Scrapping RDAs 'could fund corporation tax cut'

Date: 11th August 2008

New research has argued that the UK's regional development agencies (RDAs) have done little to help businesses and should be scrapped to fund a cut in corporation tax.

The latest study from the TaxPayers' Alliance showed that the country's RDAs have cost taxpayers close to £15 billion since 1999.

However, the research indicated that the RDAs have done little to improve regional economic growth.

It also analysed the spending of the RDAs and found significant levels of wastage. As a result, the TaxPayers' Alliance said that the quangos should be disbanded.

The group calculated that the money saved could be used to fund a 4p cut in the rate of corporation tax small businesses in the country have to pay.

It explained: "The government should reduce the burden of tax on business. Abolishing RDAs would free up £2.19 billion in 2009 to 2010.

"This would allow a four per cent cut in the small business rate of corporation tax - from 22 per cent to 18 per cent. This would save many businesses thousands of pounds.

"It would benefit all businesses, not simply the fashionable industries favoured by RDAs."