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The UK Government has earmarked £1 billion to help regional businesses most affected by public spending cuts and the abolition of Regional Development Agencies (RDAs), which have been instrumental in driving low-carbon investment.

Deputy Prime Minister Nick Clegg also set out plans for Local Enterprise Partnerships (LEPs), which will replace RDAs, bringing together local councils and businesses.

LEPs will be aimed at providing local strategic leadership and creating the right conditions for businesses to flourish.

“We want a structure that reflects the genuine interests and commitment of enterprise, local councils and other stakeholders like universities and colleges,” says Business Secretary Vince Cable.

The Government says it foresees LEPs involved in planning and housing, local transport and infrastructure, employment, enterprise and supporting business start-ups.

But other roles that have been carried out by RDAs such as inward investment, sector leadership, business support, innovation and access to finance will be led nationally.

The move calls into question the future of successful projects such as the South West RDA’s £42 million Wave Hub effort to drive marine energy and the role of RDAs in managing the previous Government’s Low Carbon Economic Area initiative.

Elsewhere, One North East played a critical role in securing the New and Renewable Energy Centre at Blyth, Clipper Windpower’s wind turbine blade facility in the North East and manufacturing of electric cars and batteries at Nissan’s Sunderland plant, as well as a regional electric vehicle network.

The Government will release a White Paper setting out details of both the new fund and the LEPs later in the year.

“While business will wait to see detailed plans on the proposed Regional Growth Fund, what’s clear from the outset is that the Fund will have significantly less resources to support business growth than previous arrangements,” warns David Frost, director general of the British Chambers of Commerce.

For further information:
www.communities.gov.uk/
www.britishchambers.org.uk/
www.southwestrda.org.uk
www.onenortheast.co.uk/

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