In a nutshell: Act creates new regional regime

Councils have new powers to engineer economic recovery locally following Royal Assent for the Local Democracy, Economic Development and Construction Bill.

The Act provides for a new regional planning regime centred on a single strategy covering housing, transport and economic development which will be developed jointly by the Regional Development Agencies (RDAs) in partnership with the newly established local authority Leaders’ Boards.

The legislation includes a new requirement for councils to undertake an economic assessment of their area – to ensure that authorities can understand the challenges, make informed decisions and contribute to the development of the regional strategy.

The Act also contains new powers to create Economic Prosperity Boards. These are designed to give local authorities the ability to create an executive decision-making body at sub-regional level to promote economic development and regeneration across council borders, within the overall framework of the regional strategy.

In addition the measures allow for the creation of Multi Area Agreements (MAAs) with statutory duties. These will provide a further option for local authorities to work together on economic development by allowing MAAs to be put on a similar statutory footing to Local Area Agreements.

Consultation on how the new breed of regional strategies will be drawn up and how the Local Authority Leaders' Boards will work with RDAs has just finished.

Communities and Local Government (CLG) has said the new regional planning arrangements should simplify the process and mean opportunities for more streamlined working arrangements and shorter timescales for revisions to regional strategies.

The department has deliberately not prescribed a specific model for the new plans. A spokesman said: "That is for regions to decide. However, they will be expected to set out an agreed vision for the region over a 15 to 20-year time horizon and identify key regional challenges." 

The consultation document said: "Although responsible regional authorities must have regard to national policies and guidance issued by Government it is expected that policies would only be included in the regional strategy if there is a genuine and distinctive regional or sub-regional dimension to them."
 
The new strategies will be expected to be concise, succinct and supported by a robust evidence base and a "deliverable" implementation plan. Strategies will need to have a strong "spatial" dimension which should focus on how sustainable economic growth will be delivered.

Policies will also be expected to provide a flexible supply of land for business by identifying the most appropriate locations for development, taking account of regionally specific environmental considerations, climate change mitigation and adaptation, housing and infrastructure needs.

Now the Act is in force the existing Regional Spatial Strategies (RSSs) and the current RDA-produced regional economic strategies comprise the regional strategies for the relevant regions.

However, to avoid confusion, only the RSS elements of a regional strategy will have the status of a statutory development plan until such time as a revision to the strategy has been prepared.

The legislation includes a provision that revisions to an RSS carried out before the Bill’s Royal Assent can count towards the new regional strategy.

Local government minister Rosie Winterton says: "Our national economy relies on strong regional and local economies. Single integrated regional strategies will create one long-term strategic vision for each region with local authority leaders and RDAs working to the same blueprint to provide the investment and support to make sure every region prospers."

At this juncture six regions have completed the first round of revisions to the eight RSSs covering England. They are: East of England; Yorkshire and Humber; North East; North West; East Midlands and the South East.

The West Midlands is taking a phased approach to the revision of its RSS: phase 1 covering the Black Country was finalised in January 2008. Phase 2, which covers wider housing issues among other things, has been through an examination in public and ministers are currently considering the panel’s report published in September. Consultations on any proposed changes are expected in the New Year while the final version should be published in 2010.

The RSS for the South West was due to be published last summer. However, in the light of a legal judgment on sustainability appraisal, further work and consultation is taking place. Ministers aim to publish the RSS in 2010.

The High Court has remitted the housing policies in respect of two districts covered by the East of England RSS to the Secretary of State. Further work on the sustainability appraisal in respect of those policies is under way. The rest of the east of England RSS stands as part of the statutory development plan.

  In the South East the Government is considering legal challenges in respect of the sustainability appraisal of housing policies for two districts. The rest of the South East RSS stands as part of the statutory development plan.

A Communities and Local Government spokesperson said: “Every region has completed their plan following full public consultation, so they remain on track to give communities their own long-term vision, joining up regeneration plans for new jobs, homes, transport and investment.

“In only a few of those regions the plans have been challenged and it is right that specific elements are reconsidered so they suit the areas they apply to.”

The Conservatives have promised to scrap the RDAs and abolish RSSs should the party win the next election.

However, Conservative shadow planning minister Bob Neill has told planners that the Conservatives accept the need for a tier of planning between the national level and local councils. He favours a sub-regional approach which could be focused on city regions and would involve Leaders' Boards and Local Area Agreements

Access the full text of the Act

 

Roger Milne

26 November 2009