Regional economic policy

The Spending Review 2004 provided the following Regional Economic Performance PSA target:

'Make sustainable improvements in the economic performance of all English regions by 2008 and over the long term reduce the persistent gap in growth rates between the regions, demonstrating progress by 2006.'

The target is shared between Communities and Local Government, Treasury and the Department of Trade and Industry and work to deliver the target is undertaken by a project team consisting of officials from each of these Departments. The Project team work with a wide range of Government departments whose policies are likely have an impact in delivering the PSA target. The work is focussed around the key drivers of economic growth - employment, skills, innovation, investment, enterprise and competition.

The current (third generation) approach is based on enabling poor performing regions to better realise their potential by raising their performance in key areas such as employment and skills, and tackling market failures whilst promoting better coordinated regional and locally targeted bottom up strategies through;

Regional Economic Strategies produced by the RDAs
Inter Regional Growth Strategies working across RDA areas - the most prominent of these is the Northern Way established by the DPM in 2004
The City Regions through their development plans

For further information about Regional Development Agencies please click on the link to the right of this page. More information about RDAs can also be found on the DTI website.