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


Supplementary memorandum submitted by Essex County Council

THE SUCCESS OF ECONOMIC DEVELOPMENT AND REGENERATION IN ESSEX

  Essex is a populous county of some 1.3 million residents. Our economy is worth around £20 billion, bigger than over 130 national economies.

  Home to two post-war "New Towns" (Basildon and Harlow) and with the largest regeneration project in Western Europe—Thames Gateway—in our county, we have long been alive to the challenges and possibilities regeneration offers communities.

  The following pages highlight a number of examples where local economic development and regeneration activity combine to ensure sustainable growth, improvements to our residents' life chances and meet our pledge to deliver the best quality of life in Britain. The examples range from our nationally-acclaimed programme to re-open Essex Post Offices, through our support for rural entrepreneurs to our work ensuring current and future development in the Thames Gateway is of good quality and reduces our carbon footprint.

  While each example is different—distinctly urban or proudly rural, focusing on promoting entrepreneurialism or retaining social capital—what links them is the involvement of Essex County Council. As a forward-thinking local authority, Essex County Council is ideally positioned to bring local knowledge, technical expertise and effective partnerships to bear in order to deliver local priorities—sustainable growth that benefits our economy, our environment and our residents.

SUSTAINABLE SOUTH ESSEX

The Parklands development celebrates South Essex's heritage and environmental character, embraces its identity and connections with the Thames estuary, is aware of its carbon footprint, and welcomes people and enterprise

  The Thames Gateway South Essex Partnership (TGSEP) has played a key role in the regeneration of the Thames Gateway area and the partnership recently securing £24.5 million of funding for the South Essex Parklands Programme. Led by Essex County Council, the South Essex Parklands programme will regenerate and develop South Essex's green space to unlock its true potential to achieve significant environmental, social and economic benefits.

  The projects stretch across the Thames Gateway Landscapes, Waterfront, Corridors and Squares regenerating a number of marshes, nature parks, country parks and other green areas. TGSEP has recommended nine projects spread across the length and breadth of the Thames Gateway area, these are significant regeneration projects in their own right and the Parklands programme as as a whole will receive £24.5 million of investment between 2008 and 2011, delivering a number of outcomes such as improved accessibility and connectivity, with educational, vocational and recreational opportunities and health benefits; Improved habitats and benefiting wildlife; Improved quality and length of life in the sub-region and improved public health.

  A major component of the programme is the South Essex Marshes. It comprises 3000 hectares of publicly owned land, across five contiguous local authority boundaries. It is within easy reach (5km) for 650,000 residents—not to mention the huge "playground" market of London. It will be managed, accessed and used by the public in harmony with nature and will be a thriving hub of human, natural and animal life.

  In addition to these outcomes a number of more tangible outputs will also be achieved including 288 hectares of new green space; 1,300 hectares of enhanced green space, 300,000 additional visitors; four new visitor centres; 30km of new and enhanced pedestrian routes, and the creation of 20 new FTE jobs. As illustrated above the South Essex Parklands Programme has the ambition and ability to dramatically improve the quality of the Parklands in Essex and create sustainable regeneration for the benefit of both residents and businesses.

REGENERATING BASILDON

As part of a larger urban renewal scheme, decisive action and far-sighted investment by Essex County Council has unblocked a huge regeneration scheme that will tackle a critical area of deprivation in Basildon and improve the quality of life for thousands of residents

  The council put together an imaginative package that will allow English Partnerships to deliver a £250 million regeneration project to remodel the Craylands Estate and redevelop the former Fryerns School site as a new sustainable community.

  The ambitious scheme, which was close to stalling before the county council stepped in, will help deliver a number of Local Area Agreement targets related to improving outcomes for children and young people, making Essex a safe place in which to live and creating a strong and competitive economy.

  It will be the first major move to correct the issues caused by New Town residential planning in the 1950s and 1960s in the Thames Gateway South Essex sub-region, part of Europe's largest regeneration programme.

  The Craylands Estate has a reputation for isolation, poor quality housing and inadequate social amenities and is seen to be in a downward spiral of deprivation, social exclusion and neglect. It has high levels of crime, neighbourhood nuisance and antisocial behaviour and extremely low levels of educational attainment and skills.

  The estate's 957 homes are within four-storey maisonette blocks, which are in a poor condition, and terraces. Almost half the properties have been bought under the right to buy scheme and the remaining 53% is social rented housing, most of it through Basildon District Council.

  The project involves remodeling a 1960s housing estate and building new housing on the adjacent surplus school site, along with a new local centre. The plan is to retain 344 existing homes, re-build 613 and construct a further 695 dwellings on the new site, resulting in a total of 1,652 homes.

  The then Office of the Deputy Prime Minister awarded initial funding for the scheme in 2005, but the complex scheme was referred to the Treasury for a decision in November 2007. At the end of this delay, the scheme had a £6 million funding gap that needed to be filled for it to go ahead as planned. Essex County Council stepped in to sell English Partnerships land the agency needed to allow tenants to be moved into new homes so that work on the estate could begin.

  At the same time the council pledged to use all the money from the sale to support regeneration in Basildon. It will provide about £30 million to the area for road improvements, a new neighbourhood centre, £5 million towards the flagship Basildon Sporting Village and support for other regeneration initiatives.

  In addition, it has pledged £6 million from the land sale to plug the financial gap in the Craylands scheme, allowing the original £250 million project to go ahead as planned and lighting the way for a brighter future for residents.

  Essex County Council's commitment to the scheme and its practical funding support was not just useful in cash terms but helped to persuade the Treasury to back the scheme with a positive decision that ended years of uncertainty for residents. The council has also promised £3 million in highway improvements that will allow a new bus link into the estate and give residents a genuine choice over how they travel locally.

SAVING ESSEX'S POST OFFICES

Few issues have stirred up as much public outcry in recent months as plans to close smaller Post Offices across the country. While others simply campaigned to keep them open, Essex County Council went one better and embarked on an ambitious plan to save them

  The programme, which has attracted huge national media interest and the close attention of at least 200 other local authorities across the UK, will see up to 20 closed Post Offices re-opening under a carefully-thought out plan that has overcome complex financial and legal issues.

  The scheme will not simply re-open the Post Offices closed across Essex as part of Post Office Ltd's (POL's) national network change programme, but will instead provide an improved community facility that really will demonstrate the Essex Works message that the county delivers the best quality of life in Britain.

  It reflects the county council's commitment to supporting vulnerable people, promoting economic growth and providing services locally, and has redefined what local government can do.

  After raising the issue with Government in December, Council Leader Lord Hanningfield announced in his annual budget speech that the county would commit up to £1.5 million over three years to keep Post Offices open in Essex. The three-year commitment matches the term of the Government's national contract with POL, which runs until 2011.

  Although the 31 threatened Post Offices have already closed, they started to re-open this summer, offering Community Information Points (CIPs) alongside their usual services. These CIPs provide access to, and information about, a range of public services that would otherwise be unavailable. In the longer term, branches will host digital information points, telephone access to county council advisers and printed material.

  The council believes the local Post Office has a social function as a community hub and an access point for public services that can often transcend its value as a local retailer. Keeping Post Offices open in communities across Essex will contribute towards the county's quality of life objective as well as helping it deliver its key priorities of supporting vulnerable people and promoting sustainable economic growth.

  The county council believes that many of the branches that have been closed were serving enough customers to become financially independent in the longer run and aims to provide a package of funding and business advice that will help Post Offices operate independently outside the national network.

INSPIRING THE RURAL ECONOMY

Supporting the rural economy is an essential part of Essex's sustainability agenda and a critical factor in reducing the number of workers commuting out of the county, particularly to London

  The county council's Essex Rural Strategy established priorities for rural development up to 2010 and recognised that a healthy and sustainable local economy provided a foundation for community and environmental well-being.

  The council took the lead in a major scheme that used European grant money to promote rural enterprise, bringing together 14 partners from across Europe in four ambitious pilot schemes.

  As lead partner in the Praxis: Making Rural Entrepreneurship Work INTERREG IIIC project, Essex County Council coordinated the entire bid, which used the four pilot schemes to investigate different approaches to supporting rural entrepreneurs.

  In addition, the county council worked in partnership with Business Link and Writtle College to manage one of the pilots—the I DARE project—on behalf of the Essex Rural Partnership.

  I DARE encouraged innovation in rural businesses, providing a tailored, customer-focused approach to business support and a new way of working, and had a strong partnership element. Delivery responsibilities were shared between partners while the Essex Development and Regeneration Agency (ExDRA) managed the project.

  The council knew from research that a number of rural business types would benefit from an intelligent analysis of their operations and an injection of expertise in innovation. These included well-established businesses that were failing to adapt to changing markets, farming businesses that could benefit from co-operative branding and marketing and new businesses that lacked the skills to innovate.

  The project provided support and mentoring to 25 businesses aimed at increasing their capacity for innovation and boosting their future competitiveness. Alongside the year-long support, the firms took part in a number of workshops that focused on leadership, marketing and business development.

  Follow up visits showed that the businesses had all gained from the experience, understood the benefits of innovation and more focused marketing and felt more "in control". Specific help with intellectual property issues, identifying new markets, improving cash flow and profitability, collaborating with higher education institutions and website development had benefited many of those involved.

  The businesses involved also gained from the networking opportunities that I DARE opened up to them and benefited from the flexible and tailored approach. The lessons learned from the pilot have influenced a major programme of innovation support, the Supporting Innovative Businesses Programme now being managed by ExDRA on behalf of the Essex Innovation Network.

  Those businesses that are not eligible for continued support from ExDRA have been pointed towards alternative opportunities, while several of the businesses have already made significant progress using the skills they developed during the project.

IMPROVING QUALITY OF LIFE IN JAYWICK

Essex County Council is committed to improving the quality of life all our residents—and that includes people living in "difficult" areas where past efforts have been unable to reverse a steady economic decline

  Jaywick was recently ranked as the third most deprived super output area in England. Homes in the area were built for holiday use rather than year-round occupancy, the roads are in a very poor condition and privately owned by a company that is now in liquidation, it has no significant public housing and 30% of homes in the core area of Grasslands and Brooklands are privately rented.

  Although currently well defended, Jaywick's difficulties have been made worse by the fact that it is located in a high flood risk zone. In late 2007 the county council made Jaywick a key corporate priority and is committed to working with partners to improve the socio-economic conditions of the resort. Regeneration is also expected to bring benefits to the whole North Essex coastline, including nearby Clacton.

  After taking over from the East of England Development Agency (EEDA) as the lead partner driving the regeneration effort, the county is working hard to bring a new sense of determination and energy to the partnership that is seeking to breathe new life into this isolated coastal resort.

  Those partners—Go East, EEDA, Tendring District Council and the Environment Agency—have now agreed to back a comprehensive prospectus driven by the county council and aimed at securing funding and delivering improvements designed to arrest the rapid decline of the area. That prospectus will tackle the fact that despite its high ranking in terms of deprivation, Jaywick is not eligible for funding under current regeneration rules. It will be submitted to Government as an outline case for funding support, without which the significant investment in housing, roads and infrastructure will not be possible.

  The prospectus sets out possible schemes that could improve tourism, attract new businesses and improve the local economy, as well as improving the quality of life of the local residents. As well as seeking support from partners, the county council is consulting widely with people in the local community, many of whom enjoy living where they do.

  Past regeneration proposals have not taken local people's views into account, which has left residents despondent and wary of any new schemes—tackling that negative feeling and bringing residents on board is a priority for the county council.

  Another difficult issue is land ownership, where negotiating with numerous land owners and untangling the complex arrangements for maintaining local roads is proving a challenge, but one the county council is determined to face.

  Although government funding remains crucial and will be a focus of the next phase of the Jaywick project, the county council-led approach has already secured financial support from key partners. The challenging initiative will achieve real, tangible benefits for local people. While increased levels of educational attainment, improved housing and new road infrastructure will take time, a new dedicated neighbourhood management team will focus on environmental and community safety improvements such as tackling crime and antisocial behaviour and stopping rubbish and fly tipping.

LOCAL ASSET BACKED VEHICLES SUPPORTING REGENERATION

The execution of an innovative scheme to realise the value of local authority held assets, countering the worst effects of the economic crisis

  The depressed value of land currently, coupled with the emergence of new and innovative partnership models between private and pubic sectors, creates the conditions for us to develop a leading approach to regeneration. We are now considering ways in which we can use Local Asset Backed Vehicles (LABVs) to take advantage of the current economic conditions to deliver regeneration.

  It is common for local authorities to sell off assets in an ad hoc fashion at market rates, often to developers, who then redevelop to make a profit. An LABV enables the disposal and re-use of assets and land to be planned in a longer-term strategic way, maximising quality of development and sharing in the profits for further reinvestment in local regeneration.

  An LABV is a partnership between public sector land-holders and private sector developers/investors—CLG define an LABV as "funds, combining locally-owned public sector assets and equity from institutional investors, established to finance the delivery of major regeneration outcomes". There are various types of arrangement ranging from a straightforward joint venture (developer/local authority); to a complex multi-agency investment vehicle.

  The regeneration projects are delivered according to an agreed business plan, with profits recycled back into the company and shared on an equal basis between partners. The result of this arrangement is to provide the public sector with a profit share, rather than S 106 or similar formulaic systems.

  We are exploring the possibility of a pilot LABV in various parts of Essex.

  HCA has offered to work closely with relevant partners to test their new operational approach. This brings a wealth of additional financial and other support to the process.

October 2008





 
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