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Core Cities call for new finance models...
Published: 2010-02-02 16:09:32
There is growing momentum behind the call for alternative forms of finance for regeneration and renewal projects, according to Chris Murray, director of the Core Cities Group.
Representing eight major centres outside London, Murray explained to SocInvest the changes that will make a significant difference to sustaining regeneration and renewing economic growth.
"Overall, we will have to do more with less," he said. "To achieve this, local authorities and their partners need to to make sure that they have the freedom and flexibility to use the money they will have much more effectively, and to generate further investment."
Although the funding shortage poses a challenge for the regeneration community, Murray insisted that there is a determination at local government level not to allow proposed cuts in state funding to set back their development plans.
"If we can bring mechanisms like Accelerated Development Zones and Tax Increment Financing to bear on city development, we stand more than a fighting chance of being more competitive internationally. If funding is reduced, freedoms should come with it to make sure the effect on local jobs and economies is minimized."
The kinds of initiatives which point the way, said Murray, include the Total Place Review that involves streamlining local authority funding and reducing bureaucracy and overlap. "Reducing ring fencing and allowing flexibility between funding pots, or even moving to single pots, wherever possible would also help," he said. This is being trialled in the Manchester region and there are other options.
"Community and social impact bonds are also potential forms of innovative financing," Murray added.
Social enterprises offer another way of recycling funds back into the community for job creation and reskilling projects. "We expect more companies involved in development to set up social enterprises to deal with regeneration."
These funding options and more will be discussed at SocInvest 2010, 16 June 2010, London, the UK’s leading regeneration funding event, chaired by Chris Murray.