Chapter 5: Changes to bring about this future
Town and city leadership
175.As we explained in the introduction, our proposals for the future of towns and cities focuses on many policy areas that are largely devolved in the United Kingdom, such as housing, transport and local government. Despite hearing evidence from businesses, town planners, public transport providers and local authority leaders from Scotland, Wales and Northern Ireland, our conclusions and recommendations focus on the situation in England. Nevertheless, we believe that the governments of, and local authority leaders in, Scotland, Wales and Northern Ireland will find our report useful in considering the future of towns and cities, and their role in that future.
176.Empowering local authority leaders is vital to bring about the changes we wish to see in our towns and cities. Throughout our inquiry we have heard that different towns and cities have been affected differently by the pandemic, and will need different measures to recover. There is no one-size solution that will work for all towns and cities across the UK.
177.Local government leaders are in a far stronger position to understand the needs of their own areas and residents, rather than central government civil servants. Central government should see itself as an enabler of recovery, providing local authority leaders with the powers, resources and responsibilities to set their own direction for the regeneration of individual towns and cities across the country.
178.We have received insufficient evidence to create a comprehensive proposal for further legislative devolution, however, we believe that the UK Government must take the opportunity offered by its upcoming Levelling Up White Paper to explain its plans for further legislative and financial devolution of powers.
179.Beyond the need for further legislative devolution, we believe that the existing general power of competence provides local authority leaders with the potential to take on additional responsibilities, and the power to implement far-reaching regeneration projects in their towns and cities. However, central government must support, and encourage, its use to enable local authority leaders to make full use of the general power of competence.
180.The UK Government should issue a statement to all local authority leaders actively encouraging the use of the general power of competence, and should work with the Local Government Association to issue detailed guidance notes on the operation of the general power of competence.
181.Throughout our inquiry, we have been focusing on the long-term impacts of the pandemic on towns and cities, and have asked local authority leaders to concentrate on their plans for the long-term recovery of their urban areas. However, as local authorities have already seen significant cuts to their budgets since 2010, we cannot expect them to continue to accomplish more and more, with ever decreasing budgets. Rather, we believe that the regeneration agenda necessitates a comprehensive re-examination of the local government settlement. Local government leaders have stressed time and again that the current system of one-year local authority settlements restricts their ability to undertake long-term planning. How can we expect local authority leaders to plan the long-term regeneration of their urban areas over the next five, ten or twenty years, if the annual funding settlements only allow them to plan from year to year?
182.While local authorities, like everyone else, have been required to put in place short-term, emergency measures to deal with the pandemic, it is now time to consider the long-term impacts of the pandemic, and how they can be overcome. Local authorities can only do this, if they are given sufficient long-term financial certainty from central government to allow them to plan for the long-term future.
183.The UK Government should introduce a three-year rolling local government financial settlement, at an increased level, to replace the current system of one-year settlements, to allow local authority leaders to develop, and deliver, long-term plans for their urban areas.
184.Local authority leaders have stated time and again that the current competitive bidding process for additional funding from central government is unsatisfactory. Local authorities are often expected to submit funding bids to very tight deadlines, with equally tight deadlines for spending those funds. As a result, these funds are often spent on projects that fit the funding criteria and timescales, but that may make only a negligible impact on the local authority’s plans to regenerate their area.
185.We believe that local government leaders should be given the opportunity to focus on the long-term regeneration plans and projects for their areas, rather than having to find short-term projects that fit specific funding criteria, but not the needs of their local area. As such, we want to see the UK Government agree with the Local Government Association to create an improved resource equalisation scheme, to ensure that additional central government funding is targeted at the towns and cities that are at the greatest risk of being left behind.
186.The UK Government should end the competitive bidding processes for additional funds, and agree with the Local Government Association to create an improved resource equalisation scheme, as a transparent method of assessing those towns and cities most in need, and targeting additional central government funding at those areas.
187.We want to see the recovery of our towns and cities used as a catalyst for exploring the options to reform the current business rates system and level the playing field between online and offline retail sales. Following the Treasury Select Committee’s inquiry into the impact of business rates on business in October 2019, we believe that the time is right for that Committee to update this work in light of the pandemic, as well as for it and the Lords Economic Affairs Committee to undertake a detailed exploration of the potential for introducing an increased VAT rate on online sales or a hypothecated online sales tax.
Accelerating trends
188.While we believe that the regeneration of town and city centres is vital to the wider recovery of towns and cities, we want to see this matched by a commitment to, and investment in, those neighbourhoods most in need. As such, we want to see the UK Government work with local authorities to develop a two-pronged, blended approach to urban regeneration and renewal. The first part of this approach will focus on developing new opportunities—pop-up retail units, work hubs and arts and culture—in town and cities, while the second part will concentrate on investing in housing, public services, public transport and green spaces in town and city centres, as well as and those neighbourhoods that risk being left behind.
189.We want to see the UK Government supporting local authority leaders to establish work-hubs, pop-up retail units and arts and culture provision in our towns and cities. While the UK Government will provide much of the funding for establishing these initiatives, we believe that local authority leaders should have the freedom to use these additional resources in the most suitable way to meet the specific needs of their particular urban areas.
190.The UK Government should provide financial support to local authority leaders to enable the establishment of:
- Work hubs in towns and cities;
- Pop-up retail units in towns and cities; and
- Arts and culture provision in towns and cities.
191.We want to see the UK Government working with local authority leaders to encourage a blended approach to housing in towns and cities. While we believe that bringing residents back to town and city centres is key to the wider recovery of towns and cities, we also do not want to see retail, workplaces, leisure opportunities and public services, pushed out of our town and city centres. We want to see the UK Government providing financial support to convert commercial properties into residential properties, as well as building homes on derelict sites in town and city centres. We also want to see this investment in town and city centres matched by investment in housing in those neighbourhoods that risk being left behind. We believe that local government leaders should have the freedom to use these additional resources in the most suitable way to meet the specific needs of their particular urban areas.
192.The UK Government should work with local authorities to develop a blended approach to housing in our towns and cities. We want to see the UK Government providing increased financial support for the conversion of commercial properties into residential properties and building homes on derelict sites in town and city centres, as well as matching investment in those neighbourhoods in the greatest need.
193.Any increase in residential properties will also necessitate an increase in public services, and an increasing investment in public service provision. We want to see the UK Government working with local authorities to develop a blended approach to public service provision in towns and cities. We believe that the UK Government should provide local authorities with increased funding to invest in public service provision in town and city centres, and those neighbourhoods that risk being left behind. Local government leaders should have the freedom to use these additional resources in the most suitable way to meet the specific needs of their particular areas.
194.The UK Government should work with local authorities to develop a blended approach to public service provision in urban areas. We want to see the UK Government providing increased financial support for the provision of public services in town and city centres, as well as matching investment in those neighbourhoods in the greatest need.
195.Public transport provision is a key element in the regeneration of our towns and cities, that cannot be overemphasised. As such, we believe that recovery of our towns and cities is an unmissable opportunity to explore the options to introduce an intermodal ticketing and payment system to make using public transport as easy and simple as possible. encourage the Transport Select Committee to examine the potential options for introducing intermodal ticketing and payment systems for public transport in our towns and cities, alongside its potential impact on passenger numbers.
196.We want to see the UK Government, working with local authority leaders, to develop a blended approach to public transport provision in towns and cities. While we believe that making it as easy as possible for residents, and visitors, to travel into town and city centres is vital for their recovery, we also want to see increased public transport provision for those neighbourhoods that risk being left behind. As such, we want to see the UK Government providing local authorities with additional support to improve the public transport network in town and city centres, and specific neighbourhoods in most need. Local government leaders should have the freedom to use these additional resources in the most suitable way to meet the specific needs of their particular areas.
197.The UK Government should work with local authorities to develop a blended approach to public transport in urban areas. Such an approach should ensure that public transport provision within town and city centres, and within neighbourhoods in the greatest need is prioritised, with central government investment to ensure that public transport provides a regular, reliable and affordable service in these areas.
198.As demand for green spaces has grown, so has the funding spent on these spaces declined, as local authorities face greater pressures on already strained budgets. We believe that the UK Government must provide local authorities will additional funding, to improve the condition of current urban green spaces and create new town and city parks, parklets and play areas. We believe that this additional funding should be focussed on town and city centres, as well as those neighbourhoods in greatest need. Local government leaders should have the freedom to use these additional resources in the most suitable way to meet the specific needs of their particular urban areas.
199.The UK Government should provide local authorities with additional funding to improve the condition of existing urban green spaces, and create new parks in town and city centres, and those neighbourhoods in the greatest need.
Inequalities
200.We have been unable to undertake a comprehensive analysis of the complex inequalities in our towns and cities, but believe that tackling existing inequalities is vital to create vibrant, sustainable towns and cities of the future. Existing inequalities, and their impacts, will differ from one town or city to another, and the action required to tackle these inequalities will also differ from one town or city to another. As such, we are not in a position to make detailed, prescriptive recommendations to tackle inequalities in all towns and cities, but rather make recommendations that should provide both local and central government with food for thought. We believe that inequalities in our towns and cities deserves further, detailed consideration, and hope that another Select Committee may undertake further work on this topic.
201.We encourage the Women and Equalities Select Committee to undertake a detailed inquiry exploring inequalities in our towns and cities.
202.We want to see local authorities developing a new approach to tackling inequalities, where those who are most vulnerable in our communities are active partners in developing the investment plans, and projects, that will change their lives. We believe that vulnerable groups, communities and neighbourhoods should be supported to take a lead in shaping their future, rather than having regeneration plans imposed upon them. It is only by engaging fully with specific groups and communities that we can hope to develop the services and practices that could prove to be of most help to them.
203.We encourage local authorities to develop a method for actively engaging with the different groups, communities and neighbourhoods within their towns and cities, and ensure that these views are acted upon in developing their regeneration plans.
204.We want to see local authorities putting action to tackle inequalities within their towns and cities, at the heart of their recovery agenda. We believe that our proposed blended approach to the regeneration of our towns and cities is a vital first step to tackling inequalities, and ensuring that no communities are left behind. We want to see investment in town and city centres matched by a commitment to, and investment in, those neighbourhoods most in need. We believe that focusing funding on those neighbourhoods most in need is a vital step to tackling inequalities between different areas and communities within towns and cities, and putting right the historical wrong of under-investment in these neighbourhoods.
205.We encourage local authorities to ensure that investment in housing, public transport, public services and green spaces in town and city centres, is matched by the same investment in housing, public transport, public services and green spaces in those neighbourhoods that risk being left behind.
206.Action to tackle inequalities must not only be targeted at specific neighbourhoods, but must be mainstreamed throughout local authorities’ regeneration agenda. When local authority leaders are developing their plans for improved housing, increased green spaces, increased public services, and improved public transport provision it is vital that they ensure that they are accessible to, and meet the needs of, different groups and communities within their towns and cities. Different groups and communities, such as older people, disabled people and people from minority ethnic communities, in different areas will have different needs, and there is no one-size fits all approach to creating open and accessible town and cities.
207.We encourage local authorities to develop a process for mainstreaming the consideration of inequalities when assessing proposals for improving housing, green spaces, public transport provision and public services, and ensuring that the views, and needs, of specific groups and communities are at the heart of the decision-making process.
208.Local authority leaders should also use their regeneration plans as a chance to introduce specific schemes to ensure that the new opportunities in towns and cities—work hubs, pop-up retail units, arts and culture opportunities—are targeted at the needs of specific groups and communities. The exact projects most suitable to meet the differing needs of specific groups and communities will be different in different areas, and there is no one-size fits all approach for all towns and cities.
209.We encourage local authorities to develop schemes to ensure that the new opportunities offered by the regeneration of their towns and cities—work hubs, pop-up retail unites, arts and culture provision—are targeted at the needs of specific groups and communities.