Government publishes arrangements for regional planning to boost economic development

The Government has clarified its thinking on the new arrangements for regional planning and measures to encourage collaboration between local authorities on economic development across sub-regions.

Under these arrangements the new-look draft regional plans will be produced jointly by the Local Authority Leaders’ Board and the relevant Regional Development Agency (RDA).

Under this formula responsibility for the regional strategy, including its drafting, implementation plan and the monitoring of its delivery, will pass to the RDA and Local Authority Leaders' Board.

Other residual functions will also pass to successor bodies as required and the need for regional assemblies will end.

Ministers plan to repeal any legislation relevant to the assemblies and transfer funding to successor bodies.

The reforms make it easier for action to be taken at every level to boost jobs and skills, support businesses and make sure that all areas are making plans for recovery from the economic slowdown.

Economies don't conform to local authority areas. The plans nsure that powers are available to take decisions at the right level, according to ministers.

Today's announcement follows a public consultation on some of the commitments outlined in the Sub National Review of Economic Development and Regeneration (SNR) in July 2007. Government will legislate on these powers at the earliest opportunity.

There will be:

• a new duty on local authorities to assess the economic conditions of their area
  new legal powers to help local authorities work together on economic development

• a new board of Local Authority leaders to provide stronger leadership at the regional level and to take over accountability from Regional Assemblies
• a streamlined process for regional planning
• a joint duty on Regional Development Agencies (RDAs) and the Local Authority Leaders Board to prepare and agree a single strategy for each region outside London

In its response to the consultation, the government has taken account of the views of stakeholders. In particular, the joint approach agreed by the RDAs and the LGA has been the basis for the Government's approach, which will deliver both strong partnership working and more streamlined strategic planning in each region.

Publishing the Government's final response to the Subnational Review (SNR) consultation, Local Government Minister, John Healey said: 'Every community, town, city and region needs to play its part in dealing with the current economic climate and also prepare for economic growth in the future. As part of Government's comprehensive response to the international economic situation, these SNR reforms will bring together the expertise, the will and the decision-making powers to plan effectively for sustainable economic growth in all our English regions.

'This is the latest step in the SNR's progressive evolution and devolution of new powers and freedoms for regions, cities and local authorities. These plans and the new devolutionary package for cities announced in the PBR by the Chancellor yesterday will build on reforms to 14-19 year old skills funding, city strategies on employment, the new Working Neighbourhoods Fund, regional select committees in Parliament, new economic funding powers and Multi Area Agreements. They will boost jobs and skills, increase prosperity across the country, and reduce inequalities between and within regions.'

The Government has recognised that some regions have already gone a long way towards establishing this new working arrangement at the regional level. However, where they are unable to reach agreement, or where one side acts unreasonably, the Government has signalled it will take a power to allow ministers to direct the process for producing the draft strategy, with the expectation being that the task of leading the strategy’s development would then fall to the RDA.

The Government will also be able to intervene where the Leaders' Board established for a region fails to operate effectively.