Chancellor to return to days of regional economic plans

George Osborne has said he will use the months between December’s Autumn Statement and his spring Budget as a chance to tour the English regions and set out a new masterplan detailing how billions of pounds in Government funds will be spent locally in the coming decades.

His move effectively reverses a 2010 coalition decision to scrap the wideranging strategies used to direct cash by the hugely influential Regional Development Agencies.

Mr Osborne insisted yesterday the proposals would not see a return to the days of top heavy regional planning by unelected quangos.

Promising to focus only on job creation, Mr Osborne said: “Between the Autumn Statement and the Budget we are going to be setting out long term economic plans for different parts of country, specific plans for the South West, Midlands, the North West and the like, across the whole country.

“We have specific and tailored set of ideas that reflects the strengths of different parts of the country, reflecting the need for specific transport improvements and science and learning centres and I will be travelling the country to set out these plans.”

Speaking before journalists in Parliament Mr Osborne denied claims the local plans might suggest it was a mistake to scrap the Regional Development Agencies.

“I don’t think it was a mistake to get rid of them,” Mr Osborne said.

“If you just look at the basic facts, when we had these agencies the gaps between the North and the South grew, it just did not work, if their purpose was to strengthen the economy.

“They were not succeeding in terms of attracting private investment. They became too big.”

The Chancellor has already promised in a party conference speech this year that a future Conservative government will set itself a target of reducing the North South divide, something Labour did not achieve in 13 years in office.

Mr Osborne said the difference was the Conservatives were aiming to support business not direct growth.

He said: “We want to follow a much more natural economic geography and I think we are succeeding in the local enterprise partnerships.

“The long term economic plan in these areas will be based on our proposition after listening to local partnerships and MPs on what is required. It is not one to be enforced, it is to be discussed and talked about.

“But in terms of resources for this, it is not all about public expenditure, that sport of approach led us to economic ruin.

“Instead we say what can we invest in infrastructure or science that will create private sector jobs, we have a long term capital budget now have to make sure it goes where it is needed.”

Mr Osborne was speaking a day after Liberal Democrat MP Danny Alexander revealed details of a padlocked Treasury fridge said to be used by the Chancellor to stop people stealing his milk. The chancellor took the time to rubbish the claim, saying: “I know the Liberal Democrats are always keen to talk up their power and influence on the coalition.

“But frankly if I’d been Chief Secretary for five years and hadn’t found the key to the lock on the fridge, I wouldn’t be boasting about it.”