The reforms make it easier for action to be taken at every level to boost jobs and skills, support businesses and make sure that all areas are making plans for recovery from the economic slowdown.
Economies don't conform to local authority areas. The plans announced today ensure that powers are available to take decisions at the right level.
Today's announcement follows a public consultation on some of the commitments outlined in the Sub National Review of Economic Development and Regeneration (SNR) in July 2007. Government will legislate on these powers at the earliest opportunity.
There will be:
- a new duty on local authorities to assess the economic conditions of their area;
- New legal powers to help local authorities work together on economic development
- a new board of Local Authority leaders to provide stronger leadership at the regional level and to take over accountability from Regional Assemblies; and
- a streamlined process for regional planning
- a joint duty on Regional Development Agencies (RDAs) and the Local Authority Leaders Board to prepare and agree a single strategy for each region outside London
In its response to the consultation, the government has taken account of the views of stakeholders. In particular, the joint approach agreed by the RDAs and the LGA has been the basis for the Government's approach, which will deliver both strong partnership working and more streamlined strategic planning in each region.
Within the East of England, the Regional Partnership Group (RPG), chaired by the Regional Minister, will oversee how the SNR will be implemented across the region working closely with partners and continuing to apply the open, collaborative and inclusive approach set out in the RPG's SNR consultation.
In advance of full implementation, this approach is already being used to pursue a number of important initiatives. These include the preparation of the joint implementation plan for the RSS and Regional Economic Strategy, and the region's response to the Regional Funding Advice exercise.
Publishing the Government's final response to the SNR consultation, Local Government Minister, John Healey said:
"Every community, town, city and region needs to play its part in dealing with the current economic climate and also prepare for economic growth in the future. As part of Government's comprehensive response to the international economic situation, these SNR reforms will bring together the expertise, the will and the decision-making powers to plan effectively for sustainable economic growth in all our English regions.
"This is the latest step in the SNR's progressive evolution and devolution of new powers and freedoms for regions, cities and local authorities. These plans and the new devolutionary package for cities announced in the pre-budge report by the Chancellor yesterday will build on reforms to 14-19 year old skills funding, city strategies on employment, the new Working Neighbourhoods Fund, regional select committees in Parliament, new economic funding powers and Multi Area Agreements. They will boost jobs and skills, increase prosperity across the country, and reduce inequalities between and within regions."
Pat McFadden, Minister for Employment Relations and Postal Affairs said:
"Business success is crucial to the health of regional and local economies. It is essential that in implementing this review we focus on what business needs to survive and thrive.
"We have responded to calls from business for a streamlined system of regional economic plans to create better conditions for business success. The reforms will allow RDAs to work more closely with local councils and give them a sharper focus on promoting investment and growth in the regions."
