European Regional Development Fund

Written evidence submitted by English Heritage

English Heritage is the Government’s statutory adviser on all matters relating to the historic environment in England. We are a non-departmental public body established under the National Heritage Act 1983 to help protect England’s historic environment and promote awareness, understanding and enjoyment of it.

English Heritage has extensive experience of regeneration programmes, both through our own area-based grant schemes, those of the Heritage Lottery Fund with whom we work closely, and through the expertise and guidance we offer to local authorities and other stakeholders involved in regeneration projects involving historic buildings and areas.

Key points

· Heritage-led regeneration has proven effectiveness in terms of its economic [1] and social [2] impact – it has benefits in terms of establishing a ‘virtuous circle’ of economic activity as a result of added confidence in localities

· ERDF has been a successful source of funding for heritage-led regeneration projects for a number of years – across a range of sizes and geographic areas

Q. How, and on what, is ERDF spent?

Clearly, ERDF funding is spent on an extremely broad range of projects around England. The interest of English Heritage in this source of funding relates primarily to the long-term advantages that flow from heritage-led regeneration: those that benefit the historic environment (the refurbishment and reuse of historic buildings and areas as part of wider regeneration projects) and those that benefit the local community (the economic, social and environmental impact of such projects). Nevertheless, there are now a significant number of other benefits from such projects that are well understood and which often form part of regeneration strategies – in areas such as sustainability, tourism, local distinctiveness and sense of community around a place. There are significant economic impacts, both in terms of the economic value of work undertaken and the leverage effects of funding secured. [3]

Attractive local environments and quality of place are also important elements in investor confidence and public perceptions of quality of place and liveability – careful intervention in the form of heritage led regeneration can help create a virtuous circle of increased confidence, investment, economic vitality and care for the local environment. Research for English Heritage in 2009 demonstrated the positive and significant relationship between the historic environment and sense of place [4] .

It is in this context that our interest in regeneration funding should be considered. ERDF funds have contributed to a wide range of historic environment-related regeneration projects across England over the lifetime of the programme. These have also been across of range of scales and areas.

For example, ERDF funds have been a crucial component in area based schemes such as that in Tottenham in north London. Together with funding from English Heritage, the London Borough of Haringey and contributions from private property owners, this scheme took an explicitly conservation-led approach to the regeneration of an historic area with pressing social, economic and environmental issues. The renovation and reuse of a number of historic buildings within the area complemented other initiatives within the council’s wider Tottenham regeneration strategy and has contributed to a dramatic improvement in streetscape and environmental quality.

A current and high profile project which has secured ERDF funding is the Grade II* listed Middleport Pottery in Burslem, Stoke-on-Trent. Under proposals being led by the Prince’s Regeneration Trust, a £7.5m scheme will regenerate the site and safeguard its use as a pottery, protecting around 50 jobs in the process and creating a further 50 through attracting new businesses and the provision of a factory shop and café. ERDF funding of £900,000 is part of the overall project which has also attracted funds from English Heritage, the HLF and the Regional Growth Fund.

On a smaller and more local scale, there have been a number of projects that have secured ERDF funds through the LEADER+ scheme. For example, the High Weald Area of Outstanding Natural Beauty LEADER+ project promoted better environmental practices and sustainable land use through advice to local landowners enabling better awareness of the local historic environment. The project also had significant tourism benefits through the creation of an interpretation centre at the Herstmonceux Windmill.

The common theme to each of these type of project is the way in which ERDF money has been one of many sources of funding. While it has often not been the principal source of funding, it is often important in the sense of priority and visibility it can bring to the project. Given decreasing resources for regeneration programmes from elsewhere, it is extremely important that DCLG continues to promote the availability of ERDF funding and to apply transferrable lessons to other projects.

Is the taxpayer in England obtaining value for money from the ERDF?

In addition to the examples set out above, English Heritage as an organisation has secured ERDF funding for a variety of projects at a number of our own sites – this type of funding has gone towards projects such as a new visitor centre at Whitby Abbey, the recreation of a Victorian kitchen garden at Audley End House and the renovation and reuse of the 1901 Royal Artillery Barracks at Pendennis Castle as exhibition space. All of these projects, in addition to securing investment in important historic buildings, have contributed to economic growth for their wider geographic area through upgrading tourist facilities and driving visitor growth.

The historic environment is a significant driver of tourism. Over 50% of inbound tourists plan to visit historic sites. The tourism activity in the UK (from both domestic and international visitors) which can be attributed to heritage (including landscape heritage, and cultural heritage) directly generates £7.4 billion of GDP per annum and supports employment for 195,000 people. [5]

This economic activity is important to local communities. It is estimated that, on average, over half the jobs created by historic visitor attractions are not on the sites themselves, but in the wider local economy, such as shops, restaurants and hotels. [6] Furthermore, research carried out by English Heritage has found that for £1 invested in the historic environment a further £1.60 is generated in the local economy [7] .

Evaluation of heritage-led regeneration projects tends to support the theory that their economic impact is greater over the long term. Evaluation of HLF Townscape Heritage Initiative projects demonstrated that much of the economic impact is over a ten year period. [8] Given that the sector is changing rapidly, it is important that this factor (together with the long term benefits of other regeneration programmes) is not disregarded as organisations and individuals adapt to the new framework.

With the abolition of the Regional Development Agencies responsibility for ERDF in England passes to DCLG. What effects are these changes having on the administration, assessment and payment of ERDF?

It is perhaps too early to be able to make a firm conclusion as to whether the abolition of the RDAs has simplified or complicated the ERDF process. However, we firmly believe that the loss of both expertise and promotion of potential regeneration projects that has resulted from their disappearance needs to be addressed swiftly by the Government.

English Heritage

April 2012