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Regional Development Agencies


 

General Information

RDAs are non-department public bodies (NDPBs) with a primary role as strategic drivers of regional economic development. RDAs aim to co-ordinate regional economic development and regeneration, enable the English regions to improve their relative competitiveness and reduce the imbalance that exists within and between regions.

Each RDA has 5 statutory purposes, which are:

  • To further economic development and regeneration
  • To promote business efficiency, investment and competitiveness
  • To promote employment
  • To enhance development and application of skill relevant to employment
  • To contribute to sustainable development

RDAs agenda include regional regeneration, taking forward regional competitiveness, taking the lead on regional inward investment and, working with regional partners, ensuring the development of a regional skills action plan to ensure that skills training matches the needs of the labour market.

History

Deputy Prime Minister John Prescott announced the new programme for the regions in December 1997, launching the Regions White Paper - Building Partnerships for Prosperity. The RDAs were established under the Regional Development Agencies Act 1998.

Regional Development Agencies (RDAs) were formally launched in eight English regions on 1 April 1999. The ninth, in London, was established in July 2000 following the establishment of the Greater London Authority (GLA).

Following the 2000 spending review, the Government announced increases in RDA funding and an increased emphasis on the RDAs role as strategic drivers of regional economic development. In line with this, responsibility for sponsorship of the RDAs moved from the former DETR to the DTI following the June 2001 election.

Economic Strategies

The Government asked RDAs to develop a new strategic vision for each of the English regions. It issued statutory and non-statutory guidance to the RDAs on the formulation of these Strategies. The guidance encouraged RDAs to formulate clear priorities for seeking to improve regional economic performance, and to identify strategies for achieving them. The aim was to help to ensure that regional opportunities are fully exploited, and that those responsible for economic decision-taking are working effectively together, with common goals and accepted priorities for regional development.

Following extensive consultation and working with and through regional partners, the RDAs (excluding London) presented their Strategies to the Government on 26 October 1999 (London's Economic Strategy was published in July 2001). The Government responded on 12 January 2000 giving a broad welcome to the Strategies. Copies of the Strategies can be accessed at the RDAs' websites. RDAs are obliged to review their strategies in full every three years.

Finance & Governance

Since April 2002, RDAs are now financed through a Single Programme. This replaced the funding programmes that existed previously, through which each contributing Government Department's allocation was made. Monies from the contributing Departments (DTI, ODPM, DfES, DEFRA and DCMS) are 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 is set out in the Financial Memorandum ( 411Kb 247Kb) and the rules of accountability on expenditure are contained in the Management Statement ( 368Kb 179Kb). In line with HM Treasury guidance and various funding regimes, RDAs are required to appraise projects using the Single Programme Appraisal Guidance ( 246Kb 358Kb). They also need need government approval for setting up any special purpose vehicles to achieve certain objectives.

Local authorities have a significant stake in the work of the RDA. Four of the thirteen RDA board members are drawn from local government - with the choice reflecting a balance between type and size of authority, as well as geographical and political spread. Board members reflect regional interests (such as the voluntary sector, rural areas and tourism).

Framework for monitoring RDA performance

The RDAs funding is tied to a framework of challenging targets at three levels. Tier 1 represents the RDAs' statutory purposes. Tier 2 sets out eleven regional outcome targets. The RDAs are expected with others to deliver the achievement of these at regional level. At Tier 3 there are five output milestones. The RDAs are required to deliver against these outputs, they are also expected to set supplementary milestones to reflect the economic circumstances in their regions. RDA performance is monitored on achievement of Tier 2 and Tier 3 targets against the forecasts in their Corporate Plans. Please visit the RDAs' websites to see their corporate plans.

In the first year of the Single Programme, the RDAs are being monitored quarterly on progress towards achieving Tier 3 milestones and annually on their contribution to achieving the Tier 2 regional outcome targets. They are also expressed against strategic performance criteria.

Monitoring is conducted by the Government Offices, who hold quarterly strategic dialogues with the RDAs. A key factor in these dialogues is the RDA's performance against criteria that reflect their success as strategic regional catalysts, this provides the qualitative input to both quarterly and annual reporting. The level and frequency of reporting will be reviewed at the end of the first single pot year.

Monitoring results

First quarter of 2002-03 results

Second quarter of 2002-03 results

End of Financial Year 2002-03 results

RDA Stakeholder Survey

The Department of Trade and Industry published the results of regional surveys of stakeholders' perception of RDAs' performance, on 7 July 2003. The surveys were conducted by MORI Social Research Institute, the independent research organisation.

The timing of the survey (fieldwork took place in March and April 2003) is significant as it marks one year after the RDAs were given increased funding and flexibilities to address regional priorities through their Single Pot funding mechanism.

It provides a benchmark against which RDAs can review stakeholders' perceptions of their performance in improving the economic development of regions.

The results are positive showing that although RDAs are relatively new organisations their stakeholders are generally satisfied with RDAs' performance and feel that they are addressing the right priorities. The majority of stakeholders thought that RDAs have been successful at developing coherent Regional Economic Strategies and working effectively as lead partners to deliver regional initiatives. The surveys also highlighted the need for RDAs to work harder to communicate clearly what they are trying to achieve and to better publicise their activities.

To view the MORI reports on each region's results, please click on the relevant link below which will direct you to the Government Office website where the reports are held.

A report summarising the findings for the RDA network is also available below, which is marked as "National Results"

Advantage West Midlands results

East of England results

East Midlands results

London results

One North East results

North West results

South East results

South West results

Yorkshire Forward results

National Results (335Kb)

 

Corporate Plan

The Regional Economic Strategy for each RDA is implemented through the use of a Corporate Plan, an operational document detailing the activities and initiatives to be undertaken in order to meet the Strategy and move forward Government policy within the Region.

The Plans provide full details of how the Single Programme and budget will be applied to meet Strategy objectives for each Agency, and how this activity will contribute to annual milestone targets (Tier 3) and regional outcome targets (Tier 2). They will illustrate how each Agency includes the single programme framework within the wider Regional Strategy and RDA Evaluation and Performance Monitoring.

Corporate Plans are drawn up to cover three year periods corresponding to the Spending Reviews.

Role of regional Government Offices

Regional Government Offices (GOs) support and work with the RDAs and other stakeholders to deliver regional and national policy objectives. The GOs also have the responsibility of being the eyes and ears of Government Departments in the regions, in particular reporting on the performance of the RDAs to parliament through ministers.

Regional Chambers

RDAs are accountable to Ministers and Parliament, but there will also be arrangements in place to ensure that the RDAs are responsive to regional views and that they give an account of themselves to those with an interest in their work. To achieve this, regional chambers were formally designated under powers in the Regional Development Agencies Act 1998.

From 2001/02 - £5m a year of new resources will be available to the Chambers to help them to establish a substantially expanded scrutiny role within the regions and enhance their capacity to engage constructively with the RDAs as they progress towards their targets and delivery of their Regional Strategies. The Chambers will be well placed to help ensure that the RDAs' strategies and activities mesh in with the wider framework of strategies for the region.

The Government expects the relationship between the RDA and its Chamber to be one of partnership and co-operative working.

RDA Board Members

RDA Websites

Associated Documents


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