England’s Regional Development Agencies (RDAs), including the South West RDA, are due to be abolished by March 2012. The RDAs have now published a joint Q & A answering important questions about arrangements until then.
Click here to read the full Q&A. The following is a selection of answers from the Q & A, containing the most relevant information for the voluntary and community sector in Cornwall: -
Q. What is the very latest position on the future of RDAs?
A. Ministers have confirmed their intention to abolish RDAs and support the creation of Local Enterprise Partnerships (LEPs), to be in place by March 2012 at the latest. They have also indicated that some of the RDAs’ current functions will continue at a national, rather than local level.
The Government has stated that a White Paper will be published in the autumn which will give greater detail and, we expect, clarify a number of issues – such as which work will be carried out locally, which nationally and which not at all.
Local Authorities and business leaders now have the opportunity to propose where and how LEPs should be created, and we believe it is important that both should have a strong voice in creating these future arrangements.
Q. When are you going to be abolished?
A. We understand that all RDAs will be abolished by March 2012. We are now working with Government and partners to support a smooth transition to new arrangements, including the formation of LEPs. In the meantime we have an important investment programme to continue delivering across England which will create more jobs, more competitive businesses and stronger sectors at a critical time for the economy.
Q. How much money is being cut from RDA budgets this year?
A. RDAs were asked to find £270 million of cuts to their projects and programmes as part of the £6.2 billion reduction in public spending for 2010/11 announced by the Chancellor in May. This was in addition to the £300 million reductions asked of RDAs last year covering the two years from 2009 to 2011.
The Secretary of State has confirmed that some regions – East Midlands, South East, East and South West – will bear a greater proportion of these reductions relative to their original budgets.
Now this detail has been confirmed, all RDAs are pressing ahead in talking to partners to implement these cuts as soon as possible. We will need to agree where the reductions will need to take place, and how projects will be affected, while looking to minimise the impact on our partners through this difficult period of transition as best we can.
In most cases this will involve delaying work, scaling back, or stopping projects altogether. However as the vast majority of our programme funding is already allocated and committed, and especially as the cuts are needed this year, some RDAs will need to look again at existing contractual commitments.
Q. Will all RDA work go to LEPs?
A. No, a recent letter sent to local authorities and business leaders, from the Secretaries of State for BIS and CLG, outlines a range of functions which LEPs may take on, while other RDA functions may be lead in future at a national level. Also some RDA functions will no longer continue, such as regional strategy work.


