Regeneration on hold
During the economic downturn, approximately 15% of physical regeneration projects involving the private sector have stalled or slowed because developers are struggling to get finance or because of concerns about future yields. So says a report from the National Audit Office, released today, that criticises the way in which the eight Regional Development Agencies in England outside London have invested a combined £5bn since 1999.
Amyas Morse, head of the NAO, said that while the RDAs’ efforts had delivered real benefits, “it is questionable, however, whether they could not have achieved even greater benefits from the £5bn they have committed. It is important that the RDAs establish better appraisal and evaluation methods to identify the projects which are most beneficial and then target their funding accordingly.”
It has been noted that the future of the RDAs is uncertain ahead of the forthcoming General Election, because while Labour has pledged to support them, the Conservatives have said that they would seek to abolish them.
