ECONOMIC GROWTH UNDER THREAT IN THE THAMES VALLEY

The continued prosperity of the Thames Valley - the UK's economic powerhouse - cannot be taken for granted. This was one of the conclusions of the South East England Regional Assembly's Select Committee on the work of SEEDA, the South East Regional Development Agency.

The Select Committee was set up to investigate SEEDA's impact, both past and potential, in areas of economic success in the South East. The Committee looked in particular at the Thames Valley, Oxfordshire and Basingstoke but the lessons learnt are applicable to other areas of economic success such as Milton Keynes.

The Committee heard from key players in the area, including councils such as Reading, Buckinghamshire and Basingstoke, economic partnerships, such as Thames Valley and Oxfordshire, the Learning and Skills Council and Friends of the Earth. It heard how investment in infrastructure and skills is failing to keep pace with the area's continued economic growth. The rising cost of living in the Thames Valley is also 'crowding out' lower paid employees of those in other sectors of the economy, especially public services.

The implications of this "crowding out" include:

• A decline in the availability of key services, such as childcare and public transport;
• A shortage of affordable and key worker housing in areas experiencing the fastest rates of economic growth;
• A more dispersed pattern of commuting, with longer journeys to work. This is not adequately supported by the existing public or private transport infrastructure, which has led to increasing road congestion.

Mike Geddes, Chair of the Select Committee and Economic Partners' Vice-Chair of the Regional Assembly said: "It is clear that it's not only economically depressed areas that need regional development agencies. Prosperous areas need investment if they are to continue to contribute to the country's economic success.

"There is an urgent need to address the key issues, such as skills, transport and housing, that are limiting the potential for sustainable economic growth in areas of economic success such as the Thames Valley. Our Select Committee took the view that there would be real benefits from SEEDA targeting its interventions more sharply in areas like this. There is more opportunity in the areas of economic success, such as the Thames Valley, to get much better value for money by 'levering in' private sector resources.

"We're also pleased that SEEDA recognises the need to work with the Regional Assembly, the Government Office for the South East (GOSE), local authorities and the economic partnerships, to help find solutions to the issues, such as affordable housing and traffic congestion, which could hamper future growth. SEEDA also has an important role to play in lobbying for more investment in these areas."

This Select Committee was the first to be convened under the Assembly's stronger accountability arrangements with SEEDA. The Regional Assembly has recently received £600,000 of direct Government funding to help strengthen its regional accountability role.

Contact

Lesley van Dijk, PR Executive - 01483 555223

Alex Butlin, PR Executive - 01483 555221

Notes to editors:

1. The Regional Assembly is the “voluntary regional chamber” for the South East. It was established in January 1999 to give a representative voice to the South East region which covers Berkshire, Buckinghamshire, East and West Sussex, Hampshire, Isle of Wight, Kent, Oxfordshire, and Surrey.
2. The Assembly is made up of 111 members including elected councillors nominated by the region’s local authorities and 37 representatives from other sectors of the community (including business, trades unions, education, housing, health, sports, culture, tourism, faith groups, environmental, community and voluntary organisations).
3. The Assembly has three areas of core business:
1. It is the representative voice of the South East, engaging and representing its member organisations and, through them, the wider public.
2. The Assembly has a specific role under the Regional Development Agencies' Act 1998 to ensure the accountability of the South East England Development Agency (SEEDA) to the region.
3. The Assembly has been the Regional Planning Body for the South East since April 2001. It has responsibility for proposing strategic planning and transport policies to Government.

Last updated: 21 August 2007