COMMUNITIES AND LOCAL
GOVERNMENT News Release (285) issued by COI News Distribution
Service. 25 November 2008
The Government
today announced new powers to tackle the local impacts of the
credit crunch.
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.
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 PBR 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."
Notes to editors
* the Government's response to the consultation on the SNR -
Prosperous Places: Taking forward the Review of Sub-National
Economic Development and Regeneration was published today. The
consultation closed on June 20 with over 500 responses having been
received. The Government's response sets out its intention to
implement the following:
* a new duty on upper tier councils in England to map out their
economic circumstances and challenges - this will help ensure
better targeted investment in economic development by local
authorities and their partners, based on a clear understanding of
their economic needs
* each region in England will produce a single plan for their
area so spatial and economic decisions are taken together not
separately. One single regional strategy will ensure plans are
connected, coordinated and complementary - whether on planning,
housing, transport or economic development. Aligned plans should
help regions to deliver more effectively and efficiently, with
shared goals and resources, less duplication and more effective
contributions from businesses and communities
* new legally-binding partnerships which pool economic
responsibility within cities or sub-regions instead of efforts
stopping at councils' borders. Areas will be able to form and
set in law their commitment to deliver shared economic goals
through ''Multi Area Agreements with duties''
or "Economic Improvement Boards". These will give
partnerships between local authorities a legal status and will
enable them to coordinate their efforts on economic development
more effectively, to the benefit of their citizens
* new 'Leaders Boards' set up in and by every region to
replace regional assemblies. These will give councillors - on
behalf of their electorate - a bigger and louder say over future
economic plans, to take high level decisions and influence how
funding is prioritised. Leaders Boards will have a full role in
developing, agreeing and delivering the single regional strategy
jointly with RDAs. The boards will provide stronger, tighter
leadership at regional level and a firm focus on delivering
regional priorities
* a bigger role for Regional Development Agencies (RDAs). RDAs
will take on a more focused investment planning approach with
partners and will have joint oversight with the Leaders Board over
the Regional Strategy. RDAs will also ensure that the right
decisions are taken at the right level to best drive the economy,
devolving decision making through investment planning
* the Government's response to the consultation is the
latest in a series of reforms which follow the principles set out
in the SNR. Others include:
* 14-19 year old skills funding
* city strategies on employment
* the new Working Neighbourhoods Fund
* train to Gain brokers moved to business link
* multi Area Agreements
* the new transport bill
* powers for local authorities to introduce new planning levies
and business rates supplements
* regional Select Committees
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