London Development Agency ready for the challenges ahead

19th March 2009

The London Development Agency today revealed that it had made good progress in its drive to improve its effectiveness and impact - and to restore confidence in the organisation.   Addressing the London Assembly, LDA Chairman Harvey McGrath highlighted the challenges that the Agency’s new leadership had faced and listed the improvements made over the past nine months.  These improvements have enabled the LDA to provide more support for London’s businesses than before.  

Following criticisms of the organisation and its project funding and management under the previous administration, Chairman Harvey McGrath and new Chief Executive Peter Rogers have introduced major changes since their appointment in July 2008.  These changes are designed to make the LDA ‘fit for purpose’, deliver value for money and restructure the organisation to focus on three key areas of importance to Londoners - jobs creation, skills development and sustainable economic growth.  

These changes address issues raised in various reviews, investigations and audits into the organisation’s work over the past year.  The changes include greater transparency, stronger governance arrangements, a streamlined staff structure focused on clear priorities, delivering better value for money and ensuring the LDA has a bigger strategic impact.  The organisation is moving to adopt a commissioning model for projects, with an emphasis on the delivery of agreed outcomes.  The LDA wants its funding to play a strategic and enabling role, looking to leverage in additional funds from other sources, avoid duplication and to spend the funds on projects, not organisational overheads or core costs.

Projects are now assessed and monitored against clear criteria that demonstrate value for money and added-value.  The LDA has spearheaded the development of a model for investment planning - based on Gross Value Added and unit costs - which is recognised by BERR as a significant step forward for Regional Development Agencies.  The overall staff head-count has been reduced by around a third.  New procedures, project management and monitoring ensure there are clear records of spending decisions and monitoring of the effectiveness of the LDA’s investments.   This improved investment has allowed the LDA to reallocate its funds, including an additional £23 million for the Mayor’s Economic Recovery Action plan. 

London Development Agency Chairman Harvey McGrath said:
“The London Development Agency has come through a difficult period.  We have made some difficult, but absolutely essential, changes to the organisation.  With the Board’s support, we have clear priorities, clear processes and clear ways to measure success consistently across our work.  We are working closer with our partners in London’s boroughs, its businesses and its voluntary sector so that we make the biggest impact possible for London and for Londoners.”

London Development Agency Chief Executive Peter Rogers added:
“The changes we have put in place will allow the London Development Agency to demonstrate greater strategic impact and better value for money.  This means we are now well placed to deliver a lot more for London for a lot less.  We now have the right staff in the right jobs and I believe they have shown great dedication and commitment to deliver for London throughout this period of change.”

London First Chief Executive Jo Valentine said:
“I’m pleased with the steps the LDA is taking to strengthen its effectiveness as London’s economic development agency. A clearer understanding of its purpose and priorities will help the organisation to contribute to the capital’s economic resilience during the downturn. The Agency is well placed to demonstrate the value it adds to London and is working constructively with business organisations.”

The LDA’s contribution to the Mayor’s Economic Recovery Action Plan includes a wide range of services for London’s businesses, such as key advice gateway Business Link in London and specific LDA-funded schemes. The LDA also spends around £170 million each year supporting business and skills in London.

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