Defra

The Government agrees. By April 2005, Defra will:

10.1) devolve regional decision-making on the delivery of rural economic and social regeneration to RDAs, working in close partnership with local authorities and others.

10.2) continue to engage proactively with Regional Development Agencies (RDAs) with the aim of ensuring that rural regeneration, sustainable farming and food, and sustainable development goals are translated from the new tasking arrangements into RDA corporate plans;

10.3) as part of new tasking arrangements for RDAs, hold the RDAs accountable for delivery of its PSA targets on rural productivity and services and on sustainable development. 

10.4) increase its contribution to the RDA Single Pot from £45.5m in 2004-5 to £72m, including the socio-economic funding currently disbursed by the Countryside Agency.

10.1) Done. Defra has devolved to RDAs responsibility, and the associated funding, for rural economic and social regeneration activities previously undertaken by the Countryside Agency. Nineteen staff have transferred from the Countryside Agency to RDAs to increase their capacity to contribute to sustainable rural development. Also see Rec. 2&12.

10.2) Done. RDA Corporate Plans identify at headline level how RDAs will contribute to sustainable development, rural productivity and access to services, and sustainable farming and food.   

10.3) Done. Defra has fully engaged in the cross-Whitehall review of RDA Performance Monitoring and Reporting, to ensure a robust system is agreed that meets Defra requirements for six-monthly and annual reporting. Defra is monitoring RDA activity through the six-monthly and annual reports, and will also use the two other strands of performance management (impact evaluation, and independent performance assessments) to track progress in delivery during the course of 06/07. Regular discussions with RDAs are used to explore and resolve any concerns.

10.4) Done. The Defra contribution to the single pot for 2005/06 is £77m. This includes £5m from the Business Resource, Efficiency and Waste (BREW) Programme as well as the £21m socio-economic funding formerly disbursed by the Countryside Agency.

The Government agrees that there is a strong logic behind integrating rural business support and farm diversification with RDAs’ wider economic development responsibilities. There is no clear benefit in transferring administration of England Rural Development Programme (ERDP) project-based schemes away from the Rural Development Service before the end of the current ERDP in 2006, but Defra will invite RDAs to play a greater role in strategic management in the interim, in particular in the regional prioritisation, targeting and project appraisal for these funds. During 2004-06, Defra will:

12.1) work with RDAs, the Rural Development Service and the Rural Payments Agency to seek to maximise RDA involvement in management and delivery of the existing project-based schemes for the remainder of the existing ERDP (to end-2006);

12.2) work closely with RDAs when negotiating the successor to the EU Rural Development Regulation and in drawing up the successor to the ERDP;

12.3) plan to devolve to the RDAs control of the regional use of EU-funded social and economic schemes under the EU Rural Development Regulation from 2007 when the new Regulation comes into force (subject to the outcome of negotiations in the European Commission); and

12.4) work with the RDAs, the Rural Payments Agency, and the European Commission on a progressive move towards more flexible arrangements for delivery of the funding.

12.1) Done. RDAs have increased their involvement in the existing project-based schemes by participating in the regional decision making panels and by playing a leading role in any revision of the priority setting regional targeting statements. From 1 October 2006 RDAs took over responsibility from the Rural Development Service for the legacy commitments undertaken under the project-based schemes.

12.2) On track. RDAs were represented on the key consultative group during the negotiation of the new EU regulation and contributed to development of the UK's position during the public consultation exercise. They are playing a key role in working with Defra to shape proposals for the successor programme. The RDAs are working closely with Natural England and the Forestry Commission to write Regional Implementation Plans for the next Programme. A wide range of stakeholders are involved in the development of the plans, and the Government Offices are helping to facilitate the process .

12.3) Done. Through the Socio Economic Funding Transfer project Defra has transferred the delivery functions for EU co-financed socio-economic funding to RDAs as of 1 October 2006.

12.4) On track. Defra, the RDAs and the Rural Payments Agency have a shared objective of seeking increased flexibility in the rules governing the delivery of the funding. This principle is guiding discussions in the European Commission and preparation of the new programming documents.

13.1) The Government agrees. The RDAs will assume responsibility for managing the Business Link network on 1 April 2005. Defra will work with DTI, the RDAs and others to ensure that the national network of advice and support provided through Business Links and other business support providers meets the needs of rural businesses. The aim is to make available to rural businessmen and women a quality 'first port of call' service that is tailored to their circumstances. In addition, Defra will:

13.2) this year, put an extra £2 million into Business Links to improve support for economically lagging rural areas;

13.3) in 2005, participate with the Small Business Service and the RDAs in a rural pilot to join up a wide range of services; and

13.4) challenge business support providers to satisfy their rural customers that they are effective in meeting the specific needs of rural businesses.

13.1) Done. The RDAs took over responsibility from the Small Business Service (SBS) for the management of the Business Link network on 1 April 2005. RDAs have moved the Business Link service from direct delivery of business support services to become the access brand for all publicly-funded support for small businesses, providing an information, diagnostic and brokerage (IDB) service. Defra contributed to this process to ensure that rural businesses have adequate access to Business Link services.  The IDB model enables rural businesses to receive generic business support as well as being signposted to other providers for specialist advice. Defra is also participating in the SBS-led Business Support Simplification Programme looking to reduce the number of cross-Government business support programmes from an estimated 3000 to around 100.  Defra's role will be to ensure that the needs of businesses in rural areas are not overlooked.

13.2) Done.  The 21 projects supported by the additional funding provided in 2004/05 provided help to around 3000 businesses in economically under-performing rural districts.  This ranged from simple information and signposting to intensive assistance with business development.  The projects have been evaluated and the results were published in September 2005, which Defra disseminated to the RDAs and Business Links.

13.3) Done. Defra worked closely with the DTI Small Business Service and the East Midlands Development Agency on a pathfinder project in the Welland (a rural sub-region of the East Midlands), which looked at ways of encouraging the uptake of business support (including skills development) and of making the services provided to business by local, regional and national Government more coherent. The pathfinder ran through 2005/06 and the results will be shared with other RDAs to further inform good practice in relation to providing support to businesses in rural areas.

13.4) Done and on-going. Defra has undertaken a number of activities to identify good practice in relation to the provision of business advice to rural businesses, including through participation in the Business Link implementation group.  Defra continues to work with RDAs, including through the Business Support Simplification Programme (see above), to ensure that business support provided to rural businesses, including farmers, is accessible and appropriately tailored to their needs. 

The Government agrees. By April 2005:

14.1) the role of local authorities in the regional decision-making process will have been strengthened through the arrangements at regional level (see updates on Recs. 10, 21 and 22);

14.2) Government Offices will have facilitated work with sub-regional and local partners on a number of pathfinders. These will determine and test innovative mechanisms at sub-regional level to better target resources to deal with social and economic issues in rural areas, linking into associated countryside access and environmental issues. Local authorities will take a lead role in these pathfinder projects as a key deliverer of schemes and services to rural communities. The outcomes should feed into local Public Service Agreements and, perhaps, into Local Area Agreements; and

14.3) Defra funding will be channelled via Government Offices to the rural voluntary and community sector, including Rural Community Councils, to strengthen local capacity.

14.1) Done. Local authorities are fully involved in the regional prioritisation process led by Government Offices – Regional Rural Delivery Frameworks – and are working with all partners, including RDAs and Rural Community Councils, to target resources and lead delivery at a local level.

14.2) Done and on-going. In March 2005 eight local authority led rural delivery pathfinders – one in each of the Government Office regions (outside London) - were established. These are determining and testing innovative mechanisms at local level to better target resources and improve the effectiveness, efficiency and customer focus of delivery in rural areas.  The pathfinders will operate over two years (finishing in March 2007) and are subject to robust evaluation by the Audit Commission. All of the pathfinder areas have been incorporated into Local Area Agreements (LAAs) and partners are using the pathfinders effectively to rural proof their much broader LAAs. The overall aim is that lessons about rural delivery from the pathfinders will be ‘mainstreamed’ through a number of routes, including LAAs and Regional Rural Delivery Frameworks.

14.3) Done.  See update on Rec. 9.4

The Government agrees. Defra will continue, as now, to:

15.1) work with local authorities, through Government Offices, to help them develop second generation local Public Service Agreements (LPSAs) that benefit local communities and support the delivery of sustainable development.

15.1) Done. See 7.4.