‘A casual and lazy attitude to axing RDAs’

Vince Cable

THE Cabinet Ministers supposed to be boosting regional growth were last night accused of a “lazy” and “casual” attitude to their own plans.

Business Secretary Vince Cable and Local Government Secretary Eric Pickles are under fire for only formally meeting a handful of times to discuss axing regional development agencies (RDAs) and creating local enterprise partnerships (LEPS) since the coalition was formed last May.

That is despite David Cameron making the strategy a flagship policy upon which the economy rests.

Huge sums of taxpayers’ cash are at stake with the plans, with RDAs holding more than £442m of assets and £1.3bn of commitments and liabilities.

Former Regional Minister Nick Brown said: “This is casual, brutal, lazy, ill-considered. They ought to be ashamed of themselves. This is no way to conduct public policy.”

The Labour MP for Newcastle East added there would have been a “substantial” number of bilateral meetings between the two Secretaries of State in the last Government.

Senior Liberal Democrat peer John Shipley said: “I am surprised. English regional policy has been split between two Whitehall departments and that has not been helpful.

“It is essential that regional development policy is clarified.”

Ross Smith, head of policy from the North East Chamber of Commerce, said changes to regional economic development policy were a major business concern.

“We’d hope that the level of interest there is amongst our members is reflected by the effort that is being put in by Cabinet Ministers,” he added.

CBI regional director Sarah Green said: “Economic development is critical to the North East. It is essential that the coalition work together effectively to deliver their flagship policy on LEPs.”

The revelations come after The Journal submitted a Freedom of Information request to the Department for Business, Innovation and Skills asking for material on regional economic policy since the coalition’s formation last May.

Lib Dem Vince Cable and Tory Eric Pickles held just one direct meeting on local enterprise policy on June 2 last year. They had one “bilateral” meeting on axing RDAs the following day.

The pair discussed the policy with other Cabinet colleagues on September 28 last year. More detailed discussions took place at an official level, the Department said.

The Government has insisted the North East will benefit from its £1.4bn regional growth fund to boost private sector jobs in areas hit by public spending cuts. Tax breaks for new companies outside the South East will also help, the Department

It added commitments to fund high-quality transport infrastructure, superfast broadband, a green investment bank, apprenticeships and science would benefit the region.

Share