Regional Development Agencies (Hansard, 9 March 2001)

§ Mr. Healey
To ask the Secretary of State for the Environment, Transport and the Regions if he will make a statement on the total budget for regional development agencies in 2001–02 and how it is to be allocated between the nine agencies. [153474]

§ Ms Armstrong
The table sets out the total budget for 2001–02 showing the distribution between Regional Development Agencies. The total figure represents in effect an increase of 15 per cent. on the 2000–01 budget.
Except for ring fenced administration and rural funding, RDAs will also have the flexibility to transfer up to 20 per cent. of budgets to other programmes, which together with the facility to create a strategic programme to progress initiatives which do not fall conveniently within existing programme rules, offers significant improvements for RDA financial management.
The considerable extra funding, and these additional flexibilities for 2001–02 (the transitional year before the single budget) will help RDAs to deliver their regional priorities and targets for the year.
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£000

Programme One North East North West DA Yorkshire Forward East Midlands DA Advantage West Midlands East of England DA South East of England DA South West RDA London DA Total

Administration 10,103 14,[...]44 9,989 7,488 8,793 5,836 6,643 9,099 9,470 81,465

Land and Property 45,700 85,000 43,700 30,900 41,100 18,200 23,600 34,900 48,100 371,200

Single Regeneration Budget 100,169 159,915 147,425 38,398 92,446 22,127 58,237 28,156 225,955 872,828

Rural Development 3,578 1,991 4,237 4,588 2,625 4,018 2,477 9,388 0 32,902

Skills Development Fund 2,746 6,448 4,792 4,195 5,664 5,053 6,531 4,275 7,246 46,950

Skills Administration 207 326 268 238 285 259 323 259 335 2,500

Inward Investment 1,765 1,493 1,515 1,124 1,454 1,165 1,165 1,604 1,145 12,430

Regional Innovation Fund 8,900 7,400 10,000 4,300 6,300 3,500 3,200 4,700 5,800 54,100

Grand Total ¹ 173,168 276,617 221,926 91,231 158,667 60,158 102,176 92,381 298,051 1,474,375

Land and Property Capital -11,610 -10,230 -4,660 -7,360 -8,730 -2,280 -6,100 -20,520 -20,270 -91,760

Rural Development -236 -270 -453 -590 -183 -145 -142 -575 0 -2,594

Land and Property -11,667 -9,400 -4,650 -1,900 -880 -486 -98 -3,175 -639 -32,895

Current Total Receipts -23,513 -19,900 -9,763 -9,850 -9,793 -2,911 -6,340 -24,270 -20,909 -127,249

Net Total ¹ 149,655 256,[...]17 212,163 81,381 148,874 57,247 95,836 68,111 277,142 1,347,126

¹ This does not include the budget for notional resource items

§ Valerie Davey
To ask the Secretary of State for the Environment, Transport and the Regions what action he proposes to take to ensure that the regional chambers have sufficient resources to meet their duty to monitor the work of the Regional Development Agencies. [153491]

§ Ms Armstrong
I am today announcing proposals to establish a new fund for supporting the regional chambers, worth £5 million a year in total. This will enable the chambers to enhance their capacity to scrutinise the work of the Regional Development Agencies, as they progress towards their targets and delivery of their regional strategies, and to develop their role as a strategic focal point for their regions. Details of my proposals are contained in a consultation paper inviting views from the chambers and other interested parties, copies of which have been place in the House Library.

§ Mr. MacShane
To ask the Secretary of State for the Environment, Transport and the Regions what targets he has set the Regional Development Agencies for the single budget from 2002–03. [153512]

§ Ms Armstrong
Challenging high level objectives and outcome targets will be set for each Regional Development Agency (RDA), as part of the framework of targets for the single budget from 1 April 2002. These are set out in the table. We expect these targets to be delivered by the RDAs in exchange for the greater flexibility they will have under the single budget. Additional flexibilities for the RDAs for the 2001–02 transitional year are being set out in the 2001–02 allocations announcement today.
The objectives will provide the overall context for all activity undertaken by the RDAs. The high level outcome targets add measurability to these objectives, and will be used to measure the direct impact of RDA activity on the regions. Each RDA will be expected to contribute to the high level targets. In due course, detailed output targets will also be negotiated separately with each RDA.

Objectives—applying throughout urban and rural areas Outcome targets (by 2004–05 unless otherwise stated)

To promote economic development and regionally balanced growth. 1. Provide the strategic framework to improve the sustainable economic performance in each region measured by the trend in growth of GDP per capita, while also

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Objectives—applying throughout urban and rural areas Outcome targets (by 2004–05 unless otherwise stated)

contributing to the broader quality of life in the region.

To promote social cohesion and sustainable development through integrated local regeneration programmes. 2. Regeneration: Work with local strategic partnerships (LSPs) to tackle poverty and social exclusion through promoting economic development in the most deprived areas by reducing deprivation by 10 per cent. in those wards that are currently in the bottom 20 per cent. of the region as identified by the Indices of Multiple Deprivation.

3. Urban: Working with the LSPs, contribute to the renaissance of towns and cities so that negative current population trends in key urban areas are reversed and the numbers living and/or working there are increasing.

4. Rural: In line with Rural White Paper objectives, regenerate Market Towns in or close to Rural Priority Areas, and achieve increases in employment, skills and new business formation levels in priority rural areas comparable with those being achieved elsewhere in the Region.

5. Physical development: Work with partners to ensure that 60 per cent. of new housing is provided on previously developed land and through conversion of existing buildings by 2008. Ensure that brownfield land will be reclaimed at a rate of over 1,100 hectares per annum by 2004 (reclaiming 5 per cent. of current brownfield land by 2004 and 17 per cent, by 2010).

To help those without a job into work by promoting employment and enhancing the development of skills relevant to employment. 6. Employment: Work with Employment Service and Learning Skills Councils (LSCs) to increase employment over the economic cycle—by increasing the ILO employment rate by 2004.

7. Skills: Work with LSCs to increase by 3 percentage points by 2004 the number of 19-year-olds achieving a qualification equivalent to NVQ level 2 compared to 2002. Improve the levels of qualifications

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Objectives—applying throughout urban and rural areas Outcome targets (by 2004–05 unless otherwise stated)

of the work force in order to meet future learning targets.

Promote enterprise, innovation, increased productivity and competitiveness 8. Productivity: Work with regional partners to enable an increase in productivity measured by Gross Value Added (GVA) per hour worked in the region and in particular increase productivity.

9. Enterprise: Work with Small Business Service to help build an enterprise society in which small firms of all kinds thrive and achieve their potential, with an increase in the number of people considering going into business, an improvement in the overall productivity of small firms, and more enterprise in disadvantaged communities.

10. Investment: Make the region an attractive place for investment to maintain the UK as the prime location in the EU for foreign direct investment, particularly by providing effective co-ordination of inward investment activities of local partners and sub regional agencies.

11. Innovation: Make the most of the UK's science, engineering and technology by increasing the level of exploitation of technological knowledge derived from the science and engineering base, as demonstrated by a significant rise in the proportion of innovating business citing such sources.

£000
Programme	One North East	North West DA	Yorkshire Forward	East Midlands DA	Advantage West Midlands	East of England DA	South East of England DA	South West RDA	London DA	Total
Administration	10,103	14,[...]44	9,989	7,488	8,793	5,836	6,643	9,099	9,470	81,465
Land and Property	45,700	85,000	43,700	30,900	41,100	18,200	23,600	34,900	48,100	371,200
Single Regeneration Budget	100,169	159,915	147,425	38,398	92,446	22,127	58,237	28,156	225,955	872,828
Rural Development	3,578	1,991	4,237	4,588	2,625	4,018	2,477	9,388	0	32,902
Skills Development Fund	2,746	6,448	4,792	4,195	5,664	5,053	6,531	4,275	7,246	46,950
Skills Administration	207	326	268	238	285	259	323	259	335	2,500
Inward Investment	1,765	1,493	1,515	1,124	1,454	1,165	1,165	1,604	1,145	12,430
Regional Innovation Fund	8,900	7,400	10,000	4,300	6,300	3,500	3,200	4,700	5,800	54,100
Grand Total ¹	173,168	276,617	221,926	91,231	158,667	60,158	102,176	92,381	298,051	1,474,375
Land and Property Capital	-11,610	-10,230	-4,660	-7,360	-8,730	-2,280	-6,100	-20,520	-20,270	-91,760
Rural Development	-236	-270	-453	-590	-183	-145	-142	-575	0	-2,594
Land and Property	-11,667	-9,400	-4,650	-1,900	-880	-486	-98	-3,175	-639	-32,895
Current Total Receipts	-23,513	-19,900	-9,763	-9,850	-9,793	-2,911	-6,340	-24,270	-20,909	-127,249
Net Total ¹	149,655	256,[...]17	212,163	81,381	148,874	57,247	95,836	68,111	277,142	1,347,126
¹ This does not include the budget for notional resource items

Objectives—applying throughout urban and rural areas	Outcome targets (by 2004–05 unless otherwise stated)
To promote economic development and regionally balanced growth.	1. Provide the strategic framework to improve the sustainable economic performance in each region measured by the trend in growth of GDP per capita, while also

Objectives—applying throughout urban and rural areas	Outcome targets (by 2004–05 unless otherwise stated)
	contributing to the broader quality of life in the region.
To promote social cohesion and sustainable development through integrated local regeneration programmes.	2. Regeneration: Work with local strategic partnerships (LSPs) to tackle poverty and social exclusion through promoting economic development in the most deprived areas by reducing deprivation by 10 per cent. in those wards that are currently in the bottom 20 per cent. of the region as identified by the Indices of Multiple Deprivation.
	3. Urban: Working with the LSPs, contribute to the renaissance of towns and cities so that negative current population trends in key urban areas are reversed and the numbers living and/or working there are increasing.
	4. Rural: In line with Rural White Paper objectives, regenerate Market Towns in or close to Rural Priority Areas, and achieve increases in employment, skills and new business formation levels in priority rural areas comparable with those being achieved elsewhere in the Region.
	5. Physical development: Work with partners to ensure that 60 per cent. of new housing is provided on previously developed land and through conversion of existing buildings by 2008. Ensure that brownfield land will be reclaimed at a rate of over 1,100 hectares per annum by 2004 (reclaiming 5 per cent. of current brownfield land by 2004 and 17 per cent, by 2010).
To help those without a job into work by promoting employment and enhancing the development of skills relevant to employment.	6. Employment: Work with Employment Service and Learning Skills Councils (LSCs) to increase employment over the economic cycle—by increasing the ILO employment rate by 2004.
	7. Skills: Work with LSCs to increase by 3 percentage points by 2004 the number of 19-year-olds achieving a qualification equivalent to NVQ level 2 compared to 2002. Improve the levels of qualifications

Objectives—applying throughout urban and rural areas	Outcome targets (by 2004–05 unless otherwise stated)
	of the work force in order to meet future learning targets.
Promote enterprise, innovation, increased productivity and competitiveness	8. Productivity: Work with regional partners to enable an increase in productivity measured by Gross Value Added (GVA) per hour worked in the region and in particular increase productivity.
	9. Enterprise: Work with Small Business Service to help build an enterprise society in which small firms of all kinds thrive and achieve their potential, with an increase in the number of people considering going into business, an improvement in the overall productivity of small firms, and more enterprise in disadvantaged communities.
	10. Investment: Make the region an attractive place for investment to maintain the UK as the prime location in the EU for foreign direct investment, particularly by providing effective co-ordination of inward investment activities of local partners and sub regional agencies.
	11. Innovation: Make the most of the UK's science, engineering and technology by increasing the level of exploitation of technological knowledge derived from the science and engineering base, as demonstrated by a significant rise in the proportion of innovating business citing such sources.