RDAs launch robust defence of their record in face of abolition

Regional Development Agencies have defended their record in the face of government plans to scrap them.

Responding to claims that they are wasteful, have high running costs and have limited impact on the economies of their regions, the agencies claimed that government analysis had shown that they were among the top 25% of all departments and agencies when it came to efficiency.

The RDAs insisted that National Audit Office research had confirmed the economic benefits from their work. A forthcoming NAO report was also likely to declare that RDAs are performing “strongly” or “to a good standard”, the statement added.

Sir Harry Studholme, lead chairman for all England’s RDAs, said it was “vital” that their record was judged fairly and accurately “to best inform a way forward in the difficult times ahead”.

However, he added that RDAs accepted that change was coming and said they would be ready for it, “especially considering the limited funding likely to be available for economic development in the next few years”.

Sir Harry said: “Discussions about our future have not reduced our passion for working to create stronger, more sustainable and balanced economies in each part of the country.”

The RDAs’ statement also cited research by accountants PricewaterhouseCoopers which suggested that over a five year period from 2003 to 2008, each £1 invested by an RDA directly benefited their regional economies by £4.50.

Studholme suggested that PWC’s research demonstrated that RDAs had contributed at least £38bn towards the economic development of England’s regions during that time.

The government’s coalition agreement, which was published last month, said that RDAs would be abolished and replaced by Local Enterprise Partnerships – joint local authority business bodies brought forward by local authorities to promote local economic development.

However, these partnerships can take the form of the existing RDA “in areas where they are popular”.