Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions Fourth Report


9  COMMUNITY FUNDING

79. The closure of the mines not only brought the loss of a large number of jobs, but also the loss of many welfare and social facilities which were provided by the former coal companies and the trade unions. Informal support networks were broken up. The Coalfields Task Force commented:

    "The impact of the sudden withdrawal of this support network has been enormous and has not been adequately supported by regeneration programmes." [84]

Since the Task Force report, there has been progress; the Lottery Funds are targeting the needs of coalfield areas and the Coalfields Regeneration Trust has been established, but long term funding at a level which reflects the areas' needs has not yet been provided and there is a particular problem with core revenue funds to run the community organisations.

The Lottery

80. The Coalfields Task Force highlighted the low level of grants from the Lottery Funds to coalfield areas and welcomed reforms in the pipeline to enable the funds to target resources at deprived areas.[85] In their submission to the Committee the Lottery Funds highlighted the new initiatives since 1998 which allocated funds and facilitated applications for projects from coalfield areas. There are still concerns however that the coalfield areas are still not getting their fair share from all the funds and there is a considerable accumulated funding shortfall which has yet to be made up.

81. The New Opportunities Fund and the Community Fund have developed a targeted approach by setting up small grant funds and employing support officers to enable applications from local groups in deprived areas including much of the coalfields. The New Opportunities Fund has invested about £382m in coalfield areas since 1998, 11% of its money.[86] The Heritage Lottery Fund has also prioritised small local heritage projects with immediate meaning for residents of towns and villages in the coalfield areas. More than £313.5m of Heritage Lottery Funds have been invested in 2,100 projects in coalfield areas.[87]

MONITORING

82. A report for the DCMS in November 2001 highlighted progress in increasing the coalfields' share of lottery funds from 45% of the GB award amount per capita given out between 1995 and 1998 to 60% between 1998 and 2001. There are no comprehensive figures available since 2001.[88] Launching the result of this research the Government also reaffirmed its commitment to improve the geographic spread of Lottery funding.[89] The DCMS needs to carry out a further monitoring exercise to assess whether the overall take-up of lottery funds in the coalfields area has continued to increase and ensure that its commitment to widen the geographic spread of Lottery funding is being achieved. If these objectives are not being attained, it should make appropriate changes to its policies and practices to ensure that they are attained.

PROGRESS ON INCREASING TAKE-UP

83. The evidence from the New Opportunities Fund shows that, overall in England, the coalfield areas are receiving slightly more than the average per head of population: on average £33.35 compared to £31.40.[90] This is a result of considerable effort through such programmes as Fair Share which targets those areas which have hitherto not received their share of Lottery funds and gives support with preparing projects and the application process. However, across all the funds there is still a shortfall. Cannock Chase Council pointed out that between 1995-2002 its per capita share of all Lottery funding was only £56.03 compared to a West Midlands regional average of £121.88 per head. The Council urged the DCMS to action its commitment to raise the coalfield's per capita share of Lottery funding as a matter of urgency.[91] The Coalfields Communities Campaign pointed out that by 2001, the cumulative underfunding of the coalfields totalled £400m. It urged that this should be made up.[92]

84. There has been progress in increasing the share of Lottery funding given to coalfield areas, particularly by the Community Fund and the New Opportunities Fund through the targeting of their funds. There is still considerable scope for further progress and a major cumulative shortfall. The DCMS needs to set out how it intends to achieve a fairer geographical distribution of lottery funds and also address this shortfall through more effective targeting of all the funds.

The Coalfields Regeneration Trust

85. The Coalfields Regeneration Trust was set up following the Coalfields Task Force Report which recommended that Government invest in a "ringfenced fund to support coalfields regeneration."[93] The trust was launched in 1999 primarily as a grant-making body to support coalfield communities. With funding from the ODPM it has invested about £69m in mainly grass roots projects managed by local communities.

86. The Trust has been widely welcomed as providing support for voluntary and community based projects. Its impact is being constrained because of its short term funding arrangements. The Trust receives funding commitments on a three yearly basis with no guarantee of continuation at the end of each three years. The Trust's director Janet Bibby told us:

    "the Trust, is funded only in three-year tranches, therefore it is very difficult to build in long-term sustainability for groups' funding." [94]

South Derbyshire District Council also pointed out that

    "because of its short lifespan, the trust has struggled to tackle some long term regeneration issues. What is required is a long term policy to ensure continuity of funding, including for project exit funding."[95]

The regeneration minister Lord Rooker pointed out that funding had been increased beyond what was initially envisaged, but he could not guarantee that its funding would be put on a long term basis.[96]

87. The Trust has developed innovative ways of working with local communities in developing funding bids for projects which have been welcomed by local authorities and local communities. The Coal Industry Social Welfare Organisation noted:

    "The initiative of the Deputy Prime Minister in establishing the Coalfields Regeneration Trust has been most welcome, particularly through its Small Grants Programme, which has done an enormous amount to build the confidence of local people through the initiation or development of small voluntary based activities." [97]

The Coalfields Regeneration Trust has made an important contribution by investing in community regeneration and building up the confidence of local communities. The uncertainties of its funding from central Government has limited its impact which should now be addressed. The Committee accepts that any long term commitment should be subject to regular review to ensure that the funds are still required. The Government should guarantee funding for at least ten years, subject to an interim review after five years.

Availability of long term funding

88. Many organisations are dependent on short term grants from funders which are themselves short term such as the Coalfields Regeneration Trust and SRB. There is a strong preference from those funders to take on short term innovative projects rather than the basic running costs. The CHUB Bilsthorpe Centre said:

The Government needs to review the availability of long term core revenue funding for local community organisations that can then develop innovative projects and prepare bids for grants from the Coalfields Regeneration Trust and Lottery funds.



84   Making the Difference A New start for England's Coalfield Communities, Coalfields Task Force Report, June 1998 p8 para1.6 Back

85   CTF Report para 6.34-6.38 Back

86   COA 58 Back

87   COA 15 Back

88   Fair distribution of Lottery funding to coalfields and other areas, DCMS November 2001, pages 31 & 32 Back

89   COA 32 Back

90   COA 58 Back

91   COA 20 Back

92   COA 03 Back

93   Making the Difference A New start for England's Coalfield Communities, Coalfields Task Force Report, June 1998, p52 Back

94   Q103 Back

95   COA 21 Back

96   Q238 Back

97   COA 35 Back

98   COA 04 Back


 
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