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Spending Review: LDA in funding black hole

The London Development Agency has had its £480 million annual budget pulled as a result of the government’s spending review

As a result dozens of schemes across the capital are at risk as is the agency’s subsidiary Design for London, which employs 20 architects.

LDA was already being wound up following the government’s decision to kill off regional development agencies, but parts of it were hoped to be amalgamated into Greater London Authority (GLA).

Without funding for next year the GLA is left fighting for a settlement which can cover the costs of some £50 million worth of projects funding commitments.

A spokesman for the Mayor said: ‘We were given assurances by the Treasury that an appropriate pot of money would be available for London and we plan to fight this all the way.

‘These are priorities that the government has asked us to deliver and that Londoners expect. We are determined to deliver them for the economic benefit of the city and to prepare London for the 2012 Games.’

The fate of the organisation’s 400 staff and unfunded projects rests on a positive outcome to the negotiations. Last month LDA revealed a £40 million cut in its 2010-2011 budget had created 100 redundancies with several projects scrapped.

Mark Brearley, director of Design for London, said: ‘Now is the time to emphasise our worth and speak up for survival.’

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