Rooting for regeneration | Public Finance Opinion

Councils need some grow-your-own tools to help promote local regeneration. Extending the community budget pilots nationwide would be a good start

If regeneration was easy, life would be much simpler. Unfortunately that?s not the case, as several decades of centrally-led programmes have shown. Regeneration is incredibly complicated and the challenges to renew each area are very specific to local circumstances.

And of course, successful regeneration is tricky enough when the economy is buoyant, but even more difficult when times are hard. This means that when public agencies embark on regeneration schemes, it?s crucial they are empowered to do so using the best tools available.

Localis? most recent report ? ?Grow Your Own Way? ? looks at what we believe is the key to regeneration in a time of austerity: a locally-driven approach. We have undertaken research into areas that have been successful in their past efforts, analysing case studies from areas including Manchester, Leeds and Pittsburgh and drawing out key success factors.

One of the report?s major findings is that local authorities are ideally placed to develop bespoke responses to different areas? needs and to lead regeneration in their area. Local authorities, we argue, are at the right spatial level to spot local opportunities, develop a project which engages the local community (and thus is more likely to be valued by it), and sit at the heart of brokering a realistic deal in an austere funding environment.

But local authorities need more than just ?true grit? and an understanding of their communities; they also need the financial tools to drive regeneration. We therefore argue that bolder funding mechanisms and local financial freedoms should be granted by government.

This should include an expansion of Tax Incremental Financing, greater support for local asset backed vehicles, continued engagement and encouragement of pension fund investment, and relaxation and support for municipal bond schemes. These are all useful tools that local authorities should be able to utilise in coordinating and funding regeneration programmes from the bottom up.

We also urge that the community budget pilot scheme should be extended nationwide. Through better local coordination and focus, the precious resources of local authorities and other public sector agencies will be better spent on meeting meet local needs.

If critical mass can be achieved through bringing together public assets and service developments, investors might be more likely to jump on board too. The opportunity is there now for local authorities to make their case to government for more powers and responsibilities and, over the course of the next few months, we will see how the government responds to the existing community budget pilots.

Historically, central government funded regeneration programmes have addressed limited objectives and have met mixed success. In reality, they may well be consigned to the past. By contrast, bottom up regeneration projects can more closely represent and safeguard an area?s particular needs and interests. This creates an opportunity for local government.

A responsive and innovative approach to stimulating growth is essential, and local authorities should lead the way.

Alex Thomson is chief executive of? the Localis think-tank. The Localis report was launched on 23 May as part of the Local Government Association?s local growth campaign

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