first of 3 guest lectures at Bolton Univ delivered in 2011

1. Regeneration Policy in Contemporary Context Nicola Headlam 18th March 2011

2. Structure Part One : Contexts (me + questions) 1 (New) Labour’s urban policy laboratory. 2Localities in the recession. 3 Control Shift ; Localism, Big Society and the Coalition break Part Two: Policy Development and Process (intro + group exercise) 4 Parliamentary Committees 5 Regeneration to enable growth select committee inquiry response 6 Feedback break Part Three: Closer to home (me + questions) 7 MCR mechanisms for ED/R 8 Summary

3. Handouts Group Work Regeneration to enable growth : CLG Delivery Community Regeneration in Hard Times: SURF Scotland (to compare!)

4. Contexts Part One

5. Contexts 1 (New) Labour’s urban policy laboratory. 2 Localities in the recession. 3 Control Shift ; Localism, Big Society and the Coalition

6. Labour’s Urban Policy Laboratory.

7. POLICY STRAND 1 Regeneration Policy [Alphabet Soup]

8. POLICY STRAND 2 The Local Government Modernisation Agenda [turning round the tanker]

9. POLICY STRAND 3 Performance management measurement, audit and inspection [drowning in documents…]

10. Joined up government?

11. What is regeneration? “’Regeneration seems to offer an almost infinitely inclusive canopy under which all may be persuaded to shelter and find agreement, yet vital issues remain beyond the pale” (Furbey 1999) pg 440 “…so urban regeneration is in principle a floating signifier but in practice it does not float very far. It is ubiquitously used to a fairly standard set of policy goals and outcomes ”(Lovering 2007) pg 344

12. Regeneration – Governance 4 phases

13. HO PSA Delivery PSA 7 PSA 4 PSA 6 PSA 5 PSA 3 PSA 2 (Joint OCJR) PSA 1 NATIONAL REGIONAL LOCAL Voluntary & Community Sector 9 Area Committees CRCSG NOMS OCJR Communities IND Probation Prisons NASS ASB PolicingPolicy PolicingStandards CrimeReduction Drugs ACD CCU, REU, F CJS Probation Inspectorate HMIC Prisons Inspectorate GOEM (43Staff)5 Police Forces; 9 DATs;40 CDRPs; 49 Local Auth’s Individual Regional Offices One City Partnership(LSP) NDC LCJB CDRP DAT CJIPCompact Police Authority Notts Police ProbationService HMP CPS Courts NottinghamCity Council Nott BCU YOT

15. Accountability

16. Decision making Process

17. Finance

19. drivers and levers : theory of change Selection of policy drivers and levers is informed by the interaction of actors exercising political judgement about priorities. As governance systems rely on human interactions attempts at steering are likely to be met with unexpected and unintended though not necessarily unwelcome reactions and outcomes. (CLG, Sullivan 2008)

20. Tanker in First World War “Razzle-dazzle” camouflage

21. Strategic manoeuvring…

23. CPA – Corporate Performance Assessment

24. CAA - Comprehensive Area Assessment

26. Gordon Brown’s Approach – PSA regime

27. PSA Connecting manifesto to delivery mechanisms of Whitehall Connecting to “floor targets” In some ways odd to have to invent this… The “machinery of government” is quite tricky…

28. PSA match to ministers (2007)Power within the Core Executive I Figure 3 Number of PSAs for which each Cabinet Minister is operationally responsible. Minister Department Number of PSAs Ed Balls DCFS 5 Jacqui Smith Home Office 4 John Hutton DBERR 3 Hazel Blears DCLG 2 Peter Hain DWP 2 Alan Johnson DH 2 John Denham DIUS 2 Hilary Benn DEFRA 2 Alistair Darling HMT 1 Jack Straw MoJ 1 Ruth Kelly DfT 1 James Purnell DCMS 1 Ed Miliband Cabinet Office 1 Douglas Alexander DFID 1 David Miliband FCO 1 Harriet Harman Government Equalities Office 1

30. Local Area Agreements Partnership governance mechanism “bastard child” of LPSA and LSP Contains many stages of development.

31. Regeneration – Governance 4 phases

32. Recession - Policy SNR Regeneration Framework Parkinson report CLG / BIS

33. Communities in Control Hazel Blears : personal mission Participatory budgeting etc. Widely dismissed as gimmicky Short tenure as Secretary of State

34. Sustainable Communities Act Special Case

35. Open Source Planning Page 8 section on “a new system of collaborative planning” “A truly local plan” “Mandating collaborative democratic methods”

36. Public Sector and Big Society

39. Localism The Government will continue to help rebalance growth across the country, but regeneration activity should be led by local communities, not by Whitehall. That's why Ministers are devolving power from Whitehall to the Town Hall, putting residents, and civic and business leaders, in the driving seat - which is when regeneration is at its most powerful and effective.

40. Localism bill key provisions : LG giving councils a general power of competence allowing councils to choose to return to the committee system of governance and allowing for referendums for elected mayors in certain authorities abolishing the Standards Board regime and the model code of conduct, and introducing local accountability and a criminal offence of deliberate failure to declare a personal interest in a matter giving residents the power to instigate local referendums on any local issue and the power to veto excessive council tax increases allowing councils more discretion over business rate relief providing new powers to help save local facilities and services threatened with closure, and giving voluntary and community groups the right to challenge local authorities over their services.

41. Localism Bill : Planning and Regen abolish Regional Spatial Strategies abolish the Infrastructure Planning Commission and return to a position where the Secretary of State takes the final decision on major infrastructure proposals of national importance amend the Community Infrastructure Levy, which allows councils to charge developers to pay for infrastructure. Some of the revenue will be available for the local community provide for neighbourhood plans, which would be approved if they received 50% of the votes cast in a referendum provide for neighbourhood development orders to allow communities to approve development without requiring normal planning consent give new housing and regeneration powers to the Greater London Authority, while abolishing the London Development Agency.

42. Current policy developments LEPS - Letter on Local Enterprise Partnerships (LEPs) CSR - Comprehensive Spending Review – setting out the main changes in local government spending White Paper – “Local Growth, realising everyone’s potential” with detail on RDF and LEPs National Infrastructure Plan White Paper – “Decentralisation and Localism Bill”

43. Comprehensive Spending Review Growth, reform and fairness - 3 overriding principles which underpin the CSR Reduction in funding for Local authorities of around £7bn represents a cut of around 28% but an end to ring fencing from 2011/12 Reduction in CLG’s overall budget by 33% by 2014 Community budgets (sequel to total place) Reform of planning system including “new homes bonus” Delivery of 150,000 new affordable homes Contribution from CLG to RGF of £890million

44. Local Enterprise Partnerships Transition from RDAs – LEPs Strategic leadership, setting out an area’s economic priorities Rebalancing economy towards private sector Private sector’s role in Governance – must include upper tier authority and must be chaired by private sector Bidding process - 56 bids for LEPs submitted with 24 approvals Strong link with RGF (although no automatic advantage) Localism - its up to localities to come up with proposals – “localities should lead their own development” Greater Manchester LEP – reflecting existing AGMA arrangements National Summit in the Spring – revealing details of capacity fund

45. White paper “Local Growth, realizing everyone’s potential” Tackle barriers and bottlenecks (including planning reform) and invest where “it make senses to do so” Power- shift – supporting localism through local enterprise partnerships and their potential roles and transition from RDAs Reform of the planning system “national assumption on in favour of sustainable development” Right to build powers and new statutory duty to co-operate New incentives – e.g. changing the structure of business rates (options for retention of business rates and possible discounts on rates), a new homes bonus and tax increment financing Changes to business support - Businesslink replaced by national call centre and website – more emphasis on LEPs

46. Regional Growth Fund Regional Growth Fund (RGF)- £1.4billion - “focused investment” to help government address market failure Objectives of RGF – stimulate enterprise Support those areas currently dependent on public sector economies. Bidding process - applications from private-public, private or social enterprise. 3 main bid forms – Projects, project packages or programmes

47. National Infrastructure Plan Sets out the government’s vision for infrastructure which will unlock private sector investment and economic growth: Challenges for infrastructure Obsolescence Globalisation Growing demand Climate change Interdependence Links directly with Local Growth White paper, RGF and Localism White paper

48. Localism Bill New policy approach of re-localising running of services as fundamental shift to decentralisation – in effect creating the ‘Big Society’ Six core themes of the localism bill: Reduce bureaucracy Enable communities and local government to take action Increase local control of public finances Open up public services to a broader range of suppliers Open up government finances to public scrutiny Strengthen accountability to local people

49. Welfare Reform: what previous government policy said about the labour market The core messages Full employment of 80% “in our generation” People as participants within welfare system rather than passive recipients of benefits “Tackling poverty through full employment” Joint approach bringing together welfare benefits and employment policy and integration of skills priorities “A workforce which is one unrivalled in its skills, dynamism, equity and its inclusiveness” to compete in a global economy Strong focus on delivering skills agenda (Eg train to gain, skills pledge, Local Employment Partnerships) Taking personal responsibility – “rights and responsibilities” Personalised, individualised support….

50. Welfare reform: new government policy direction Recognition of the need for whole scale reform of the welfare benefits system – informed by work of CSJ – “universal credit” Make work pay – principle at the heart of the reform More use of private sector in delivery/provision Conditionality Claimant commitment established Four broad conditionality groups Tougher sanctions Including failure to prepare for work/seek employment Mandatory work programme

51. What does this all mean for economic development? Less resource for delivery and to support – both in terms of money and organisations Greater prioritisation of scarce resources and difficult decisions about what to support? More creativeness and new ways of working, eg new investment vehicles including tifs, co-operative models and mutuals More assertiveness/leadership required from localities as to the future economic role of their area

52. What does this all mean for economic development? Less guidance/steerage/direction from central government, we’ll need to come up with the answers to the questions Changing role for local government and partners, engagement with private/social sectors

53. Doing things differently: policy tools Procurement: progressive and sustainable practice can offset some of the challenges of public expenditure cuts and enable local economic benefit Using a local supplier can lead to employment opportunities and job creation, and sustain existing jobs Unemployment, worklessness and deprivation inextricably linked – procurement as a tool to tackle cycle of deprivation Using local suppliers can have benefits for the wider supply chain Employees and suppliers of organisations delivering services and goods will spend money locally Enables practitioners to support development of local labour through skills and apprenticeships (e.g. construction – GM Procure)

54. Case Study: Manchester City Council £900m expenditure on procuring goods and services Progressive procurement policy aimed at benefiting the city’s businesses and residents: - Balanced consideration of social, environmental and economic impacts - MCC employees, contractors and suppliers are aware of long term commitment to social, environmental and economic sustainability Long term vision in place Recognition of need to understand the supply chain Procurement is not overly bureaucratic – becoming cross departmental Suppliers buy-in crucial to achieving impact – promoting council’s values Procurement as a tackler of ‘wicked’ issues – supporting local labour market Now have in place a burgeoning cross departmental working group

55. Doing things differently: policy tools LEPs: the new way of supporting businesses across Greater Manchester and other places Question is to what extent will this policy tool provide additionality LEPs do have the potential to be an overarching body for joined up working Overseeing planning, housing and transport, as well as employment, skills and enterprise support Such a body could ensure increased value for money and cost effectiveness Greater Manchester already has strong partnership infrastructure in place…. ….But are there gaps whereby only certain players have influencing and enabling roles? LEPs could help close such gaps and ensure that issues facing businesses and individuals across whole are addressed Has to be clarity about their blue-print or businesses won’t engage

56. Doing things differently: policy tools Regional Growth Fund: to stimulate economic growth in places with weak private sectors Future funding to be more structured, being focused where we can make a difference Like’s of LEPs to be heavily involved in bidding process – private sector expertise behind the bids Programmes and projects may be more robust with greater chance of positive outcomes and less wasted resource Allows many stakeholders to have a role in shaping the economic future of places – not just reserve of the public sector Helping places become more innovative in their approaches to tackling structural problems But what will the effect of the competitive bidding process be?

57. Case Study: Birmingham’s RGF Bid Five schemes to seek £39.5m Finance Birmingham project (£20m match funded) to provide small business loans for start ups Aston Reinvestment Fund – community development finance loans to small businesses Birmingham Young People’s Enterprise project – pre and post start up advice for young people Road infrastructure project (city council and a local developer) Regeneration scheme in the Perry Common Estate

58. Doing things differently: new models of governance Directly elected mayors Conservative Party has been championing this for some time Unsurprising that Localism Bill includes a right for all areas to elect a mayor 12 designated cities to hold mayoral referendums in May 2011 Positives and negatives of the mayoral model long debated But elected mayor cannot just be a personality – it’s about the representation of a place They must have significant powers over economic development, transport, inward investment, skills and business support If not then they threaten narrowing of democracy What would a mayor of Greater Manchester mean for us?

59. Doing things differently: new funding mechanisms Tax increment financing: originated from US but now a key element of UK policy after being unveiled by Nick Clegg Using anticipated increases in tax revenues to finance current improvements (e.g. improved infrastructure) that are expected to generate those revenues Supplying new infrastructure or improving what exists encourages development and increases value of surrounding property This, in turn, increases property taxation in an area to fund infrastructure. In the US, TIF used to fund: Urban renewal Affordable housing Cleaning up pollution Public infrastructure (e.g. roads, pavements etc)

60. Case Study: Portland, Vancouver TIF: Pearl District, Portland, USA Regeneration converting warehouses into loft apartments, residential blocks developed of previously vacant land Increase in population attracted mix of restaurants, bars, retail outlets and galleries (also efforts to retain original character) TIF a very powerful tool in Portland for increasing investment and building commercial success. Target beneficiaries:New residents providing affordable residential property; businesses to invest in a ‘reborn’ area with a growing population

61. Doing things differently: new funding mechanisms Big Society Bank: a crucial element of the Big Society programme Attracting funding through private sector investment Also ensuring money from dormant bank accounts can be made available as funding for social reinvestment Bank will invest in intermediaries (e.g. community lenders) who then provide funding to VCS organisations Amount of money uncertain: £600m in dormant accounts – but only £60m immediately accessible Intention to launch the Bank by April – much uncertainty though Big questions still remain over how it will work though (structure, ownership of funds etc)

62. New models for service delivery Public and social sector innovation Increasingly important in new era of austerity – budget cuts means practitioners doing more with less Requires new ways of thinking, especially in delivery of public services Hence Francis Maude’s talk of increasing the use of co-ops in service delivery and links to social innovation Example of co-production: equal partnerships between professionals and the public sector to add value to services Responsive to community needs to make them more efficient, sustainable and effective Not to be confused however with ‘shifting’ responsibility to communities A middle ground for user and professional knowledge to come together More information on NESTA’s Public Services Lab: http://www.nesta.org.uk/areas_of_work/public_services_lab

63. Policy process and development Part Two

64. Part Two: Policy Development and Process (intro + group exercise) 4 Parliamentary Committees 5 Regeneration to enable growth select committee inquiry response 6 Feedback

65. The Policy Process

66. Central-Local Policy Network Congested terrain!

67. Think tanks re: recession LGA from recession to recovery: the local dimension CLES toward a new wave of local economic activism Work Foundation: Recession and Recovery: How UK cities can respond and drive the recovery

68. Role of cities in a recession Discuss in pairs/threes What is the role of a city/locality in the recession? None? – let the market do it’s thing? Welfare? role of partners eg. jc+ Leadership? Others – want 8 please

69. Ideopolis - Work Foundation

70. Barcelona Principles – The Work Foundation i. Don’t waste the crisis, but respond with leadership and purpose. ii. Make the case for continued public investment and public services and the taxes and other sources of investment required. iii. In the long-term: build local economic strategies which align with long-term drivers and identify future sources of jobs, enterprise, and innovation. iv. In the short-term: focus on retaining productive people, business, incomes, jobs, and investment projects. v. Build the tools and approaches to attract and retain external investment over the long-term. vi. Build genuine long-term relationships with the private sector, trade unions, and other key partners. vii. Take steps to ensure the sustainability and productivity of public works, infrastructure, and major developments/events. viii Local leaders should act purposefully to support their citizens in the face of increased hardship. ix. Local economies have benefitted and should continue to benefit from being open and attractive to international populations and capital. x. Communicate and align with national and other higher tier governments.

72. Administrative geographies

73. Parliamentary Committees What they are, When to use them

74. Policy development and process Part Two

75. Main types... Select eg CLG Selcom, PASC, Modernisation Liaison Committee Grand eg Countries of UK Standing (less important) Public Bill (eg Localism Bill) Regional (short-lived) Committee of Whole House Lords Committees eg Constitution NOT a committee = ‘Usual Channels’ (Business Committee)

76. Main important differences

77. Main important differences

78. Bill based

79. Main important differences

80. Select Committee Activity Core duty of backbench MPs Right to call minster and anyone else Independent Inquiries (avg. 4/year) Clerks are employees of Parliament (not Civil Servants) Call for Evidence Hearings Reporting

81. Using an Inquiry Submission If the inquiry is an open one it can be an opportunity to Develop positioning/messaging re: issue As the basis for a call to appear Enhance credibility Part of our wider influencing strategy Parliament TV Hansard HoC Library Civil Servants Journalists

82. CLG Selcom Clive Betts (Lab Chair) beat Nick Raynsford Was Phyllis Starkey New members with LG experience Heidi Alexander James Morris

83. Regeneration Inquiry 2011 Genuine Opportunity for CLES Wide, broad open Developing strong ‘manifesto’ ‘line’ ‘messaging’ which we use for other things too 4,000 word submission (referencing our other work website etc.) Exec Summary 1 pager

84. Need to show that... We understand the new approach We have some suggestions re: effectiveness rooted in evaluation/experience We have ideas re: a regeneration narrative rooted in policy development We can connect these to actions We are a key authority in this area

87. Questions (1) How effective is the Government’s approach to regeneration likely to be? What benefits is the new approach likely to bring? Will it ensure that the progress made by past regeneration projects is not lost and can, where appropriate, be built on? Will it ensure that sufficient public funds are made available for future major town and city regeneration projects as well as for more localised projects?

88. Questions (2) What lessons should be learnt from past and existing regeneration projects to apply to the Government’s new approach? What action should the Government be taking to attract money from (a) public and (b) private sources into regeneration schemes? How should the success of the Government’s approach be assessed in future?

89. Central government’s role will be strategic and supportive: reforming and decentralising public services providing powerful incentives that drive growth removing barriers that hinder local ambitions providing targeted investment and reform to strengthen the infrastructure for growth and regeneration and to support the most vulnerable

90. Closer to Home Part Three

91. Part Three : Mancunian Mechanisms Part Three: Closer to home (me + questions) 7 MCR mechanisms for ED/R 8 Summary

92. Books Managing the city: the aims and impacts of urban policy Brian Turnbull Robson 1987 Managing the city eds Liddle, Diamond, Southern 2007 City of Revolution eds Ward and Peck How Manchester is managed 1925-1939

93. Stories of “Mancunian ways” Mancunian Ways : the politics of regeneration Robson (Chapter 3 City of Revolution) Metropolitan Manoeuvres : making greater Manchester Deas and Ward (Chapter City of Revolution) Greater Manchester – ‘up and going’, 2000 Hebbert and Deas Greater Manchester : conurbation complexity and local government structure Barlow, 1995 Manchester: Making it Happen Hebbert, 2009

94. Think tanks: Manchester Work Foundation : Ideopolis Localis : Can Localism Deliver? Lessons from Manchester Policy Exchange : Cities Limited NESTA : Original Modern Manchester’s journey to innovation and growth

95. Other – blogs etc David Ottewell MEN InsidetheM60

96. How Manchester is managed, 1935 Regional Planning : The most effective planning scheme is one which is comprehensive in character and not limited by the artificial boundary of a local authority’s area. It’s success depends upon (1) securing an area capable of economic development (2) effective joint action with neighbouring authorities

97. City / City Regional reification

99. Agglomeration Economists discovering space ?! Arguably foundation of city-regional arguments.

101. Local government

106. City Relationships:Economic linkages in Northern city regions

109. Economic Linkages :Labour Markets Stockport, Harrogate, North East Derbyshire, Gateshead and Sefton have all benefited from labour market links with the economic centre of their city region. Yet we also found that the types of links differed. Between Stockport and Manchester there are strong labour market links in both directions. Stockport has increasingly developed a knowledge-intensive employment base that is complementary to economic growth in Manchester, and over the last ten years its GVA, resident and workplace earnings have increased. We also found that some places had relatively strong labour market links when measured by volume of commuting, but that the economic performance of that Local Authority area had not increased as much as in other places. For example, whilst Rotherham has strong commuting links with Sheffield, the gap between average resident earnings between the two Local Authority areas has widened, suggesting that Rotherham’s residents may not be benefiting from growing high value opportunities in the economic centre but rather continue to supply labour for lower skilled jobs. And there were other places which had strong economies and yet did not have strong commuting links with economic centres (although their industrial structure tended to be more complementary). This suggested that economic relationships between places can lead to mutually beneficial economic spillovers, but that there are certain factors that affect whether those relationships are mutually beneficial or not.

110. Manchester’s economy: Opportunities for development in the future

111. Manchester’s economy: current outlook Unemployment has peaked – for the moment?

112. Manchester’s economy: current outlook Employment up to 2020: 2011 the lowest point

113. Manchester’s economy: current outlook Manchester impacted by the recession – employment levels may not regain recessionary job losses until 2014 But in the medium term a strong recovery forecast GVA growth expected to be high in long term – 3.4% compared to 2.9% for Greater Manchester Residence employment rate to rise over the next decade – but below 60%: twin track economy? Over the medium term, unemployment expected to remain above the historical lows (akin to that experienced at end of 1990’s) Recovery to be driven by business services

114. Manchester’s economy: current outlook Manchester: key indicators Mmmm

115. Manchester’s economy: opportunities for the future Many successful neighbourhoods in South Manchester But also deprived areas that have not benefited from the growth: poor health and educational performance Attractive physical environment in South Manchester – open space and residential neighbourhoods Several thriving local economies and bustling and lively centre Very well connected to the regional centre and to motorway/trunk road and airport links South Manchester crucial to the city (and therefore wider city region economy) – location of choice for city professionals But pressure on housing – increasing demand for high quality homes and long social housing waiting lists

116. Manchester’s economy: opportunities for the future Employment opportunities: significant link between the labour force in South Manchester and the wider city economy: importance of Financial and Business Services

117. Manchester’s economy: opportunities for the future

118. Manchester