Select Committee on Culture, Media and Sport Written Evidence


Memorandum submitted by The Architectural Heritage Fund

1.  INTRODUCTION

  1.1  The Architectural Heritage Fund (AHF) is a major funder of projects undertaken by charities to restore and give a viable new life to historic buildings throughout the UK. Formed in 1976, the AHF is itself an independent charity and company limited by guarantee, governed by a Council of Management with 12 Trustees and run by a small administration based in central London, although its staff travel extensively to visit potential and current projects. The AHF is also involved in many major sector-wide initiatives, and the Chief Executive represents the organisation on bodies such as Heritage Link; the Welsh Historic Environment Group; the Office of the Deputy Prime Minister's Work Group on Community Assets Ownership; the working party on heritage agency reform in Northern Ireland and so on.

  1.2  The AHF is unusual amongst funders in offering support to community groups contemplating projects at the earliest possible stage, in the form of advice and model documents on the formation of a suitable charity (usually a Buildings Preservation Trust [BPT]) and a grant towards the costs of an options appraisal for a building. AHF support continues throughout the life of the project, with small grants (up to £25,000) towards employing a professional project organiser and for administration costs, and large short-term low-interest loans (up to £750,000) for acquiring a building and/or for capital funding cashflow during the restoration phases of a project. To qualify, a building must be listed/scheduled or (exceptionally) in a conservation area, and the project must involve a change of use and/or a change of ownership for the building.

  1.3  The AHF has an endowment fund used for its loans activities of £12 million, and aims always to have offered around 120% of the fund at any one time (being able to do so in the knowledge that some offers are not taken up and that there is regular repayment of outstanding loans). The organisation has so far offered over £85 million in loans and over £4 million in grants to projects. The AHF's running costs are funded in part by the interest on loans and on balances awaiting distribution from the endowment fund. The organisation also receives support towards these costs and towards its grant-giving from the four national heritage bodies: English Heritage, Historic Scotland, Cadw and the Department of the Environment in Northern Ireland, with all of which the AHF has a close working relationship.

2.  What the Department for Culture, Media and Sport should identify as priorities in the forthcoming Heritage White Paper

  2.1  The Heritage White Paper needs to address both the confusing legislative framework for the protection of assets, and recognise the ability of heritage to deliver widespread benefits for society as a whole. In particular, the following key points should be emphasised:

    —  That there is a sufficiently robust infrastructure in place for the statutory bodies (English Heritage and the local authorities) to carry out the reforms identified in the Heritage Protection Review. The Government has been very slow to introduce the necessary legislation, which is now urgently needed.

    —  That local authorities need considerable additional support. Working at the "sharp end" of heritage-led regeneration, the AHF is very aware that the vast majority of work on managing and improving our built heritage is carried out at a local level, but local authorities do not have the resources to deal with this.

    —  That heritage is a major driver of regeneration and of social stability, not just a part of tourism/culture, and as such needs to be addressed across government departments rather than only being the concern of the DCMS. There is continuing disappointment within the heritage sector that the DCMS does not appear to understand the contribution of heritage to regeneration and to quality of life.

3.  The remit and effectiveness of DCMS, English Heritage and other relevant organisations in representing heritage interests inside and outside Government

  3.1  There has long been a debate as to the right department to be responsible for the historic environment. There are some advantages, as at present in the DCMS, in bringing it together with other "cultural interests" such as the arts and museums and galleries, but the corollary of this is that heritage is seen purely as a "soft" asset (ie one reliant on visitors and as part of discretionary spending), rather than a driver of regeneration.

  3.2  The impact of heritage, and in particular the historic built environment, on society is much wider than that implied by the remit of the DCMS. It is therefore essential that issues such as the positive role of the historic built environment in regeneration, its contribution to quality of life and to a sense of place, are recognised by the DCMS in its dealings with other departments, and in particular the Office of the Deputy Prime Minister, DEFRA, the Home Office and the Treasury.

  3.3  As an outside body working across the four home countries, and with a very wide range of stakeholders from national and local government, the private and voluntary sectors, we are frequently aware of the weaknesses in the current system. The division between the DCMS and ODPM is particularly unhelpful when decisions regarding planning and planning policy are being considered. If heritage remains with the DCMS then further consideration needs to be given to addressing this issue, and to ensuring that the role of heritage in regeneration is fully understood across Government.

  3.4  There is an inherent contradiction in the function of English Heritage as, on the one hand, an instrument of government policy with government funding and, on the other, as the "champion" of the heritage lobby. It is, nonetheless, important to have a quasi-independent body which can perform these roles, but its ability to do so has been affected by the net reduction in its funding. This has impacted negatively both on English Heritage's funding of other organisations and projects, and also the ability of its staff, under considerable pressure, to give advice and support to the rest of the heritage sector.

  3.5  Wider representation of "heritage interests" comes from a variety of organisations, many, such as ourselves, not being part of Government. This diversity needs to be acknowledged as a strength of the heritage sector rather than, as is sometimes the case, being seen as a potential weakness. (See also 6 below). The well-being of the built heritage depends to a large extent on community support and locally-based organisations which have this at their heart, such as local building preservation trust and civic societies. These organisations are largely volunteer-led and show the very wide grassroots support for the historic environment and its positive impact on society at large.

4.  The balance between heritage and development needs in planning policy

  4.1  Heritage should be regarded as a positive driver of development, rather than, as is too often the case, seen purely as a brake on progress. Several of the largest property developers, such as the Berkeley Group, Crest Nicholson, Slough Estates and others now recognise that working with the historic built environment enhances and adds financial value to their developments.

  4.2  Sustainable development policies should also recognise that it is almost always preferable in environmental terms to retain and reuse a building than to demolish it. This needs in particular to be acknowledged in policies regarding the Housing Market Renewal Pathfinder areas, although it is clear that other issues come into play in those areas. However, a number of excellent exemplar schemes have been undertaken by building preservation trusts in renewal areas which show how the existing housing stock can be adapted and modernised so that it is suitable for 21st century uses.

5.  Access to heritage and the position of heritage as a cultural asset in the community

  5.1  Heritage in all its aspects is at the heart of what makes a community distinctive. Work by organisations such as Common Ground has shown how much people value their local heritage, and that this is true across all social classes, ages and ethnic groups. An understanding of our shared heritage brings the diverse communities of the UK together and everyone should have full access to their heritage.

  5.2  The historic built environment is unique amongst heritage assets in being accessible to all parts of society through its impact on the streetscapes of our towns and cities. The vast majority of historic buildings are valuable mainly for their external rather than internal features, and therefore their character can be enjoyed simply by walking down the street. This is genuine accessibility, but will only continue if these buildings survive. The best way to ensure their survival is to find them a new use (if the original use is no longer suitable) and for that use to be economically viable.

  5.3  The major heritage promoting organisations, including English Heritage, the Heritage Lottery Fund and the National Trust, have done much good work in broadening access to heritage through funding schemes, outreach and education programmes and marketing initiatives. However, from my twenty years experience in the performing arts prior to coming to the AHF in 2003, I would say that heritage generally is still behind the performing arts and the museums and galleries sector in the development of its outreach and education programmes.

  5.4  Whilst this is partly owing to a lack of funding for such work, there has not been such a concerted approach to this engagement with a wider public as there has been in the other cultural areas referred to above. Britain's orchestral education programmes, for example, lead the world in their creative and imaginative engagement with the widest possible groups; I do not feel that as yet this could be said to be the case with heritage education. Education in the built environment should be about providing people with a better understanding of the importance of their own surroundings, both historic and new-build, and giving people a sense of belonging as well as knowledge.

  5.5  The DCMS is taking a helpful lead in promoting engagement and diversity with all its client groups, and the Heritage Lottery Fund continues to encourage education and outreach programmes through its funding. These need to be built on and developed further, and all organisations working within heritage need to have a full understanding of the importance of this engagement as a core activity, not as a discretionary "add-on".

6.  Funding, with particular reference to the adequacy of the budget for English Heritage and for museums and galleries, the impact of the London 2012 Olympics on Lottery funding for heritage projects, and forthcoming decisions on the sharing of funds from Lottery sources between good causes

  6.1  English Heritage has had very disappointing settlements over the last five years compared to other areas funded by DCMS, in particular sports and museums/galleries. This has led to a reduction in English Heritage's ability to fund buildings at risk apart from the very few represented by Grade 1 and Grade II* listings.

  6.2  This has consequently increased pressure on building preservation trusts and other charities seeking support to restore buildings, and has made it more difficult to assemble viable funding packages for projects involving Grade II buildings (the vast majority).

  6.3  If at all possible funding should be increased to English Heritage to enable it to support a wider range of activities, including the beneficial reuse of more historic buildings.

  6.4  Britain's heritage played an important part in the successful bid for the 2012 Olympics. Discussions are currently taking place with the DCMS and other partners (including The Architectural Heritage Fund) to make the most of the opportunities presented by the Olympics and the Olympic Cultural Festival. Investment will be needed to ensure that these opportunities, and the place of the historic environment in the regeneration of East London through the Olympics, are exploited fully.

  6.5  The Heritage Lottery Fund has been a highly successful funder since the inauguration of the lottery, and has been able to support projects whose scope was, and is, well beyond the resources of other funders, in particular English Heritage. As well as the iconic and large scale projects, the HLF, through schemes such as the Townscape Heritage Initiatives, has made a considerable difference to the lives of millions of ordinary people throughout the UK, improving the economic and social well-being of communities and meeting many key Government objectives. There is still, however, much work to be done and the need now is as great as it was 10 years' ago, for example with schemes for the regeneration of ex-industrial buildings and the very large number of redundant civic buildings now becoming available for development.

  6.6  The HLF's share of the lottery proceeds should at the very least be maintained when the new allocations are decided.

  6.7  Pressure on the funding of projects to restore historic buildings would be eased if the rate of VAT for restoration projects and "new-build" was equalised. A flat rate of 5% would encourage more owners to carry out maintenance and repair, rather than neglecting buildings in the hope of being able to demolish them.

7.  What the roles and responsibilities should be for English Heritage, the Heritage Lottery Fund, local authorities, museums and galleries, charitable and other non-Governmental organisations in maintaining the nation's heritage

  7.1  Whilst there has been some confusion over the respective roles of English Heritage and the Heritage Lottery Fund, they have different responsibilities and remits. English Heritage performs statutory and related functions and provides a lead for the rest of the sector, whilst the Heritage Lottery Fund funds projects beyond the powers and resources of EH and other bodies, and is, of course, a UK-wide organisation.

  7.2  Local authorities have a number of key roles: to protect the built heritage through the planning system; to bring together partnerships of the public, voluntary and private sectors in order to ensure the best development frameworks for historic areas in their control; to support private and charitable owners in dealing with listed buildings; and to make the best use of the civic buildings in their care, even when the original use may no longer be applicable. In this latter regard, more local authorities should be encouraged to take advantage of the ODPM General Consent on the disposal of civic assets, and I have been representing the heritage sector on the ODPM Work Group on Community Ownership of Assets, which is looking at this policy among others. (See 8 below for more on local authority officers).

  7.3  Voluntary and community sector organisations are vital contributors to the restoration and management of the UK's heritage assets. As an example, The Architectural Heritage Fund supports over 100 projects each year, offering funding in excess of £10 million per annum in loans and grants, with all the projects being undertaken by registered charities. All are to rescue and give a new life to buildings at risk, for which the private and public sectors have failed to find a solution. Much of The Architectural Heritage Fund's support goes to charitable building preservation trusts, which have been rescuing buildings at risk since the 1920s. The AHF also works with other types of charity, including development trusts, community groups, arts groups and housing charities. In some cases these charities have taken on buildings which have been abandoned by the local authority or by Government agencies such as the Ministry of Defence or National Health Service.

  7.4  There is a huge level of public engagement with heritage through voluntary and community sector organisations. Very few building preservation trusts, for example, have paid staff, relying instead on volunteers to carry out the key management tasks, and only buying-in expertise when needed for projects. The level of volunteering within heritage is as high as that in other parts of the voluntary sector such as social care, but does not, as yet, receive the same level of recognition and appreciation.

  7.5  There are also many significant non-Governmental funding bodies, many of which are themselves registered charities. As well as the AHF, these include large trusts and foundations and smaller specialist funders. These organisations are able to operate without the administrative burden of a Government department, and can therefore respond very quickly in cases of urgency. The AHF is able to turn round a request for emergency funding (when, for example, a building at risk may be in danger of collapse or sale to an inappropriate owner) in under two weeks, sometimes even more quickly.

  7.6  The voluntary sector also contains the expert amenity societies, whose specialisms are essential in protecting those parts of our built heritage and in supporting private owners of such properties.

  7.7  This diversity of organisations is a real strength of Britain's heritage and should be celebrated as such.

8.  Whether there is an adequate supply of professionals with conservation skills; the priority placed by planning authorities on conservation; and means of making conservation expertise more accessible to planning officers, councillors and the general public

  8.1  There is definitely a shortage of skilled professionals within local authorities. Funding pressures have meant that conservation officer posts have been cut, which is possible because it is not a statutory requirement that a local planning authority engages one or more conservation officers. It is clear from our position looking at buildings at risk that the authorities with the best track record in recording, managing and dealing with their buildings at risk are those with skilled conservation officers, and where there is adequate funding not just for those posts but for activities connected with them.

  8.2  This inconsistency amongst authorities is matched at member level. Good work has been done by English Heritage, by ourselves (through our 2004 campaign "A Future from the Past") and by others in offering support and advice to members and officers in local authorities, but again it tends to be the already skilled and enlightened authorities which will benefit the most from this support.

  8.3  As stated above, local authorities also need to understand their responsibilities with regard to their own property portfolios, and recognise that they are able to dispose of these for less than their full value to charities where such a charity can find a new and viable use for the building.

  8.4  Consideration should be given to funding every local planning authority to engage a conservation officer, and to making such posts a statutory requirement.

  8.5  The recent survey of crafts skills has shown serious gaps in provision both geographically and in specific skills. Action is being undertaken to address this, but at Government level more could be done to encourage school leavers to consider apprenticeships as a practical and viable alternative to higher education. Too much emphasis has been put on school leavers attending University almost at any costs, when in many cases training in a practical trade would be of far more value than undertaking some three-year degree courses.

16 January 2006





 
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