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


Memorandum by the Heritage Lottery Fund (HIS 35)

THE ROLE OF THE HERITAGE LOTTERY FUND

  The Heritage Lottery Fund (HLF) distributes money from the National Lottery to heritage projects across the United Kingdom. HLF has committed £2.8bn to 14,051 heritage projects across the UK since 1995. Our primary aims in distributing this funding[36] are:

    —  to encourage more people to be involved in and make decisions about their heritage;

    —  to conserve and enhance UK's diverse heritage; and,

    —  to ensure that everyone can learn about, have access to and enjoy their heritage.

  A further aim is to:

    —  bring about a more equitable spread of our grants across the UK.

  Government has also asked us to address regeneration in our Policy Directions[37], which include:

    —  the scope for reducing economic and social deprivation, at the same time as creating heritage benefits.

  Our Strategic Plan specifically states that we will seek to promote heritage conservation as an integral part of urban and rural regeneration.

HERITAGE AND REGENERATION

  Our approach differs from that of other heritage agencies in that our definition of heritage is broader; it includes buildings, parks, landscapes, museums, archives, townscapes, waterways and archaeology, whether of local or national importance, as well as intangible heritage such as language or oral traditions. We also emphasise the need to deliver benefits to people as well as to places. We challenge our applicants to deliver not just conservation, but greater access and involvement for communities and new economically sustainable uses for historic places.

  Places—buildings, landscapes or townscapes—are part of that wider heritage. People often relate strongly to the places where they live or were brought up. Historic buildings or features contribute to the distinctiveness and identity of places, and can be a source of history and meaning for people. Heritage adds depth, character and value to places. Individual owners may bear the cost of caring for a historic place, but the benefits accrue to the wider community. This is why there is often a case for subsidy or regulation to correct market failure. HLF primarily funds not-for-profit organisations and an important principle of all of our funding is that we need to ensure that any potential private gain is outweighed by benefit to the public at large.

  People are concerned about the heritage of their local area and what is happening to it, and do see the preservation of historic buildings and parks as important. In a recent MORI survey consulting 1500 adults, 92% felt that "it is important to keep historic features wherever possible when trying to improve villages, towns and cities"[38]. Indeed, as this survey shows, concern about the state of buildings in their local area often acts as a motivation for people to take a greater interest in the heritage.

HLF GRANTS FOR AREAS IN NEED OF REGENERATION

  We operate a number of different grant schemes, of which the most relevant to this inquiry are:

Heritage Grants Scheme

  Grants of £50,000 or more can be given to projects that relate to the national, regional or local heritage of the UK. This is the programme under which the bulk of larger capital grants for the repair of historic buildings have been allocated. A good example is the Nottingham Lace Market (see Appendix Two).

Townscape Heritage Initiative (THI)

  This is the most obvious means by which we contribute to urban regeneration. We support schemes led by partnerships that aim to regenerate the historic environment in towns and cities across the UK. Together with other organisations, often led by local authorities, we contribute to a common fund, managed by the partnership to allocate funds towards conservation work on individual projects. It explicitly targets areas of social and economic deprivation. The important thing is that THIs address conservation needs as part of (and not isolated from) wider area strategies.

Public Parks Initiative

  This programme is directed towards public parks, which means a designed green space, whether large or small, rural or urban. They are usually owned and managed by a local authority as a public open space. Projects we have funded not only repair and enhance the historic character of parks, but have also created new facilities to meet the needs of today's parks' users.

Repair Grants for Places of Worship

  These schemes, operated since 2002 in Scotland, Wales, Northern Ireland and England, target listed places of worship. Between 1996 and 2002, places of worship in England were funded under the Joint Scheme for Places of Worship, administered in partnership with English Heritage (1996-2002). For a time, 1999-2002, the HLF contribution was specifically targeted on local authority areas which contained deprived areas as determined by the Index of Multiple Deprivation. We reviewed these grants during 2001, and decided that we could not meet heritage needs by focussing only on these specific areas of deprivation. There is a high demand for these grants, and they are now available anywhere in the country, but only for urgent structural repairs, and where there is demonstrable need.

  About 44% of the total funding of all the above programmes has been to projects in the most deprived areas of the UK. Many projects are not located within areas which are formally identified as being in deprived wards but nevertheless are in need of regeneration. Two examples are:

Coalfields

  We have targeted coalfields as areas in particular need[39], and in partnership with the Coalfields Community Campaign and the Coal Industry Social Welfare Organisation, we have focused funding in those areas. We have given a total of £342.8m to 1040 projects in coalfield areas to date.

Seaside towns

  The recent CABE publication, Shifting Sands[40], highlighted a number of projects funded by HLF that have contributed to the creative regeneration of English seaside towns. As the number of seaside trips has fallen, the need to invest in these areas has risen. One of the projects praised by the report was Marine Gardens Clacton (HLF grant of £416k). We have given £143m to 316 projects in England.

Development Teams

  In order to encourage more applications from communities which have to date received the least funding and fewest grants from us, and which are in areas of economic and social deprivation, we have established Development Teams in each of our regional and country offices.

THE CONTRIBUTION OF INDIVIDUAL HLF-FUNDED PROJECTS TO REGENERATION

  Individual projects illustrate more specific ways in which funding for heritage can contribute to regeneration. They show that our funding can:

    —  Provide a community focus for regeneration

    An HLF contribution of nearly £1m to the community-led conversion of a red-brick Victorian building in Halton, near Widnes, has resulted in the provision of a library, Sure Start nursery, youth club, a base for Halton's Workforce Development project, a cyber café and an adult learning suite, and has built momentum for the wider regeneration of the area.

    —  Create employment

    The regeneration of Chatham Dockyard with £12.3m of grant from HLF, has helped to attract 100 businesses, employing over 1,000 people. The historic attractions have already attracted 1.5 million visitors and improvements to the site have already had wider regeneration implications for the Thames Gateway area, in which Chatham is situated. Research by the Southern Tourist Board concludes that the Historic Dockyard is worth £20 million for the local economy.

    —  Contribute to attractive living and working conditions

    Birmingham Cathedral Square is one of the key open spaces in the city. HLF grant of £2 million has restored the physical fabric of the square and provided a high-quality open space. This has acted as a catalyst for the regeneration of the surrounding area and contributed to a fall in vacancy rates in the nearby business premises. When the square was neglected and run down, vacancy rates were high; since the improvements, office space surrounding the square has been in high demand and a number of premises have been refurbished. As a result, it is estimated that around 1,200 jobs have been created by firms relocating to this area of the city

    —  Encourage sustainable tourism

    HLF has contributed grants of more than £5m towards the restoration of HMS Trincomalee in Hartlepool and to the conversion of the South Docks into a major visitor destination and commercial area. The area is actively promoted by Hartlepool in its Europe-wide campaigns to attract visitors to sample UK mini-break cities.

    —  Enhance people's quality of life

    Lister Park in Bradford has been transformed with £3.2m of HLF funding from a vandalised space, not regarded as a safe place to play, into the focus for many community activities, including the Bradford Festival in July, with involvement from all sections of the community.

    —  Contribute to social inclusion, learning, health and safe environments

    The refurbishment and conversion of St Luke's Church, Canning Town (£800k HLF grant) has led to a range of important new facilities and services being made available to the residents and has rescued from blight the only historic building surviving in this Docklands location, providing office facilities for business start-ups, three GP surgeries, a child care facility, computer access, a community education training suite and a café. Docklands Recruitment, First Call Training Force, Families at Canning Town and Powerhouse are all based at St Luke's and their services and advice have helped hundreds of people to find employment.

    —  Contribute to local distinctiveness by linking a place with its industrial past

    Within the overall figure of £342.8m quoted above as our awards in coalfields areas, HLF has made substantial awards to key mining museums at Caphouse Colliery, Wakefield, at the Lady Victoria Colliery (the Scottish Mining Museum), Chatterley Whitfield in Stoke on Trent, Woodhorn Colliery in Northumberland, and at Big Pit, Blanaevon. We have also funded restoration and improvement works to places of worship, schools, libraries and institutes, and by funding the recording of physical and oral heritage to reinforce this sense of history and local distinctiveness.

    —  Develop skills

    A THI grant to Denbigh (£1.3m HLF grant) has not only brought historic buildings back into use as residential units and commercial floorspace but has also has been used to raise awareness of traditional skills in the area. Events such as the Denbigh Open Heritage weekend have been held to illustrate their practical application to local professionals and contractors. The work carried out to date has vastly improved the historic building stock of the town and generated increased economic activity.

RESEARCH FINDINGS: HERITAGE IN REGENERATION SCHEMES

  Our research is beginning to provide useful information about the impact of our programmes and how effective they are in delivering wider objectives, such as regeneration.

Economic benefits

  HLF joined English Heritage and the East of England Development Agency in a study of the impact of heritage funding[41]. It found that every £10,000 levered in an average of £45,000 of match funding from private sector and public sources.

The impact of Townscape Heritage Initiatives

  An interim evaluation of 17 THI[42] projects has found that in the majority of schemes THI had been a catalyst for regeneration which would not have otherwise happened, or would have happened more slowly. The investment generated in the majority of the THI areas was genuinely new and there was little evidence that it would have gone elsewhere had THI not existed. THIs did create some of the conditions for sustaining regeneration locally—some of the partnerships that were initiated have become the focus for further regeneration initiatives; and in many cases new skills in conservation projects and partnerships were developed.

  It was important to have an experienced partnership who were aware of the challenges, and THI staff who were skilled. The programme needed to allow enough time to commit other funding sources and it was vital that projects were monitored to uphold standards.

  Problems were encountered where there were many different owners or where there was a lack of local conservation skills. THI funding alone could not overcome fundamental economic problems such as the closure of local industries.

Achievements through the funding of Public Parks

  Similar issues emerged from an evaluation of the Urban Parks Programme[43], where the most successful projects were those with a clear strategy, skilled staff and strong local champions. The study also found that the distribution of funding matched need. Over 50% of grants had gone to the 10% most deprived districts in the country.

  Some of the wider public benefits emerging from parks projects included:

    —  a positive impact on local social and economic conditions;

    —  reduced crime or fear of crime;

    —  greater use of parks;

    —  greater community involvement in parks.

  For example, at Vernon Park in Stockport, reported incidents of crime fell steadily after the award of our grant.

COMMENTS ON THE ROLE OF HERITAGE IN REGENERATION

    —  The repair of historic buildings makes a positive contribution to urban regeneration by contributing to the quality and distinctiveness of local areas. Repairing historic buildings also addresses a principal source of public concern about their local areas.

    —  We believe that the contribution that heritage can make to regeneration goes beyond historic buildings—parks and other green spaces are vital as are works to the public realm as well as waterways and canals. Indeed any heritage project in a deprived area—including museum and activity projects—may have the potential to contribute to regeneration through enhancing and opening up what people most value.

    —  We have learnt that in order to be effective, a heritage regeneration project (such as a park or THI) needs to have very clear conservation objectives. It needs to be big enough to make a visible difference to an area (or the funding needs to be concentrated in one place). The local authority needs good conservation skills and experience, and it is important that there is staff continuity during the project. Local community involvement is a key to sustainability.

    —  THI funding, which is offered up front, in advance of other commitments, acts as a catalyst for other funding sources. Committing funding for five years also allows time for other funders to come on board.

    —  Our applicants report some problems in co-ordinating the different packages of funding available for area regeneration, particularly those that involve tight timescales. We would see the RDAs as playing a critical role in co-ordinating regional strategies for urban regeneration that involve heritage.

    —  In the past, heritage schemes have focused very much on physical repairs to property. In addition to this, we ask that there should be a sustainable use for the property and that there should be strong community involvement in the scheme. Funding training and skills as part of projects also contributes to long term sustainability.

    —  Funding for heritage cannot, in isolation from other measures, reverse endemic economic problems but can be a catalyst for changing perceptions of an area. Experience shows it is most effective when deployed as part of a wider regeneration strategy.

    —  There is a delicate relationship between any regeneration funding and the operation of the local property market. Initial investment may change perceptions of an area which can then create a speculative property market where properties are bought up and left empty in the hope of a rising market. Local authorities can break this cycle by using Compulsory Purchase Orders.

    —  The quality of conservation work is an important element in the success of physical regeneration. Our monitors report that heritage standards are variable across the country, and in areas where the economy is not strong it may be that high standards of conservation are seen as not achievable. Well conserved buildings and spaces can add value to a place—poor conservation can erode the character and quality of an area just as easily as poor new design.

    —  The impact of funding for individual projects can only be sustained if local authorities operate the system of statutory heritage protection effectively and fairly, including statutory consent, enforcement, repairs notices, compulsory purchase orders and directions. It is also vital that there are sufficient resources within local planning authorities to deliver conservation objectives. Whilst initial funding can change the perception of the area, the ability of local authorities to protect this investment in the long term is the platform on which funders like HLF can build with confidence.

Heritage Lottery Fund

November 2003

APPENDIX ONE: HLF FUNDING IN AREAS OF DEPRIVATION

  The total number of grants approved by HLF at 31 October 2003:  14,051

  The total amount of funding approved by HLF:  £2.8bn

  The following table shows HLF funding to programmes that make the greatest contribution to physical regeneration in the most deprived areas of the UK.

  1 January 1995—3 October 2003

Grant Programme Total number
of projects
Total number of
projects in
deprived areas
Total
funding (£)
Total funding
in deprived
areas (£)
Conservation area partnerships (to 1998) 11361 (54%)£25m £13.2m
(53%)


Townscape Heritage Initiative (from 1999)
12052 (43%)£74.1m £36.7m
(49.5%)


Heritage Grants (including its predecessor Standard Grant programme)
3,511921 (26%)£1.6b £603.1m
(37.7%)


Public Parks Initiative (including its predecessor Urban Parks Programme)
394160 (40%)£310.6m £192.8m
(62%)


Repair Grants for Places of Worship and Joint Places of Worship (England)
699297 (42%)£60.4m £42.6m
(71%)


Total (programmes listed above)
4,8371,491 (31%)£2.1b £888.4m
(44%)


  We have defined deprived areas as follows:

    —  In England we have used Office of National Statistics guidelines (the baseline is the 50 most deprived local authorities as defined by the Neighbourhood Renewal Unit).

    —  In Northern Ireland, we have used the Deprivation Index 2003—any local authority with at least one ward ranked in the 45 most deprived wards is classed as deprived.

    —  Scottish local authorities are classed as deprived using the Scottish Deprivation Index 2003—any local authority with at least one ward in the ranking of the 100 most deprived places.

    —  Welsh local authorities are classed as deprived according to the Welsh National Assembly's definitions.

  All figures include both approved and completed projects. Monetary values represent the sum of actual grants awarded and do not include stage 1 offers. Figures for Repair Grants for Places of Worship in England are to April 2003.

APPENDIX TWO: NOTTINGHAM LACE MARKET

  HLF regeneration projects vary in scale and character. An example of one of the biggest and most effective projects is Nottingham Lace Market.

Nottingham Lace Market

  HLF investment of £6 million—combined with Private Finance Initiative (PFI) funds—enabled the conversion of the Adams Building—a Grade II listed former textile factory—into a busy campus for New College, Nottingham, with around 3,000 students.

  HLF also contributed £4 million to converting the former Shire Hall into the Galleries of Justice, home to the National Centre for Citizenship and the Law (NCCL), which works with the Youth Justice Board to help young offenders and children excluded from school. HLF funding for these two buildings is widely acknowledged to have been the starting point for the urban renewal of the Lace Market district, which is today renowned as the city's "creative" or "cultural quarter", a reputation supported by a survey undertaken in 1996 by Crewe and Beaverstock, which revealed that 80% of the 450 firms that had recently located to the Lace Market were engaged in cultural production or consumption.


36   Broadening the Horizons of Heritage: The Heritage Lottery Strategic Plan 2002-07. Back

37   Directions issued to the Trustees of the National Heritage Memorial Fund under section 26 (1) and (2) of the National Lottery etc. Act 1993. Back

38   Making heritage count. English Heritage, Department for Culture, Media and Sport, Heritage Lottery Fund (October 2003). Back

39   HLF Memorandum to the ODPM Select Committee Inquiry into Coalfield Communities (October 2003). Back

40   Shifting Sands: Design and the Changing Image of the English Seaside Towns. English Heritage, CABE (2003). Back

41   Heritage Dividend (East of England Region 2003). Back

42   Townscape Heritage Initiative Schemes Evaluation: Interim Report Summary, Department of Planning, Oxford Brookes University (October 2003). Back

43   SQW and Land Use Consultants, Urban Parks Programme Evaluation (2003). Back


 
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