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RDA Finance & Governance

The Regional Development Agencies (RDAs), except the London Development Agency (LDA), were set up by the Regional Development Agencies Act 1998 as Non-Departmental Public Bodies. The LDA, which is a functional body of the Greater London Authority, was set up by the Greater London Authority Act 1999.

Under the Regional Development Agencies Act 1998, each of the England’s RDAs has the following statutory purposes:

•        To further economic development and regeneration;

•        To promote business efficiency and competitiveness;

•        To promote employment;

•        To enhance development and application of skills relevant to employment; and

•        To contribute to sustainable development.

The Regional Development Agencies (RDAs) are financed through a Single Budget, a fund which pools money from all the contributing Government Departments (BIS, CLG, DECC, DEFRA, DCMS and UKTI).  BIS is the sponsor Department. DIUS, a former contributor, became part of BIS following the Machinery of Government change announced on 05 June 2009.  

The RDAs’ allocated budgets for 2008–09 and 2009-10 are set out below, together with their indicative allocations for 2010–11. These take account of all changes that have been agreed with the RDAs post-CSR 2007 Settlement:

In addition to their Single Budget, the RDAs have taken over management of the European Regional Development Fund (ERDF) and the Rural Development Programme for England (RDPE). Both programmes running from 2007 to 2013 and together amount to £9bn. Associated administration costs have been provided by CLG (£6m), included in all three years, but  DEFRA (£4m) included for 2008-09 and 2009-10 only as it is allocated on an annual basis.

As part of the CSR 2007, the RDAs budgets over the three years were reduced by 2.5% (£320m). In addition, the RDAs identified cash savings of about £350m, which will be funded from value for money savings.