Sustainable regeneration

The consultation, Transforming places; changing lives: a framework for regeneration, looks ahead to the next stage of regeneration: how we can sustain the success gained so far and spread opportunity still further over the next 10 years.

Following the consultation process, a finalised framework will be published in early 2009.

We welcome views on the consultation questions from everyone with an interest in regeneration up to and including the deadline for responses on Friday 31 October.

Decades of de-industrialisation and economic restructuring adversely affected millions of people. Targeted investment over the past ten years has had a significant impact on outcomes for all, particularly those living in deprived areas. But there is more to do to extend opportunity and raise aspirations in some communities. Often the most effective way is to close the gap in outcomes is through mainstream services, which tend to distribute resources according to need. However, where there are local barriers to growth, successful regeneration can help tackle disparities by transforming deprived areas and improving the lives of those - often the poorest in society - living in and around them. The time is right to shift our emphasis on tackling the economic challenges that hold back deprived areas.

A new approach is particularly timely because of the way regeneration is planned, delivered and managed is changing. The new Local Performance Framework has a clear focus on regeneration, with greater flexibility to deliver against outcomes, and strong sub-regional partnerships are emerging, through Multi Area Agreements (MAAs). Nationally, the new Homes and Communities Agency is bringing together English Partnerships and the Housing Corporation - along with other Communities and Local Government funding streams - to improve the effectiveness and efficiency of housing and regeneration investment.

The purpose of framework is to shape the way that regeneration is carried out in the future in England. It:

takes a holistic approach - ensuring physical; social; and economic regeneration are planned and delivered together
looks ahead to the next stage of regeneration: how we can sustain the success so far and spread opportunity still further in the years to come. It proposes measures that aim to:
- ensure that regeneration investment is co-ordinated and prioritised in the right places
- devolve power - decisions about where to invest should be made as locally as possible
- focus regeneration investment on tackling the underlying economic challenges, in particular supporting people to get a job and get on in the labour market.

It says:

local and regional agencies should use existing planning powers to bring partners together to tackle the underlying economic causes of decline by tackling worklessness, promoting enterprise, and giving people the skills to progress
physical regeneration is still important but it should be much more strongly linked to jobs and the economy - being clear how and where people will work when new houses are built and estates transformed.
all regeneration (including Communities and Local Government programmes) should be aligned behind three priority outcomes:
- improving economic performance in deprived areas
- improving rates of work and enterprise in deprived areas; and
- creating sustainable places where people want to live and can work, and businesses want to invest.

The tightening of the credit market, uncertainty in the housing market and slower economic growth are all going to have impacts on the challenges facing deprived areas and the potential for achieving the transformative change through regeneration. Communities and Local Government has commissioned a study by Professor Michael Parkinson on the Impact of the Credit Crunch on Regeneration, which will run in parallel to the consultation on this framework.

Related issues

The new Regional Funding Advice document Regional funding advice: guidance on preparing advice published by HM Treasury in July builds on the Regional Funding Allocations exercise in 2005-06, and provides indicative regional funding allocations for transport, housing and regeneration, and economic development, and offers regions the opportunity to provide advice to Government on their investment priorities.