Select Committee on Environment, Transport and Regional Affairs Memoranda


Memorandum by SOLACE (UWP 58)

THE PROPOSED URBAN WHITE PAPER

INTRODUCTION

  The new Millennium serves as a symbol for change in our society and it is significant that within a climate of national renewal and modernisation, Government will this year produce its first major urban policy statement since 1978. There are many challenges to face and opportunities to grasp in finding new ways of tackling urban problems that, despite the best of intentions over the years, still remain with us. In line with the symbolism represented by the new Millennium, the proposed urban white paper needs to be bold and innovative and needs to cultivate a broad appetite for change amongst the various stakeholders anxious for an urban renaissance.

  Local government stands as one of the key stakeholders in urban change. SOLACE represents the professional interests of senior managers in local government and is keen to promote what it regards as good practice in urban policy. Consequently this document outlines the challenges to which we believe the Urban White Paper must give priority.

  In broad terms, the White Paper must provide the necessary framework for proper sustainable development—addressing economic, social and environmental well being simultaneously and with equal vigour. More specifically, the key challenges are about building the infrastructure necessary to create:

    —  A sustainable urban economy built on competitiveness and equality of opportunity, where inequality and discrimination are not tolerated and where talent is recognised and maximised.

    —  A climate of social inclusion within which new forms of governance cultivate citizen involvement in delivering the urban agenda, and where each and every stakeholder receives clear and explicit policy messages concerning how they can contribute.

    —  A quality physical urban environment able to stem the tide of migration from urban areas, stopping encroachment of the countryside and attracting people back to urban and inner-city areas.

  Public surveys repeatedly show that community safety, quality education and health provision, housing choice and employment opportunities are priority issues for the public. The government must ensure that these issues are to the fore in its urban policies and that structures are in place to promote their full integration.

CREATING COMPETITIVE URBAN ECONOMIES

  In order to prosper, urban areas require a sound employment base providing ample job and training opportunities for local people as well as ongoing investment in sustainable economic growth. In addition, people need good quality housing in relatively close proximity to their work, or at least effective transport facilities that minimise their journey to work. These factors reflect the core recommendations of the Urban Task Force by encouraging the development of housing, industry and infrastructure in urban areas and restricting land release in rural areas.

  A national agenda for urban renewal cannot be achieved unless urban policy is aligned to a national economic strategy that provides a greater sense of overall direction and sense of identity as well as quite powerful messages about common national purpose. For whilst certain urban areas experience a concentration of investment and growth, others suffer from disinvestment and a chronic underemployment of resources. National prosperity and competitiveness therefore depend upon a more balanced approach to spreading investment between our urban areas and by implication, our major cities.

  One crucial factor in promoting such an approach comes from economic policies which recognise, support and nurture business clustering. The notion of clustering has been stressed in the Competitiveness White Paper and encourages companies serving a particular industry base (or economic growth area) to locate in close proximity to each other, taking advantage of reduced production costs, a particular skills base or research and education facilities. Clusters might be forged within recreation and tourism, manufacturing or technology, financial or retailing, or in some instances, multiple bases may exist.

  It is our view that national Urban Policy should aim to explicitly identify and nurture distinctive clusters encouraging each urban area to produce a long term (10-15 years) strategy proposing cluster development and its viability within a national (and international) context. These of course should be intrinsically linked to each Regional Economic Strategy. In aiding this process, national policy should aim to create more major facilities able to support cluster industries and ensure a more even distribution across the country. Such facilities would include public R&D, national cultural and leisure facilities, centres of excellence (in architecture, for example), rail and airport infrastructure.

  In many urban areas resources such as local labour or local skills are either severely underdeveloped or underemployed and it is fundamentally important for both economic success and social inclusion that these issues be addressed. Programmes such as New Deal create sustainable solutions to social exclusion because they increase people's access to jobs within local labour markets. They also help to create additional demand for labour made more attractive by work experience and skills development thus attracting new investment and jobs to an area because it is perceived to possess a high skills base. They also release resources otherwise tied up in long term Benefit payments.

  Some further suggestions for the White Paper:

    —  Support the expansion of small to medium enterprises (SMEs) and ensure that experiments in community economic development (which enhance the social economy) have full mainstream recognition and support.

    —  To further supplement local competitiveness and social inclusion, people need access to good quality education and to lifelong learning opportunities. This is advocated in the Competitiveness White Paper and is a prerequisite of a knowledge-based economy.

    —  There is an urgent need to increase dramatically the levels of capital investment in urban areas—especially if suggested CPO powers are to be productive. Some of this investment must come from the public sector, (recognising as well that some revenue resources would be needed to maintain over time those capital investments).

CREATING SOCIAL INCLUSION

  The urban policy agenda includes tackling poverty and the debilitating problems that it creates. The White Paper must ensure that public services such as education, housing, health, community care, leisure facilities, environmental enhancements and community safety are effective and able to promote social inclusion.

  Service quality should aspire to Best Value but it would also specify democratic interactions between service providers and the receiving public. Service delivery must strive to create opportunities for "co-production" and partnerships with service recipients, turning "exclusion" into "inclusion".

  Participation and co-production and fundamental to building social capital (the ability or capacity of communities to problem solve and the establishment of trust, credibility and co-operation between urban stakeholders) and sustainable communities. The Urban White Paper must therefore fully endorse initiatives which lead to co-production. These initiatives must be encouraged within agencies and levels of governance as well as between agencies and levels of governance. We would expect the White Paper to help identify sustainable participation processes and explicitly earmark the necessary resources.

  Urban centres are places of great cultural diversity making them vibrant and exciting thus enriching urban life. We would expect the White Paper to celebrate and support this diversity. One way in which this could be done would be to utilise the economic potential that such diversity could bring to certain urban areas.

  If it is to be effective the Urban White Paper must set the ground rules for partnership. It must provide clear and explicit statements indicating the expectations that government may have of the relevant stakeholders in urban policy and clear indications of what powers will need to apply if those expectations are to be fulfilled. Representing some local authority stakeholders, for example, SOLACE would expect clear messages from the Government on how local government can input to national policies. But we would stress that these same clear messages must also be conveyed to the other players within the statutory, voluntary and private sectors, as well as the community generally.

  We would expect the Government to clarify the powers and responsibilities of the varying levels of urban governance and the inter-relationships between them. We would expect support for the principle that local urban areas are different, experiencing different challenges and opportunities and that the autonomy of local partnerships is essential. The White Paper faces a difficult challenge here because it must avoid prescriptive, blanket solutions, yet at the same time ensure that urban policy worked to a national context.

  The Paper should show how leadership and resources might be promoted at each governance level and how intervention can be rationalised. The Government should as an example to others, promote coherence within its various action zones and area initiatives as well as joined up working between its various departments. It should give full commitment to enabling, preserving and actively participating in local partnerships.

  This could be facilitated by the idea of a contract approach between the Government and partners with mainstream public funds supporting the contract (and this possibly levering in private sector resources). This would bring into play the possibility of public service level agreements to ensure that participating agencies operated to a coherent action plan and were to meet their obligations.

  Generally speaking, the Government is to be congratulated on its commitment to improving urban areas through better working between services. The Crime and Disorder Strategy and the Health Improvement Programme are two key examples. However, on the basis of our experience in such programmes there still remain some fundamental issues concerning the flow of resources for joint working which need resolution.

  Some further suggestions for the White Paper:

    —  Mixed tenure of housing is essential for building sustainable cohesive communities. Past housing policies have tended to increase social polarisation and to concentrate disadvantage. New housing policies and experiments are reversing these tendencies and need adjustment and reinforcement in the White Paper. Significant lessons can also be learnt from schemes promoting tenant participation and more local management.

  This Spring, the SEU produces its strategy for Neighbourhood Renewal and a renewed emphasis on local neighbourhood management of services is expected. Our crucial message here is the Government must avoid competitive bidding for resources between neighbourhoods. Whilst there is considerable value in a neighbourhood focus, the distribution of potential resources must be done within the context of the above observations and wider community planning.

    —  Current short time scales in regeneration programmes preclude any early developmental work with communities and permit only superficial community participation and capacity building. They also mean inadequate resources to fully address the scale of many issues. They should be extended.

    —  Enable a review of the Benefits system ensuring especially that those who cannot work because of age, infirmity or caring responsibilities receive a just and fair share of increased prosperity and to free-up resources for local job opportunities.

    —  Particularly focused and resourced long-term "catching-up" investment is needed in the schools of deprived areas in order to raise relative standards to the rest of the country. The same follows for a number of other public services.

CREATING A QUALITY ENVIRONMENT

  A high quality physical fabric is crucial if urban areas are to prosper. People require a clean and safe environment that reflects prosperity and is at the same time sustainable. They require good quality and affordable housing, accessible to local employment opportunities and services and of mixed tenure. As suggested in the previous section, housing developments of mixed tenure are important because they promote social cohesion and hence improve the quality and attractiveness of the urban environment.

  Housing provision faces three very crucial issues in need of resolution. First, in London and the south-east housing prices are rising and demand is high but in many other urban centres—particularly in the industrial north—house prices are low and exacerbated by inner city "abandonment". Second, a constant demand for private housing development in greenfield sites against a Government desire to utilise brownfield sites in urban or inner-city areas. Third, the need for increased investment in run-down older private housing and social housing.

  An effective and integrated transport system is critical. Accessibility to employment and leisure is fundamental and residents and the workforce (as well as visitors) need to be able to move about easily and safely. Public transport needs to be greatly enhanced yet is reeling from years of public disinvestment and de-regulation. Public belief in the necessity of private car use is still very strong and along with efficient transport routes, considered vital for economic growth and enhancing competitiveness. Alternatively, for environmental and health reasons, there are increasing calls to introduce financial disincentives to limit private car use. Given the high levels of investment required, there appears to be considerable uncertainty on how to proceed in tackling these basic tensions and it is therefore hoped that the Urban White Paper may begin to show the way.

  Holding all these elements together requires an effective system of land use planning able to respond with flexibility to the present and future needs of urban areas and the White Paper needs to address this. The current statutory planning system needs updating if improvements in the physical fabric of urban areas are to make headway. Its current legislative and cultural ethos is one of regulation and control with little promotion of quality, vision and innovation. Many of the recommendations of the Urban Task Force address this particular issue.

  Some further suggestions for the White Paper:

    —  Facilitate funding packages (including the Private Finance Initiative) to upgrade existing private and social housing.

    —  Facilitate certain fiscal measures to encourage greater private sector involvement, for example, the introduction of a Business Improvement District (BIDs) regime, emulating the successful examples in the US.

    —  Encourage brownfield redevelopment through financial and legislative mechanisms and encourage wider tenure on housing developments on both brownfield and greenfield sites.

    —  Identify precisely how more affluent residents may be attracted into new mixed inner-city or urban housing developments.

    —  Identify how cycling and walking might be encouraged in preference to car use.

URBAN TASK FORCE: OUR PRIORITY RECOMMENDATIONS

  After due consideration, the Urban Task Force has made 105 recommendations aimed at creating an Urban Renaissance. From our point of view the key message must be about releasing derelict or underutilised urban land for modern housing, industrial and other developments capable of attracting people to live and work in quality and sustainable urban environments. Our priority recommendations are therefore:

    —  New regeneration vehicles such as Regeneration and Housing companies able to secure private sector investment to refurbish deteriorating and low-value private housing are desperately needed:

    —  The range of proposals aimed at speeding up the reuse of vacant land and buildings and counteracting the power of unhelpful landlords are particularly welcome. This includes stronger CPO powers for local authorities.

    —  Strengthening the New Commitment to Regeneration programme by combining Government departments' spending powers and by the Government signing up to local strategies.

    —  Securing public benefit from taxing development values and the potential of planning gain under S106. An example might include contributions to a Development Trust's assets base.

    —  The establishment of a "Renaissance Fund" supporting neighbourhood and community involvement in the restoration of derelict land and buildings.

    —  Measures to strengthen regional planning guidance.

CONCLUSION

  An array of urban initiatives will only go so far in raising the quality of life for local disadvantaged communities and cannot resolve many of the problems arising from wider structural factors. These include the impact of globalisation on income distribution, employment and competitiveness, the impact of regional housing and labour markets on the spatial distribution of social exclusion, and the difficulties of raising the motivation of young people without an increase in the demand for labour. These are big, intractable issues that can only be tackled by national policies such as more effective income distribution programmes and the stimulation of competitiveness.

  Overall, the Urban White Paper must at least do two things. It must acknowledge and reflect the bigger national picture and from a local government standpoint, it must illustrate how local government can more explicitly contribute to national policies in order to make them more effective.

Sir Michael Lyons

Chairman of the SOLACE Urban Policy Panel

January 2000


 
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