Select Committee on Environmental Audit Minutes of Evidence


ANNEX B

GRANTS AWARDED BY DETR (SEE PARAGRAPHS 33 AND 34)

SCOPE

  1. Question 31 is taken to refer to grant award schemes administered by DETR. This Annex does not cover other funding arrangements, such as grant-in-aid and appropriations in aid for NDPBs and other external bodies, which account for much of the DETR's expenditure in support of its strategy for sustainable development and the environment. Nor are research programmes covered.

ENVIRONMENTAL PROTECTION AND WATER VOTE

  2. The Environmental Protection Group operates a number of grant schemes aimed at helping achieve sustainable development and environmental objectives.
Environmental Action Fund (EAF)

Details of programmes£000

1989-99 Proposed provision4,190
1997-98 Original provision3,690
1997-98 Final provision3,701
Difference 1997-98 to 1998-99+489


  3. The EAF is a discretionary grant programme, which helps English voluntary groups to advance the Government's environmental policies, supporting work which does not qualify for grant under other programmes. Priorities are to: help to educate the general public, or specific sections of the public, in the importance of sustainable development, or promote sustainable behaviour; encourage waste minimisation, recycling, reusing materials and using energy efficiently; and improve local environments and encourage biodiversity.
Support for low income households (including Home Energy Efficiency Scheme)

£000

1998-99 Proposed provision (net of VAT reclaims) 75,126
1997-98 Original provision (net of VAT reclaims) 75,104
Difference 1997-98 to 1998-99+22


  4. Under this scheme householders are eligible for grant if they, or their spouses, receive an income-related or disability benefit, or are aged 60 or over. The measures available are loft insulation, cavity wall insulation, controls for heating systems, draught-proofing, energy efficient lamps and water tank insulation. In addition, personal energy advice is offered. Provision also covers annual grant to National Energy Action (the national energy action charity) and Energy Action Scotland. As a result of changes in VAT regulations, the number of grants supported by the programme is expected to increase by 10 per cent in 1998-99 compared with previous years.
SCEEMAS (Small Company Environmental and Energy Management Assistance Scheme)

£000

1998-99 Proposed provision800
1997-98 Original provision550
Difference 1997-98 to 1998-99+250


    5.  The SCEEMAS programme aims to help manufacturing companies improve their environmental performance and encourages them to register under the EC Eco Management and Audit Scheme. The programme is being reviewed in order to achieve a wider range of environmental improvements in small businesses and to achieve a greater take-up.
Darwin Initiative

£000

1998-99 Proposed provision3,000
1997-98 Original provision3,000
Difference 1997-98 to 1998-99No change


  6. This is a UK initiative launched at the 1992 Rio summit. It is a grant scheme which supports the Biodiversity Convention's objectives of conservation and sustainable use by drawing on UK scientific and educational expertise to undertake projects throughout the developing world.

WATER SERVICES

  7. DETR also operates a number of demand-led grant schemes relating to Water Supply and Sewerage (particularly in Assisted Areas) which reflect the objectives of sustainable development, although their criteria do not specifically refer to it.
Housing, Construction and Regeneration Vote
£000

ERCFPSR SGPSRB-CF

1998-99 Provision159,514 226,9871,287101,569
1997-98 Original Provision118,210 196,8691,28796,320
1997-98 Final Provision102,136 196,2691,04781,754
Difference 1997-98 to 1998-99(57,378) (30,718)(240)(19,815)

Note:
This table gives figures for the grant schemes outlined below. ERCF includes £36.153 million in 1997-98 (final provision) and £95.500 million in 1998-99 disbursed via the Housing Corporation.


HOUSING

  8. The following housing programmes make a contribution towards DETR's strategy for sustainable development and the environment.

Estates Renewal Challenge Fund (ERCF)

  9. ERCF supports transfers which could not proceed without financial support to compensate for low or negative valuations or poor asset cover. The ERCF 1998-99 Bidding Guidance which sets out the basis against which applications for the third round of the scheme would be assessed stated that: "Successful applications will involve freehold transfers which . . . contribute to regeneration and long term sustainability and are part of a wider package of proposals designed to alleviate the multiplicity of social, economic and educational deprivation concentrated on some large local authority estates."

Private Sector Renewal (PSR)

  10. There are no specific terms and conditions about sustainability attached to most private sector renewal grants. But group repair assistance is concerned about the environmental impact of poor housing. Such schemes require the approval of the Secretary of State and one criterion for approval is that the authority are satisfied that group repair is the most satisfactory course of action for dealing with disrepair having regard to the long-term costs and benefits, both financial and non-financial.

  11. DOE Circular 17/96 (Private Sector Renewal: a Strategic Approach) provides guidance to authorities on the development of private sector renewal strategies which also encourages authorities on the development of private sector renewal strategies which also encourages authorities to consider the long-term sustainability of the works they carry out. In particular, authorities can declare "renewal areas" (RA) to deal with poor housing in the context of wider, more holistic regeneration strategies. In deciding whether to declare a RA, authorities are required to carry out a comprehensive area appraisal. They are recommended to use a method known as Neighbourhood Renewal Assessment which again looks at the long-term socio-economic costs and benefits of the proposed action.

  12. In assessing bids from local authorities for resources for private sector renewal under the Housing Investment Programme (HIP) process, the Department looks critically at the strength of local authority strategies. Issues such as energy conservation measures are expressly mentioned as factors to be taken into account.

(See also the Special Grants Programme below)

CONSTRUCTION

  13. No relevant grants other than those targeted at Housing.

REGENERATION

Special Grants Programme (SGP)

  14. This programme provides grants to voluntary organisations carrying out national projects relevant to the DETR's housing and regeneration policy objectives. It operates on the basis of an annual bidding round.

  15. Grants are mainly intended to help voluntary organisations with revenue costs e.g., salaries, office running costs. While the Programme does not immediately contribute to sustainable development, it makes an indirect contribution by supporting projects which complement DETR's housing and regeneration policy interests. Although there is no single definition of "local regeneration", applicants are encouraged to bear in mind the current objectives of the Single Regeneration Budget Challenge Fund set out below.

Single Regeneration Budget Challenge Fund (SRBCF)

  16. The objectives of the SRBCF are to achieve the comprehensive regeneration of local areas and Challenge Fund schemes must meet one or more of the following overall objectives:

    —  enhance the employment prospects, education and skills of local people, particularly the young and those at a disadvantage, and promote equality of opportunity;

    —  encourage sustainable economic growth and wealth creation by improving the competitiveness of the local economy, including support for new and existing businesses;

    —  protect and improve the environment and infrastructure and promote good design, mixed development and landscaping in line with the Secretary of State's Quality Initiative;

    —  improve housing and housing conditions for local people through physical improvement, better maintenance, improved management and greater choice and diversity;

    —  promote initiatives of benefit to ethnic minorities;

    —  tackle crime and improving community safety;

    —  enhance the quality of life, health, and capacity to contribute to regeneration of local people, including the promotion of cultural and sports opportunities.

  17. The supplementary guidance for the current Round 4 of the SRBCF also emphasises the important role that Challenge Fund schemes can play in the Government's new measures to tackle multiple causes of social deprivation and economic decline.

  18. Initiatives supported by the Challenge Fund must work with the grain of national policies and programmes. Challenge Fund Partnerships must take account of relevant national strategies and targets, including the national Strategy for Sustainable Development, as reflected in local authorities' work to develop their own sustainable development strategies under local government's Local Agenda 21 Initiative. Annex H of the SRBCF Round 4 Bidding Guidance, on Sustainable Development, states:

    1.  A generally accepted definition of sustainable development, contained in the 1987 Brundtland report "Our Common Future", is:

      "Development that meets the needs of the present without compromising the ability of future generations to meet their own needs".

    2.  Application of the principles of sustainability involves balancing the objectives of economic development with protection—or enhancement—of the environment and conservation of natural resources. Treated as an opportunity rather than an obstacle, and taken into account at an early stage in project development, the objective of sustainable development need not be incompatible with that of economic development. Energy efficient buildings, for example, help minimise fuel costs and reduce harmful emissions to the atmosphere; greening schemes benefit local communities but can also help to attract inward investment to urban areas.

    3.  The potential and long-term impact of regeneration proposals on the environment should be taken into account in framing bids, along with the other factors described in this guidance. The following checklist provides a brief guide to some key aspects of sustainability in relation to urban regeneration.

    —  In developing your proposals, have you considered the opportunities to:

    —  Reclaim and reuse brownfield sites, including derelict and contaminated land, or make use of vacant urban sites?

    —  Locate new developments where they are readily accessible by public transport, cycling or on foot?

    —  Regenerate and enhance existing urban centres by promoting mixed uses which enable people to live near their work and reduce their overall need to travel?

    —  Improve access to public transport networks to discourage dependency on private cars?

    —  Reuse existing buildings and recycle building materials or use local sources of supply?

    —  Set targets for energy efficiency in housing or other types of development, or exploit renewable sources of energy?

    —  Promote community-based initiatives which enable local people to participate in environmental improvements and contribute to their long-term management and maintenance?

    —  Separate or protect residential areas from sources of noise or pollution from traffic or other sources?

    —  Promote greening as an easily-integrated source of economic, environmental, social, educational benefits in infrastructure and development projects?

EUROPEAN FUNDING

  19. DETR is also responsible for the implementation of the European Regional Development Fund in England (worth nearly £6 billion). Types of project generally supported includes: sites and facilities for industry and business; infrastructure projects; and environmental protection and improvement measures linked to regional economic development.

  20. The regulations governing the Community's Structural Funds are laid out in Council Regulations, but it is up to Member States to implement them. These include environmental requirements, which the UK has fully implemented.

REGIONAL DEVELOPMENT AGENCIES

  21. Regional Development Agencies (RDAs) are being set up in England from April 1999 to provide effective, properly co-ordinated regional economic development, to underpin wider regeneration, and to enable the English regions to improve their relative competitiveness. One of the specific functions which the RDAs are due to take over is the administration of the SRB Challenge Fund. RDAs will have a specific purpose of contributing to the achievement of sustainable development, and this will be relevant to all that they do.

PLANNING, ROADS, LOCAL TRANSPORT AND VEHICLE SAFETY VOTE

22. Freight Grants Scheme

TAGFFG

1998-99 Proposed provision17,123 22,529
1997-98 Provision18,411 12,750
Difference 1997-98 to 1998-99-1,288 9,779


  The purpose of Freight Facilities Grant (FFG) and Track Access Grant (TAG) is to purchase environmental benefits. Grant can only be paid in cases where it can be demonstrated that the goods concerned would otherwise go by road. It is paid only up to the level necessary to tip the balance in favour of rail. Applications for both grants are assessed by reference to "lorry miles avoided".

  23. Transport Supplementary Grants and grants under s.56 of the Transport Act 1968 are given as part of the Transport Policies and Programmes process which considers all aspects of local authority capital spending plans for local roads and public transport. Bids for new works have to include environmental impact and noise assessment reports, and public transport schemes are appraised on likely contribution to modal shift from car. Recent grants have given priority to pedestrians, cycling and public transport.

DETR/SDU

13 March 1998


 
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