EEF report calls for revamp of RDAs

The report, submitted to the Treasury as part of its own review of regional economic performance and regeneration, shows that the performance of RDAs has been mixed. Whilst there have been some successes, tackling urban regeneration and on specific issues such as Rover, there has been little measurable impact on regional economic performance. Most regions have recorded similar increases in GDP in the eight years since the RDAs were established compared to the previous eight years. However, this has been largely based on growth in employment rather than gains in productivity and, outside the southern regions, it has been highly dependent on the public sector. As such, there is little evidence so far that the RDAs have laid foundations for stronger economic growth in the regions outside the greater South East. EEF director general, Martin Temple, said: “Whilst the RDAs have made a difference in some key respects, so far there has been little significant impact on our regional economies. However, this must be balanced against the fact they have only been in existence for a relatively short period of time and only latterly had discretion over their own budgets. “Given the resources at their disposal, it is clear that the agencies have the potential to make a serious impact on the economies of the nine regions but we cannot continue with the status quo.” Temple added: “Despite scepticism in some quarters, we believe there is a role for RDAs to play in promoting regional competitiveness. However, government must now be clear what we want from them, set out how their performance will be measured and then give them time to deliver.”