Regional development agencies and the Local Democracy, Economic Development and Construction Bill - Business and Enterprise Committee Contents


Memorandum submitted by National Housing Federation, Shelter and the Chartered Institute of Housing

SUMMARY

  1.  We welcome the opportunity to respond to this call for evidence on the role and responsibilities of the Regional Development Agencies (RDAs) in the future. We believe that the changes to regional structures and leadership, as proposed in the Government's original paper (Review of sub national economic development and regeneration) and subsequent consultation (Prosperous Places: Taking forward the review of sub national economic development and regeneration) have the potential to help to address England's housing crisis, taking forward strategies for housing growth and renewal, whilst supporting sustainable economic development. This includes the strengthened role of local authorities in economic assessment and partnership with RDAs, as well as the proposed new leadership role of RDAs in the wider remit of the Single Integrated Regional Strategy (SIRS).

  2.  There needs to be a greater formal recognition of the interaction between housing and sustainable economic development. Good quality, affordable housing is crucial for economic growth. Inward investment requires attractive homes, neighbourhoods and environments in which people want to live and work, and labour mobility requires choice and a range of housing opportunities. Economic growth and prosperity in turn support investment in homes and communities, and increased well being.

  3.  Closer strategic integration and planning for housing and economic growth and regeneration, following markets which cross administrative boundaries, combined with a strong lead on partnership working to bring together national, regional and local investment to achieve that is important to take forward the ambitions for increasing economic prosperity and housing choice in attractive environments.

  4.  The complex nature of planning for and delivering housing will require the RDAs to build strong relationships with and draw on the expertise of local authorities and housing stakeholders, and maintain these over the long term to ensure that housing in an area facilitates sustainable economic development.

  5.  The RDAs should explicitly recognise and articulate in the SIRS an overarching policy priority of meeting the needs and choices of the whole of the regional community. We strongly recommend that the RDA's future performance management framework explicitly recognises their strategic importance in establishing regional housing objectives and providing strategic leadership in meeting them, including building strong partnerships with stakeholders.

BACKGROUND TO SUBMISSION

  6.  This submission to the Business and Enterprise Committee on the future role and responsibilities of RDAs is the contribution of the major representative and campaigning organisations across the social and not-for-profit housing sector, namely the Chartered Institute of Housing, the National Housing Federation and Shelter.

  7.  The Chartered Institute of Housing (CIH) is the professional organisation for people who work in housing. Its purpose is to maximise the contribution that housing professionals make to the well being of communities. CIH has over 21,000 members across the UK and Asian Pacific working in a range of organisations—including housing associations, local authorities, arms length management organisations, the private sector and educational institutions.

  8.  The National Housing Federation is the trade body for housing associations and represents 1300 members, who between them provide 2.4 million homes for over 5 million people. Housing associations work in some of the most deprived neighbourhoods in the country and are often the strongest and most experienced third sector organisation working locally.

  9.  Shelter is the national housing and homelessness charity that provides practical advice, support and innovative services to over 17,000 homeless or badly housed people every year. Shelter is a leading expert on housing in Britain, and informs public opinion on housing issues. Within each English region, shelter works with regional institutions and regional decision makers to help shape and deliver policy that addresses housing need. At national level, Shelter works with Government and other agencies to develop long-term changes in policy.

  10.  We are committed to working with RDAs, local authorities and stakeholders in identifying the most appropriate structures and processes for each region and to raise awareness of the links between the different policy areas brought together in the SIRS. Individually and in partnership, all of the responding organisations have been involved in facilitating events to broker discussions between RDAs, local authorities and other key regional partners in the regions, to begin the process of working out effective engagement in the future.

INTEGRATING STRATEGIC APPROACHES

  11.  A greater formal recognition of the interaction between housing and sustainable economic development would enhance work to achieve Government's economic objectives. Good quality, affordable housing is a pre-requisite for economic growth; inward investment requires attractive homes, neighbourhoods and environments in which people want to live and work.

  12.  Hence there is a need for clear leadership on closer integration of strategic approaches and planning for housing and economic development, together with other key areas such as transport and infrastructure. This will maximise the impacts for local and regional communities. The economic consequences of not recognising the economy's reliance on housing are clear—areas of high housing demand face increased employment costs and lack of labour mobility, and areas of economic disinvestment face low demand that further drives economic decline. The impact of housing on the economy is not limited to new supply. Bad housing prevents individuals from realising their economic and social potential, limiting social mobility and reinforcing economic dependence and inequality.

  13.  In terms of the RDAs' performance management framework, the regional economic indicator sets must recognise both the complex interplay between housing and economic development and tackling economic disparity, and the complexity of achieving decent housing supply, covering both new and existing stock.

  14.  The single regional economic growth objective should be complemented by an overarching housing objective, to drive forward an integrated approach and to ensure that regions address the full range of housing need and housing aspirations for communities. It would act to ensure that the acute housing need in some geographical areas or for members of communities who are not seen as contributing to economic growth are still addressed, to deliver the achievement of mixed, inclusive, sustainable communities. An overarching housing objective would act to ensure sufficient investment in housing and economic renewal outside the main urban conurbations driving economic growth.

STRONG PARTNERSHIPS ARRANGEMENTS

  15.  The proposals mean a shift in focus and extension of the responsibilities of the RDAs to achieve better strategic integration. The new arrangements therefore require RDAs to build long term and effective stakeholder engagement, and to establish strong partnership frameworks to complement the working partnership they will be developing with the local authorities leaders' forum and the Homes and Communities Agency.

  16.  Regional and sub regional housing stakeholders have a role to play supporting the RDAs by:

    —  Identifying and scoping emerging issues

    —  Contributing to the evidence base

    —  Developing policy responses to identified issues

    —  Contributing policy expertise and good practice

    —  Delivering on housing outcomes in the regions

    —  Contributing to monitoring and evaluation.

  17.  RDAs will, through regional housing stakeholders, be able to access region-wide viewpoints and intelligence to support the leaders' forum in identifying regional priorities. They also provide another network for wider community engagement and a route for accountability for delivery. This is in addition to the leaders' forum which, in developing and agreeing the SIRS with the RDA will provide a direct connection back to their local communities.

  18.  Government already recognised the importance of fully involving communities and independent stakeholders in Local Strategic Partnerships, and has created a new duty for local authorities to consult with and involve members of the community and independent groups. We therefore propose the creation of a duty of similar strength for RDAs to inform, consult with, and have due regard to the views expressed by independent stakeholders at all stages of SIRS development. Stakeholder engagement should be fully integrated in the RDAs performance framework.

LOCAL ECONOMIC ASSESSMENTS

  19.  RDAs will have a key role in sharing expertise and supporting local authorities in developing their proposed new duty of local economic assessment. They should be able to provide advice and tools for this process, to ensure that the assessments are robust and of a consistent approach to be able to inform and shape the regional strategic approach in the SIRS.

REGIONAL ACCOUNTABILITY AND SCRUTINY PROPOSALS

  20.  The consultation paper set out proposals to ensure regional accountability and scrutiny of the process. We called for further clarity on this and guidance for the respective partners. We believe this will help the understanding of the process of accountability. The role of the leaders' forum in developing and agreeing the strategy is an important route of accountability to local communities, but the process for reconciling disagreements or divergent views needs further development, and should incorporate the role of the Regional Minister.

19 September 2008






 
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