The London Development Agency is set to make massive cuts as its budget is slashed by two thirds.
The 2011-12 budget will be around £50m, £100m less than the amount it received in the current year. Reports suggest this will mean the loss of around 200 jobs at the agency. The cuts will only allow the LDA to meet commitments it has already made as it begins to wind down, with a likley closedown at the same time as the rest of the Regional Development Agencies in March 2012.
This cut presents dificulties for the Greater London Authority in attempting to arrange a London-wide Local Enterprise Partnership, a development implied by remarks from mayoral adviser Anthony Browne. “If the GLA wants retain some of the functions of the LDA within its own organisation, it will have to find te funds from its own pockets”, said one commentator, who thought this cut makes sub-regional LEPs more likley.
See previous coverage.