Finance and governance of Regional Development Agencies
Description of contributions of Government Departments to Single Budget, and allocation of that budget to RDAs.
The RDAs are financed through a Single Budget, a fund which pools money from all the contributing Government Departments (BIS, CLG, DECC, DEFRA, DCMS and UKTI). BIS is the sponsor Department. DIUS, which was a separate contributor, merged with BIS following the Machinery of Government change announced on 05 June 2009.
When planning their work, all RDAs need to ensure that the projects and programmes financed from their single budget comply with the Guidance in Appraisal, Delivery and Evaluation (published jointly by the then BERR, EP, the RDAs and OffPat) and the Accountability and Financial Framework.
The RDAs’ allocated budgets for 2008–09 and 2009–10 are set out below, together with their indicative allocations for 2010–11. These take account of all changes that have been agreed with the RDAs post-CSR 2007 Settlement:
| Total RDA Allocation by Region | 2008-09
£ million | 2009-10
£ million | 2010-11
£ million | 2009-10
Budget per Head (£) |
|---|
| Advantage West Midlands |
296 |
296 |
212 |
55 |
| East of England Development Agency |
132 |
136 |
108 |
24 |
| East Midlands Development Agency |
161 |
162 |
131 |
36 |
| London Development Agency |
346 |
376 |
326 |
50 |
| North West Development Agency |
385 |
398 |
305 |
58 |
| One NorthEast |
245 |
250 |
195 |
97 |
| South East England Development Agency |
161 |
165 |
133 |
20 |
| South West of England Regional Development Agency |
170 |
158 |
125 |
30 |
| Yorkshire Forward |
297 |
318 |
228 |
61 |
| TOTAL [Single Budget] |
2,193 |
2,260 |
1,762 |
|
In addition to their Single Budget, the RDAs have taken over management of the European Regional Development Fund (ERDF) and the Rural Development Programme for England (RDPE). Both programmes run from 2007 to 2013 and together amount to £9bn. Associated administration costs have been provided by: CLG (£6m), included in all three years; but DEFRA (£4m) included for 2008-09 and 2009-10 only as it is allocated on an annual basis.
As part of the CSR 2007, the RDAs budgets over the three years were reduced by 2.5% (£320m). In addition, the RDAs identified cash savings of about £350m, which will be funded from value for money savings.
