Sub-national economic regeneration plans are too business-centric and councils must be given more opportunities to shape future strategies, MPs have warned. The Commons business and enterprise committee has attacked a ‘serious lack of clarity' about the relationship between local authorities and Regional Development Agencies within the CLG's Local democracy, economic development and construction bill. In a study published on 13 March, the committee warned the bill currently places ‘too much weight on the views of RDAs and business interests'. RDAs have become increasingly business-led as ministers have sought ways to kick-start regeneration by drawing on the needs of local enterprise. But the committee's report calls ‘for the role of local authorities—and of the communities they represent—to be strengthened' or development plans run the risk of alienating local politicians and residents. The CLG's bill proposes four key reforms to economic development strategy – merging regional economic and spatial strategies, with local authorities and RDAs jointly responsible; giving local authorities the duty to undertake an economic assessment of their areas; devolving funding to local authorities; and encouraging collaboration between local authorities delivering economic development. While the MPs welcome the broad plan to improve sub-national economic development, they have demanded more information on the ‘degree to which delivery of polices will be devolved to local authorities' and want ‘greater detail on the role of the Local Authority Leaders Board'. MPs also called for more information on the status of proposed Economic Prosperity Boards. Committee chair Peter Luff said: ‘Business focus is important and we agree RDAs make an important contribution. But if business-led RDAs are to have a greater role in regional strategy, the government needs to be clearer about how local democratic interests will be protected. ‘We are disappointed that these details have not been available during the bill's passage through the House of Lords and call on the government to provide this information before the bill is considered by the Commons.'
