The Northwest Regional Development Agency was dealt a blow as the government announced it was slicing £52m from its annual budget.
The cuts amount to 18 per cent of the agency’s overall budget, and chief executive Steven Broomhead said that some projects that had been promised cash would now end up losing out.
“This is obviously disappointing news,” he said.
“Our budget for 2010/11 is already 90 more than per cent committed and we will be forced to review some projects that have already been approved.
“Stakeholders and delivery partners involved in affected programmes and projects will be kept fully engaged and informed as specific decisions are made.”
The budget reduction is part of a £270m cull on allocated funding for regional development agencies (RDA).
Areas that have enjoyed the most prosperity over recent years will have to take on a higher proportion of the cuts, meaning the north west will see the most cash disappear, although four other regions will lose a higher percentage of their budgets.
The news takes the sheen off yesterday’s announcement by the coalition government that it will launch a £1bn regional growth fund next year to help hard-hit economies.
Chancellor George Osborne said the fund was designed to “help places like Manchester, where we want to see more private sector jobs.”
“We’re going to help every part of the country and every part of society share in the economic growth to come, while at the same time putting the prosperity of Manchester on the right track,” he said.
The NWDA could not say which sectors may be most hurt by the cuts although it could affect a variety of businesses, from large-scale property developers to start-up firms reliant on grants to aid growth.
Another option could be to reduce the agency’s own costs, Chris Fletcher, deputy chief executive and director of policy at the Greater Manchester Chamber of Commerce, said local business leaders must now play a “central role” in the city region’s economic future.
“While business will wait to see the detailed plans on the proposed Regional Growth Fund, we are keen to ensure that the money is used for what is intended,” he said.
Shadow Business Secretary Pat McFadden accused the government of “breaking a promise” over RDAs.
“They seem to be vacating the pitch when it comes to growth,” he said.
“RDAs have done a good job for regional economies. To announce a consultation on the
The question comes up all the time: “What should I look for when hiring my first (or my next) sales person?” 
Recent Comments