Select Committee on Public Accounts Thirty-Eighth Report


1 Tackling deprivation effectively

1. Over the last decade a series of different central government initiatives and approaches have been designed to tackle the problems of deprived and disadvantaged communities, including most recently Urban Development Corporations,[2] Urban Regeneration Companies, the Single Regeneration Budget and the Neighbourhood Renewal Fund.

2. In 1999 the Office of the Deputy Prime Minister launched what is intended to be a new experiment in neighbourhood renewal — the New Deal for Communities (NDC). This programme places a strong emphasis on the role that community residents can play in changing their neighbourhood by placing them at the heart of decision making. Each neighbourhood has established a board to represent the interests of local people and to partner with delivery agents to reduce the extent of crime, unemployment, poor health, low educational performance and improve the physical environment.

3. The number of communities eligible to pilot this new approach was determined by the money allocated to the programme. Some £2 billion has been made available over ten years. The Office of the Deputy Prime Minister judged that this was sufficient for some 39 communities to be involved. The local authority areas eligible for NDC funding were selected using the 1998 Index of Multiple Deprivation and a regional quota system.[3] The map at Figure 1 shows the location of the communities selected.

4. The NDC programme represents an approach to neighbourhood renewal which makes additional resources available to targeted communities which comprise, on average, 10,000 people. Area based initiatives such as the NDC favour particular communities over others. This approach risks creating resentment from neighbouring communities who may feel they are missing out.[4]

5. The NDC programme is one of many government area based initiatives aimed at tackling general or specific conditions associated with multiple deprivation. The Department told us that for example in Derby between 50 and 60 separate streams of area based funding had been identified.[5] The Department acknowledged that Whitehall is not as good as it should be at persuading partners to pull together their programmes, and that schemes needed to be better co-ordinated and pooled where possible to reduce the overheads in managing them.[6]


6. The NDC partnerships represent one of an increasing number of public bodies and partnerships involved at different levels in regeneration activity. For example, the Thames Gateway project, a separate regeneration initiative, involves several local authorities, three regional development agencies, two proposed urban development corporations, the Housing Corporation, English Partnerships as well as a division of the Office of the Deputy Prime Minister.[7] There is no single formal framework covering the bodies, schemes and initiatives involved in neighbourhood renewal and responsibility and accountability for delivery is increasingly complex.[8]


2   57th Report from the Committee of Public Accounts, The operation and wind-up of Teesside Development Corporation (HC 675, Session 2001-02) Back

3   Ev 16-17 Back

4   Qq 22-23 Back

5   Q 34 Back

6   Qq 34-35  Back

7   Office of the Deputy Prime Minister, Creating Sustainable Communities: Greening the Gateway Back

8   Qq 34-35, 127 Back


 
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Prepared 14 September 2004