The impact of RDA budget cuts
June 2010
England’s RDA network (outside of London) has been asked to make
savings of £270 million in their investment programmes in this
financial year, as part of the coalition Government’s priority of
cutting the budget deficit and reforming public services.
That cut amounts to about 20 per cent of the network’s programme
budget for the year. In addition, the RDAs will also have to make
further savings of at least 10 per cent from our running costs this
year.
How those savings will affect individual regions is still under
consideration, but for South West England this will mean at least a
£23 million reduction in the money available for projects in the
region. This will inevitably impact on businesses and
communities.
All the RDAs are currently reviewing their funding commitments
and will be discussing the implications and the next steps with BIS
(the Department for Business, Skills and Innovation). Recent
comments from the Secretary of State for Business – Vince Cable –
indicate that the level of cuts will be deeper in the South and
East of England, which is likely to include the South West, as the
North and West Midlands are to be ‘relatively protected’ from the
cuts this year.
Jane Henderson, chief executive of the South West RDA, has
pledged that the RDA will make the strongest possible case for
protecting key investments and levels of support in the region.
For more information, see the following media articles:
http://www.thisisplymouth.co.uk/news/Cable-repeats-budget-cut-threat/article-2266625-detail/article.html
http://www.thisisgloucestershire.co.uk/news/RDA-Budget-review-2009-2010/article-1062498-detail/article.html
She has also made it clear that the Agency will do its best to
minimise, where possible, the effect of budget reductions and that
staff at the RDA are continuing to their work to support businesses
and the regional economy.