RDA Closure and the Impact on Company Formation

The Emergency Budget surprised many company formation owners, as it contained a number of provisions devised with the objective of helping regional businesses, namely the National Insurance reduction for companies outside of London on the first ten members of staff.

Therefore, it may come as a shock that David Cameron’s coalition government is now planning to scrap Regional Development Agencies. These agencies will be replaced by Local Enterprise Partnerships.

Local Enterprise Partnerships will still be committed to improving businesses and enterprise in their area however they will also become involved in broader areas such as town planning and housing.

Henry White, Chairman of the Lytham St Anne’s RDA, comments: “ The original ethos of the RDA – to support local business, company formation and enterprise at a local level – lives on through the Local Enterprise Partnership scheme. These plans are still in the early stages.”