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A leaked letter written by Ken Clarke and Caroline Spelman details the Conservative plan to scrap all regional development agencies (RDAs). In the letter, the shadow communities secretary and shadow business secretary set out the plan to replace the RDAs with partnerships of local authorities working across "real economic areas".
The letter, sent to all Conservatives MPs, states that the eight RDAs outside of London are the "remains of John Prescott's failed experiment of regional government" and would be scrapped under a Tory government.
Though previously the Conservatives have suggested that local authorities would be given the option to retain their RDA, retention no longer appears to be an option. Instead, all RDAs would be replaced with local enterprise partnerships (LEP) - groups of councils working together with local businesses. Councils would be given the option to set up LEPs to cover the same area as the RDA had done previously, the letter says.
The geography of the LEPS would "reflect natural economic areas": "The boundaries of local enterprise partnerships will reflect natural economic areas. If the local authorities and businesses in a given region decide that the current regional boundary reflects their local economic area and decide to form a regionally based local enterprise partnership, then, in line with our principle of localism, we will respect their view, under the new arrangements."
The partnerships would be led by "elected councils and local businesses", though local commerce and industry workers must make up at least 50 per cent of the board of the LEPs.
The letter also confirms that the planning and housing powers previously held by RDAs would be handed back to councils. The LEPs would focus entirely on strengthening local economic development and urban regeneration. The letter states: "We need organisations involved in delivering economic growth to be at their most efficient and entirely focused on helping businesses, creating jobs and delivering regeneration."
It continues: "[The new partnerships] will work together to take the lead in promoting local economic development and regeneration, working to local priorities, not national policy made in Whitehall. We want to refocus regional economic agencies back onto the things that matter, namely renewing local economies.
The letter also states that no current commitments would be dropped: "We have no intention of reneging on current commitments. We are drawing up detailed plans, which will ensure that the transition to local enterprise partnerships will be smooth, allowing for the appropriate fulfillment of ongoing projects, grants and contracts, including projects which also draw on EU structural funds."
The London Development Agency (LDA) is excluded form the reforms. The letter says the LDA is run by an elected mayor and therefore does not suffer from the problem of accountability that the agencies outside London do.
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