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Regional Policy Although the Office of the Deputy Prime Minister (ODPM) has overall responsibility within Whitehall for regional policy, DTI has a strong interest in regional economic policy and, since June 2001, the specific responsibility for Regional Development Agencies in England. These arrangements are reflected in a PSA target shared between DTI and ODPM to improve the economic performance of all regions measured by the trend in growth of each region's GDP per capita. Strong regions are a vital component of a strong national economy. DTI's approach to regional policy is designed to build the capability of regions, putting greater emphasis on growth within all regions and strengthening the building blocks for economic success and boosting regional capacity for innovation and enterprise During
SR2002, Treasury, DTI and ODPM Ministers jointly committed themselves
to a PSA target to: “
Make sustainable improvements in the economic performance of all English
regions and over the long term reduce the persistent gap in growth rates
between the regions, defining measures to improve performance and reporting
progress against these measures by 2006”. A
detailed delivery plan has been drawn up for this PSA and agreed by the
three Departments’ ministers. A
key milestone in the plan is the identification of 6-10 policy measures
that are likely to be most effective in achieving the target, and which
can be taken forward in the context of SR2004. This will form part of
the evidence base for SR2004. A joint
ODPM/DTI/HMT team is responsible for the delivery of the regional growth
target. Ministers have agreed that the inter-departmental delivery team
should commission two strands of work as a first step towards reaching
this milestone: · Further
research into the key drivers of regional economic growth; Chapter three of the Government's White Paper on Enterprise, Skills and Innovation Opportunity for all in a world of change - published in February 2001, further describes its approach to regional policy. The 1998 Competitiveness White Paper "Our Competitive Future: Building the Knowledge Driven Economy" highlighted the fact that business development is often strongest when firms cluster together. Please refer to the Clusters page for further information on cluster policy. Regional Development Agencies Regional Development Agencies (RDAs) were launched in eight English regions in April 1999. The ninth, in London, followed in July 2000. RDAs aim to provide co-ordinated regional economic development and regeneration, reduce economic imbalances, which exist within and between regions and enable the English regions to improve their competitiveness. The Regional Innovation Fund (RIF) was a DTI funding stream provided to RDAs to enable them to invest in projects and activities that promote competitiveness, innovation and enterprise in their regions. RIF has now been absorbed within the "Single Pot" funding arrangements for RDAs that took effect from April 2002. Regional Futures is the learning network for the English regions, and part of the sustainable development charity Forum for the Future. Launched in July 2002, its members include the Government Offices, Regional Assemblies, Regional Development Agencies and representation from the voluntary and health sectors. Regional Funding Allocations The Government has published indicative regional funding
allocations across the inter-related areas of transport, housing and economic
development. This is to help regions to better align their strategies
and as an input into Government policy development and public policy decisions
that might affect the regions in advance of the next Budget. It follows
the consultation launched at the time of the 2004 Pre-Budget Report, Devolving
Decision Making: A consultation on regional funding allocations.
Advice is being requested from the regions by the end of January 2006 on their priorities in these three areas showing how the priorities relate to each other to form a coherent, credible and strategic vision for improving the economic performance of the regions; and how these priorities are aligned to resources. Regional funding allocations – Guidance on preparing advice is available on the Treasury website. Selective Finance for Investment in England Selective Finance for Investment in England is designed for businesses that are looking at the possibility of investing in an Assisted Area, but need financial help to go ahead. Support, which is discretionary, normally takes the form of a grant, or occasionally a loan. This support helps fund new investment projects that lead to long-term improvements in productivity, skills and employment. To qualify, investment projects must meet certain criteria. The minimum grant that can be applied for is £10,000. Financial support is available to businesses of all sizes located, or planning to locate, in an Assisted Area. The majority of cases are appraised by the RDAs but a few, because of their size, are appraised by the DTI in London. European Structural Funds European Structural Funds are the European Union's main instruments for supporting social and economic restructuring across the Union. The UK's allocation from the Structural Funds for 2000 - 2006 is over £10 billion. University Innovation Centres Announced in the Government's White Paper on Enterprise, Skills and Innovation - ‘Opportunity for all in a world of change’ published in February 2001, University Innovation Centres are regionally - based world class, long-term research partnerships between major business interests and the university sector. Social Inclusion The Government has made tackling Social Inclusion a major policy objective. DTI's work plays an important part notably by stimulating enterprise in disadvantaged communities. Social Enterprise A social enterprise is a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximise profit for shareholders and owners. For further information click above. Government Offices DTI is represented in each of the nine regions by the Government Offices (GOs) which are interdepartmental bodies run through their centre for operations - the Regional Co-ordination Unit (RCU). English Regional Governance The Government's proposals for the English regions can be found in the White Paper "Your Region, Your Choice: Revitalising the English Regions". Devolved Administrations Devolved Administrations have been established in Scotland, Wales and Northern Ireland. Click above for the principles underlying working relations between DTI and the DAs. |
