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


Memorandum by Kent County Council (CT 33)

SUMMARY

  I.  Kent County Council finds the ODPM Inquiry into Coastal Towns welcome and timely. Coastal Towns, throughout the nation, have suffered decline since the 1960s and the unique problems they face can make regeneration much harder to deliver. The combined effects of poor accessibility, social dumping, ageing population, deteriorating physical fabric, 180 deg catchment and a low-wage seasonal economy have prevented many coastal towns from successfully reversing decline despite a range of imaginative regeneration initiatives supported by SRB, European and other external funding.

  II.  Within Kent, the impact of the disappearance of the traditional English seaside holiday has been compounded by the decline of other key sectors not just within the towns themselves but within the immediate agricultural and mining hinterland. Recovery is progressing but is still hampered by a range of impediments including low basic skills and skill shortages, low property and land values and an enduring perception of peripherality.

  III.  We find the inquiry timely. It comes just as many of Kent's coastal towns are developing clear regeneration strategies and now have major opportunities to lift themselves out of a long period of decline—yet major funding streams are being lost.

  IV.  As well as ODPM funding, there must also be effective liaison with other government departments with funds to tackle the root causes of deprivation on the coast—in particular: transport, housing, culture/media/sport, industry, education, work & pensions and health.

1.  THE CASE FOR SPECIAL INITIATIVES TO TACKLE THE NEEDS OF COASTAL TOWNS

  1.1  Kent's coastline runs for 350 miles from Romney Marsh to Dartford—longer than any County in England and more than half of the rest of the Region's coastline. The north Kent section from Dartford to Sittingbourne currently benefits from ODPM Growth Area Funding, but from Herne Bay to Lydd no such dedicated funds exist and support has been piecemeal, area-based, and often subject to very complex funding bids and monitoring. Consequently this stretch of coastline, a prominent part of our prosperous southeast, remains one of the poorest parts of Britain and Europe.

  1.2  Kent's Coastal Towns face key social problems arising out of a number of factors:

    —  higher than average benefit dependency and in-migration of benefit dependants;

    —  higher than average proportion of elderly;

    —  higher than average levels of infirmity;

    —  higher than average unemployment and underemployment;

    —  low qualification levels;

    —  low seasonal wages; and

    —  declining tourism.

  1.3  The Kent Coastal Towns Analysis (KCC Feb 2002—Appendix 1) examines Kent's urban areas and clearly reflects this position. While it is apparent from this analysis that Kent's most deprived areas are primarily around the coast in the eastern half of the county, based on the Index of Multiple Deprivation 2004, it shows that 19.4% of Margate's Super Output Areas (SOAs), 15.8% of West Sheppey's, 15.4% of Ramsgate's and 9.7% of Folkestone's are in the 10% most deprived in England. 19% of Dover's SOAs are in the 20% most deprived.

  1.4  In housing terms, the issues are equally stark. These towns experience:

    —  lower than average property values;

    —  a high proportion of private sector absentee landlords;

    —  higher than average building repair maintenance costs;

    —  a higher than average proportion of older buildings in multiple occupancy, particularly former hotels and guest houses; and

    —  remote access and a 180 degree hinterland.

  1.5  The findings of the Thanet Inquiry 2005 (Appendix 2) found that these circumstances combined to produce a substantial in-flow of population with a preponderance of older people and benefit claimants. It also highlighted the fact that several of Kent's coastal towns are significant importers of children, placed there by other local authorities. This constant population churn produces highly transient populations resulting in unstable and unsustainable communities. These issues are addressed in the negotiation of Public Service Agreements with central government and are key targets of the County Council's Supporting Independence Programme.

  1.6  Kent's coastal towns have suffered from their proximity to London and the effect of London dumping since the 1960s and 1970s, but have not yet benefited from the combination of faster rail links and low property values that should give rise to a growing demand for middle class second homes and a lively cultural economy. There are examples where this is just beginning, eg: Whitstable and Folkestone, but the pressures from other factors in towns such as Dover, Margate, Ramsgate and Herne Bay are such that the decline has not been arrested and, in Thanet, unemployment is rising. Consequently, intervention by ODPM would be both timely and welcome.

  1.7  As the London Olympics approach, the global spotlight will fall increasingly on East London and its environs, where Kent's coastal towns may become Olympic "gateways". Dover is a case in point. Some 25 million passengers pass through its port each year—and this throughput is expected to double during the Olympics.

  1.8  Considerable public investment is still required if these towns are to create an appropriately positive impression while, at the same time, providing good bases for Olympic visitors with a modern range of visitor facilities. The image of despair and dereliction evident at the centre of too many of these towns at present needs to be sharply reversed if they are to benefit from a positive "Olympic effect". As part of a package of Olympic related opportunities, we should ensure that our coastal towns share in the new employment created from the construction phase onwards, both directly and through the supply chain, particularly for high quality local produce that will have travelled the minimal number of food miles.

  1.9  A KCC Select Committee on Coastal Towns, reporting in 2004, identifies the need for a County Strategy and Action Plan aimed at improving the Coastal Economy and redressing decline. The emerging Kent Coastal Towns Action Plan establishes a 15-year vision for the Kent coastal zone with an initial seven-year revival programme leading into the London Olympics.

  1.10  Skills and opportunities for young people; improved accessibility; and diversification of the economy and more effective integration of the visitor and evening economy with other economic activity, including leisure, creative industry, business development, catalytic design, ports, sports and culture; are key elements of this plan.

  1.11  There is a need to work with Kent's coastal airports at Lydd and Manston (avionics engineering, business parks, cargo) and its port and harbour authorities (marinas, short sea shipping, freight and materials handling) to ensure that they are in a position to exploit development opportunities while at the same time making a positive contribution to the prosperity, vitality and environmental appeal of the Kent Coast.

  1.12  Within this, every attempt should be made to enhance the role played by the fishing industry. Links between marine-based industry and leisure activity should be exploited where possible, taking account of the attractiveness to visitors of a bustling waterfront, active at all hours.

2.  THE WORK ODPM IS DOING TO ADDRESS THE SOCIAL, HOUSING AND ENVIRONMENTAL PROBLEMS OF COASTAL TOWNS—IS IT EFFECTIVE, WELL-FOCUSED AND ADEQUATELY FUNDED?

  2.1  Although the ODPM has generally not been particularly active in the regeneration coastal towns, in recent months, Kent County Council has welcomed significant initiatives from the ODPM that begin to address some of these issues. Thanet is to be the main beneficiary but it is, as yet, too early to comment on the likely effectiveness of the developing programmes.

  2.2  In July 2005, Thanet was allocated £3.7 million in Neighbourhood Renewal funding through the Safer & Stronger Communities Fund (SSCF). Assuming that the approach to the use of this funding is approved by GOSE in February, the initiative should provide significant support to Thanet District Council's Neighbourhood Renewal Programme (NRP) for Margate in three Super Output Areas. The NRP is, in turn, an integral part of the Margate Renewal Partnership's plans for the town and, since this new Partnership brings together all major agencies and authorities with an interest in Margate's regeneration, there is every possibility of ensuring a well co-ordinated approach to the town's renewal and development.

  2.3  The Margate Renewal Area is also being considered by the ODPM and local partners as the focus for a Mixed Communities pilot demonstration project. While this project has still to be finalised, it offers a unique opportunity to focus on the area's housing tenure, which, unusually for such an area, comprises predominantly small units within the private housing sector. All of this work fits well with the issues addressed by the Local Area Agreement.

  2.4  Kent County Council, in partnership with the four District Councils of Dover, Shepway, Swale and Thanet, recently launched No Use Empty—a campaign aimed at tackling the problem of empty housing in the East Kent region. No Use Empty aims to bring some 7,000 empty properties back into use. The strength of initiatives such as Local Area and Public Service Agreements shows that, working with government, local authorities can tackle new issues.

3.  ASSESSMENT OF THE EFFECTIVENESS OF ODPM'S LIAISON WITH OTHER DEPARTMENTS, IN KEY AREAS SUCH AS EMPLOYMENT, MIGRATION, AND SOCIAL HOUSING, AND CO -OPERATION WITH LOCAL AUTHORITIES

  3.1  There is a vital need for better liaison with other government departments, particularly in terms of issues relating to housing, in-migration and social dumping. As well as better liaison with government housing and employment departments, liaison in the following areas is critical:

    —  Transport: improved access alone will have a major impact on the economic vitality of coastal towns and, without it, none of the other measures will achieve their full impact. Key issues to address are speeding-up and improving efficiency of rail travel including extension of CTRL domestic to Dover; a fast effective long-term government response to Operation Stack; investment in seaports and coastal airports. As a key transport hub, Dover's traffic issues must be resolved.

    —  Community Infrastructure Fund (CIF) is a welcome additional funding stream, targeted at facilitating regeneration, employment and housing in Growth areas. CIF should be extended to coastal towns where the objectives are equally valid.

    —  Sport and Culture: A notable difference between those coastal towns that are beginning to pick-up and those that are still very much in decline is the lack of a lively evening economy and cosmopolitan year-round leisure and cultural offer. Where this is good or improving, new residents, businesses and visitors are attracted; and sense of place, identity and local pride are strong.

    —  Industry and Education: a particular focus on strengthening the links between business and education and those key sectors supported by vocational skills in construction, catering, leisure, beauty, healthcare, and all the cultural and creative industries would bring direct benefits to coastal towns and the development of construction, leisure and visitor economy throughout the southeast.

    —  Work and Pensions: need to reduce the high concentrations of benefit dependency and pilot measures suggested in the recent Green Paper to support people back into the workforce. This could be the basis of an Explorer Partnership with ODPM, DWP and the Kent Public Service Board, linked to the Kent Local Area Agreement.

    —  Health: across a range of public health indicators, Kent's coastal towns are amongst the most disadvantaged in England. The joint KCC/NHS Dept of Public Health for Kent gives us a unique opportunity to integrate tackling health inequalities with wider social regeneration.

4.  IS THERE A CASE FOR MORE SPECIFIC REGIONAL INITIATIVES, IS ENOUGH ATTENTION PAID TO REGIONAL DISPARITIES?

  4.1  The South East is one of the UK's most prosperous regions. In recent years, nationally, it has exhibited the highest growth in productivity and in Gross Value Added (GVA) per head, it has the best performing labour market and the lowest proportion of its population living in the country's most deprived areas. But this picture obscures significant disparities in economic performance and prosperity across the region.

  4.2  In the evidence base of its review of Regional Economic Strategy 2006-16, (November 2005), SEEDA points towards the rise of three conceptual economies within the region:

    —  the Inner South East, a relatively wealthy core around London;

    —  the Outer South East, a largely rural area with well-established market and county towns; and

    —  the Coastal South East, a less prosperous periphery with large urban areas offering strong economic potential alongside coastal towns that have had mixed success in reinventing themselves.

  4.3  The Coastal South East is characterised by low productivity and employment rates, a high concentration of economic inactivity and structural unemployment, a low skill profile with low business density and start-up rates. This is accompanied by a high dependence on public sector employment, a low proportion of employment in knowledge based sectors and an increasingly ageing population. When this is then combined with poor infrastructure and connectivity and a tired public realm, there can be little doubt the communities living in these parts of the South East, which include Kent's coastal towns, need more attention. The market is clearly not delivering. Public sector intervention is required.

  4.4  A new concerted approach, owned by all authorities, agencies and stakeholders, is now required to address the broad regeneration needs of our coastal towns. Such an approach would be aimed at influencing the spending plans of major funders and government departments and better integrating their activities. In Kent's case, this requires the establishment of a strategic and widely accepted vision for the coast and its towns, anchored within a wider vision for the Region with mechanisms to marshal and focus funding capable of achieving a sea change in the fortunes of these areas.

5.  THE SECURITY OF FUTURE FUNDING FOR REGENERATING AND SUPPORTING COASTAL TOWNS

  5.1  Major funding streams are being lost. ERDF Objective 2 funding, which has been applied to Thanet and parts of Dover, is coming to an end. The Single Regeneration Budget is also now exhausted, as is the Heritage Lottery Fund's Seafront and Townscape Heritage Initiative. The uncertainty about regeneration funding for these needy urban areas on Kent's coast is in stark contrast to the high level of Government attention and funding afforded to Kent's "Growth Areas" where the case, in terms of Indices of Multiple Deprivation, is much less compelling. This funding imbalance needs to be addressed and it must be ensured that some of the benefits of development planned for the Ashford Growth Area feeds through to the surrounding coastal communities.

  5.2  This was recognised in "What Price Growth?", KCC's 2003 response to the ODPM's development proposals (Appendix 3) which identified the need for a 20 year, public sector spend of almost £1,000 million in the coastal districts of Thanet, Dover and Shepway alone. The need to redress this imbalance and ensure that "Growth Area" benefits filter through to the coastal zone is also reflected in SEERA's developing sub-regional strategy for Ashford and Coastal Kent.

  5.3  It is to be hoped, as with former coalfield communities, that the government and particularly the ODPM recognises the levels of deprivation being experienced by communities in many of our coastal towns. Uncertainty about funding remains a major obstacle to progress. A clear lead is now required from government, Regional Development Agencies and English Partnerships with a realistic funding stream that enables:

    —  long-term joined up delivery with commitment from other government departments, particularly transport, housing, health, education, industry and culture/media/sport;

    —  establishment of Coastal Task Force for Kent; and

    —  extension of Community Infrastructure and Neighbourhood Renewal Funding together with more support for LAA and PSA delivery in the coastal zone.

6.  EVALUATE THE SUCCESS OF SEEDA, ENGLISH PARTNERSHIPS AND OTHER BODIES IN SUPPORTING AND DEVELOPING THE ECONOMIES OF COASTAL TOWNS

  6.1  Across the Region, SEEDA has devoted considerable funding to coastal town regeneration and achieved marked success in Woolston, Portsmouth, Cowes and Shoreham. Its work in Hastings through a significant funding package and the creation of a dedicated task force has been even more noteworthy. But more than half the SEEDA coastline is in Kent and, as yet, its coastal towns have received less attention from the Agency and less direct development funding than coastal towns in other parts of the region.

  6.2  But this is not to imply that SEEDA has not worked effectively in coastal Kent. For example, working with KCC and its District Council partners, SEEDA has overseen the creation of the East Kent Spatial Development Company, which is now working to fill the gap in the provision of utilities on key development sites in the districts of Dover and Thanet. It has also acquired and is now developing the key Buckland Mill site in the centre of Dover. The Development Agency is also active in partnerships formed to take forward the planned regeneration of Margate, Dover and Folkestone.

  6.3  In addition to its direct funding of projects, SEEDA has developed a system by which an amount of its funding is channelled through Area Strategic Partnerships (ASPs). Each of these has developed an Area Investment Framework (AIF) and from this identified key regeneration and economic development priorities. SEEDA has made a welcome three-year funding commitment to each of these partnerships, but the proportion of this devolved funding against the Agency's overall budget is small.

  6.4  Furthermore, it could be argued that the geographical boundaries of the ASPs in Kent are not always appropriate for addressing key strategic issues. While the coastal districts of Dover, Canterbury and Thanet are joined within the East Kent Partnership, Shepway, which shares many of the same challenges, is placed within the Channel Corridor partnership which also includes Maidstone and Ashford.

  6.5  As currently configured, no partnership can speak for, prioritise or integrate regeneration activities along the whole Kent coast. The County is probably the natural level at which to develop policy with the Kent Local Strategic Partnership and its Public Service Board overseeing the delivery of the first wave pilot Local Area Agreement informed in its decision making by the content of the Area Investment Frameworks. This role of rationalising coastal town activities at a sub-regional level is particularly critical with regard to inward investment, tourism and transport infrastructure.

  6.6  Within the emerging Regional Economic Strategy, SEEDA's identification of the "Coastal South East" as its less prosperous periphery is very welcome. It remains to be seen how this will be converted into interventions that address this major area of market failure and in particular how these will benefit Kent's coastal towns.

  6.7  English Partnerships are potentially a key partner in the regeneration of Kent's coastal towns, the centres of which abound with brownfield sites and housing need. Currently their main investment priorities in the south-east remain Hastings and Bracknell and with their increasing focus on the NHS portfolio and East London ahead of the Olympics, it remains to be seen how much resource they will able to commit to the Kent coast.

  6.8  While many of the agencies have worked towards regeneration in the coastal zone, there is a lack of cohesion in the approach of different regional agencies and key issues are often hampered by political/geographical boundaries and area-based or boundary constraints. We welcome the intervention of ODPM, particularly where it can enable a cross-boundary approach and the opportunity to tackle strategic issues that hamper effective robust regeneration.





 
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