EEDA - East of England Development Agency

And is our current economic growth rate too high or too low?

Historically, the East of England has "enjoyed" growth rates which have made us one of the three English regions with gross value added (GVA) per capita above the national average. However, with growth has come large-scale migration to the region, increasing housing demand, fuelling a dual fear of both homes becoming less and less affordable; and also of the concreting of parts of our countryside in an attempt to dramatically increase housing supply. This is an unsustainable "vicious circle" for those who sometimes seek to restrict growth in the region.

Interestingly, though, this decade has seen the East of England grow slower than the national average in each of the last five years. The gap between our economic performance and that of London and the South East, and that of some of our international competitors has increased. This has neither diminished the continuing rise in housing demand; nor the decreases in housing affordability - especially whilst London continues to drive the strongest propensity to commute of any region in the UK.

The draft regional economic strategy attempts to stimulate a serious debate on this paradox. Far from being too high, our growth rates this decade are dangerously low in terms of the future international competitiveness and long-term standing of our region. Developing adjacent to a world city, probably most at risk of climate change and with the lowest per capita public spend of any UK region, requires us to formulate, and thereafter plan and manage a new high growth, sustainable model of development. Creating a new "virtuous circle" will require bold, single-minded and purposeful regional and local leadership. But first we must have that serious debate...

How can we deliver internationally-competitive regional growth in the East of England, while also facing the challenges of the sub-national review (SNR)?

I believe that a 'regional leadership team' made up of regional development agencies (RDAs) and local authorities (LAs), with private and third sector partners can make SNR a win/win situation by working together to challenge the government to deliver on its promises.

There is a huge challenge, but massive opportunities in delivering an internationally-competitive economy in the region, which will bring jobs, wealth and sustainable growth to business operating and individuals living in our towns and cities.

However, we must move beyond the 'zero-sum game' of SNR and challenge these attitudes and perceptions that are holding us back: the belief that local authorities' increased role can only be at the expense of RDAs, and vice-versa. We cannot afford to stand still - to do so in economic terms, would be to go backwards, as the East of England moves down the international-competitiveness rankings.

Moving beyond the north/south divide debate

We have got to get away from the north/south divide debate and 'do sub-national development better', a view I have held for a while, and which Stephen Timms MP (Minister of State for Competitiveness) talked about last week. This 'sterile' approach is unproductive and fails to consider the important issue of international competitiveness of the regions.

We should all now be recognising that globalisation and technological change are the key components of economic growth and more than ever before, regions and city-regions can be equal to national government in determining the attractiveness of locations for growth and development.

What we should agree

This is the agenda that we must agree on to meet the challenges of a global economy; to raise economic participation; and to raise bottom-line of businesses:

• - regional priorities for growth, development and public investment through the single regional strategy (SRS) and regional funding allocation (RFA) processes
• - local area agreements (LAAs) and multi-area agreements (MAAs) that really make the most of the international-quality competencies of our towns, cities and their hinterland
• - mobilising partners behind these priorities, from both of our (slightly different) stakeholder constituencies - public, private and third sector
• - simplifying regional, sub-regional and local delivery management and partnership working through the new SRS, LAA and MAAs
• - jointly building economic management capacity to plan and manage these agendas at the highest levels of quality.