Localism - Communities and Local Government Committee Contents



SUMMARY OF RECOMMENDATIONS FROM THE FUTURE IS LOCAL

SDC CALLS ON GOVERNMENT TO ENCOURAGE, ENABLE AND EMPOWER COMMUNITIES, LOCAL GOVERNMENT AND OTHER BODIES TO WORK TOGETHER TO DRIVE, PLAN AND COORDINATE DELIVERY OF INTEGRATED NEIGHBOURHOOD RETROFIT PROGRAMMES TO ACHIEVE SUSTAINABLE PLACES. These neighbourhood partnerships should deliver a range of sustainability outcomes alongside carbon reduction and adaptation measures in an integrated way which will deliver maximum economic, environmental and social outcomes cost effectively.

If we are to mainstream this integrated, area-based approach Government needs to:

PREPARE THE GROUND

1.  GOVERNMENT SHOULD SUPPORT AN INTEGRATED, AREA-BASED APPROACH TO UPGRADING LOCAL INFRASTRUCTURE AS A COST EFFECTIVE WAY OF ACHIEVING MAXIMUM SUSTAINABLE OUTCOMES IN AN AREA.

HOW? This would be supported by: ensuring existing and new polices and delivery programmes (such as the new obligations on energy companies post-2012) are flexible in operation to support integrated delivery; improving the evidence base to assess the economic, environmental and social benefits of this approach; and developing pilot projects which test integrated delivery.

2.  GOVERNMENT SHOULD IMPROVE THE EVIDENCE BASE ON THE COST-EFFECTIVENESS AND BENEFITS (MONETISED AND NON-MONETISED) OF WORKING WITH COMMUNITIES TO DELIVER SUSTAINABLE OUTCOMES.

HOW? This should include a review of current and completed programmes - such as the Low Carbon Communities Challenge, Greener Living Fund, NESTA's Big Green Challenge, the Community Energy Saving Programme (CESP) and Scotland's Climate Challenge Fund. It should also look to learn from previous area-based delivery programmes.

3.  GIVEN THE URGENCY IN TACKLING CLIMATE CHANGE AND THE CRITICAL ROLE LOCAL AUTHORITIES CAN PLAY IN ENABLING, ENCOURAGING AND ENGAGING PEOPLE TO UNDERTAKE ACTION, THE LOCAL AUTHORITIES' ROLE AS LOCAL LEADER ON CLIMATE CHANGE MITIGATION AND ADAPTATION MEASURES SHOULD BE FORMALISED.

HOW? This could be achieved through a requirement to set mandatory targets on climate change mitigation and adaptation (National Indicators 186 and 188) or by making this a duty on local authorities.

4.  GOVERNMENT SHOULD ENSURE THAT REGULATORY FRAMEWORKS FOR INFRASTRUCTURE AND UTILITY PROVIDERS ENABLE AND SUPPORT AN INTEGRATED, AREA-BASED APPROACH TO ACHIEVING SUSTAINABLE OUTCOMES.

HOW? A 'fit for purpose' review of existing regulatory structures should be undertaken to identify potential regulatory obstacles preventing an integrated, area-based approach to upgrading local infrastructure.

COORDINATE SUPPORT

5.  THE DEPARTMENT FOR COMMUNITIES AND LOCAL GOVERNMENT (CLG) SHOULD HAVE RESPONSIBILITY FOR COORDINATING CROSS-GOVERNMENTAL SUPPORT FOR NEIGHBOURHOOD PARTNERSHIPS.

HOW? This should be informed by and build upon existing support being provided to both local authority and community-led partnerships. CLG should simplify the process for neighbourhood partnerships to access the advice, through the creation of a single interface. In addition to improving usability this will help ensure that services meet the need of users without duplication of resources.

Likely areas requiring support are:

long-term enabling advice, technical support (particularly on the use of the Well Being Power) and capacity building for local authorities

technical, financial and legal advice, mentoring, capacity building, and project management for community groups

access to funding, particularly for initial investment and core costs.

UNLOCK FINANCE

6.  PUBLIC SECTOR FUNDING MECHANISMS SHOULD PROMOTE DEVOLUTION OF FUNDING TO NEIGHBOURHOOD PARTNERSHIPS TO ENABLE THEM TO INFLUENCE DECISIONS ON HOW PUBLIC SECTOR MONEY IS SPENT IN THEIR AREA.

HOW? Neighbourhoods should be provided with greater information on local public expenditure, potentially by providing neighbourhood level breakdowns as in the Local Spending Report. The Government's review of local government finance should look at the issues raised by the Total Place pilots, Total Capital case studies and Total Capital and Asset pathfinders, and promote ways to devolve greater financial autonomy to neighbourhoods.

7.  A NEW GREEN INVESTMENT BANK SHOULD DIRECT FINANCE TO A WIDE RANGE OF LOW CARBON INFRASTRUCTURE PROJECTS INCLUDING ENERGY EFFICIENCY AT A VARIETY OF SCALES, INCLUDING NEIGHBOURHOOD.

HOW? Support could be provided through:

providing capital or guarantees where private finance is unwilling to take the risk

bundling small projects to attract wider investment

providing a brokering service between private, public and third sectors

raising capital (for example, through Green Bonds) for sustainability projects identified by the partnerships.

8.  GOVERNMENT SHOULD MINIMISE DEVELOPMENT RISK THROUGH PROVISION OF CLEAR POLICY SUPPORT FOR NEIGHBOURHOOD RETROFIT.

HOW? The standards and timeline for introduction should be defined now but phased in as mandatory over a period to enable building owners to prepare for these works. All homes should meet minimum energy efficiency standards. The UK Government should also equalise VAT for repairs and refurbishment works in domestic properties, with new build.

9.  LOCAL AUTHORITIES SHOULD BE ENABLED TO BORROW AGAINST FEED-IN-TARIFF AND RENEWABLE HEAT INCENTIVE INCOME STREAMS.

HOW? The Treasury should implement this as a matter of urgency now that Feed-In-Tariff is operational.

10.  GOVERNMENT SHOULD CREATE WAYS IN WHICH LOCAL COMMUNITIES ARE ABLE TO DERIVE LONG-TERM BENEFITS FROM THE SITING OF LOW CARBON ENERGY INFRASTRUCTURE, SUCH AS NEW HOUSING OR WIND TURBINES, IN THEIR AREA.

HOW? This could include enabling communities to purchase a share in the development, providing them with an ongoing share of the increase in business rates or a community tariff. In addition, 'allowable solutions' (i.e. offset payments for new homes unable to meet zero carbon levels onsite) could be paid to the local authority and used to fund low carbon projects identified in neighbourhood partnerships' delivery plans.


 
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© Parliamentary copyright 2011
Prepared 9 June 2011