Select Committee on Environment, Transport and Regional Affairs Eleventh Report


SUMMARY OF RECOMMENDATIONS AND CONCLUSIONS

(a)  We commend the Urban Task Force Report. The evidence we have received shows its publication has generated a sense of excitement and an eagerness to see its recommendations implemented. It should form the basis of those parts of the Urban White Paper which deal with urban design, management and regeneration (paragraph 11).

(b)  The Deputy Prime Minister stated in his preface to the Task Force report: "There is no single solution and we need co-ordinated action based on the joint principles of design excellence, economic strength, environmental responsibility, good governance and social well-being." The White Paper should cover all these areas (paragraph 14).

(c)  The essential task of the Urban White Paper should be to set out the Government's vision for cities and towns. It should describe what it would like our towns and cities to be like in 20 years' time and state what principles must be followed and what mechanisms, resources and policies are a priority for achieving that vision. We expect the vision to be bold and long-term. It should not just reflect what can be achieved with the resources immediately available from the Comprehensive Spending Review or the Treasury's review of the Rogers' recommendations (paragraph 15).

(d)  The Urban and Rural White Papers should stress that the patterns of development characteristic of most of the last century cannot continue. They have been: socially unstable, concentrating the poor in inner city areas; environmentally damaging, destroying the countryside and creating a car-dependent society; economically harmful, since they have undermined our core urban areas which remain the essential centres of the English economy; and wasteful because schools, shops, even houses, lie waste in urban areas while new infrastructure is provided at great expense outside. An Urban Renaissance should provide the best way of reversing these trends, creating more sustainable, mixed neighbourhoods, economically powerful and competitive cities and towns, and preserving the countryside and protecting the environment (paragraph 17).

(e)  Cities and towns should be compact and built to high densities. If this is to be done successfully, high quality urban design is essential with particular attention paid to

public spaces and lay out. Buildings, in particular supermarkets, should be in keeping with the scale and character of the surrounding areas. We must avoid the mistakes of the past when large sums of public money were spent on buildings, but too little attention was paid to appropriate design, management and running costs. Developments should contain a mix of uses, homes, shops and work places. Better public transport and making walking and cycling easier must be a priority. Historic buildings and parks have a most important role to play, not least in fostering a sense of place (paragraph 28).

(f)  The White Paper should acknowledge the economic importance of cities and towns, and Government economic policy must take account of its effects on them. It should be the aim of economic policy to concentrate economic development in cities and towns while having regard for rural needs. Urban economic policy should be about creating prosperous and competitive towns and cities, and not just a matter of providing palliatives for run down areas. Towns, cities and conurbations have very varied economies and there can be no one solution for all. However, if the evidence we received that the economy will be increasingly knowledge-based is right, successful conurbations will have good universities and research institutes and will be places which attract skilled mobile workers. Not all cities will be able to benefit from these changes, and many suffer from the weaknesses of their regional economy. To meet their needs Government will have to tackle these weaknesses (paragraph 34).

(g)  The majority of the poorest people in England live in cities, often concentrated in deprived areas. Many on higher incomes have left. The White Paper should promote the establishment of socially mixed communities in urban areas. Policy should promote economic, cultural and ethnic diversity and should seek to attract middle income earners back to the inner cities. Services in urban areas require major improvement. The levels of crime, the fear of crime and anti-social behaviour together with poor schools, and the perception of poor schools, are the main causes of concern. To bring about improvements mainstream funds need to be better targeted and managed (paragraph 40).

(h)  The urban environment strewn with litter and graffiti creates an appalling impression in many urban areas. In comparison to the large funds spent on mainstream services, management of the urban environment is significantly underfunded. The powers and mechanisms to deal with anti-social behaviour are inadequate (paragraph 45).

(i)  In many urban areas the urban renaissance will not happen without measures such as fiscal incentives or regeneration initiatives to promote it. In run down inner city areas, especially where crime is high, sometimes the only profitable uses are retail sheds or warehousing, and in some places only car parking. More desirable uses require Government assistance. The State also has to fund improvements in skills and other people-based initiatives (paragraph 50).

Currently intervention is confused and badly co-ordinated. The White Paper should set out a framework indicating the role of each part of government. It should clearly lay out the roles of:

-  national government;

-  regional organisations, including regional development agencies, government offices in the regions, regional planning conferences and regional assemblies\chambers;

-  sub-regions;

-  local authorities;

-  neighbourhoods and local communities.

There should be fewer initiatives and they should be better co-ordinated locally (paragraph 51).

In England we have had a long experience of regeneration initiatives. The evidence is that to be successful they should:

-  co-ordinate economic, social, environmental and design concerns;

-  be on a large scale and be long term;

-  involve all the concerned parties - local authorities, other public and private sector bodies and local communities;

-  integrate the work of different providers of services, in particular reducing the number of and getting better co-ordination of the local programmes of government departments; and

-  make better use of mainstream funds (paragraph 52).

(j)  If we are to get an Urban Renaissance, the Government will have to introduce a "new set of financial instruments to attract large-scale private investment into towns and cities". In addition, fiscal measures should be introduced to discourage landowners from holding onto derelict land held for speculative purposes and preventing development (paragraph 55).

(k)  Greenfield sites should be the location of last resort for development. We see no compelling reason for changing policy on the green belt (paragraph 61).

(l)  Big improvements can be brought about by better targeting of mainstream funds. However, the urban renaissance will not take place without additional spending on urban management, the urban environment, urban regeneration and public transport (paragraph 62).

(m)  The rules which prevent good design and inhibit development, including overlooking distances, road lay outs and visibility splays are often inappropriate We recommend that the deregulation unit of the Cabinet Office review the various rules used by planners and highway engineers which have now become an obstacle to good quality urban design (paragraph 68).

(n)  We strongly endorse this approach of sensitive interpretation of central guidance rather than slavish adherence to it (paragraph 70).

(o)   We are disappointed that the DfEE is not taking steps to improve and better coordinate training and education for professionals in the various urban design disciplines. We recommend that the DfEE together with DETR undertake a major review of this matter (paragraph 73).

(p)  To encourage more compact and sustainable towns and cities, the White Paper should emphasise the Government's priorities to:

-  ensure that the principles put forward in PPG 3 are implemented by providing adequate funding for planning departments to administer the new arrangements and by rejecting unacceptable low density or badly designed schemes;

-  bring about a more creative and less reactive planning system, encouraging innovation and streamlining the slow and rigid system of local plan production and revision;

-   place more emphasis on good design by improving training for professionals working in urban design and adopting the recommendations of the Task Force including establishing Regional Resource Centres and making greater use of master plans;

-  make improvements to public transport and pedestrian access a priority for public expenditure and local transport plans; and

-  make better use of historic buildings, parks and public spaces to achieve urban regeneration (paragraph 83).

Better use of historic buildings could be achieved by ensuring that:

-  development takes account of the historic nature of areas by undertaking what has been inelegantly called a characterisation-based master plan;

-  English Heritage is adequately funded to undertake regeneration;

-  more lottery funds are available for spending on historic buildings in view of the small funds currently available for this important task; and

-  English Heritage and local authority conservation officers do not impose rigid conservation philosophies on developers, but work sympathetically with them to facilitate re-use; a training programme should be introduced.

However, PPG 15 on conservation areas does not need to be changed (paragraph 84).

(q)  The Government should seek to ensure that economic development is concentrated in urban areas, including market towns, while having regard to rural needs:

-  The DTI should re-examine its policies to ensure that they take account of spatial policies and priorities. It is not just sufficient to get economic development. It matters where it is. Out-of-town development should be an exception. This principle has been accepted in PPG 6 and should be included in other government policies, including guidance on business clusters.

-  DTI and DETR should seek to ensure that urban and regional policy are complementary through getting better co-operation between regional institutions.

-  Government should encourage knowledge and innovation-based industries to locate in northern and midland cities and towns by stimulating in these areas: the expansion of universities, the location of research and development institutions, and spin-offs from these institutions.

-  The Government should review the location of many of its own agencies, with a view to moving them, in the longer term, to towns or cities in need of significant regeneration (paragraph 97).

(r)  The Government should implement the recommendations made by the Urban Task Force to create mixed income neighbourhoods and diversify tenure. It should ensure new social housing is not built in areas where there are already large numbers of such houses or where there is low demand for social housing. Good design can turn cities round; cheap, shoddy social housing is unacceptable. The White Paper should indicate how the Government will improve the quality of services in urban areas by emphasising the need for mainstream services to concentrate on producing better outcomes. The Government should also implement many of the measures proposed by the Social Exclusion Unit on neighbourhood renewal, in particular on neighbourhood management, and should introduce new measures to deal with anti-social behaviour (paragraph 111).

Some estates, albeit a minority, are beyond any incremental revival, suffering from low demand and without a realistic likelihood that they will recover in the long term. Here the best option may be large scale demolition and re-construction as mixed communities, following the design principles laid down by the Task Force, especially in areas where there is a strong demand for housing in the wider conurbation. This might be called the Hulme solution, after the area of Manchester where this approach has been successfully implemented. The Government should encourage local authorities and Regional Development Agencies to consider whether areas should be re-developed in this way. It should ensure that RDA strategies take account of the Task Force's proposals. Before its final report the Social Exclusion Unit should be asked to consider how the Task Force's recommendations should be integrated into its strategy (paragraph 112).

(s)  The Government should stress the importance of improving the state of the urban environment, including simple measures such as more effective litter collection. The Government should provide additional funds for managing the urban environment and should implement the proposals of the Task Force to give local authorities greater powers to tackle those who damage it (paragraph 115).

(t)  The White Paper should indicate the role of each aspect of Government in urban regeneration. In particular, it should stress that:

-  local authorities should "lead the urban renaissance" by devolving powers and resources to them, in particular by providing long term funding and giving local authorities more freedom to raise and spend money;

-  local authorities should be permitted to have a stake of over 19.9% in companies without any financial penalties to enable them to play a significant role in regeneration;

-  there should be clarification of the relationship between local authorities, national Government, regional and sub-regional institutions; and of the role of regional development agencies, regional planning conferences , regional assemblies and government offices in the regions;

-  local authorities need to work closely with local communities, voluntary groups and private sector organisations;

-  local strategic partnerships have an important role to play, but care must be taken in constructing them to ensure they have the right powers, duties and resources;

-  neighbourhoods are important as the key building blocks identified by the Urban Task Force; measures to turn round 'neighbourhoods in decline' should be a priority, while recognising that local authorities will also need to take decisions on a city-wide basis; and

-  there is a need to reduce the number of area-based initiatives of central Government Departments and get better co-ordination of them (paragraph 129).

The White Paper should set out that it intends to ensure that urban regeneration is well-co-ordinated, carried out on a large scale and over a long period by:

-  strengthening the New Commitment to Regeneration; and

-  establishing Urban Priority Areas and Urban Regeneration Companies as recommended by the Task Force, with the appropriate powers to ensure they do not increase duplication; Urban Regeneration Companies should employ masterplans to ensure developments are well-designed.

Government should introduce an improved CPO procedure to facilitate land assembly. The current review should be completed as a matter of urgency (paragraph 130).

(u)  The White Paper should set out how the Government proposes to ensure that there is proper involvement of, and consultation with, local communities in taking forward its vision for Britain's cities (paragraph 135).

(v)  The "new set of financial instruments to attract large-scale private investment into towns and cities" should include:

-  national and regional public-private investment funds and a revolving fund for land assembly and the recycling of derelict buildings. The English Cities Fund should be set up as a matter of urgency. In the mean time regional development agencies should have sufficient funds to tackle dereliction and land assembly.

         -  further fiscal incentives for developers, house owners and house buyers in areas of low demand, in particular:

-  a reduction of VAT on the refurbishment of housing to 5%;

-  a reduction of stamp duty on developments on brownfield sites;

A vacant land tax to encourage development on derelict land and the re-introduction of a Development Land Tax should be considered. We are concerned that the valuation system overestimates the value of inner city properties for both the Business Rate and the Council Tax. This should be reviewed (paragraph 147).

-  We are appalled by the slow progress made by the Treasury in evaluating such important matters. The Task Force reported in June 1999, but the Treasury will not have completed an evaluation of any recommendation until November 2000 ie almost 18 months later (paragraph 148).

-  The European Commission's ruling against gap funding, the main instrument to promote urban regeneration, makes the introduction of these measures all the more urgent. Regional Development Agencies should have access to sufficient funds to undertake direct development to compensate for this decision (paragraph 149).

(w)  Once urban capacity studies have been completed in the light of PPG 3's insistence on higher densities, the Government should review the 60% target for building housing on brownfield sites. Its aim should be to concentrate development on brownfield sites in appropriate urban locations. Accordingly, as we have frequently recommended, it should set a target for the use of brownfield sites in urban areas. It must reject unacceptably low figures set for brownfield use by regional planning conferences. We are particularly disappointed by the proposals for the east midlands and the north east. The Government should report at the earliest opportunity on its review of allocations of greenfield land for housing and should continue to press councils to de-allocate where the locations are inappropriate. New greenfield development should cover the full cost of necessary associated services such as schools. The Government must remain steadfast in its determination not to relax PPG 6. The forthcoming guidance note on clusters must similarly discourage out-of-town development (paragraph 159).

(x)  As the Task Force told us, bringing about an urban renaissance will require better use of public funds, and significant increases in some areas. Priorities are:

-  most importantly, better use of mainstream funds;

-  increased funding for urban regeneration programmes;

-  major increases for the relatively small budgets for investment in the urban environment and infrastructure, including investment in people and institutions; and

-  substantial increases for public transport (paragraph 164).

(y)  Some of the money could be raised to pay for this by a number of additional fiscal measures, which we have already discussed, and which would be beneficial. Careful consideration should be given both to finding a means of taxing the large windfalls gains made by landowners when they sell land which receives planning permission for development and to a vacant land tax. Funds can also be found from the significant sums raised from urban development activity by increases in Stamp Duty (paragraph 165).

(z)  The Government prides itself on its 'cross-cutting' approach to government. Unfortunately there is too little evidence of this in preparing the Urban White Paper. Some policies are in place which will assist the urban renaissance.

-  The DETR has made an excellent start with the publication of PPG 3.

-  The DTI's work on business clusters has recognised the vital importance of cities.

-  Its aim of a sustainable economic policy is a reason for optimism.

Elsewhere, the picture is more depressing.

-  As the report of the Performance and Innovation Unit in the Cabinet Office showed, there is a lack of co-ordination between local, regional and national government. The new Regional Co-ordination Unit has been set up to address this problem, but we are concerned that it will not be able to.

-  The quality of services provided to urban neighbourhoods is very poor despite the large amount of mainstream funds spent. The Social Exclusion Unit and the Performance and Innovation Unit pointed out that there were too many local initiatives. The available funds for urban regeneration should be more clearly co-ordinated and focussed.

-  Most parts of Government appear to see urban policy, not like the Urban Task Force as a means of transforming our cities and of bringing about an urban renaissance, but as a way of tackling the problems of deprived urban neighbourhoods. This is important, but this approach must not dominate the Urban White Paper. We are disappointed that the Government has given the Social Exclusion Unit a remit which means that it has all but ignored the work of the Urban Task Force, and so has little to say about the key Rogers recommendations on the need to create mixed communities. We need an urban policy, not a neighbourhood policy.

-  DTI and DETR do not appear to have the same views about the role of cities in the regional economy. The economic prosperity of cities and regions are tied together. The Government must decide what its policy on the north/south divide is.

-  The quality of people and institutions involved in urban design are of critical importance, but the funding provided by the Department of Culture Media and Sport to support them is inadequate.

-  Worst of all the Treasury appears to have kicked the Report into the long grass. It is disgraceful that over a year after the report was published, the Treasury has come to no conclusions about the proposed fiscal measures put forward by the Task Force, and will not come to any until November at the earliest. The Financial Secretary may be a fan of the Urban Task Force Report, but there is as yet no evidence of this in the actions taken by the Treasury (paragraph 167).

(aa)  The poor co-ordination of Government policy strengthens the Task Force's recommendations for ensuring that its proposals are taken into account by all parts of Government. In particular, to ensure progress is to be made the Government should:

-  establish public service agreements with performance indicators for the urban renaissance as part of the Comprehensive Spending Review;

-  establish an Urban Policy Board;

-  publish an annual State of the Cities and Towns Report. (paragraph 168).


 
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