Coalition scraps RDAs

EEF warned that business will need clarity about their purpose and confidence that they have the capability and critical mass to do the job if firms are to engage fully with these new bodies. They must also have strong business leadership. Speaking in Bradford after the first Coalition Cabinet meeting outside of London today, Nick Clegg set out plans for the LEPs that will "bring together councils and business on an equal footing with one voice", replacing the current RDAs. In a joint letter sent to councils and business leaders, Business Secretary Vince Cable and Communities Secretary Eric Pickles have asked them to consider forming new local enterprise partnerships that can provide strategic leadership in their local areas and create the right environment for business success and economic growth. Vince Cable, said: "We are determined to rebalance the economy towards the private sector, so it's important we create a more effective structure to drive economic growth and development across the country. "We want a structure that reflects the genuine interests and commitment of enterprise, local councils and other stakeholders like universities and colleges. Local enterprise partnerships will provide that vision and then take on the task of renewing local economies and tackling local barriers to growth. Today we are asking them to tell us about their vision and I'm looking forward to what they've got to say." Communities Secretary Eric Pickles added: "If you want to rebuild a fragile national economy you don't strangle business with red tape and let bloated regional quangos make all the decisions. Urgent action is needed to rebuild and rebalance local economies so that new businesses and economic opportunities spread across the country. "The solution needs to be local - we know that when councils and local business work hand in hand they can drive economic growth together and places can be transformed. Local enterprise partnerships are central to this vision which is why we are asking them what they need. "By giving up central control we will put democratic accountability back into the local economy making it responsive to the needs of local business and local people." Local enterprise partnerships will tackle issues including planning and housing, local transport and infrastructure, employment, enterprise and supporting business start-ups. Other roles currently carried out by the RDAs will be led nationally, such as inward investment, sector leadership, business support, innovation and access to finance. EEF chief executive Terry Scuoler (pictured), said the litmus test for the changes would be whether LEPs had a clear growth remit, have critical mass and the capability to get the job done. "The need to rebalance our economy is paramount and regional policy has a key role to play in this. However, government must be clear what it is trying to achieve and how it will ensure that business is engaged with the new arrangements. "The new national approach to areas such as inward investment, sector leadership and key areas of business support is also welcome. However it is critical that the forthcoming spending review backs these priority areas with sufficient resources."