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Further signs are emerging that regional development agencies (RDAs) in the north of England could survive the public sector cull. Both deputy prime minister, Nick Clegg, and prime minister, David Cameron, are promising extra support to ease the regional impact of spending cuts, but when the coalition plans for the future of RDAs are still uncertain. The Government also took the unusual step of welcoming the announcement of Paul Callaghan, chairman of the technology software, Leighton Group, as new chairman of the One North East regional development agency. Business secretary, Vince Cable, said some regions were ‘too dependent on public services for job creations', but added: ‘Mr Callaghan's impressive experience and business acumen will make an important contribution to economic development in the North East.' Mr Callaghan's appointment will run until December 2012, and Dr Cable acknowledged: ‘The future of RDAs is currently being reviewed, but I believe the North East of England is one region where business support through a regional agency is both necessary and appreciated.' Mr Clegg said ‘special measures' were being prepared to dampen the impact of cuts in the North East, the North West, South Yorkshire and London regions, aimed at encouraging private sector growth to replace reductions in public sector jobs. ‘I am as aware as anyone else of the dangers of the disproportionate impact on those areas of the country which are very dependent on public sector employment,' he said in an interview with the Independent newspaper. One North East chief executive, Alan Clarke, said: ‘Mr Callaghan has the experience and vision to ensure One North East continues to support businesses out of recession and into better times, while making the strategic decisions needed to underpin longer-term, sustainable regional economic growth.'

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WHITEHALL

Northern RDAs could be spared spending axe

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