The Government has announced plans to abolish Regional Development Agencies as part of their dismantling of the regional level of Government and control.

The abolition of Regional Development Agencies has been confirmed in a letter dated 29th June, from ministers to business leaders and local authorities. This represents a significant change in the delivery of economic development and forms a fundamental element of the Government’s localism agenda. The Government has acknowledged the need for a strategic approach to delivery of local economic priorities and Local Enterprise Partnerships (LEP) are intended to fulfil this role.

The exact forms and roles of the LEPs have not been set out and it will be up to local authorities to work out what works best for their area. This approach is at the heart of the localism agenda  but does leave unanswered questions as to how these will now operate but the message coming from central Government is that decisions in the area they will cover and what areas they will control will be very much a local decision. The proposals are intended to enable local authorities with common priorities to work together in order to deliver these. This is a marked change from the use of large regional bodies which perhaps do not respond to local circumstances and are defined by artificial boundaries. The Government is seeking proposals from local authorities together with businesses to show how LEPs will be established across the country. This must take place before 6th September 2010 and so by the autumn the operation of wider strategic economic planning and the establishment of LEPs will become clearer.