Regional

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 Selective Assistance

Regional Selective Assistance aims to attract investment and create/safeguard jobs in the Assisted Areas, through grants for larger projects with fixed capital costs > £500,000.

In England, administration of cases up to £2m is to be transferred from the Government Offices to the Regional Development Agencies from 1 April 2002 but subject to national (GB) guidelines. Cases above £2m will continue to be appraised centrally by the DTI.

Enterprise Grants

"An Enterprise Grant is a capital investment grant for small and medium sized businesses based in the disadvantaged areas of England who want to expand or modernise an existing business, or set up a new one." 

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.