Regional development agencies have spent £5bn on regeneration schemes but could have invested their money better, an auditor has reported.

Today, the National Audit Office has published its 35-page report Regenerating The English Regions which says that the eight RDAs outside London have spent £5bn since 1999 but have been weak at identifying the best projects to invest in.

It said RDAs have not demonstrated that they have maximised economic growth because they cannot prove they have backed the right projects.

Amyas Morse, head of the National Audit Office, said: “The regional development agencies’ efforts to encourage economic growth through a programme of physical regeneration have delivered real benefits.

“It is questionable, however, whether they could not have achieved even greater benefits from the £5bn they have committed. It is important that the RDAs establish better appraisal and evaluation methods to identify the projects which are most beneficial and then target their funding accordingly.”

The future of the RDAs is a big question at this year’s general election – which is expected on 6 May – as Labour has pledged its support for them while the Conservatives are looking to scrap them.

To read the full NAO report click here: Regenerating the English Regions

• Coalfields plan has no direction, warns auditor
• RDAs emerge as election battleground
• Regional development agencies get £64.4m
• Councils’ MIPIM spend under scrutiny
• “Big cuts” due for southern RDAs, says Cable