The North West Development Agency (NWDA) has axed funding that was due for more than 100 schemes across the northwest, and it will make no new financial commitments next year.

Today, the NWDA has announced that it is pulling out of all schemes that it had not legally committed to in 2010-11, as part of £52m savings demanded by the government. This means the agency is essentially closed for new business.

It also said funding for partner organisations would be axed from March 2011, including money for six NWDA-funded companies, such as the Central Salford and Liverpool Vision urban regeneration companies.

Significant projects to lose their grants are:

• Manchester Metropolitan University – Birley Fields Education & Health Campus
• Talbot Gateway, Blackpool (pictured)
• Crewe Rail Gateway – Main Project
• Sportscity Major Destination Site
• Trafford Park Masterplan

Steven Broomhead, chief executive of the NWDA, said the government’s new £1bn Regional Growth Fund would be a replacement source for public funds.

“We have made a start by cutting non-contracted projects and reducing our own administration budget but we now need to re-examine all existing projects and programmes to identify where further savings can be made.

“We are now involved in very careful and sensitive discussions with our partners about this. We will use all available flexibility to try to meet these challenging reductions but the reality is that this is a substantial reduction to our in-year budget and there is bound to be an economic impact on the partners, businesses and communities with whom we work.

“In addition, the size of the cuts means that we have little flexibility in our future budgets and the agency will not be able to make any new investments or renew partner contracts before our dissolution in April 2012.

“The new Regional Growth Fund announced by Government will offer opportunities for the private and public sector for potential new projects from April 2011 onwards.

“I recognise that this is a very difficult time for both our partners and our staff across the region and I sincerely hope that many of these projects and partners will be able to find alternative sources of funding and will continue to support the growth of the Northwest economy for the years to come.”

To see a list of affected projects and organisations click here: Final Info on Partner Orgs and Projects July 22 2010

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