Chuka Umunna MP, Labour’s Shadow Business Secretary, commenting on the Local Growth Fund, said:

“After four years in which we’ve seen regional imbalances become more stark and local areas held back, David Cameron’s government is desperately trying to play catch up. Ministers are failing to match Labour’s ambition to make it easier for Local Enterprise Partnerships, combined authorities and councils to deliver growth, better-paid jobs and improved public services in their areas.

“Ministers’ announcement today falls far short of Labour’s radical plans - announced last week by Ed Miliband and Lord Adonis - to devolve £30 billion of budgets away from Whitehall. Labour would give new powers and budgets to local areas, including over business rates revenue.

“The Tory-led government came to office promising to rebalance Britain’s economy, but abolished Regional Development Agencies without putting in place a proper replacement. Their flagship Regional Growth Fund has been mired in chaos and delay: creating more losers than winners, leaving successful bidders waiting two years to receive their money and leaving hundreds of millions of pounds to gather dust.”

ENDS

Editor’s note:

1. Chuka Umunna article: ‘Why we should let cities and regions forge their own futures’, New Statesman, 24 June 2014
http://www.newstatesman.com/staggers/2014/06/chuka-umunna-why-we-should-let-cities-and-regions-forge-their-own-futures