The government’s ‘challenging’ approach to fund allocation gets into its stride while across the Channel the French are treading a familiar pat.
SINGLE BUDGET WINNERS
Round two winners of the government’s single regeneration budget competition were announced on December 12, with 172 schemes gaining about £1 billion over seven years while 157 schemes failed. The schemes are expected to attract an additional £2.5 billion in private and other funding and the largest single successful scheme is the redevelopment of Kings Cross in London.
The SRB was formed by merging some 20 separate government funding regimes and the Chancellor of the Exchequer has promised continued funding for a third and fourth round. Most bids were made by local authorities, with few led by the private sector, although this year some voluntary sector led bids were successful. The government is now extending the ‘challenge’ bidding process to local authorities’ housing and other capital spending, with leverage of private funding one of the criteria for success. Contact DoE Public Enquiries on 0171 276 0900
BIDS FOR EUROPE
In January, the Department for Trade and Industry announced that 19 projects involving the private sector had won funds from the European Regional Development Fund under Objectives 1, 2 and 5b. Previously ERDF projects were expected to be non-profit making, but new criteria allow firms to make a ‘reasonable’ profit.
Meanwhile in December the government announced the winners of a £160 million Regional Challenge bidding process, top-sliced from the ERDF. The projects are expected to attract a further £640 million in private and other public funding. Contact DTI Public Enquiries on 0171 215 5000
ENTERPRISING FRENCH
The French government announced on January 18 a package of over 70 measures to help regenerate some 700 urban communities. Le Pacte de Relance pour la Ville includes creating 30 tax exempt enterprise zones, reductions in shopkeepers’ local taxes in 350 ‘zones de redynamisation urbaines’ and refurbishment of 500,000 homes. The programme is expected to create 100,000 jobs for 18-25 year olds and the three year cost is FFr15 billion (£1.9 billion). Contact French Embassy Information Service on 0171 201 1000
EXPENSIVE ENTERPRISE
Enterprise zones helped to create 58,000 jobs at a cost of between £17,000 and £21,000 each, according to the final evaluation report published on December 5. PA Cambridge Consulting found that the 22 zones, created in the early 1980s for ten years, have proved relatively expensive in achieving their goals and that the incentives offered were not well targeted.
The Department of the Environment has now commissioned research into the impact of single regeneration budget schemes on job creation, training and crime reduction. Announced on January 18, it will last eight years and be conducted by Cambridge University and the London School of Economics. Contact DoE Public Enquiries on 0171 276 0900
ENTERPRISING SCOTLAND
The budget for Scottish Enterprise, the development agency for Scotland, is being cut by 6.4% to £441.5 million next financial year, it was announced on January 16. As a result, spending by the 13 Local Enterprise Companies is to fall by nearly five per cent to £326 million. However Scottish Enterprise says it can still maintain output and won greater flexibility in spending between budgets. Contact Gerard O’Brien, Scottish Enterprise, on 0141 248 2700
COMMUNITY ENTERPRISE
HRH The Prince of Wales made the presentations of the 1995 Community Enterprise Awards at St James’s Palace on December 13. Sponsored by The Times and Touche Ross, the scheme which is now in its tenth year attracted 575 entries and the 11 winning community projects received £1,500 each. The aim is to highlight successful examples of community endeavour through partnership at a local level. Contact BITC on 0171 224 1600
INVOLVING COMMUNITIES
The Department of the Environment has published a guide to involving local people in redevelopment partnerships. This summarises successful practices across the country and recommends techniques for consultation and the assessment of community needs. Involving Communities in Urban and Rural Regeneration (ISBN 185112201X price £20) is also summarised in a free four page leaflet. Contact DoE Publication Sales on 0181 429 5187 or for the free leaflet 0181 691 9191
Comment
News of the French government’s urban enterprise scheme evokes a certain sense of d?j? vu, as does their turmoil over what social benefits the government should pay for, what is the responsibility of employers and what left to the individual. Some have suggested that the new French urban initiative is a political device simply to show that Alain Jupp?’s government still cares about social problems.
That would be a double pity if the French do not learn from experience in this country. The trends article below explores these issues further. In short, there are no quick fixes. To be firmly resisted is the ministerial penchant for photo-opportunities in front of shiny new buildings, to publicise their latest pet scheme. Three Ps should be the hallmark of urban regeneration – partnership, bringing all the parties to the solution; people, with investment in the human capital, not just bricks and mortar; and above all patience, as these things take time to work.
COMMENTS