As Ken Livingstone took up office in July, the issue of regeneration began hotting up again across the country, with more government money on offer and a real opportunity for business to get involved at local level.
Business partnership for London
New Mayor of London , Ken Livingstone, set out his agenda for working with business in June when he published a detailed report prepared by KPMG. Pledging to work constructively, he highlighted the unique nature of London’s economy as a global financial centre, competition from overseas, the importance of inward investment and the need for greater equality of opportunity. Specific pledges include:
• quarterly ‘open agenda’ meetings with the London Business Board comprising London First, London region CBI and the London Chamber of Commerce and Industry;
• a new Business Advisory Forum of leading representatives of London firms;
• Judith Mayhew, chair of the Corporation of London’s policy committee, in his cabinet as City and business adviser;
• secondments to the Mayor’s office from business.
In July, the new regional development agency for London began work, with the Mayor’s board appointments (a majority of whom must be business people) including Honor Chapman of Jones Lang LaSalle , Tamara Ingram of Saatchi and Saatchi and Yvonne Thompson who chairs the DTI ‘s ethnic minority business forum. On July 27, the LDA announced the winning projects it had selected for the London area under the national Single Regeneration Budget scheme, now in its sixth round. Over 40 partnership projects will share £300 million over seven years, in return for attracting private sector support. The results of bidding for the £900 million available outside London were due to be announced during August.
Meanwhile during June, the business-led London Enterprise Agency announced an agreement to merge with Greater London Enterprise , the London boroughs’ economic development arm, creating the largest enterprise agency in the country. Contact GLA Public Liaison Unit on 020 7983 4100 (http://www.london.gov.uk) or Greg Clark, GLE, on 020 7940 1507 (http://www.gle.co.uk)
RDAs – more money, more central control
The network of regional development agencies won an extra £500 million a year as part of July’s spending review. Their budgets will now total £1.7 billion by 2003/04 and they will also have more flexibility across individual spending programmes, but only in return for meeting central performance targets. In June, the government appointed the first director general of the new Regional Co-ordination Unit , which will centralise control over the network of the government’s regional offices and their liaison with RDAs. Also in June, the Department of the Environment, Transport and the Regions began a national consultation on how to use the agencies as strategic drivers of economic development.
RDAs are responsible for economic development and regeneration, business competitiveness, skills, training and employment and sustainable development in the UK regions, but have come under criticism for being ineffective, remote from business and bureaucratic. One in four RDA users found their service poor or very poor, according to a recent survey by the Institute of Directors . A campaign by business leaders in the West Midlands led to the resignation of the RDA chief executive, Tony Cassidy, in June. Contact DETR Enquiries on 020 7890 3000 (http://www.detr.gov.uk)
Brown’s spending review
The Chancellor of the Exchequer ‘s comprehensive spending review, announced on July 18, brought promises of increased government spending in health, education, transport and crime, much focused on poorer areas. Among specific pledges were:
• £190 million extra over three years for the Small Business Service, including a trebling in the Phoenix Fund to provide support for enterprise in deprived areas;
• £270 million to modernise the Post Office , including support for rural and inner city offices, setting up Internet Learning Access Points, and plans for a Universal Bank to tackle financial exclusion;
• additional resources for the Home Office to secure an increase in volunteering, including an Experience Corp helping retirees and older people get active in their communities.
Also in the spending review was a promise of £800 million over three years for a Neighbourhood Renewal Fund , targeted at the most deprived areas. The aim is to put resources behind the Social Exclusion Unit ‘s recommendations for a national strategy for neighbourhood renewal. In June, 22 neighbourhoods got the go-ahead for feasibility studies on comprehensive regeneration schemes, as part of the second phase of the government’s New Deal for Communities programme. Also planned are Local Strategic Partnerships to bring local service providers together with voluntary, community and private sector partners.
Meanwhile, central government departments have been set explicit targets for improving quality of life in deprived areas. At the same time the Office of National Statistics is preparing new ‘neighbourhood statistics’ covering issues such as health, education, work, crime and unemployment, down to postcode level. Contact DETR Enquiries on 020 7890 3000 (http://www.detr.gov.uk)
Renewal: the business case
Business in the Community has published Neighbourhood renewal: the business case , a set of 45 case studies based on its regeneration work in 40 deprived areas, led by Sir David Barnes of AstraZeneca and with substantial involvement from BT and Marks & Spencer . Studies are grouped under the headings used in the government’s draft strategy for neighbourhood renewal: reviving local economies, leadership and joint working, reviving communities and decent services. Contact BITC on 0870 600 2482 (http://www.bitc.org.uk)
Doing the business with companies
A research report to guide local authorities on engaging with companies was published by the DETR on June 21. Doing the Business includes best practice case studies and survey results from a cross section of firms. The government has said councils will only be able to levy the proposed local supplementary business rate if they have put in place agreed Partnership Arrangements with business. Contact DETR Research Unit on 020 7890 4125 (http://www.local.detr.gov.uk/research)
Business action to help the homeless
BT Cellnet led a pilot campaign during June to help homeless people get themselves back into jobs. Virgin Records, Liberty, Publicis and Reuters Foundation provided training and two-week work placements for nine homeless people. Six extended their placements to gain more experience, one returned to study to improve his qualifications and two trainees dropped out. The pilot forms part of BITC’s Business Action on Homelessness campaign in partnership with CRASH , the construction industry charity for the single homeless. Contact Roger Clark, BAOH, on 0870 600 2482 (http://www.bitc.org.uk)
COMMENT:
When Tony Blair looked to the USA for a new model of city government, he sought two effects from directly elected mayors.
When Tony Blair looked to the USA for a new model of city government, he sought two effects from directly elected mayors. The first was the ability to get things done – a powerful mayor, working closely with business leaders, knocking heads together. In London established agencies are already realigning to the new power structures. A key test going forward will be whether the chambers of commerce can come together and integrate with the new Small Business Service by next April.
The second effect, reinforcing the first, was to weaken the dead hand of the old party bosses. Given the muddle Labour made of it in London, it is hard to see the party in the other big cities embracing the model. That’s a pity because in many ways Birmingham, Liverpool, Manchester, Leeds and Newcastle are better suited to this approach than London: a smaller tighter group of leading companies, headquartered in the city with a genuine sense of belonging; a regionally focused media; less dominance from central government.
In parallel with these experiments in city government, the regeneration agenda is going through one of its periodic upheavals, with some positive signs. First, more money. Second, recognition that core public services are the main vehicle to fight deprivation (this was the key finding of a cross-cutting review of government intervention in deprived areas, chaired by the Treasury’s permanent secretary, Sir Andrew Turnbull). Third, structures at a local level to get companies involved and give them a say both on core services and specific projects. Fourth, some greater freedom for RDAs on implementation, albeit with tighter central direction on strategy.
Against that, the effects of TEC abolition, LSC arrival and small business support changes are still working their way through the system. By this time next year things could look very different, but for the first time in a while the outlook is more positive.
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