Select Committee on Environmental Audit Minutes of Evidence


Supplementary memorandum from English Partnerships

SUSTAINABLE COMMUNITIES: INFRASTRUCTURE

  A key part of the Sustainable Communities Plan is the necessary provision of "infrastructure" to support sustainable growth. Indeed, a key function of English Partnerships is to help bring forward sites for development to include the early procurement of local infrastructure.

  The Sustainable Communities Plan sets out the overall policy framework and structures within which decisions will be made and action taken. The introduction of Regional Housing Strategies and Regional Spatial Strategies are design to achieve improved and integrated forward planning of development and infrastructure requirements taking wider economic, social and environmental impacts into account. Guidance on Strategic Environmental Assessment and Regional Sustainability Appraisals has also been introduced to help support this process.

  Changes to the Planning system at the local authority level through the new Local Development Frameworks, Community Strategies and Local Transport Plans will aid with grater integration of plans and decision making.

  The Government is also looking to reduce stress and pressure on infrastructure by improving the planning and design of new communities so that they are accessible to public transport and local facilities and are built to high standards of sustainability thereby reducing power and water consumption. English Partnerships is heavily involved in this agenda with its work on design codes and standards. Consultation on the Building Regulations has recently ended and it is envisaged that these changes will bring about a 25% improvement in energy efficiency. Along with other work on standards (Sustainable Buildings Code), which EP is heavily involved with, these will bring substantial enhancements in the performance of buildings, thereby reducing the stress on infrastructure.

  There have also been a number of proposals to improve the local environment and management of the public realm through the introduction of a £201 million fund covering:

    —  Living Spaces scheme (£30 million)—giving direct help to communities to transform spaces on their doorstep.

    —  Liveability Fund (£89 million)—to improve local authority service delivery and physical improvements.

    —  Support for Groundwork (£40 million).

    —  Support for CABE and urban design skills (£34 million)—including the creation of CABE Space to champion public spaces.

    —  A special grants programme (£6 million).

GROWTH AREAS INFRASTRUCTURE

  Accelerating the growth areas requires up-front provision of transport, health, education and environment infrastructure. A Cabinet Committee (MISC 22) has been set up to bring together top level Ministers, chaired by the Prime Minister, from relevant Government Departments to drive forward the growth areas.

  The Government has taken the need for additional transport and non-transport infrastructure into account through the additional funding allocated to the growth areas (£446 million in Thames Gateway and £164 million in the remaining three), the establishment of delivery vehicles such as the Urban Development Corporations (UDCs) in Thames Gateway and similar bodies in Milton Keynes and Northampton), the changes to the Planning System to speed up delivery and through working closely with other Government Departments such as DfT, the Environment Agency, DoH and DfES to secure supporting infrastructure for development. Funding allocations for major services, such as health and education, should respond quickly to rapid population growth.

  The DoT carried out a multi-modal study of the impact of development in the Thames Gateway on existing transport infrastructure and an assessment of how various proposed transport initiatives would meet the additional demand. This has fed into Government's forward planning through the Spending Review.

  Major new transport initiatives are underway or planned from the A13 and A2 upgrades, DLR extension and high speed CTRL, improvements to the West Coast Mainline, and M1 widening between M25 and Milton Keynes are already underway. The recently published Transport for London 5 Year Investment Programme also includes a number of initiatives and future proposals relevant to the Thames Gateway including improvements to DLR, the District Line and East London Lines, new bus based transit schemes for East London and Greenwich Waterfront and a new Thames Gateway Bridge linking Beckton and Thamesmead.

  Growth areas provide some great opportunities for innovation in the provision of public services. Looking at building on the work already under way on co-location to help communities access a wide range of services under one roof.

  On 15 March 2004, Lord Rooker made a Parliamentary Statement detailing the Government's commitment to providing infrastructure alongside houses in the four growth areas. It outlined new commitments on health and education and confirmed previous commitments and progress on transport infrastructure.

HEALTH

  In March 2004, the DoH gave its backing to providing additional health service infrastructure to support the development of Sustainable Growth Areas. The DoH has agreed to provide:

    —  an extra £20 million of revenue funding in 2004-05 and 2005-06 to be allocated to Primary Care Trusts in the growth areas;

    —  £20 million of capital resources in 2005-06 to be allocated to Strategic Health Authorities in the growth areas;

    —  the DoH has also agreed to a "growth area adjustment" for Growth Areas at the next allocations round; and

    —  to give priority to Growth Areas for future LIFT (Local Improvement Finance Trust) schemes.

  This extra funding is on top of record levels of increase in NHS funding. Over the next two years, Primary Care Trusts have been allocated an average increase of 9.55% in 2004-05 and 9.32% in 2005-06.

EDUCATION

  DfES is working closely with Local Education Authorities to ensure school needs are being met. This includes reviewing the capital funding systems to ensure growth is catered for eg, mechanism to allow LEAs to seek additional capital support to meet exceptional circumstances. DfES will be discussing with rapid growth authorities their plans and funding needs.

  ODPM and DfES are working together to translate growth forecasts into pupil numbers and ensuring LEAs take these forecasts into account when planning school needs.

ENVIRONMENT

  Growth areas must be equipped with the water and sewerage services and infrastructure necessary to guarantee the long-term health of these communities. Government will seek to continue to involve the respective water undertakers and environmental regulators at an early stage in the development of proposals.

  ODPM has allocated £11.5 million to environmental projects in Ashford, Milton Keynes-South Midlands and London-Stansted-Cambridge-Peterborough to kick-start the Government's long-term vision for green spaces.

  £15 million has also been allocated to early action environmental projects in the Thames Gateway. The "Greening the Gateway" document, published in January 2004 outlines Government's vision for a network of publicly accessible green spaces across the Thames Gateway growth area. It aims to ensure heritage landscape is both protected and made available to local people for their recreational use.

THAMES GATEWAY/MILTON KEYNES & SOUTH MIDLANDS SUB REGIONAL STRATEGY ALLOCATIONS

  Over the last year, announcements were made on allocations to Thames Gateway and outlined current support for infrastructure within the Milton Keynes & South Midlands (MKSM) growth area.

LONDON (TOTAL AROUND £38 MILLION)

    —  Land and Property Acquisition

    £14.08 million for acquisition of key sites to support the facilitation of 73,000 sq ft of creative space, 37 units for small businesses, a Child and Family Healthcare Centre and additional housing units.

    —  Infrastructure Improvements

    £7 million for infrastructure improvements to support and maintain industrial improvements.

    —  Workspace refurbishment

    £7.35 million for workspace refurbishment for over 23,000 sq ft of office space and creating in excess of 125 jobs.

ESSEX (TOTAL AROUND £23.5 MILLION)

    —  Environmental Improvements

    £2 million to fund environmental projects including the new Nevenden Country Park at Basildon.

    —  Infrastructure Improvements

    £0.325 million for infrastructure improvements to support and maintain industrial improvements.

    —  Workspace refurbishment

    £2.75 million to support the development of industrial estates and a conference centre and 120-quality hotel rooms.

KENT (TOTAL AROUND £37.5 MILLION)

    —  Land and Property Acquisition

    £12 million for land acquisition and remediation for mixed used waterfront development at Northfleet embankment.

    —  Environmental Improvements

    £1.15 million to fund conservation, ecology and tourism at Elmley and Dartford marshes.

    —  Construction Skills Centre

    £0.15 million for the conversion of existing buildings into an apprentice training centre.

    —  Community Regeneration

    £1 million for Swanscombe community facilities and environmental improvements.

  Infrastructure and amenities schemes already supported by the ODPM in MKSM include:

    —  £10.6 million for the construction of a new access road and bridge in Wellingborough;

    —  £17 million to secure the regeneration of three brownfield sites in Northampton and £2.7 million for brownfield regeneration in Towcester and Daventry;

    —  £5 million for a new roads at Bedford;

    —  £2.8 million for schemes to support job creation and improve the urban environment at Corby;

    —  £1.7 million to improve Aylesbury town centre;

    —  £3 million to regenerate the historic Bletchley Park complex at Milton Keynes; and

    —  £6.6 million on green spaces projects such as the River Nene Regional Park, Dunstable Downs and woodland areas in the Forest of Marston Vale.

FLOOD DEFENCE

  A great deal of the growth areas lie in or near flood plains. Policy Planning Guidance 25 (Development and Flood Risk) advocates the precautionary sequential approach that seeks to prevent inappropriate development in floodplains as well as introducing flood risk assessment and recognises the potential impact of climate change.

  Government policy is to discourage inappropriate development but recognises that other factors are involved and some development in areas of flood risk is unavoidable. Many such areas are already defended to a high standard—including the Thames Gateway, which is protected against flood with an annual probability of 0.1% ie a one in 1,000 chance of occurring in any one year.

  In the Ashford Growth Area, the Environment Agency is undertaking a study on an Integrated Water Management Strategy. This will produce a strategy, covering water supply, treatment and flood prevention and alleviation, for the proposed growth in the Ashford area.

  As part of the consultation on a new Government-wide strategy for flood risk management, "Making Space for Water", DEFRA is working to identify possible new funding streams for flood risk management that will secure a fair contribution from direct beneficiaries including developers. This will complement public funding in this area.

SUSTAINABLE URBAN DRAINAGE (SUDS)

  To ensure that additional building does not contribute to flooding through poor drainage of run-off, ODPM and Defra have been working with the Environment Agency, local government and industry stakeholders to prepare an Interim code of practice for sustainable drainage, which was published in July 2004. This aims to encourage the implementation of SUDS in both new and existing developments through the provision of basic guidance to make the adoption and allocation of SUDS more straightforward.

  English Partnerships had its own best practice guidance based on PPG25 and also is a keen proponent of sustainable urban drainage systems (pioneered in Milton Keynes) which avoid adding to flood risks by copying natural drainage processes (reed beds, catchment ponds, etc) and had used/planned these on a number of projects including Upton (Northampton), Lawley (Telford), Basildon and Barking Riverside.

MAKING IT HAPPEN: NORTHERN WAY

  Substantial resources were also allocated through the Sustainable Communities Plan to the Midlands and North including the £500 million fund for the nine Housing Market Renewal (HMR) Pathfinders. This fund is aimed areas suffering severe problems of abandonment and market failure and will support schemes for clearance, refurbishment, new build and also improvements to local services.

  The Urban Regeneration Companies (URCs—currently 16 around England, many of them based in the north and midlands) have a key role in regenerating areas and deliver major improvements on the ground through the pooling of expertise and resources with improvements to infrastructure forming an important part of their plans from station improvements in Sheffield and Liverpool, to road upgrades including the new Tees Bridge (projects which EP are heavily involved with).

  English Partnerships is a key partner in the Pathfinder Partnerships and URCs.

  ODPM has also identified £50 million, to contribute to the Investment Fund for the RDA-led Northern Growth Strategy Moving Forward: The Northern Way. Together with the RDA's own £50 million contribution this has created a £100 million to develop the Strategy into practical action. This might include funding specific projects that contribute to the Strategy's objectives.

SPENDING REVIEW 04

  The Spending Review outlined increases to health, education and transport and provided a number of important measures to support regions. One key announcement relating to the growth areas was the creation of a Community Infrastructure Fund (as recommended by Barker). This £200 million fund (£50 million in 2006-07 and £150 million in 2007-08) will support transport infrastructure costs in the four growth areas.

  SR 04 also provided £50 million (plus £50 million matched from RDAs) additional support for the northern regions. The three Northern RDAs—Yorkshire Forward, ONE North East and Northwest Development Agency—also worked together to develop a Northern Way Growth Strategy, and produced an interim report as a contribution to the 2004 Spending Review.

  The Spending Review responds to this interim report by:

    —  announcing that the Government will consider favourably proposals for further integration of planning and funding of adult skills and workforce development at the regional level including, in those regions where the RDA and Learning and Skills Council desire it, a "dual key" approach to the management of adult skills budgets operated by the RDA Chief Executive and the regional LSC Director;

    —  welcoming the plans for the three northern RDAs to spend over £100 million by 2010 on strengthening business-university collaboration and technology transfer across the North;

    —  endorsing the proposal to develop a pan-Northern cluster policy; and

    —  recognising that regional choices on transport, housing, planning and economic development cannot be taken in isolation, the Government is examining new ways to integrate RDA strategies with regional transport and spatial development strategies, within a framework of indicative long term funding guidelines. The Government will consult on these proposals later in the year and will publish indicative regional budgets alongside the 2005 Budget.

    —  Regional Transport Boards are being piloted in two areas.

    —  Accurate regional data will be available to support the regional policy framework and delivery of the regional economic performance target.

ENGLISH PARTNERSHIPS' ROLE

  With its national role and focus (the only agency with a specific Thames Gateway regional command), EP is well placed to assist with intra regional and strategic planning issues. The provision of infrastructure is central to English Partnerships' work. Our main function is to provide sites forward which are ready for development, with the necessary infrastructure and in support of local and regional objectives.

  English Partnerships recognises the need for infrastructure early on in the process and the early provision of such infrastructure (transport, utilities, community, etc) is one of the key elements of its work. For example:

    —  new road junctions at Omega in Warrington and Basildon, road improvements at Middlehaven, Middlesbrough and improved bus services in Upton, Basildon and Greenwich; and

    —  early delivery of community infrastructure at the Local Health Centre and Primary School at Greenwich, Community Centre at Allerton Bywater, and planned new primary school and doctors surgery at Barking Riverside plus environmental improvements in Barking, Basildon and Northampton through the provision of an ecological centre, parks, green spaces and nature reserves.

  In addition:

    (a)  EP believes that the best way to obtain private sector investment is to secure early agreement or joint venture structure. Our work in Milton Keynes on the land vehicle and pre-agreement of tariffs and with Bellway Homes and the formation of a new company—Barking Riverside, show the approach EP is working.

    (b)  EP is also looking at ways in which the uplift in land value can be captured, through prior agreement with developers, to fund some of this infrastructure. We support the idea of SLICS and are working with landowners and public agencies in many places. For example, in West Bedford, EP acts as the "ring-master", bringing land owners together, coordinating planning and enabling construction of a by-pass development which will create a new settlement of around 2,250 homes to help meet growth targets. EP proposes to underpin the cash flow for the infrastructure phase rather than give a grant or buy up all the land and do it.

    (c)  In 2002, English Partnerships commissioned and published a study that highlighted the delays and increased costs in site regeneration attributed to utility issues. This report revealed inaccurate cost estimates, poor security of supply, a lack of available primary infrastructure capacity and minimal competition between utility companies were causing delays and additional costs, hindering the progress of vital regeneration projects and commercial developments. The study also found that regeneration budgets are being used to fund the installation of power utility infrastructure, as regulatory constraints provide little incentive for regional electricity companies to become project investment partners.

November 2004






 
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