RSS FEED
Core Cities makes case for sustaining regeneration support
Published: 2010-05-25 08:08:54
The Coalition Government has announced a reduction of £270 million in regional development association (RDA) budgets as part of the £6.2 billion of cuts in spending for 2010-11.
The Government has also made it clear that radical changes in how regional development is managed are also on the way.
"It's not clear what the scope of the changes will be, or what it will mean for some functions currently within the RDAs," said Chris Murray, director, Core Cities.
"It's likely that we will end up with different arrangements in different places. What we must avoid is a recentralisation of functions."
A great deal remains to be clarified, including the use of business rates for local reinvestment and some form of national funding for infrastructure. As Treasury ministers have promised to review every spending commitment above a certain level, there could well be further cutbacks on infrastructure and regeneration investment.
"It's important now that the public and private sectors work together to convince the new Government that there are workable and worked-out models for generating investment in infrastructure and regenerative capital finance, that will support business growth and job creation," said Murray.
"There's a lot of evidence to suggest that infrastructure gives a triple win – jobs, business growth, and sustainability – particularly through transport infrastructure."
Murray was also hopeful that there will be some constructive changes. "Business rates are likely to be used in a more creative way. Bonds are likely to be trialled. The principles of Total Place and Total Capital are likely to be implemented to some extent, although the name may change. We will see reduced monitoring and ring fencing and greater alignment of funds, but all in the context of reduced spend overall and public service reforms."
While he admitted that there has been some scepticism among some officials on the return on investment from regeneration funding, he pointed out that pulling back from this could hugely impact the most vulnerable communities in our cities. "We have to be careful not to cut too much too soon in the wrong places or it will take generations to sort out."
Murray also made the case for rewriting the regeneration narrative so that it relates to the current situation. "It needs to be people-based and aimed at raising productivity, sharing dividends and focusing more on the hardest to reach."
There are some changes that urgently need government sanction. "Tax increment financing and accelerated development zones is an idea whose time has come. We've got the evidence, it's close to coalition policy, so let's just get on and pilot it now."
Chris Murray is chairing SocInvest 2010, 16th June 2010, London.