Region aiming to divide and conquer
Sep 7 2010 by Adrian Pearson, The Journal
Deeper cuts ordered as jobs agency suffers again
MINISTERS have told regeneration bosses they must plan for budget cuts worth tens of millions of pounds next year.
Alan Clarke, chief executive of One North East is expecting a cut of up to 40%.
The jobs agency has already had to cope with substantial spending reductions and will this month reveal where the axe will fall on projects worth £30m.
Major regeneration schemes such as plans for a flagship science research building in Newcastle face continued uncertainty as development chiefs are forced to once again reconsider their priorities.
Last Thursday, the Department for Business ordered One North East and the other regional development agencies to draw up detailed plans for cuts of another 40% in next year’s budget and submit them this week, just four days later – to the frustration of RDA officials.
The coalition Government has waged war on regional development agencies since coming to power, first deciding to abolish them from 2012 and then reducing budgets and freezing spending in key areas.
Moves to wind down the development agency mean new projects will be unlikely to get the go-ahead.
A spokesman for One North East last night said: "It would be inappropriate to speculate on our budget reduction for 2011/12 ahead of next month’s Government Comprehensive Spending Review."
