Council to be given more power to tackle credit crunch

Rochdale council will be given more power to tackle issues facing the town’s economy. 

The Government today announced new powers to tackle the local impacts of the economic downturn, and plans to give local councils including Rochdale Council, a new duty to assess economic development in the area.

The reforms will make it easier for action to be taken at every level to boost jobs and skills, support businesses and make sure that all areas are making plans for recovery from the economic slowdown.

The announcement, made today (Monday 24 November), follows a public consultation on some of the commitments outlined in the Sub National Review of Economic Development and Regeneration (SNR) in July 2007.

Government will legislate on these powers at the earliest opportunity.

There will be new legal powers to help local authorities work together on economic development, as well as a new board of Local Authority leaders to provide stronger leadership at the regional level and to take over accountability from Regional Assemblies.

Local Government Minister, John Healey said: "Every community, town, city and region needs to play its part in dealing with the current economic climate and also prepare for economic growth in the future. As part of Government's comprehensive response to the international economic situation, these SNR reforms will bring together the expertise, the will and the decision-making powers to plan effectively for sustainable economic growth in all our English regions.

"This is the latest step in the SNR's progressive evolution and devolution of new powers and freedoms for regions, cities and local authorities. These plans and the new devolutionary package for cities announced in the PBR by the Chancellor yesterday will build on reforms to 14-19 year old skills funding, city strategies on employment, the new Working Neighbourhoods Fund, regional select committees in Parliament, new economic funding powers and Multi Area Agreements. They will boost jobs and skills, increase prosperity across the country, and reduce inequalities between and within regions."

Pat McFadden, Minister for Employment Relations and Postal Affairs said: "Business success is crucial to the health of regional and local economies. It is essential that in implementing this review we focus on what business needs to survive and thrive.

"We have responded to calls from business for a streamlined system of regional economic plans to create better conditions for business success. The reforms will allow RDAs to work more closely with local councils and give them a sharper focus on promoting investment and growth in the regions."