Place-shaping is chance to build a bridge between economic and social regeneration, and close the gap between rich and poor. But only if councils are brave enough to be more creative, argues Neil McInroy
Despite decades of regeneration policies, programmes and initiatives – which have undoubtedly led to a renaissance in many cities – the gap between Britain’s rich and poor is still growing. Glaring inequities in income and spending power continue, not just between different parts of the country, but between different areas in towns and cities.
Former industrial cities such as Glasgow, Manchester and Birmingham may have been turned around, but a short bus ride from their centres are neighbourhoods blighted by deprivation.
Economies are still polarised at the regional, local and neighbourhood level. The first wave of urban renaissance has left behind vast swathes of unemployed people. Pockets of unemployed in particular neighbourhoods are proof that many people remain disconnected from regeneration efforts, despite initiatives such as New Deal for Communities and Neighbourhood Renewal.
Clearly, ‘trickle-down’ renaissance has not worked. It tends to gloss over local problems in order to accentuate positive renaissance, in an effort to attract national and international investment. This means local needs are not taken into account and bespoke solutions are not delivered for local circumstances.
So, what is the solution? In my opinion, the answer is a greater emphasis on equality and fairness, and using the new, national context which is emerging to shape fairer places which reflect local needs. In the past, national government has subconsciously encouraged the split between economic and social regeneration. The New Deal sits within the DCLG, while regional development agencies (RDAs) are overseen by the Department of Businesses, Enterprise and Regulatory Reform (DBERR). Unemployment is dealt with as a welfare issue on one hand, and an employment and skills issue elsewhere. City strategies focus on economic development and employment policies rather than its social consequences.
These are just some examples of a historic inability to join up the gaps. However, a new national context offers councils the chance to consider economic development and local social issues more coherently, and shape places in a way which benefits all, instead of the lucky few.
The place-shaping agenda enshrined in the Local Government Act and subsequent guidance, stresses the importance of local involvement in decision-making.
The new economic duty proposed under the Sub-national review of economic development and regeneration could enable economics to become more corporately centred within a local authority, and increase the possibilities to connect this to the social inclusion agenda.
Multi-Area Agreements mean specific issues can be tackled at sub-regional level. The creation of the Homes and Communities Agency also offers opportunities to think in a more holistic way. Councils can respond to this agenda by creating economic strategies which tackle these inequalities, consider social problems, and relate to the real needs of the local community. A new approach that sees social life or ‘social capital’ as a key aspect of the economy. In this, we need bespoke, locally-specific solutions which link social and economic issues. It is about using the place-shaping agenda to create local economic strategies which seek to spread out wealth, enhance economic cohesion and promote social justice.
This might be easier said than done, but it is what the next wave of renaissance will need to do, and there are practical steps which can be taken.
The first step is to maximise the benefits of public sector spend in an area, developing local supply chains, and making a connection between communities, enterprise and public services.
The second is reform of the central tax and benefits system. Place-shaping needs to be matched with a national investment and economic planning strategy which promotes equality and fairness.
The third step is to rethink how the problems of a particular place are approached. It is apparent that we need to see social health as equal in importance to economic health. And powers must truly be devolved to make this happen.
Some of the right mechanisms are now being put in place. A new culture which perceives the growing inequalities in our cities and adopts economic strategies to shape and reflect the needs of all its citizens should follow.
The first wave of urban renaissance is over. The next wave requires bravery, creativity and risk. w
Neil McInroy is chief executive of the Centre for Local Economic Strategies
Former industrial cities such as Glasgow, Manchester and Birmingham may have been turned around, but a short bus ride from their centres are neighbourhoods blighted by deprivation.
Economies are still polarised at the regional, local and neighbourhood level. The first wave of urban renaissance has left behind vast swathes of unemployed people. Pockets of unemployed in particular neighbourhoods are proof that many people remain disconnected from regeneration efforts, despite initiatives such as New Deal for Communities and Neighbourhood Renewal.
Clearly, ‘trickle-down’ renaissance has not worked. It tends to gloss over local problems in order to accentuate positive renaissance, in an effort to attract national and international investment. This means local needs are not taken into account and bespoke solutions are not delivered for local circumstances.
So, what is the solution? In my opinion, the answer is a greater emphasis on equality and fairness, and using the new, national context which is emerging to shape fairer places which reflect local needs. In the past, national government has subconsciously encouraged the split between economic and social regeneration. The New Deal sits within the DCLG, while regional development agencies (RDAs) are overseen by the Department of Businesses, Enterprise and Regulatory Reform (DBERR). Unemployment is dealt with as a welfare issue on one hand, and an employment and skills issue elsewhere. City strategies focus on economic development and employment policies rather than its social consequences.
These are just some examples of a historic inability to join up the gaps. However, a new national context offers councils the chance to consider economic development and local social issues more coherently, and shape places in a way which benefits all, instead of the lucky few.
The place-shaping agenda enshrined in the Local Government Act and subsequent guidance, stresses the importance of local involvement in decision-making.
The new economic duty proposed under the Sub-national review of economic development and regeneration could enable economics to become more corporately centred within a local authority, and increase the possibilities to connect this to the social inclusion agenda.
Multi-Area Agreements mean specific issues can be tackled at sub-regional level. The creation of the Homes and Communities Agency also offers opportunities to think in a more holistic way. Councils can respond to this agenda by creating economic strategies which tackle these inequalities, consider social problems, and relate to the real needs of the local community. A new approach that sees social life or ‘social capital’ as a key aspect of the economy. In this, we need bespoke, locally-specific solutions which link social and economic issues. It is about using the place-shaping agenda to create local economic strategies which seek to spread out wealth, enhance economic cohesion and promote social justice.
This might be easier said than done, but it is what the next wave of renaissance will need to do, and there are practical steps which can be taken.
The first step is to maximise the benefits of public sector spend in an area, developing local supply chains, and making a connection between communities, enterprise and public services.
The second is reform of the central tax and benefits system. Place-shaping needs to be matched with a national investment and economic planning strategy which promotes equality and fairness.
The third step is to rethink how the problems of a particular place are approached. It is apparent that we need to see social health as equal in importance to economic health. And powers must truly be devolved to make this happen.
Some of the right mechanisms are now being put in place. A new culture which perceives the growing inequalities in our cities and adopts economic strategies to shape and reflect the needs of all its citizens should follow.
The first wave of urban renaissance is over. The next wave requires bravery, creativity and risk. w
Neil McInroy is chief executive of the Centre for Local Economic Strategies
