The North West Development Agency has had its budget for the 2010/11 financial year cut by 18.2% as part of £270m cuts being forced on Regional Development Agencies by the Government.
The NWDA was told yesterday it would have its budget cut by £52m. In a statement released today, Steven Broomhead, chief executive of the NWDA, said: "It has been confirmed that the £270 million budget cut to the RDA network this financial year will not be distributed proportionally across the RDAs.
"Instead, those regions which have seen the most growth and prosperity over recent years will take on a higher proportional share of the reduction in budget in order to support regions with the potential greatest economic vulnerability. For the NWDA, this means a further budget reduction in the financial year 10/11 of over 18% or £52m.
"This is obviously disappointing news. Our budget for 2010/11 is already over 90% committed and we will be forced to review some projects and programmes that have already been approved. We will now work quickly with partners across the North West to assess which projects will be affected by this budget decision. Stakeholders and delivery partners involved in affected programmes and projects will be kept fully engaged and informed as specific decisions are made.
"Our priority as always is to ensure that the North West's economic recovery is not damaged. We will continue to work closely with Government to deliver its economic objectives and to advocate on behalf of the region for all the resources it needs to come out of this recession in a strong position and to shape the growth of the private sector and wealth in the North West."
The £270m cuts imposed on the eight RDAs outside London is part of the £6.25bn of cuts set out by the Treasury in May.
The figure amounts to 20% of the eight RDAs' combined budget of just over £1.4bn in 2010/2011.
The cuts forced on other Regional Development Agencies were as follows:
- One North-East, £32.9m, 15% cut
- Seeda, £28.3m, 22.7%
- Swerda, £27.8m, 19.5%
- Yorkshire Forward, £40.3m, 18.8%
- Advantage West Midlands, £37.1m, 18.6%
- Eeda, £23.3m, 22.9%
- Emda, £28.3m, 22.7%