Whitehall relaxes hold on infrastructure decisions

18 July 2007

Councils and regional development agencies are to be given a greater say in setting priorities for future investment in local infrastructure and transport projects.

The joint review of sub-national economic development and regeneration published by the Treasury, the Department for Business and the Department for Communities and Local Government promises a new ‘concordat’ to define central local government relations. It outlines a package of measures designed to rebalance the powers of councils and development agencies from 2010, with consultation on plans to phase out regional assemblies promised by the end of this year.

Local authorities will be given a greater say in overseeing the work of RDAs which will concentrate more on developing their strategic role, with councils taking a greater share of funding to finance infrastructure and regeneration. A new round of regional funding allocations is promised to include major local government and Highways Agency transport schemes alongside the European Regional Development Fund, and other transport and regeneration funding from the new homes agency.

Regional Infrastructure Funds, Local Asset Backed Vehicles and City Development Companies are all acknowledged as potential mechanisms to finance new infrastructure and regeneration projects and the Government has promised to report back on powers for councils to levy a supplementary business rate.

The review encourages greater pan-regional working and cites the Northern Way Transport Compact between the three northern RDAs as an example of effective collaboration on city-region transport projects. It also recognises that in some areas, such as Thames Gateway and Milton Keynes, sub-regional regeneration and transport initiatives can work effectively across regional boundaries

The review aims to reduce the differences between the UK’s poorest and richest regions and offers a package of measures in response to the recent Lyons inquiry into local government, the Barker review of land use planning, the Eddington transport study and the Leitch review of skills.

Local government minister, John Healey, said: ‘We want to give local authorities which know their communities best a greater role leading regeneration and sustainable growth. We want to make sure that plans for new homes are linked closely to new jobs, transport and economic growth in the region.’

However, Neil Sinden, the Campaign to Protect Rural England’s policy director, said: ‘Giving the regional development agencies responsibility for planning is like putting a fox in charge of the hen house. ‘The idea that unelected development quangos should be responsible for developing planning policy beggars belief.’

http://www.hm-treasury.gov.uk/

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