Memorandum by the South East of England
Development Agency (SEEDA) (CT 34)
1. The South East region has a long coastline
with a large number of coastal towns. It includes resorts such
as Margate, Folkestone and Eastbourne, major coastal cities such
as Brighton, Southampton and Portsmouth, cross channel ports such
as Dover and the particular role of the Isle of Wight.
2. From a regional economic perspective,
the coastal towns of the South East are largely those areas where
regeneration is a major priority. A considerable part of SEEDA's
activities are concentrated in the coastal parts of the region,
with the objective of improving their economic performance to
the levels achieved by the most prosperous parts of the region,
for example Thames Valley.
3. SEEDA's approach is to design regeneration
programmes to suit the particular circumstances of each coastal
town, on the basis that what is most appropriate for the Cowes
area of the Isle of Wight is not necessarily the same as that
for Worthing.
4. The detailed contribution SEEDA is making
to each of the coastal towns in the region has been supplied to
ODPM as part of the comprehensive response to the enquiry. The
purpose of this paper is to set out for the Committee the example
of Hastings, as a case study in comprehensive regeneration for
one of the most economically challenging coastal towns in the
South East region.
HASTINGS AND
BEXHILL REGENERATION:
SEASPACE
5. Hastings and Bexhill were recognised
as priorities for regeneration by the ODPM in May 2002, when Lord
Falconer announced a 10-year investment programme with an initial
three year funding of £38 million committed through SEEDA's
budget. The end of that first three years will be reached in March
2006 giving an opportunity for the Committee to examine a project
which features all of the six issues into which it has resolved
to inquire.
The Background
6. A Five Point Plan was the basis of the
original bid to Government which secured the funding through SEEDA.
The key themes are:
— Business and Enterprise development.
— Excellence in Education.
— Broadband Connectivity.
— Transport improvements.
7. This strategy informed the Business Plan
developed in 2003 and approved by all the partners who comprise
the Task Force set up to steer the regeneration programme: East
Sussex County Council, Hastings Borough Council, Rother District
Council, Government Office for the South East, English Partnerships,
SEEDA and the two local MPs. In turn, a dedicated team of about
20 staff has been established at Hastings, largely funded by SEEDA
but with secondees from the local authorities. Such staff resources
are a key component of success. Most recently, a company has been
established (Hastings and Bexhill Regeneration) with the direct
responsibility of carrying forward the strategy and business plan.
8. The targets are to achieve:
— 100,000m2 commercial and education
space;
— 2,000 higher education students;
and
Progress to date
9. Projects so far delivered or under development
include:
— Hastings Station—part financed
with SEEDA funds including SRB.
— University Centre Hastings—space
for 1,000 students; 600+ in place.
— Creative Media Centres 1 and 2—supported
office accommodation for up to 50 businesses—24 in occupation.
— Innovation Centre Hastings due for
completion summer 2006 with space for 74 additional businesses.
— Queensway—a £20 million
facility for General Dynamics UK Ltd.
Major Projects—Hastings Town Centre:
— Station Plaza, Priory Quarter and
Pelham Place.
The SEEDA Funding Commitment
10. The various elements of funding dedicated
to Hastings & Bexhill by SEEDA
include:
— The initial £38 million announced
by Lord Falconer.
— £19 million underwritten for
2006-07 and 2007-08 by SEEDA.
— £17.6 million bank facility
for Queensway.
— Funding from SEEDA single pot to
provide:
— Single Regeneration Budget £26
million, 10 years to 2007.
— Area Investment Framework funding
£2.75 million to 2008.
— Enterprise Hub £0.25 million
over 3 years.
— Enterprise Gateway £0.25 million
over three years.
— Access to SEEDA programmes eg MAS,
Finance South East.
— Plus leadership of partners' commitment
to funding from mainstream programmes—Local Authorities,
Learning and Skills Council, English Partnerships.
Objective 2 Funding
11. The Government Office for the South
East has facilitated an additional £6.5 million of ERDF funding
into the capital regeneration projects, Hastings being a qualifying
area within the South East Objective 2 Programme together with
Thanet.
Contribution to Housing Supply
12. The total projected housing increase
to the year 2021 resulting from the programme is 7,450 units,
which is being delivered as follows:
| English Partnerships |
|
| Millennium Communities Project | 1,400 new homes
|
| Allocated sites in Hastings in 2011 | 2,100 new homes
|
| North Bexhill Housing | 1,100 new homes
|
| Allocated sites in Bexhill to 2011 | 850 new homes
|
| Future years | 2,000 new homes
|
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13. The present housing market is extremely fragile and
is totally dependant on the local economy and new infrastructure.
Without the provision of roads, jobs and skills training for local
people there will be no market for housing.
The Challenge
14. The regeneration programme is only now just getting
underway, and in many respects this is the key lesson: to commit
sufficient staff and financial resources over a long period. The
immediate challenges are:
— £71 million additional public funding is
required to complete the priority projects.
— Partners' commitment and slippage reduces this
requirement to £30 million.
— The Post-16 education review decision produces
a further funding need.
— Phase 4 of University Centre Hastings will require
additional capital funding in advance of income to increase the
Higher Education student population from the current capacity
of 1,000 to a sustainable 2,000.
— Income streams being predicted to support capital
borrowing for business support
The Potential Outcome
15. Full implementation of the agreed 10-year Business
Plan and its outcome targets have the potential to deliver transformational
improvements in the most deprived community in the South East.
Uniquely for the region there is the capacity to deliver 7,500
new homes, but demand for these will only crystallise with a stronger
employment base supported by investment in education and skills
training, provision of new business premises, innovation and enterprise
support and continued transport upgrading.
16. Whilst a dedicated team has been committed by SEEDA
to deliver the key projects, success can only be achieved through
the broad partnership of the public sector agencies, community
participation and the cross departmental working that has been
prominent to date. Maintaining this commitment over a substantial
period is a crucial requirement.
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