Report: Abolish failing RDAs and cut SME tax

Regional Development Agencies (RDAs) have contributed so little to England's economic development that they should be scrapped with the money saved used to slash small business corporation tax, a pressure group has demanded.

In a scathing report, The TaxPayers' Alliance said although the groups, established by the government in 1999, have cost taxpayers £15bn or £600 per household, they have failed to boost the English economy.

Growth in most regions has actually slowed since the RDAs were set up in 1999, the study claimed, while employment figures have also declined.

The government-funded organisations are also plagued by "waste", the group said, with "trips to the south of France, ludicrous taxi expenses and lavish one day conferences...all commonplace". South East England Development Agency chairman James Braithwaite, for instance, spent £53,803 on transport in 2006-07, while Yorkshire Forward forked out £20,000 to send staff to a film festival in Dubai in 2006.

In addition, The TaxPayers' Alliance criticised the fact that many of the RDAs' responsibilities are duplicated by other organisations.

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