The Funding Landscape Shifts: A New Chapter for East Devon's Economy
In a significant development, East Devon District Council finds itself in uncharted territory as business growth funding reaches a startling zero. This abrupt change, a direct consequence of government funding adjustments, marks a pivotal moment in the region's economic trajectory.
A Historical Shift
The loss of the UK Shared Prosperity Fund (UKSPF) and rural funding has left East Devon without central government support for economic activities. This is a stark departure from the past half-century, where EU funding played a crucial role. The replacement funds, the Local Growth Fund and Pride in Place Programme, are now primarily focused on mayoral city regions and the most deprived neighbourhoods, respectively.
Impact on East Devon
The absence of these funds means East Devon must adapt its economic development strategy. The council's economic development manager, Tom Winters, highlights the challenge: "We will be turning from funders to enablers." This shift in role is a significant adjustment, requiring a renewed focus on employment land and support for town centres.
Financial Implications
Figures reveal a substantial drop in funding, with East Devon's UKSPF and Rural England Prosperity Fund allocations falling from over £1.8 million in 2024/25 to zero in the current financial year. This has led to the discontinuation of major grant schemes like the Carbon Action Fund and Innovation and Resilience Fund.
A New Economic Development Approach
East Devon's response to this funding crisis is to realign its priorities. The council aims to be more proactive in the commercial property market and engage more deeply with town centres. This 'traditional' economic development work is seen as a way forward, a strategy that Councillor Paul Hayward supports, acknowledging the challenges but also the opportunities for collaboration.
Broader Implications
The funding landscape's transformation raises questions about the future of regional economic development. With a focus on mayoral regions and deprived neighbourhoods, what does this mean for areas like East Devon? It highlights the need for a nuanced understanding of economic development, one that considers the unique challenges and opportunities of each region.
Conclusion
The end of business growth funding in East Devon is a wake-up call, prompting a reevaluation of economic strategies. As the council adapts to its new role as an enabler, the focus on employment and town centres takes on renewed importance. This shift in perspective offers a chance to explore innovative approaches to economic development, ensuring East Devon's resilience and growth in a changing funding environment.
