So here's another video podcast. This is Episode 4 of the Foundations videos in Series 1. The Foundations Series 1 is intended to provide people with a background to understanding local and regional economic development and urban regeneration. A short summary of the what the video podcast covers is mentioned below.
As a reminder - there are several articles with accompanying video podcasts which might help inform your post- general election plans and approaches to local and regional economic development:
Lessons from the previous Labour government 1997-2010. This government made the most comprehensive policy and investment in addressing local and regional inequalities and economic performance. The article
summarises some lessons and clues as to what to expect after July 04. Watch the 5 minute video
!
Is the UK regional economic problem really that bad and of major concern? yes it is - more in the article
and video
.
S1E4 video: Lessons from history - UK local and regional economic policy is available on the link below:
The fractured history of Local and Regional Economic Development in the UK: A Call for Change
This article explores the evolution of local and regional economic development policy in the UK over the past 50 years, highlighting its shortcomings and proposing future directions. It summarises a presentation made in this video podcast
.
The Problem: Widening Regional Disparities
- Regional economic performance in the UK has declined significantly.
- Eight out of twelve UK regions now underperform compared to the weakest former East German states.
- This widening gap between regions necessitates a re-evaluation of economic development strategies.
Historical Context: From National Focus to Local Initiatives
- Prior to the 1980s, economic development policy focused on national growth driven by macroeconomic tools.
- Regional policy existed but was limited, aiming to attract businesses to struggling areas.
- Local authorities had minimal involvement.
- The 1980s saw a shift towards trickle-down economics, with a belief that national growth would benefit all regions.
- Local authorities began developing localised approaches due to the national government's inaction on deindustrialization and consequent rising unemployment.
- National government also started to respond with localised policies focusing on land reclamation and redevelopment such as Enterprise Zones, Urban Development Corporations and City Challenge
- Then it was realised that more comprehensive, joined up approaches were likely to be more impactful, and the Single Regeneration Budget – which funded more comprehensive 7-year programmes of urban regeneration – were begun.
- Rural areas also got a more focused and comprehensive response through the establishment of the Rural Development Commission.
The Rise and Fall of Regional Development Agencies (RDAs)
- The late 1990s witnessed the establishment of RDAs in Scotland, Wales, and Northern Ireland.
- These agencies aimed to coordinate economic development efforts at the regional level.
- Significant resources were dedicated to RDAs, and the subsumed activities and staff previously located in Government Offices and Training and Enterprise Councils.
- However, the 2000s saw the decline of RDAs due to: Lack of democratic legitimacy as they were not directly elected bodies. Insufficient integration with national economic policies. Budget cuts and a shift towards city-region development.
- RDAs were strategic funding agencies. Much of their funding went to local government to deliver their own projects and services; and contracted out to providers of enterprise and innovation support (including not for profit organisations and universities). This is perhaps the most misunderstood aspect of the RDA role.
The Era of Local Enterprise Partnerships (LEPs) and Continued Challenges
- The 2010s saw the abolition of RDAs and the introduction of LEPs.
- LEPs faced several challenges: Unclear objectives and roles. Limited funding and short-term funding cycles hindering long-term planning. Fragmented approach with multiple, time-limited funding streams. Lack of central government support and coordination. No resources, capabilities or assets were kept over or transferred from RDA abolition – they were run down almost completely.
- 2022 Levelling Up White Paper was a major statement of the challenges of local economic dispartities and the need to address them, but was not backed by sufficient funding, resources, or the machinery of government necessary to effect improvements.
- 2010s and up to 2024 saw a continuation of fragmented, short-term funding and programmes. LEPs were abolished in April 2024, with plans for local and combined authorities to assume their responsibilities and role.
The Future of Local and Regional Economic Development
- Lessons learned from past policy failures: The need for clear objectives and consistent, long-term funding. Importance of aligning local and regional economic development with national policies. Building local government capacity and expertise in economic development. Encouraging experimentation and learning from failures.
- But! The UK does not seem to learn any lessons from past policy – instead it reinvents the mistakes of the past.
- Potential future directions: Utilizing the UN Sustainable Development Goals framework for inclusive and green economic development. Embracing transformative place making, fostering local business ecosystems and creating adaptable environments. Establishing a transparent evaluation culture to assess the effectiveness of policies. Devolution with clear legal frameworks and resources for local government.
Conclusion
The UK's economic development policy has been inconsistent and fragmented, leading to widening regional disparities. The next government needs a clear vision, a delivery-oriented approach, and a commitment to long-term investment in local and regional economic development. By learning from past mistakes and embracing innovative strategies, the UK can move towards a more equitable and prosperous future.
Devolution is an enabler. It's what you do with it that counts.
If you want to browse the videos currently released
Click here to view the youtube podcast site
. Or click on the podcast menu item
above to access the videos. Videos will be released over the next few months (June-September 2024). There is also a mobile phone friendly version on the youtube shorts site
.
I help build great economic development organisastions
Glenn Athey
is a leading economic development and regeneration professional and senior executive with a 30-year track record of successful leadership, delivery, networks, and practical knowledge acquired working in senior roles in government agencies, partnership organisations and UK think tanks.
Glenn helps local leaders translate their economic ambitions into winning advocacy and solutions that get funded.
Get in touch via LinkedIn messaging or the contact form on the website
.
