Review of Sub-National Economic Development and Regeneration

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

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

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

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 year olds devolved to LAs Greater focus for Neighbourhood Renewal Funds RDA funding delegated to LAs in due course

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.

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.

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

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 Regional strategy in effect Business Support aim to get to no more than 100 schemes Skills – move skills budgets to LAs

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.

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? Issues for Consultation on Regional Strategy

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

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