A leading business figure has questioned whether effective decisions can be taken to plan transport and secure inward investment following the abolition of the Regional Development Agencies (RDAs).

Speaking yesterday at the Local Government Association’s national conference in Birmingham, CBI director John Cridland praised the strong start made by some of the RDA’s replacement bodies, local enterprise partnerships, which he said are seen as less remote and are better able to reflect and understand the areas they represent.

‘But the disbanding of RDAs has led to their statutory functions being centralised, leaving questions as to whether things like transport planning and attracting foreign direct investment can happen effectively without more of a sub-national approach,’ Mr Cridland said.

Mr Cridland told delegates business wants the centrally set universal business rate to remain as it allows firms to make longer term investment decisions. But to warm approval from the audience, Mr Cridland expressed disappointment at the Government’s lack of ambition in allowing councils to keep only half of increased business rate yields under the local government finance Bill.

Branding the measures ‘daft’, Mr Cridland said letting authorities keep only half of any increase reduces its incentive effect.

Launching the findings of the LGA’s local growth campaign earlier in the session, Cllr Peter Box, chair of the economy and transport board said local solutions are needed, and urged Whitehall departments to resist the temptation to micro-manage, but instead devolve more powers in the key areas of skills and transport.

‘It takes Whitehall and the Highways Agency far too long to take decisions on transport. We can’t afford that delay,’ Cllr Box said.