Government in talks to form new regional support network

07-Feb-2011 - Last updated on 07-Feb-2011 at 09:58 GMT

Government and industry efforts are underway to create a regional support strategy for the food industry to replace the one offered through the Regional Development Agencies (RDAs), which are being axed.

Though many currently remain operational, RDAs are scheduled to be completely phased out by March 31 next year, in line with last year’s government spending review.

Some processors are still unclear about the support and funding available in the wake of regional restructuring.

One emerging funding scheme is the £1.4bn, three-year Regional Growth Fund. Bids for funding are being channelled through the Department for Business, Innovation and Skills (BIS).

Smaller manufacturers and producers can still benefit from the backing of the regional food groups, said Jonathan Knight, chief executive of the Regional Food Group for Yorkshire & Humber.

However, he said they too had to switch away from RDA funding. “As funding disappears, and in certain cases it is substantial funding, we are all going to have to transition to being much more commercial.”

Sector will need new funding structure

Knight said food groups were discussing ways of generating more money from membership fees and added-value services. “There is a recognition that in 12–15 months the sector will clearly need some sort of funding structure.”

Colin Dennis, head of the English Food and Drink Alliance, the umbrella body co-ordinating regional food group activities, is discussing local support plans with the government.

Dennis and other regional food group representatives are liaising with BIS and the Department for Environment, Food and Rural Affairs. BIS is understood to be setting up six offices across England to support local businesses.

Local Enterprise Partnerships between local authorities and businesses are also being set up to drive growth.

Click here to find out more about the Regional Growth Fund.