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RDA Finance & Governance

Since April 2002, the RDAs have been financed through a Single Programme budget (the "Single Pot"). This replaced the funding programmes that existed previously, through which each contributing Government Department's allocation was made. Money from the contributing Departments (BERR, CLG, DIUS, DEFRA and DCMS and UKTI) is pooled into one single budget. The funding, once allocated, is available to the RDAs to spend as they see fit to achieve the regional priorities identified in their regional economic strategies and the challenging targets set by them in their Corporate Plans.

The framework in which this funding is dispersed to the RDAs and the rules of accountability on expenditure are set out in the Management Statement & Financial Memorandum. In line with HM Treasury guidance and various funding regimes, RDAs are required to appraise projects using the Single Programme Appraisal Guidance. They also need government approval for setting up any special purpose vehicles to achieve certain objectives.

The Regional Development Agencies are funded by six Government Departments. Following the Spending Review 2004 the planned contributions are:

1 Totals do not sum due to rounding
Source -  HM Treasury –  July 2004

Subsequently, with the agreement of the RDAs, CLG changed the profile of its contribution to reduce its allocation by £26m in 2005-2006 and increase it by £14m in 2006-2007 and £12m in 2007-2008.

Together with the RDAs, the Government has reviewed the allocation of the total RDA Single Pot to ensure that each RDA has the funding it needs over this period to continue to deliver success in the regions.