterprise
partners and Regen SW (an organisation which promotes green awareness).
Colleagues from the Department for Work and Pensions also supported
the event.
A follow-up workshop was held on 8 September 2009.
This was attended by over 50 people representing a wide range
of South West organisations and interests. The purpose of the
workshop was to set out:
- the context of the Future Jobs
Fund
- what makes a successful bid
- what further work is necessary.
The TUC were also present, and were invited to set
out how they are supporting the development of the programme.
The TUC are members of the Board that recommends bids to the Regional
Minister. They have also been invited to be members of the Moderation
Panel.
11. We note that retaining skilled workers
is a high priority for the region and support the measures that
many firms are taking to put off making redundancies. We welcome
the joint working between management teams and trades unions to
try and secure jobs. We recommend that the Task Group consider
extending some initiatives across the region, such as the initiative
in Liskeard where the Citizens Advice Bureau approach employers
to provide advice on the range of options that might be available
before making redundancies. (Paragraph 68)
The Task Group recognises the importance of providing
early interventions so that skilled workers are retained in the
region and that businesses and individuals can access timely advice
when they are facing potential redundancies. Through the RETG,
SWRDA, with regional partners, has established eight Area Action
Force Teams that cover the whole of the South West region to fulfil
this need.
The Action Forces are currently working with 403
businesses and convene all the local public sector partners (including
the Learning and Skills Council (LSC), Business Link and Jobcentre
Plus) to provide a package of support that can include training.
Citizens Advice Bureau is involved in the Area Action
Forces and is also represented on the Action Group dealing with
business, skills and employment issues which feeds into the RETG.
Train to gain
12. We welcome the flexibilities introduced
to Train to Gain to increase access, but are also aware that Train
to Gain is under pressure due to demand. This situation needs
to be monitored carefully and more resources made available as
necessary. (Paragraph 72)
The Government is fully committed to Train to Gain.
It has been a great success to date, helping 143,000 employers
in England to train their staff and more than 1.2m people in England
to improve their skills. That is why overall the budget will rise
to £925m in 2009-10 and to over £1bn in 2010-11.
The Train to Gain budget has recently been revised
in response to unprecedented levels of demand in all regions over
the last few months. In the South West there is a slight increase
in the budget for 2009-10. Allocations have been agreed with providers,
who will need to manage their maximum contract values. It is likely
that the coming year will, therefore, see fewer starts per month
than we have experienced recently.
If the proposed changes to the structures and responsibilities
of the new Skills Funding Agency and RDAs are implemented fully
then the region will be able to ensure that demand is tailored
to supply.
13. We welcome the demand for training from
business. We note the value and popularity of Train to Gain, and
we welcome the extra funding and flexibilities provided by the
Government at the end of 2008 to increase the accessibility of
the scheme. However, we note the concern of the Federation of
Small Businesses that the financial support is paid to the employer
once the training has been completed and that this might discourage
the take up of training by small businesses. We recommend that
the Regional Minister and partners investigate this and explore
alternative ways of paying, for example by phasing payments. (Paragraph
74)
The issue has been raised previously by the Federation
of Small Business (FSB) through the RETG. RETG has explored the
issue with the South West Learning and Skills Council (LSC) and
provided a response which, although understanding of the issue,
is unable to provide the immediate flexibility being sought.
The average amount paid in wage compensation is low
(approximately £500) and therefore paying monthly would be
prohibitively expensive in administrative terms. The relatively
small sums involved are unlikely to have a dramatic effect on
the cash flow of individuals businesses.
There is no evidence that the Contribution to Wage
cost offer has had any effect on the take up of Train to Gain,
given the significant growth we have seen and the fact that the
overwhelming majority of learners and employers have not accessed
the wage subsidy.
However, it has been recognised that some employers
have found the scheme to be overly-bureaucratic. We understand
that the LSC is reviewing the process with the intention of simplifying
and speeding it up (although this may not necessarily include
paying stages).
In addition, SWRDA has been doing a number of things
to help businesses with their cash flow in the crisis. Examples
include establishing a £10m Business Loan Fund and working
with the banks to ensure that businesses can continue to access
support. Businesses are also able to access Solutions for Business
products that deal with access to finance and growth/venture capital.
Wage subsidy
14. A wage subsidy scheme requires resources
beyond what the South West Regional Development Agency can provide.
However, there was support within the region for such a scheme.
We recommend that the Government review the impact and cost of
Pro-Act in Wales, make public its views on the costs and benefits
of introducing such a scheme, and of not introducing such a scheme.
(Paragraph 78)
The Government has extensively examined the economic
case for a general UK wage support scheme and concluded against
the idea. This is because our past experience of operating wage
subsidies schemes tells us that wage subsidies are temporary (unlike
the lower tax rates permanently enjoyed in the UK), very costly,
ineffective and unsustainable. Our analysis findings are also
supported by Organisation for Economic Co-operation and Development
(OECD) research.
We believe that the business help being provided
is more effective in the longer term. It is also acknowledged
that the crisis in our economy is, above all, a credit crisis.
Our packages of credit support are designed to address this problem
directly.
Furthermore, our system of tax credits already provides
an automatic increase in incomes to families when wage income
is reduced as a result of a reduced working week.
Where people who do find themselves on a shorter
working week, then the best use of their free time is to train
and upskill. Training in the UK is a devolved administration responsibility,
and each country within the UK must provide training provisions
which best meet their national business needs. It would therefore
not be appropriate for the Government to comment on individual
national schemes such as the ProAct scheme in Wales. In England
we have the highly successful Train to Gain programme, which has
had its funding significantly increased to over £1b for 2010-11.
Through Train to Gain, companies with fewer than 50 employees
can also access a contribution to wage costs for their employees.
Housing
15. We welcome the efforts that the Action
Group on Housing and Infrastructure has made with regard to identifying
and unblocking housing schemes that could increase the availability
of badly needed homes in the region, and also provide much needed
help for the local construction industry. (Paragraph 87)
The Government is providing funds to unlock stalled
house building sites that have been mothballed in the current
economic climate. The KickStart programme provides a range of
interventions including upfront investment for infrastructure
and development costs complemented by support for affordable housing
and Homebuy Direct. Twenty-five schemes in the South West have
been shortlist in KickStart Round 1, with the potential to deliver
up to 2,121 homes supported by £65m of Government funding.
16. The problem of housing provision in the
region necessitates joint working, involving those in both the
private and public sector involved in construction and development,
local authorities, the third sector and the mortgage lenders.
We would urge the new Regional Minister to maintain his predecessor's
attention to this area. (Paragraph 88)
The Government acknowledges that effective partnership
working between the private, public and third sectors is vital
to maximise the delivery of affordable housing and to provide
assistance to homeowners during the economic downturn. Several
hundred market homes for rent have been turned into new social
homes for rent as a result of partnership working between local
authorities, housing associations and developers supported by
grant funding from the Homes and Communities Agency (HCA). The
third sector, through organisations such as Shelter and Citizens
Advice Bureau, is providing valuable and practical advice to local
households who are experiencing difficulties in meeting their
mortgage payments.
Mortgage Rescue Scheme
17. We note the ambition of the mortgage
rescue scheme and the lack of take-up. We also note the publicity
relating to the scheme may have increased the number of people
approaching local authorities and advice centres for assistance.
In this regard it may have inadvertently helped direct those at
risk to a useful source of advice. We recommend that the Government
further monitor the effectiveness of the scheme. It is too early
to say if the scheme might be successful and recognise that demand
is likely to increase. (Paragraph 93)
The Government is committed to offering help to homeowners
through the mortgage rescue scheme. The Government will continue
to monitor the effectiveness of the scheme to ensure that assistance
is available to the most vulnerable households in the region.
The Government is currently undertaking an analysis
of mortgage repossessions in the region focussing on the repossession
hotspots of Barnstaple and Bristol. This research will include
case studies of households that are subject to repossession proceedings
looking at:
- the reasons leading up to repossession;
- the households understanding of the process;
- their awareness of advice and support;
- their eligibility for the mortgage rescue scheme;
and
- lender behaviour and the awareness of protocols
amongst lenders, advocates and district judges.
This research will assist the Government and regional
partners in their understanding of the repossession process in
the South West and will enable a more strategic targeting of resources
to ensure that the most vulnerable households in the region are
protected from losing their homes.
Debt
18. We welcome the work that local authorities
and the third sector are doing to increase awareness and take
up of benefits and tax-credits. We recommend that the Government
Office work with local authorities, the third sector and other
partners, using local area agreements where possible, to further
encourage joint working and spread best practice. (Paragraph 101)
The evidence we have shows that local authorities
and the third sector are continuing to work together to increase
awareness and take-up of benefits, but progress is patchy across
the region.
GOSW is working with SW Councils and local authorities
directly to further encourage joint working. SW RIEP can assist
in sharing best practice. GOSW took the opportunity to reinforce
this and the wider message about managing the recession when it
met South West chief executives and the Strategic Leaders' Board
on 2 October 2009.
19. We welcome the extra hours funding that
the Government has made available to the Citizens Advice Bureau,
and note the evidence from Citizens Advice Bureau and AdviceUK
relating to the demand on their services, their concern over the
difficulty of securing funding for front line services, and that
the additional hours funding expires in March 2010. We recommend
that the Government continue to provide adequate funding for Citizens
Advice Bureau. (Paragraph 102)
The Government supports this recommendation. We are
aware that several local authorities have provided additional
support to their local Citizens Advice Bureau (CAB), and other
support agencies, to supplement additional Government funding.
The Regional Minister met recently with third sector
regional representatives, including CAB, to discuss these and
other issues, and GOSW is discussing with South West Forum how
ongoing support to third sector partners might be monitored. The
third sector is concerned that funding might dry up just as the
social impacts of the recession really hit. It is well aware that
local authorities themselves have suffered loss of income and
an increasing demand for their services.
20. We note that the repercussions of the
downturn on jobs, housing and family finances may not be fully
apparent yet. We recognise that it is preferable for those at
risk of getting into financial difficulty to gain advice relating
to benefits and financial management sooner rather than wait until
a crisis develops. We recommend that the Regional Minister works
to bring together with the voluntary sector, local authorities
and the SWRDA to ensure consistent and joined up sources of advice
relating to debt and financial management. (Paragraph 103)
The Regional Minister's work on these issues through
the RETG is outlined in the response to Recommendation 25.
South West Forum has been invited to join the RETG
to assist in joining up with SWRDA and local authorities (see
response to Recommendation 21 below). The Regional Minister will
continue to work with local authorities and the voluntary sector
to ensure debt and financial advice joins up locally, and meets
local needs.
21. We also note that the South West Economic
Regional Task Group does not include any representative from the
third sector in its core membership. We recommend the Regional
Minister consider including such a representative on the Task
Group. (Paragraph 104)
The Regional Minister has invited Steve Woollett,
Chief Executive of South West Forum, to join the RETG. Mr Woollett
attended his first meeting in September. South West Forum aims
to champion the voluntary and community sector at regional level
and to ensure that the voluntary and community sectors are genuinely
engaged in developing and influencing policy.
The role of the RDA
22. In spite of the difficulties in the economy
and their resources, we welcome the RDA's commitment to continue
its support for business through the recession, and its emphasis
on making sure the focus of Business Link is on the needs of business
in the region, and in particular that of small and medium enterprises.
(Paragraph 111)
SWRDA's revised Corporate Plan has a strong emphasis
on improving business productivity and preparing for a low carbon
economy. The Agency has been updating and developing its business
'offer' over the past two to three years, and this now includes:
- Brokering relationships between
businesses themselves and between businesses and HE, sector bodies
and public sector organisations, amongst others.
- Information and advice through Business Link.
- A range of support services covering starting
up, growth, networking, developing people, environment and efficiency,
exploiting new ideas, innovation, overseas trade, finance, grants
and business premises. (These areas of support sit within the
Solutions for Business portfolio.)
- Access to market intelligence.
- Advice on planning and infrastructure and corporate
social responsibility; including how this can raise a company's
profile.
- Major capital investments that benefit businesses
(e.g. Watershed, Composites Centre).
- Promotional support (e.g. South West England
campaign).
- Working with Whitehall on policy development.
23. We understand that all RDAs have had
their budgets cut, and that funds from RDA budgets may go to fund
other regeneration schemes. We think that wherever the RDA is
in the country, it should be given adequate funding to fulfil
the role that Government has given them. We recommend that the
SWRDA does not have its budget cut further. It should be able
to take short-term and long-term strategic decisions based on
an agreed and stable budget. We recommend that the SWRDA single
pot budget should not be reduced for the next two years. We recommend
that the Government look again at the formula for allocating budgets
to the RDAs. (Paragraph 115)
The Government has issued RDAs with indicative budgets
for 2010-11 to inform their planning for that year. However, the
Government cannot give firm commitments in relation to RDAs' future
budgets. The funding that RDAs receive enables them to deliver
important investment in programmes and projects focused on economic
development. They are key to the delivery of Government policies
in these areas. We expect key decisions about RDA funding, including
regional allocations, to be made in the context of the next Spending
Review, and following consultation with RDAs and Government Departments.
The role of the Regional Minister
24. We agree with our witnesses in welcoming
having a Regional Minister. However, we remain to be convinced
as to what the precise role of the Minister is. We note that the
Regional Minister's role has been given certain responsibilities
by the creation of the South West Economic Task Group, but we
presume that the lifetime of the Task Group is finite. We recommend
that the Government give clear guidance as to what the precise
role of the Regional Minister will be in the future. (Paragraph
117)
The role of Regional Ministers was set out in the
Governance of Britain report in July 2007 and this continues to
provide the basis for the work of all Regional Ministers. Regional
Ministers undertake three functions and act as:
- Regional leaders, working with
elected councillors, officials and colleagues to co-ordinate effective
action to deal with challenges facing the region. Regional Ministers
use their Regional Economic Forum to facilitate this leadership.
- Government champions, representing the Government
to residents of their region, regional partners and the region's
media.
- Regional champions working with colleagues within
Whitehall, bi-laterally and collectively through the Council of
Regional Ministers and the Regional Economic Council to champion
the region with ministerial colleagues; including promoting their
region's successes.
South West Regional Economic Task Group
25. The establishment of the Regional Economic
Task Group is a welcome initiative and early indications are that
it has been effective in some key areas—particularly in
improving communication between government and the region and
in pushing for progress on capital projects. However, there are
concerns that it has focussed attention primarily on the concerns
of business, to the exclusion of other issues such as the third
sector and personal finance. The Regional Minister should work
to address these concerns. (Paragraph 122)
The Government welcomes the Committee's endorsement
of the effectiveness of the RETG. The Task Group's work to date
has focused on tackling the initial economic impacts of the recession:
supporting businesses in difficulty; helping individuals suffering
redundancy or at risk of redundancy; unblocking infrastructure
projects. As the Committee notes elsewhere in its report, the
RETG has also been leading work on green economic recovery.
The RETG is also working on a range of other recession
and recovery related issues. This work is informed by the recognition
that some of the social and economic impacts of the recession
on individuals and communities in the South West will take longer
to turn around than the economy itself. Some examples:
- The Action Group which supports
the RETG on business, people and skills issues is taking forward
work on financial inclusion, financial skills and volunteering,
in partnership with the third sector. The Group has commissioned
a report from the Citizens Advice Bureau and is exploring ways
in which work on this agenda could be taken forward, including
making linkages to related Solutions for Business work.
- Task Group member organisations have been working
with local partners to support the development of Future Jobs
Fund bids.
- The Housing and Infrastructure Action Group is
looking at impacts on individuals at risk, because of the downturn,
of losing their home. It has commissioned a research project into
mortgage repossession issues in the region which will inform work
on improved outcomes for vulnerable householders. The Group is
also bringing together a range of lenders, Registered Social Landlords
(RSLs), local authorities and third sector advice agencies to
discuss the availability of mortgage finance and issues around
lender behaviour and repossession practices. (See response to
Recommendation 17 above for more detail.)
- The Action Group on Public Services is working
closely with the South West RIEP to build the capacity of the
public sector to support economic recovery.
Regional Economic Council and Council of Regional
Ministers
26. Representing the views of the region
to central government is a key part of the role of regional ministers.
It is important that regional ministers should be seen to be actively
lobbying government on their region's behalf and that their efforts
should be open to scrutiny. We further recommend that the Regional
Minister explains how he intends to report back to those outside
the Task Group as to his representations to Whitehall on behalf
of the region, and the outcomes. (Paragraph 126)
A key role of the Regional Minister is to promote
the needs of the region in Whitehall to ensure that national policy
and its implementation meets the needs of the people in the South
West.
For example, the Regional Minister has worked with
the Transport Minister to push for further changes to the Department
for Transport's transport appraisal process to speed up delivery
of key infrastructure required to support growth, leading to increased
momentum in delivering key projects across the region.
The Regional Minister has a programme of regional
activity, including visits, meetings and communications which
ensure that his role and its impact are communicated across the
region. This is further enhanced by the Government Office's communications
activity, which also communicates the work of the Regional Minister
to key regional stakeholders.
The impact of the Regional Minister's role is scrutinised
through the media, through the RETG, the Grand Committee and also
directly at public meetings, such as the 'Building Britain's Future'
consultation events this summer.
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