Regeneration - Communities and Local Government Committee Contents


Written evidence submitted by Nigel Mellor

COMMUNITIES AND LOCAL GOVERNMENT SELECT COMMITTEE ENQUIRY INTO REGENERATION

This evidence is based on over 40 years experience as:

—  a Local Authority Officer employed in a major northern City (32 years);

—  membership and chairing several community and voluntary sector organisations providing housing, alternative education opportunities, and community architectural advice and services along with a wider range of other work with the non statutory sector (30 years); and

—  Chairing an Area Probation Board (six years).

1.  Have there been examples of successful regeneration in your area? What do you think contributed to the success?

Few examples of successful regeneration can be cited with any confidence. Most have serious limitations and demonstrate that it is much more straightforward to achieve physical improvements to buildings and open spaces than to make a significant and lasting impact on the problems of multiple deprivation as they are found concentrated in the major inner urban areas across the UK. The fact that physical regeneration can be achieved through building new or renovating older properties, for example, within a fairly readily identifiable time frame using capital resources is obviously cheaper and less demanding to Governments (Central and Local) than having to allocate significant revenue funds to create and provide better education, health, training and employment opportunities over the longer term. The challenges involved in making a significant and sustained impact on the intractable and entrenched dimensions of multiple deprivation are clearly very great but efforts are not helped by short-termism, the desire for quick wins, and the reluctance to commit sufficient resources to tackle the scale of problems involved. A further regular failure of regeneration programs has been the inability to integrate successfully with mainstream activities.

Against this background of serious limitations, there are signs that some of the area based programmes as for example the then Home Office Community Development Programme (1969-75) and the Inner City Partnership Programme (1975-80+) did make some impact on the physical, but perhaps more importantly, the socio-economic characteristics in the areas where they took place. Key factors here could well have been the degree to which those involved (Central and Local Government, Members and Officials working alongside local residents and others) were able to exercise real influence on the way in which resources were allocated and that the objectives of the programmes included addressing both physical and socio-economic determinants of disadvantage. So whilst the actual impact on the physical appearance of the areas concerned during the period of the particular programme may well have been limited, the effects of work to improve the educational opportunities, life experiences and self confidence of the residents had much wider and enduring impact for years to come. These often called "soft outcomes" are still are omitted from project objectives and ignored in the project evaluation process.

2.  How do you think regeneration in your area could be done better in the future?

Clearly better recognition of the problems caused by multiple deprivation is needed. The Government has spent significant resources to develop the Index of Multiple Deprivation which illustrates in quite graphically the different dimensions of social and economic problems experienced by communities across the country. Yet there is little, if any, evidence that such information is used to allocate significant resources towards activities which could begin to make a real impact on the areas at greatest disadvantage! Neither do the other agencies of Government adopt a more effective approach.

The reliance on tendering by public agencies has the patina of fairness and is used to suggest that for example social enterprises have an opportunity to compete fairly to provide different services in their locality. If the difficulties with tendering that I am aware of are replicated across the country, then there must be a major issue with this approach to programme delivery.

Tender processes have used criteria which have effectively prevented the only accredited local supplier from being eligible to bid, yet the Authority concerned stated in the same report that they wanted to grow the local supplier market over the coming years! When challenged about this clearly indirectly discriminatory action, the Authority tried to justify it by claiming it was more convenient, cheaper and quicker this way!

Other agencies have changed tender evaluation criteria during the evaluation process. Recently publicity was given to an Oxfordshire based charity which has registered a grievance about maladministration in an adult carers tender process. A legitimate and potentially very useful line of enquiry for the Select Committee would be to investigate the numbers of complaints about tendering processes lodged against Local Authorities and other Governmental agencies by social enterprises to see what lessons can be learned from the information revealed. This work should be supplemented by other work to gather views from social enterprises about their general experience of tendering processes across the country, since much dissatisfaction does not get expressed as a formal complaint for a variety of reasons.

Another experience drawn from the area of community mental health, illustrates how an organisation which need larger and better premises from which to provide its valuable services to black people with mental health needs fought for several years to try to persuade the Duchy of Lancaster not to sell a property which it owned by auction, since this would have effectively prevented the voluntary organisation from being able to acquire the building. After three years of repeated efforts the organisation managed to get the Duchy to offer deferred terms for the acquisition of the premises, only to find that at the very last minute the Duchy had proceeded to sell the property to a private developer.

A further problem exists in the area of Asset Transfer which the Government seems to believe holds great potential for devolving power and opportunities to local communities. Local Authorities are not likely to readily and willingly seek to divest themselves of their best properties or those in good condition. No recognition seems to be given to the need for independent technical advice to enable local community groups or agencies who may be considering an asset transfer possibility or offer from their local Council. There is a grave danger that groups in such a situation are encouraged to rely on survey reports or other information prepared by the Authority's own officers rather than that of experienced community technical aid services. Asset transfer arrangements therefore might well proceed apace in areas of least disadvantage, where groups can find the advice and resources (including the confidence to embark on the process in the first place), whilst groups in areas of greatest need will not come forward or are in danger of being naively striving to acquire buildings the Authority is only too pleased to off load without their structural weaknesses or high running costs liabilities being properly revealed. The availability of independent technical advice, properly funded as part of this Asset Transfer process, is absolutely crucial if this process is to be at all fair and effective in devolving service provision and in making a useful contribution to community empowerment.

Another factor affecting the voluntary/community sector's ability to use the resources which it has at its disposal is the continuation of charges placed on premises which were renovated with funds from the Governments previous Urban Programme. The Urban Programme was a major source of funding for voluntary sector projects for a decade or so from the early 1970s. It provided support to enable many thousands of community buildings to be built and/or renovated. One of the provisions of the Urban Programme was that community/voluntary groups should not be able to sell or use the premises at any stage in the future for any other purpose than that for which the grant had been sought, and in order to achieve this, The DoE required that Local Authorities ensured that a charge was placed on the title of the building. Many groups which own community buildings which benefited from Urban Programme funding are unable to utilise the full equity in their building due to the imposition of this charge. It would seem timely for the Department for Communities and Local Government to instruct all Local Authorities that this charge can now be lifted immediately.

Insufficient attention is given to linking capital investment with training and employment opportunities for the local community. During the late 70s and 80s much more priority was given to negotiating with contractors to ensure that recruitment for vacancies created on building contracts for example would be opened up to local people with the requisite skills and in addition training programmes were put in place to improve the skills of those unable to compete on a equal basis. Positive Action Training programmes were established to address the specific needs of the black community who were experiencing higher levels of unemployment due to discrimination in the education and employment services. Although Officers do recognise the critical need to link job opportunities with disadvantaged communities, it appears that we have learned little from the experience of 20 years ago and still less of that experience has been embedded in current practice.

3.  Tell us about the opportunities you've had to influence regeneration in your local area

Clearly having the length and variety of experience of working in a major urban area, I have been involved in many regeneration programmes during this time. It is sad to note that despite all the effort and level of expenditure which has been involved, little impact has been made on the extent and severity of multiple deprivation—generally the same areas still experience the same degrees of low educational achievement, poor health, poor skill levels, higher unemployment etc as they did say 30 years ago. This is a severe indictment of successive Governments and must be cause for serious concern. One problem evidenced today is the fact that few Officials demonstrate any awareness of what it is like to be involved in community or voluntary sector activity. Too much attention and resources have been allocated to the well organised voluntary organisations to the exclusion of attention being given to the role and needs of local community organisations.

Substantial resources have been allocated to CVSs and other similar organisations which purport to act as capacity building organisations for smaller community groups. Emphasis seems to have been placed on developing Hubs and strategic level organisations in the belief that they will nurture support and develop the grass roots organisations. Funding advice and other support has rarely produced positive results.

As a result of significant reductions in funding, loan finance has become a much more prevalent feature in funding the non statutory sector. This approach again effectively excludes many community sector activities since they are not likely to be able to generate income to meet loan repayments, members of community groups are often (understandably) reluctant to take on debt liabilities and may even be expected to provide personal guarantees which they are unable/unwilling to give.

The combined effects of supporting capacity building organisations in the voluntary sector and the increasing prevalence of loan finance benefits the more successful voluntary sector groups which have services or products which have a value in the market place (as for example care of young children, the elderly, or those with mental health needs or the provision of transport services) to the exclusion of local community groups who work to represent the needs of those in their area and who seek to provide often small scale but valuable activities for their residents. Funding criteria increasingly ignore the needs of such groups whilst their contribution to the social capital in the area becomes ever more necessary as other structures are eroded or lose their former significance.

4.  Do you think enough is done to engage local people in regeneration projects? What can be done differently?

Clearly not enough is being done to engage local people in regeneration projects. However the question must be raised as to whether the emphasis should continue to be on projects rather than on ensuring that service provision properly meets the needs of those it is intended to serve. Surely it should not be impossible to design services and processes for delivering them that recognise that people are different and that some services will need to be framed and delivered to recognise these differences? The concept of "Barriers to Access" can be helpful in this context, whereby Officials have to identify, at every stage of the service planning process, how someone gets to know about a service, how they gain access to it, use it and how well it meet their varied needs etc. As part of this analytical approach, again at every stage, attention is given to identifying the barriers that can prevent different people with varied and changing needs from gaining access to the services for a very wide variety of reasons. Once identified these barriers can then be dealt with appropriately to remove them and ensure full effective service delivery.

If higher priority was given to making best use and most effective use of the resources available to main programme services, then perhaps there would be need less focus on remedial projects with all their weaknesses in terms of often being short term, additional and special?

An Exchange Programme should be established to enable Officials of Central and Local Government to work in relevant positions in community and voluntary sector organisations to allow them to experience at first hand the products of their own policies, practices and decisions. The acceptability of loan finance, the precarious nature of other funding arrangements, the costs involved in (often abortive and wasteful) tendering processes, the tedium of repeated consultation procedures which change very little, the arrogance of the assertions that community groups need capacity building when in actual fact it is more likely that it's the staff and others involved in or responsible for Government that need to be able to relate and understand better how to respond sensitively to the varied changing needs of residents in their area—would all be seen in a different light, if Officials had to experience them directly for themselves on a daily basis within the context of severely limited resources (staff, premises, equipment and finance). It is also possible that some of these inappropriate arrangements would be quickly abandoned!

June 2011




 
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Prepared 3 November 2011