Infrastructure, housing and transport economics 'must be' assessed by councils and RDAs, suggests Government report

Ministers have laid the foundations for sweeping reforms to bring about a renaissance in England's most deprived areas. Under proposed new legislation laid out in the report Prosperous Places: Taking Forward the Review of Sub-National Economic Development and Regeneration, top tier councils would be given a duty to assess the economic conditions of their area, including employment and skills needs, and the infrastructure needed to support sustainable economic growth - including housing and transport investment.

The consultation runs until 20 June 2008.

These councils and Regional Development Agencies would then use this assessment as the basis for regional strategies, covering the future for housing, skills, transport and regeneration in their region, to encourage greater economic growth.

The move follows publication of the Sub-National Review of Economic Development and Regeneration last July, which announced new streamlined regional government with the phasing out of Regional Assemblies from 2010.

Regional Development Agencies and regional partners would also advise government on how best to join up the regional funding already allocated for areas including housing and regeneration, skills, transport and economic development.

Building on those areas where councils are already collaborating and developing Multi-Area Agreements, the proposed legislation would also, where sub-regions requested this, give statutory backing to voluntary arrangements between local authorities, provided these are cost-effective and improve accountability to local people.

And to make RDAs accountable both in their regions and in Parliament, they will be answerable to new regional forums of local authority leaders, the arrangements for which will be agreed locally, and Ministers are in discussion with Commons authorities on the formation of new regional select committees.

Local Government Minister John Healey said: 'Over the past decade, every English region has benefited from significant and impressive growth.  I want us to go further and faster, spreading this prosperity to every area of the country - but Whitehall cannot do this alone. Councils are best placed to know the challenges that their local communities face and learn from their economic successes.  In their reformed role, Regional Development Agencies will work closely with councils and business to develop a vision for the future of their areas.'