Regeneration - Communities and Local Government Committee Contents


Written evidence submitted by Roselyn Groves and Local Resident Groups

How effective is the Government's approach to regeneration likely to be? What benefits is the new approach likely to bring? In particular

The active engagement and inclusion of multiple stakeholders proposed by the Government is a critical success factor in any regeneration programme or project. This approach underpinned the Housing Market Renewal (HMR) programme on Merseyside from 2003 and was formally recognized in the adoption of a Community Engagement Strategy by the NewHeartlands Board.

Specific benefits of the approach include:

—  The creation of extensive and cohesive partnerships at a neighbourhood level delivering buy-in and support from local residents;

—  Effective use of public funding to leverage investment from private, voluntary and third sector sources; and

—  Strategy and policy alignment at a regional, sub-regional, local authority and neighbourhood level to promote efficient programme delivery.

Will it ensure that the progress made by past regeneration projects is not lost and can, where appropriate, be built on?

The risk of a change of strategy leading to a loss of momentum, investment and confidence is a major concern for all stakeholders involved in regeneration. Given the long-term nature of both the challenges and strategies linked to regeneration, the Government should adopt an evolutionary approach. This would enable Government to observe and learn from what has been done to date, to link and evolve regeneration strategies and to minimize the risks referred to earlier.

To date, the Government has ignored this methodology and adopted a draconian, finance driven approach that ignores the importance of maintaining local support and confidence to deliver long-term regeneration and economic growth. This is evidenced by the decision to end HMR funding beyond March 2011 without developing an exit strategy with stakeholders and regardless of the effect on local communities benefiting from the programme. This will undoubtedly have a negative impact and will result in:

—  Schemes taking longer to complete, or not being completed at all;

—  Residents being forced to live in intolerable conditions for longer (or indefinitely);

—  Promises to/expectations of residents will not be met;

—  Loss of confidence in the prospects of community regeneration from residents, developers, members and stakeholders;

—  Developers delaying or cancelling schemes resulting in a lack of private sector investment in those areas which are most in need;

—  Areas with the potential for regeneration becoming blighted;

—  A loss of levered in public and private match funding investment;

—  A loss of jobs affecting the construction sector, RSLs, delivery teams and suppliers;

—  Training/apprenticeship opportunities will be reduced affecting neighbourhoods where training opportunities and skills are already low;

—  An adverse effect on local economies if it is known that the schemes will not go ahead or will be pulled;

—  A reduction in low demand housing will be reversed and areas will start to display signs of housing stress and anti-social behaviour;

—  Housing choice for future generations will be reduced leading to accelerated population loss and potentially greater long term public sector costs as neighbourhoods continue to decline;

—  The aspirations of increased owner occupation will not be fulfilled; and

—  Scarce local authority funds will have to be diverted from other areas of need to minimise the negative impacts.

The impacts above are based on an analysis of the removal of HMR funding on Merseyside but are transferrable and applicable to other regeneration programmes where there is a failure to evolve strategy in a considered and rational fashion.

Will it ensure that sufficient public funds are made available for future major town and city regeneration projects as well as for more localized projects?

The inclusive strategy adopted for the delivery of HMR on Merseyside was arguably its greatest strength delivering leveraged funding of £455.29 million over the eight years of the programme. An impressive £207.61 million of the total sum came from the private sector illustrating how Government funding can build confidence and create an economic and business environment in which investment can be secured and resources maximized.

The success of the HMR programme in leveraging funding from the private sector to create an enhanced investment facility undoubtedly enabled more to be achieved for less public investment. This included tactical projects to stabilize and sustain areas at risk of market failure that would otherwise have required more radical interventions at a greater cost to the public purse.

The key to the success of the approach was the security of long-term investment at a level that built confidence amongst the private sector and other partners. This was achieved by the Government committing resources to regeneration within a timeframe and at a scale that generated confidence amongst potential partners and investors.

At present, the current Government has failed to make an equivalent commitment and is currently at risk of missing an opportunity to maximize long-term private sector investment in regeneration. If this approach is not reversed and the opportunity to leverage in private sector investment is not realized, the resources available will fall significantly short of those needed to deliver strategic regeneration for town and city regeneration projects alongside tactical interventions for more localized projects.

What lessons should be learnt from past and existing regeneration projects to apply to the Government's new approach?

Over the eight years of the programme the residents involved in the delivery of HMR on Merseyside learned a number of valuable lessons that fall into three broad categories:

Complexity

There are no easy solutions and what works in one area or neighbourhood may not work in another. This simple fact demands that while an overarching strategy can be employed to deliver regeneration, there has to be tactical flexibility to adopt a range of approaches and interventions in response to the particular needs of a community over time. This approach enables various approaches to be developed and tested and best practice to be shared and adopted.

Commitment

Change takes time and all partners have to be willing to commit their resources to delivering regeneration in the short, medium and long term. This applies most obviously to funding but is equally important in terms of community engagement, political support and economic impact. In the absence of such a commitment any regeneration project is doomed to failure and where commitments are given and broken the damage is often irreparable.

Confidence

The confidence of stakeholders, and most importantly local people, is difficult to win but easy to lose and maintaining hard won confidence during the inevitable challenges that accompany regeneration is extremely difficult. However, it is possible if critical decisions are taken openly, honestly and against a background of informed consultation and discussion with those affected by the decision. A failure to observe this guiding principle inevitably results in a loss of trust and commitment and the withdrawal of the resources essential to successful regeneration.

What action should the Government be taking to attract money from (a) public and (b) private sources into regeneration schemes?

The detailed answer to this question lies in the responses above and can be summarized as follows:

—  Engagement—active, effective and ongoing engagement with all stakeholders throughout the lifetime of the project or programme;

—  Strategy—the adoption of strategies and policies built on effective engagement and aligned at a regional, sub-regional, local authority and neighbourhood level to promote efficient programme delivery;

—  Investment—allocating and guaranteeing the resources necessary to deliver the project or programme; and

—  Leadership—providing effective leadership in a way that builds confidence and commitment.

—  Perhaps the most important actions of Government are those which maintain and enhance confidence in otherwise marginal areas. This confidence enables homeowners, Developers and social landlords to invest and encourages population retention and economic growth. If the Government takes actions which damage this confidence then evidently it has become a driver of negative change in marginal places.

The experience of HMR on Merseyside demonstrates how these factors influence the allocation of scarce resources by public and private sector partners. Individually they are important and collectively they provide the platform for maximizing the resources required to deliver successful regeneration.

How should the success of the Government's approach be assessed in future?

Regeneration is not about bricks and mortar it's about people. Any assessment of the Government's approach should therefore be determined by the extent to which it delivers long-term improvements to the lives of the people living in the places benefiting from regeneration programmes with regard to:

—  economic inclusion and contribution;

—  educational achievement;

—  quality of housing and environment;

—  health and life expectancy; and

—  community and residential stability.

May 2011



 
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Prepared 3 November 2011