Regeneration projects across London could be hit by funding delays at the London Development Agency (LDA), a Greater London Assembly (GLA) committee has heard.
The LDA, controlled by London mayor Ken Livingstone, is forecast to underspend by £24m in 2002-03 because of delays in allocating money to single regeneration budget (SRB) and ‘Single Pot’ schemes.
At yesterday’s meeting of the GLA’s economic & social development committee (ESDC), the LDA acknowledged delays in getting the money to local projects, but assured the committee that the money would not be lost.
But the ESDC expressed concern that some community projects could be jeopardised by the delays, adding that Business Improvement Districts, which are partly funded through the SRB, could also be affected.
Mike Tuffrey, the Liberal Democrat GLA member who chairs the ESDC, said: “The committee will be closely monitoring the LDA’s finances, particularly those surrounding the SRB and ‘Single Pot’.
“This money must be properly allocated to help projects in London regenerate their areas.
“The LDA recognises that a culture change and proper auditing of the SRB is needed and is taking steps to implement this.
“We welcome this assurance, but remain deeply concerned at the delays.”
Also at the meeting, fears were raised that an “underspend” this year could set a precedent for the amount allocated to the LDA, leading to budget cuts in future years.
EGi News 25/10/02
