Reaction to abolition of Regional Development Agencies

At its regional Cabinet meeting in Bradford yesterday, the Government confirmed its intention to abolish Regional Development Agencies (RDAs) in England, and its intention to replace RDAs with Local Enterprise Partnerships (LEPs). Commenting, David Frost, Director General of the British Chambers of Commerce (BCC), said:

“Whatever new structures emerge, it is clear that local business leaders need to play a central role in defining every area’s economic future. So businesses, and Chambers of Commerce, must be at the heart of new Local Enterprise Partnerships.

“Given the long-standing economic challenges that face so many parts of the country, business must be assured that private sector growth, job creation, and balanced local economies are LEPs’ overriding priorities.”

Commenting on the announcement of the end of the South West RDA (SWERDA) and the options for its replacement Richard Glover, Chief Executive of the Cornwall Chamber said:

“We have seen the invitation letter from BIS regarding LEPs and hope that any transition to the new arrangements will be as smooth – and quick – as possible. We also hope that there will be as little political posturing as is possible in the circumstances. It is important that we design what works rather than what is convenient for vested interests. It is important that we focus on how best to deliver economic development in the circumstances. 

“We know that what will grow Cornwall is strong trading links with other areas of the UK and internationally. It is for this reason that we are active participants in the BCC. 

“However it is important also to focus on some specific issues and opportunities that are unique to Cornwall.  We have one of the largest unitary authorities in the country but is still in the early stages of formation. Too many cooks in the establishment of certain initiatives here could slow progress, which we feel is promising to date. 

The Convergence programme, specific to Cornwall and the Isles of Scilly, is only half-way through and it is clear that it needs greater coordination and a stronger leader. All of our consultations suggest that members want Cornwall Council to take the lead. 

Whilst it is clear that SWERDA has been responsible for some important developments in Cornwall – in particular in the immediate response to the credit crunch, where the RDA’s actions effectively kept some larger businesses afloat - there is no defence of the current regional structures in any of our consultations. However, many businesses are concerned that some of the mooted alternatives could be even less responsive and messy. 

“We will talk to Cornwall Council and our members before offering our observations on what will best deliver for Cornwall”.

Posted 30th Jun 2010  by member Cornwall Chamber of Commerce & Industry