You are here: South West RDA Home > News and events > 2010 > June > RDAs top for efficiency

All RDAs across England are closing by March 2012 (see transition and closure section). With our resources reducing steadily, this page has not been recently updated and the information below may not be current. If in doubt, please contact us directly.

RDAs: "One of the most efficient of all Government departments and agencies…" and "Focused on getting the economy moving again"

18 June 2010

Government analysis shows that England’s RDAs are among the most efficient of all departments and agencies, and also confirms economic benefits arising from RDA work.

Past independent National Audit Office studies showed that all RDAs were making a real difference in their regions, and their latest report is likely to declare that RDAs are performing ‘strongly’ or ‘to a good standard’ across a wide range of their work.

England’s RDAs were today responding to suggestions made during the week that they are wasteful, have high running costs and have not made a difference to the economies of their regions.

Sir Harry Studholme, lead Chairman for all England’s RDAs, said: “RDAs’ responsibility is clear: to support and help government deliver their objectives. We accept change is coming and we are ready for it, especially considering the limited funding likely to be available for economic development in the next few years.

“However, discussions about our future have not reduced our passion for working to create stronger, more sustainable and balanced economies in each part of the country.

“Together, our challenge is to ensure that England can remain internationally competitive in future, particularly in key sectors such as advanced manufacturing and low carbon technologies.

“It is vital that our record in recent years is judged fairly and accurately, to best inform a new way forward in the difficult times ahead.”

HM Treasury’s 2009 study "Smarter government: Putting the frontline first" found that RDAs were among the 25% most efficient of all government departments and larger agencies in terms of financial management, HR, IT, procurement and office costs.

Over the last three years, England's RDAs have spent approximately 10% of their 'Single Programme’ funding on administration costs. Spend on administration will come down by a further £57 million by the end of the current three-year spending period in 2011.

Sir Harry said: “We believe evidence will demonstrate that this admin level of 10% compares very favourably with organisations past and present carrying out similar functions.”

In 2006, the National Audit Office (NAO) assessed how well each RDA was performing over a range of key activities designed to improve regional economies. They judged that all nine RDAs were performing ‘highly’ or ‘well’.

The NAO’s latest studies of RDA performance are due to be published soon, and they are likely to declare that RDAs are performing ‘strongly’ or ‘to a good standard’ in over 80% of functions assessed, and that they are at least ‘adequate’ in the remaining ones.

Finally, in one of the largest independent evaluations of its type undertaken for government, PricewaterhouseCoopers found last year that - over a five-year period from 2003 to 2008 - each £1 invested by RDAs had directly benefited regional economies by £4.50.

That figure increased to £6.40 if future benefits of RDA investment were taken into account. PwC were rigorous in analysing only that proportion of RDA work where they considered there were clearly attributable 'direct' benefits to RDA investment. If indirect benefits were taken into account, those £4.50 and £6.40 figures would increase significantly.

PwC said that there was “credible evidence that all RDAs have generated economic benefits, especially if account is taken of the potential persistence of the projected benefits.”

Sir Harry concluded: “Based on this independent analysis, and with a conservative estimate, RDAs have contributed at least £38bn towards the economic development of England's regions during that period.

“We do not claim we have got everything right in our 11 year history, but the story of our work is overwhelmingly one of success.”

On the South West RDA’s work in Cornwall

Over the last decade, the South West RDA has invested more in Cornwall and the Isles of Scilly than any other part of the region - over £300m, which is over a quarter of our investment expenditure attributable to specific places. Cornwall receives the highest share of RDA funding with Devon, including Plymouth and Torbay, not far behind.

The Agency has helped to inspire and drive some of Cornwall’s most iconic developments, including:

  • Eden Project;
  • Combined Universities Cornwall;
  • St Austell town centre redevelopment; and
  • The internationally acclaimed Wave Hub

Many of these and other projects receive EU funding which have to be match funded by the public and private sectors. The Agency has consistently provided the lion’s share of match funding. This work has been led by our team in Truro, working closely with, and listening to, Cornwall’s many public and private sector partners.

Some example of the projects that have been supported include:

St Austell town centre regeneration: RDA invested £31.5 million in this £75 million scheme that has regenerated five acres of Cornwall’s largest town to create a vibrant new retail centre, car parking and town centre accommodation. The RDA’s investment leveraged £43.5 million from the private sector and this scheme would never have happened without the Agency’s involvement because of the extent of market failure in the town. It is estimated that the project will create between 500 and 700 jobs and the scheme is almost fully let.

Eden Project: The South West RDA has been involved with Eden since its inception and has provided £17.93 million of investment over the project’s four phases of development. A comprehensive study into the Eden Project’s economic impact, compiled by independent consultants Amion, estimates the cumulative impact of Eden to be in the region of £737.8 million up to March 2007. By the end of the decade this figure is expected to exceed £1 billion.

Gaynor Coley, Eden's managing director, said: "The RDA had the foresight to get behind the concept of Eden long before we owned our site or had put a spade in the ground. They helped champion the idea that an ambitious visitor destination with environmental education at its heart could transform the economic landscape not only for Cornwall but for the wider region. They were prepared to entertain untested architecture and engineering and a construction plan that would have left many others like rabbits in the headlights. Their support has leveraged £56 million from the Millennium Commission into the county and built not only an economic engine but a model for regeneration that has attracted interest from around the globe.

“Their support created an optimism and demonstration that we can do world class here in the South West - and has fostered an attitude that will bring benefits as yet unmeasured for many years to come."

Wave Hub: This £42 million project has been spearheaded by the South West RDA since its inception and will create the world’s largest test site for testing wave energy devices 10 miles off the north coast of Cornwall.The RDA is investing £12.5m in Wave Hub with a further £20m from the Convergence European Regional Development Fund and £9.5m from the UK Government.

An independent economic impact assessment has calculated that Wave Hub could create 1,800 jobs and inject £560 million into the UK economy over 25 years. Almost 1,000 of these jobs and £332 million could be generated in the South West. The aim is to create an entirely new marine renewables industry in South West England that enhances the UK’s offer to the global marine renewables market which could be worth £100bn per annum by 2030.

On the South West RDA’s 2006 staff conference

This was our annual staff conference/training event in May of that year. The two day event brought together the majority of our 300 staff from across the South West to discuss and plan the work for the forthcoming year, and to provide staff training on key operational issues. As the largest English region, with teams based in several offices, this was a most cost effective way to building an effective agency. Most large organisations have a regular staff event of this sort; we are no different and on a per head basis this event was exceptional value for money.