The Treasury wants Regional Development Agencies and the Homes and Communities Agency to share offices in one area in a bid to save money.

Chancellor Alistair Darling’s Budget 2010 outlines proposals to save £255m from 2012-13 by making the HCA, RDAs and government departments share offices in a particular region.

It says this will simplify regional government as part of a drive to increase its overall power, through giving regional ministers extra responsibilities.

These will include allowing them to decide where funding goes, and giving them a greater role in promoting regional growth.

The RDAs will each get a regional growth fund in 2011-12 to promote  the property investments that are most important to national growth.

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