Regenerating the English Regions

Book excerpt: This NAO report looks at the regeneration of English regions (HCP 214, session 2009-10, ISBN 9780102963229). The NAO states that The Regional Development Agencies' physical regeneration programmes have helped to generate additional regional wealth. However, because of Agency weaknesses in identifying the projects which would maximise regional economic growth, the National Audit Office is unable to conclude the Agencies have secured as much benefit as they should have. Since 1999, the eight RDAs outside of London have spent £5 billion on physical regeneration programmes. For every pound of RDA spending on physical regeneration, an estimated £2.80 is secured from elsewhere, including £1.81 from the private sector. Independent evaluation suggests they have generated Gross Value Added of £3.30 for every £1 spent. Many of these projects will not realize their full benefits for many years and there is potential for a return over the lifetime of the projects of £8 for every £1 spent. However, the National Audit Office has reported that RDAs, because of weaknesses in project appraisal and evaluation might not have identified and backed the most effective projects for generating regional wealth. During the economic downturn, approximately 15 per cent of physical regeneration projects involving the private sector have stalled or slowed because developers are struggling to get finance or because of concerns over future yields.