The regeneration game: local authorities broker deals for growth
Author: Alex Thomson, Localis, in the Guardian Local Government Network |
The government’s simultaneous public spending cuts and emphasis on local autonomy have created a new paradigm for regeneration. There has been significant policy change since the last general election, including wholesale reform of the planning system and upcoming changes to local government finance, putting the emphasis firmly on growth.
With the demise of regional development agencies and the government’s localism agenda, greater responsibility is being devolved to Britain’s councils. City deals, directly elected mayors and community budgeting means powers are being transferred downwards at an increasing rate.
For the time being, the greatest changes will be in England’s largest cities, and potentially in the community budget pilot areas of Essex, Cheshire West & Chester, and the Tri-Borough authorities in London. However, the government has committed to expanding these schemes if they are successful; now is the time for local government to prove its case for devolution.
More engaged residents could lead to increased involvement with regeneration – and the chance to avoid costly mistakes in the long run is greatly increased by engagement in the short term. Current theory suggests that sustainable regeneration needs this community buy-in, but most communities will not be able to regenerate themselves. Somebody will need to broker the deal.
Local authorities are best placed to mediate between the private sector and national public agencies, in a way that reflects local preferences. That said, the panels at a recent series of Localis events maintained that determining community needs was difficult – even for local authorities – and challenges remain.
Incentives are in place to go for growth (particularly the greater retention of business rates), but local authorities will also have to think differently about the private sector. Take Local Enterprise Partnerships (LEPs): instead of local authorities deciding what economic development work should be done, businesses are (or should be) now leading the partnerships driving local economic growth. This represents a big change in local government’s mindset and it will take time for all areas to adjust.
Through the growing places fund and the profits of enterprise zones, LEPs will acquire funding. This empowerment of non-democratically elected bodies represents a contrast with the policies highlighted above and clarity on roles and responsibilities has not followed. Perhaps local areas should determine their LEP’s level of involvement.
The context to all of this, and a key barrier to regeneration schemes, is a major shortage of finance for investment.
Any party in office after the May 2010 election would have found present circumstances a challenging time for growth and regeneration. One upshot is the need for new financial models to fund public infrastructure, and local authorities will need to make the most of them.
Local authorities are increasingly empowered, but they need to be increasingly brave and adapt to this new mindset while keeping their communities engaged. They will be juggling several balls while walking a financial tightrope.