£20 million grant loss a blow to local businesses

Anne Main, has reacted to the news that £20 million is being slashed from the East of England Development Agency to help fund a £300 million Government housing plan.

Anne Main, MP for St Albans, has reacted to the news that £20 million is being slashed from the East of England Development Agency to help fund a £300 million Government housing plan.

Recent research by the Taxpayers Alliance showed that Regional Development Agencies have wasted £15 billion of taxpayers' money since their introduction in 1999, and analysis of regional economic performances showed no improvement and in some cases a slowing down of regional performances since RDAs were introduced.

To improve their performance last week the EEDA launched a new regional economic strategy, 'Inventing our future: Collective action for a sustainable economy', but at the same time the Government has announced a massive cut in their finances.

Anne said:

"This new stratagem by the EEDA is extremely vague and appears to offer no more support for local businesses. By taking away this £20 million the Government has shown that even it does not take the role of RDAs seriously. The EEDA will absorb this loss by reducing grants earmarked for businesses, such as those in St Albans. This morning I addressed over 100 key members of the Chamber of Commerce and told them the bad news. It is madness to be wasting taxpayers' money maintaining a quango that isn't delivering.

It would be a far better situation if business grants and support were available directly instead of through the EEDA. The loss of this £20 million will have a direct effect on business start ups and innovation at a time when it is most needed.""