PluggedIN: Regeneration in a time of austerity

Author: Alex Thomson (in The MJ) - Feb 9, 2012

Alex Thomson says local government needs to rethink its approach to infrastructure investment.

Public spending cuts and an unprecedented emphasis on local autonomy mean that the regeneration game is going to be radically different for the next decade.

Growth is no longer an optional policy; before long, it is conceivable that it will form the fundamental basis of local government finance.

The shift in the council business model from reactive agents of central government policy to autonomous, business-like organisations that have the power to make a difference may be rhetoric for now, but could be reality within a few years.

You may think that this is all well and good, but has government given local authorities the tools to regenerate troubled areas in a time of austerity? A plethora of policy initiatives, including local retention of business rates, tax incremental financing, whole place community budgets, and the new homes bonus could offer local areas the freedom to pool together funding for regeneration programmes.

Indeed, local authorities are still promoting major regeneration schemes. For example, alongside consulting on its One City masterplan and proposed business quarter, Cheshire West & Chester Council is developing plans with partners for what the Chester Community Budget pilot might look like.

Barnet Council is promoting a major multi-dimensional programme for a new borough town centre at Brent Cross,Cricklewood, including enhanced transport facilities, a new high street and significantly improved green space, thousands of new jobs and new housing.

Making the most of the public sector's assets, both budgetary and physical, will give regeneration schemes the best chance of viability.But ultimately, it will take much more than the public sector to finance regeneration schemes in the current economic climate.

Local asset backed vehicles and other models of private sector investment have the potential to bridge the infrastructure funding gap. Local authorities should take the lead, be brave and change their relationship with the private sector.

Regeneration theory suggests that community support for programmes is vital. Local authorities are the public sector's best chance of capturing local feeling and community objectives, making them well placed to broker deals with private investors.

Ultimately, it's down to local authorities to make the most of the tools at their disposal, keep key stakeholders engaged (including, importantly, local communities) and prove to the private sector that local regeneration is a healthy investment prospect.