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The coalition government has announced plans to abolish regional development agencies and create a £1bn Regional Growth Fund to replace the quangos. Deputy prime minister, Nick Clegg, launched the new fund on Tuesday, after the first coalition Cabinet meeting outside London, which was held in Bradford. The fund will start in 2011 and will help areas where there are large numbers of public sector workers to develop more private sector jobs. ‘Alongside our commitment to waive some employment taxes for new businesses starting up in targeted regions of the country, this fund can make real difference to companies during difficult times,' said Mr Clegg. Communities secretary Eric Pickles said councils and local companies could work ‘hand in hand' to drive forward economic growth. ‘If we want to rebuild a fragile economy, we don't strangle business with red tape and let bloated regional quangos make all the decisions,' added Mr Pickles. The communities secretary has written a joint letter, along with business secretary, Vince Cable, to councils and business leaders, asking them to consider forming new local enterprise partnerships. ‘We want a structure which reflects the genuine interests and commitment of enterprise, local councils and other stakeholders, such as universities and colleges,' said Mr Cable. The CBI's deputy director-general, John Cridland, said the most important issue for companies was not about structure, but ‘getting effective local bodies where business has at least 50% of the equity and a strong voice at the table'. ‘There is a real job to be done, and if hard-earned taxpayer's money is to be spent, we need to see the new partnerships pursuing a practical, business-like agenda,' added Mr Cridland.

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WHITEHALL

Fund will replace 'bloated' RDAs

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