Regeneration policies and their impact on coastal areas

CLG and the Regeneration Framework

Regeneration has been primarily concerned with improving outcomes for places that underperform across a range of measures. The priorities attached to tackling different aspects of underperformance have varied over time, but CLG’s activities to support this agenda broadly fit into the following categories:

• Housing-led regeneration (broadly led by the HCA)
• Provision of key infrastructure (broadly led by RDAs)
• Economic renewal (broadly led by councils through funds in ABG such as Working Neighbourhoods Fund and LEGI)
• Improving prospects for areas of multiple deprivation through neighbourhood renewal (broadly led by councils through funds in ABG such as Working Neighbourhoods Fund and LEGI)

These activities have delivered striking improvements in recent years, particularly in the post-industrial cities. However, the wider economic situation has impacted significantly on our ability to deliver this form of activity, largely due to:

• Falling land and property values o Loss of secured occupancy
• Reliance on a single private developer o Cash Flow Problems
• High operational costs for developers

The Government have remained committed to regeneration – and are still planning to spend over £6.5bn to support local ambitions over the next two years. In response, the Pre-Budget Report 2008 announced that we would be bringing forward £180m to support key regeneration projects - £100m from RDA budgets, and £80m from HCA budgets. BIS is working closely with the RDAs to monitor regeneration activity brought forward.

And to promote better alignment of resources and a clearer focus for regeneration activity during the downturn, we published Transforming Place, Changing Lives: a framework for regeneration for consultation in July 2008. We took this forward by launching the document Transforming Places Changing Lives – Taking forward the regeneration framework earlier this year. These set out Government’s vision for regeneration, by:

• Setting out a clear definition of regeneration – reversing economic, social, and physical decline in areas where market forces will not do this without support from government;
• Setting out the steps Government is taking now to keep regeneration moving in the current economic conditions;
• Retaining a clear focus on tackling deprivation – which is central to Government’s approach;
• Focusing on tackling the underlying economic challenges that hold back too many places through joint HCA and RDA action; and,
• Setting out clear expectations from the regional strategy in prioritising areas for investment, and aligning capital funding in support of these areas.

CLG responses to questions raised by the Framework for Regeneration.

Will the focus of regeneration funding be on economic areas of opportunity as opposed to deprived areas of need?

We don’t believe the two are mutually exclusive. The Framework is clear that investment needs to be targeted where it will have most impact by supporting those communities where the most severe poverty and worklessness persists and where there is the opportunity to deliver long-term change.

What will the national regeneration budget be in the future and who will control the budgets. With major public sector cuts forecast by all, what will be the scale of impact on the totality of the regeneration budget?

As Professor Michael Parkinson’s report indicated, the tough economic conditions are now making life challenging for the regeneration sector, and are affecting projects across the country. While the work of our programmes is necessarily long-term, they will of course be affected by trends in the wider market. But much good work is still going ahead. It is neither possible nor desirable to support every regeneration project in the current economic environment. However, we are taking the necessary steps to ensure that critical projects continue, by making available additional resources for housebuilding and bringing forward funding for mixed-use projects. The RDAs and the HCAs will be working to support those projects that offer the best value for money and are capable of providing real help now for communities. Our definition of regeneration covers a wide range of area-based interventions. It therefore encompasses both city and sub-regional level interventions as well as the more localised neighbourhood renewal interventions. In 2007/8, CLG alone had responsibility for delivery of the following streams:

• New Deal for Communities
• Local Enterprise Growth Initiative
  
• Neighbourhood Renewal Fund - Stronger Safer Communities Fund
• Thames Gateway
  
• Housing Marker Renewal Pathfinders
  
• RDAs and LDA
  
• English Partnerships
  
• European Regional Development Fund
  
• Coalfields

We can’t anticipate the spend in the future.