Funds available for regeneration cut by two-thirds, warns LGA

The removal of regional development agencies and their replacement with the Regional Growth Fund has seen the resources available for local authorities to regenerate their communities slashed by two-thirds, the Local Government Association has claimed.

Commenting on the government’s White Paper on Local Growth, which was published yesterday, LGA vice-chairman Cllr David Sparks said local authorities were now having to look for other partners to take the place of RDAs in regenerating their areas.

He warned: “Those partners will not come with the same kind of money. We must therefore make sure that councils are supported so they can make the most out of the new mechanisms available to them to boost local economic growth.”

Cllr Sparks said it was “very encouraging” that the government had listened to councils and was looking to localise business rates.

He added: “We have long argued that councils should be rewarded for their hard work in supporting economic growth in their area. Allowing them to keep the money they raise locally, which can then be ploughed back into their communities, will provide the incentive for local authorities to drive economic development."

The LGA vice-chairman also described the 24 local enterprise partnerships announced by Business Secretary Vince Cable and Communities Secretary Eric Pickles as “a step in the right direction”. The model should be rolled out across the rest of the country, he added.