London office space to be affected further by cuts.
The London Development Agency to receive reduced funding.
Due to government cuts The London Development Agency (LDA) is downsizing and reducing its workforce by around two thirds.
The agency reportedly told employees that the number of workers would be cut down from 324 to 108. They have also received a reduced budget of £56 million; a huge 64% reduction from their current budget of £156 million.
The London Development Agency promote and aid London regeneration projects in areas such as commercial office space and housing. They also provide improved public spaces, investing in low carbon products and ideas and provide help to new businesses.
Obviously a cut in staff and budget will have a direct effect on London office space developments. However, despite these cuts the LDA remain optimistic about the completion of current projects and regeneration schemes.
“The Spending Review imposes severe cuts on public sector funding. The Government has now indicated that our final settlement will only cover legal commitments in our budgets. We had planned for various scenarios as part of our preparations for closure in March 2012. Despite this low settlement, we intend to continue to meet our project commitments and move towards an orderly wind down,” commented a spokesman for the LDA.
These announcements came after weeks of speculation regarding cuts, particularly their effect on regional development and regeneration agencies like the LDA.