EMDA to be scrapped under Coalition plans

Commenting on the Government’s announcement to abolish Regional Development Agencies, Shadow Secretary of State for Business, Innovation and Skills, Pat McFadden MP said:

"This is a broken promise and a clear breach with what the Coalition agreement said just a few weeks ago. Then, the Government said the future structure "may take the form of existing RDAs in areas where they are popular". Yet now the Government is announcing the abolition of all RDAs.

"They seem to be vacating the pitch when it comes to growth. As the G20 stressed at the weekend, a strategy for growth is important as well as a strategy for deficit reduction. RDAs have done a good job for regional economies. They have been independently evaluated and shown to lever in on average £4.50 of benefit for regional economies for every £1 spent.

"To announce a consultation on the future while ruling out the option of keeping the RDA which the Government previously said would be available is to ride roughshod over the views of business in different regions.

"It looks like BIS is losing a Whitehall turf war here with CLG who want to take an axe to RDAs because of cuts in their own budget. Vince Cable shouldn't be going along with this. If his department is to be a department for growth it makes no sense to abolish the means for delivering growth."