Review of Sub-National Economic Development and Regeneration

1. Review of Sub-National Economic Development and Regeneration

2. Context Strong economic growth across the UK over the last decade. Improvements in all areas, but: disparities between regions continue

3. Context • Globalisation/competition means further challenges for all areas, especially poorer ones. • Reforms to ensure • localities can adapt and change • Interventions are the most effective and at the right level

4. Principles Applied • Decision making to be devolved to the lowest appropriate • level • align responsibilities and decisions with real economic • geography • Introduce greater clarity of roles and streamline structures / • processes as far as possible • Need to ensure there are incentives to focus on deprivation • and growth

5. Key Recommendations 1 • Expanded Local Authority Role: • A new economic development duty for LAs – in context of new local govt performance framework • Supplementary Business Rates – with agreement of business • Skills funding for 14-19 year olds devolved to LAs • Greater focus for Neighbourhood Renewal Funds • RDA funding delegated to LAs in due course

6. Key Recommendations 2 • Greater focus on Sub-Regional working • Longer term funding for PTAs and new PTAs where the case is made. • Push ahead with Multi Area Agreements • Support for City Regions • Sub-regions could be put on a statutory basis if they want it and make the case.

7. Key Recommendations 3 • Streamlined Regional Tier: • Single Regional Strategy. • RDA has executive responsibility for the strategy (and becomes the Regional Planning Body). • RDAs to work closely with the LAs in developing the single strategy. • Expanded regional funding allocations and ensure that central agencies support and deliver regional strategies • Stronger accountability for RDAs to LAs and Parliament.

8. Next Steps • Large number of work-streams to take forward – cross Whitehall programme Board • This week • Local Government Performance Framework with core indicators • Supplementary Business Rate announced • By Dec • Consultation on LA economic duty and Single Strategy • MAA guidance and regeneration framework published • Advice on City Development companies • Neighbourhood renewal funding allocated

9. Next Steps • Next year • LAAs in effect from April • New Comprehensive Area Assessment of LAs and partners • Regional Funding Allocations agreed • Bill to pick up legislative needs in 08/09 session • Longer term - 2010 • Regional strategy in effect • Business Support aim to get to no more than 100 schemes • Skills – move 16-18 skills budgets to LAs

10. Regional Strategy • Implementing Single Strategy requires significant work • Legislation – needs primary legislation, probably next session • Interim arrangements – Housing Green Paper emphasised the need to press on with RSS revisions. • Detailed consultation on the single regional strategy will be later this year - process and content.

11. Issues for Consultation on Regional Strategy • Many questions to be answered including • What should the single strategy contain? • What should the process for developing the strategy be? • How should agreement with LAs be reached? • What should the scope of the EiP be? • What should the impact on RDAs be?

12. Big Picture • Need to look beyond just the SNR – also Governance of Britain, Local Government White Paper, Planning White Paper, Housing Green Paper, climate change bill etc • SNR focus was on economic growth – but does not mean that social and environmental objectives are being lessened. Sustainable development remains the overarching objective • Devolution is a key theme of the SNR – the real key is making decisions at the right level, whether that is national, regional, sub-regional or local

13. Potential wins • Together this is a big and in some cases radical package. • Real potential wins include • Empowered Local Authorities • A focus on sub regions • A regional tier that is focused and has traction