The chaotic and schizophrenic temperament of the government’s economic policy was further in evidence yesterday when the select committee for business, innovation and skills (of which I am a member) took evidence on the abolition of the regional development agencies (RDAs). We’ve known for months now that the RDAs are going, but we still don’t know what will be formed in their place or the transition plans to get there. Anyone would think the government doesn’t really care…
What we have now is a mess, and that’s dangerous for business and jobs. On the one hand, the government trumpets its localism – devolving decision making from the regions to local authorities. On the other, they centralise – with trade, investment, business support and skills being re-nationalised back to Whitehall. Sir Roy McNulty, chairman of the west midlands RDA, described the policy as ‘a strange type of localism’. Strange indeed, when it includes centralising key functions. (more…)