The Funding Drought in East Devon: A Wake-Up Call for Local Economies
The recent news that East Devon's business growth funding has dried up is a stark reminder of the shifting sands of government support. For the first time in decades, this region is facing a future without the financial boost it has come to rely on. This raises important questions about the resilience of local economies and the impact of central government decisions.
A Historical Perspective
What many people don't realize is that this funding, previously known as the European Structural and Investment Programme, has been a cornerstone of East Devon's economic strategy for half a century. It's a legacy of the EU's regional development policies, which aimed to reduce disparities between areas. Now, with the UK's departure from the EU, this funding stream is being replaced by new initiatives with different priorities.
Personally, I find it fascinating how the political landscape can so drastically alter the economic destiny of a region. The transition from EU funding to the UK Shared Prosperity Fund (UKSPF) and its subsequent replacement by the Local Growth Fund and Pride in Place Programme is a prime example of the ebb and flow of policy.
The Impact on East Devon
The loss of this funding is significant. Over £1.7 million in UKSPF and rural funding was secured in 2024/25, a substantial sum for any local economy. This money was used to bolster economic activity, support businesses, and drive growth. Now, East Devon's economic development strategy must adapt to a new reality.
One thing that immediately stands out is the council's shift from a 'funder' to an 'enabler' role. This change in terminology is more than just semantics. It reflects a fundamental shift in approach, from providing direct financial support to facilitating economic growth through other means.
A New Strategy
East Devon's response is to refocus on 'traditional' economic development work, including a more active role in the commercial property market and town centre engagement. This is a pragmatic move, but it also highlights the challenges of local economic development in the absence of dedicated funding.
In my opinion, this situation underscores the importance of economic diversification and resilience. East Devon, like many regions, must now explore alternative paths to growth, which may include attracting new industries, fostering entrepreneurship, or developing unique local assets.
Broader Implications
This case also raises broader questions about the role of central government in regional development. The new funding programs, such as the Local Growth Fund, seem to favor mayoral city regions, potentially leaving more rural areas like East Devon at a disadvantage. This shift in focus could exacerbate regional inequalities, a concern that warrants careful monitoring.
What this really suggests is that local economies must become more agile and adaptable. They need to be prepared for changes in government policy and funding priorities, which can be as unpredictable as the weather.
Looking Ahead
The future for East Devon is uncertain, but it's not all doom and gloom. The council's renewed focus on town centres and employment land could bring new opportunities. However, it will require creativity, collaboration, and a willingness to embrace change.
Personally, I think this is a wake-up call for local authorities and businesses alike. It's a reminder that economic growth cannot always be bankrolled by central government. Instead, it must be driven by local innovation, adaptability, and a deep understanding of the unique strengths and challenges of each region.
