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Helping to create more prosperous places

COMMUNITIES AND LOCAL GOVERNMENT News Release (077) issued by The Government News Network on 31 March 2008

Government consults on proposals to support regional economic growth in England

Ministers have today laid the foundations for sweeping reforms to bring about a renaissance in England's most deprived areas.

It follows publication of the Sub-National Review of Economic Development and Regeneration last July, which announced new streamlined regional government with the phasing out of Regional Assemblies from 2010.

Under proposed new legislation, top tier councils would be given a duty to assess the economic conditions of their area, including employment and skills needs, and the infrastructure needed to support sustainable economic growth - including housing and transport investment.

These councils and Regional Development Agencies would then use this as the basis for regional strategies, covering the future for housing, skills, transport and regeneration in their region, to encourage greater economic growth.

Regional Development Agencies and regional partners would also advise government on how best to join up the regional funding already allocated for areas including housing and regeneration, skills, transport and economic development.

Building on those areas where councils are already collaborating and developing Multi-Area Agreements, the proposed legislation would also, where sub-regions requested this, give statutory backing to voluntary arrangements between local authorities, provided these are cost-effective and improve accountability to local people.

And to make RDAs accountable both in their regions and in Parliament, they will be answerable to new regional forums of local authority leaders, the arrangements for which will be agreed locally, and Ministers are in discussion with Commons authorities on the formation of new regional select committees.

Local Government Minister John Healey said:

"Over the past decade, every English region has benefited from significant and impressive growth. I want us to go further and faster, spreading this prosperity to every area of the country - but Whitehall cannot do this alone.

"Councils are best placed to know the challenges that their local communities face and learn from their economic successes. In their reformed role, Regional Development Agencies will work closely with councils and business to develop a vision for the future of their areas.

"These reforms lay the foundations for a renaissance in England's most deprived areas. It will help them to unlock the potential of local businesses and help build new ones - putting our local economies in an even stronger, competitive position than now."

Minister of State for Employment Relations and Postal Affairs, Pat McFadden said:
"For our economy to continue to thrive we need competitive businesses and a public sector that understands their needs at regional, city and local levels. This consultation is about how we want England's regions to operate and perform, and the role of businesses and town halls in creating prosperous places the length and breadth of the country."

Notes to Editors:
1. Prosperous Places: Taking Forward the Review of Sub-National Economic Development and Regeneration is published today and can be found at: http://www.berr.gov.uk/files/file45468.pdf. This consultation runs until 20 June 2008.

2. The Review of Sub-National Economic Development and Regeneration was published on 17 July, 2007. Details can be found at: http://www.communities.gov.uk/news/corporate/spread_opportunity_to_all

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