
As part of the £6.25 billion of cuts set out by the Treasury in May, the eight regional development agencies outside London were
told to save £270 million in the current financial year, by ending "lower value spending".
Altogether, the cuts amount to nearly 20 per cent of the RDAs’ combined budget of just over £1.4 billion in 2010/11.
Yorkshire and Humber correspondent
Peter Baber contacted the RDAs to find out what regeneration schemes might be affected.
One
North-East
Cut: £32.9m (15%)A spokesman said the agency “have been afforded some financial protection this year”, but would still find cuts of nearly £33 million “challenging”. “We are not sure yet where the axe is going to fall,” he said. “We have already committed significant levels of investment this year, and will have to talk with our partners about what to cut.”
Yorkshire Forward
Cut: £40.3m (18.8%)The announced cut for Yorkshire Forward is actually nearly £4 million less than it was expecting. Outgoing Yorkshire Forward chairman Terry Hodgkinson said the cuts would involve “both delaying work, and stopping some schemes and initiatives altogether”. “In some cases, where funds have already been committed, we will need to investigate existing contractual commitments,” he said. “We will look to minimise the impact on our partners.”
A spokesperson confirmed that a leaked memo seen by a local news website was in essence what the RDA thought it could cut when it had assumed its overall cuts would be £44 million. She said these no longer applied because they now had to cut less.
The leaked memo suggested cuts or deferments to a wide range of regeneration projects, including: £2.4 million going from the Tower Works development in Holbeck in Leeds; £1.2 million going from a scheme designed to link Barnsley town centre to the new Gateway Plaza; just under £1 million going from the Rotherham Central regeneration scheme, and £1.3 million going from Bradford City Park – a project that has been in gestation for most of the past decade.
It also suggested that the planned £40,000 feasibility study for the York Central regeneration scheme should be scrapped. And it planned to cut £100,000 from each of the annual budgets of Marketing Leeds, an agency which is meant to promote the city outside the region, and Financial Leeds, an agency supporting the city region’s financial services.
Tourism body Welcome to Yorkshire would have its budget cut by £750,000, and its plan to sponsor the Clipper round the world yacht race for £50,000 would be scrapped.
No
rth-West Regional Development Agency
Cut: £52m (18.1%)The cut of £52 million is nearly double what the agency had been expecting, even with the
extra protection promised for the northern RDAs.
A spokesperson said it was too early to say exactly what would be cut. “We could know as early as next week,” she said, “but need to discuss this with our partners.”
One victim of the planned cuts looks likely to be Liverpool Vision, the city’s economic development company. It had already been facing a planned reduction in its budget for this year from £18.25m to £13.5m, but now says as a result of the larger than expected cuts overall it could be facing even more stringency.
However, outgoing Liverpool Vision chief executive
Jim Gill said said he believed most projects were safe because they came with funding already legally committed.
Adv
antage West Midlands
Cut: £37.1m (18.6%)Advantage West Midlands is adamant that its Birmingham Gateway project – a plan to transform Birmingham New Street station (shoppers in New Street pictured above) and its immediate surroundings – will not be the victim of any cuts after it was singled out as a project that needed completing in chancellor George Osborne’s budget speech.
As for everything else, a spokesperson said: “We still need to discuss the cuts with our partners, because all our projects are with partners, and many of them are also facing separate cuts. We plan to have the cuts finalised by the Comprehensive Spending Review in October.”
She added: “We are also trying to seek clarification on whether the decision on what to cut is just down to us, or whether we have to make suggestions to central government, because if regional development agencies are being abolished, then they could be taking over responsibility.”
East M
idlands Development AgencyCut: £28.3m (22.7%)The East Midlands stands in direct contrast to Yorkshire and the Humber. Whereas its northern neighbour has had a “reprieve” of nearly £4 million from the cuts it was expecting, the £28.3 million EMDA is being asked to cut is almost exactly the same amount more than the £24 million it was expecting.
A spokesman said it was too early to say where the cuts would go, and dismissed talk in local media about the Nottingham Waterside and Leicester Science Park projects being threatened as “pure speculation”.
East of
England Development Agency
Cut: £23.3m (22.9%)“We can’t say at the moment where the cuts will go because we need to talk to our partners first,” a spokesman from the East of England agency said. “We will know in the next two weeks.”
He added that the £23.3m cut was “slightly higher than we were expecting”.
Sou
th-East England Development Agency
Cut: £23.3 million (22.3%)The South-East agency said it was “still in discussions with our partners about where the cuts will be” and “cannot even speculate about when we will be able to say”.
Sout
h-West Regional Development Agency
Cut: £27.8m (19.5%)Swerda is acting as a “chair of chairs” in relations between the regional development agencies and central government about the cuts.
Chief executive Jane Henderson said most of the cuts would be “managed by delaying existing work or reducing some of our planned investments”. “As a point of principle, we will not unilaterally break any existing contracts,” she said.
She added that the agency still had £114 million to invest in the regional economy this year.
A spokesman would not be drawn on exactly where the cuts would go. “We still have to work with our partners,” he said, “and are not going to make a decision for several weeks.”