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The future of regional development agencies

On 9 December 2008, the Centre for Cities published a report (The future of regional development agencies) calling for radical reform of regional development agencies (RDAs) after the next general election.

The report insists that the next government should consider merging some RDAs and closing others - to focus more on where economic development and investment is most needed - like Northern and Midlands cities.

It finds that RDAs are not delivering on their two-part government target to reduce the gap in economic growth rates between England's regions and to promote growth in all regions.

The report reveals that during the first seven years of the RDAs existence (1999 to 2006), the Greater South East economy grew by nearly 18% whereas the rest of England's economy grew by just 15% - and the growth gap looks set to continue over the next decade.

Similarly, across the Greater South East, the economy generated £22,657 per head, in 2006 - over £6,000 more than the rest of England.

It suggests a number of options for the next government to consider, including:

• A Northern Development Agency, from 2011, to replace the current three Northern RDAs. Cities like Liverpool and Sunderland would benefit from being part of a unified "Northern" brand as opposed to being represented by separate RDAs.
• Radical reshaping of RDAs in the Greater South East. If the purpose of RDAs is to boost growth in lagging areas, it is not clear that three are needed in the Greater South East. They could be streamlined, or abolished altogether, with the new Homes and Communities Agency taking the lead in areas like the Thames Gateway.
• Replacing the government's confusing regional economic performance target with a clearer focus on boosting growth rates and promoting job creation in the Midlands and the North - rather than trying to close the gap with the Greater South East.

The future of regional development agencies (PDF)