Government efforts to rebalance the UK economy and support local growth are ‘mired in chaos and delay’, according to Labour.
Latest figures have revealed the Coalition’s £3.2bn Regional Growth Fund (RGF) is £900m behind schedule in attracting private investment to local projects.
In addition, £750m of the £1.9bn allocated in the fund’s first three rounds has yet to be drawn down by projects and programmes due to receive support.
Labour’s shadow business secretary, Chuka Umunna, will today accuse the Government of failing to drive growth across the UK.
‘They abolished Regional Development Agencies without putting in place a proper replacement and their flagship RGF has been mired in chaos and delay. Now the government’s own figures show the scheme failing to meet its private investment target by almost £1bn,’ he will say.
A policy review from Lord Adonis and endorsed by Labour has recommended devolving £30bn of budgets away from Whitehall, three times the level of money currently planned for councils and Local Enterprise Partnerships for housing, transport, business support, employment and adult skills.
Umunna is expected to say later today: ‘We know that we will need to act where this Government has failed, to drive strong growth for the long-term across the whole of the UK.’
A spokesperson for the Department of Business, Innovation and Skills said the amount of private sector funding leveraged by the RGF had doubled to over £2bn, with the private sector putting in £5.50 for ever £1 of Government support.
‘This compares to just 65p of private money secured by the Regional Development Agencies for every pound they spent. The RGF is therefore delivering much greater value for money for the taxpayer,’ the spokesperson added.
‘This combined with the Growth Deals we recently announced is ensuring that our economy grows in a balanced way, with all of our regions benefitting from the upturn.’
