Delay will hit the North’s great science experiment

Nov 11 2010 by William Green, The Journal

A FLAGSHIP coalition policy billed as breathing new life into the region by giving councils more powers to boost economic development will not happen until at least 2012, it has emerged.

Deputy Prime Minister Nick Clegg hailed plans to let town halls borrow millions of pounds to pay for infrastructure projects during his leader’s speech to the Liberal Democrat conference in September.

The Deputy Prime Minister singled out the development of a multi-million pound science park in Newcastle as one scheme that could be funded by the new financing mechanism, which could be critical as public spending cuts hit budgets.

It has been estimated plans for Science City could create thousands of jobs – with £40m in public cash and £250m of private investment over the next 20 years.

But now it has emerged that the Department for Communities and Local Government will not get the legislation to introduce the powers into Parliament until July 2011, with the scheme not be available to use until at least April 2012.

The document reveals the proposals have instead been wrapped up with development of plans to allow councils to take control of business rates.

David Faulkner, Lib Dem leader of Newcastle City Council, said: “I am disappointed. I cannot really see any reason why it cannot be made available next year with the next few months being about how it might be implemented. I don’t see why it should be delayed.

“If there is the will to do it, it can be done for the next year and not the year after. And it is important to maintain the momentum for economic development and regeneration in Newcastle.”

He added: “They have made a promise and they should get on with it.”

Unveiling the proposals in his conference speech, Mr Clegg said: “I assure you it is the first step to breathing life back into our greatest cities.

“Our leaders in Sheffield say it could allow the redevelopment of derelict mines in the Don Valley. Our leaders in Newcastle believe this could help them create a new science park. In Leeds they argue the Aire Valley could be transformed.

“But whether in Newcastle, in Sheffield, in Leeds or indeed in every city in the UK what matters most is that finally, they will be in the driving seat, instead of waiting for a handout from Whitehall. Local people, local power, local change.”