Creative way to regenerate
A NEW report has called for a radical re-think on the way regeneration projects are delivered in Northern England.
The study by the Northern Way - a partnership of the three northern development agencies including One North East - said projects vital to economic growth could be hindered by a lack of investment from the public and private sectors.
The findings showed that regeneration chiefs will have to find creative solutions to drive forward regeneration schemes, with public spending expected to be cut and private investment constrained in a tough economic climate.
Recommendations included simplifying the complex maze of partnerships and local delivery vehicles, combining public and private sector resources and boosting participation of the third sector to de-risk regeneration schemes.
Andrew Lewis, director of the Northern Way, said the study findings provided a timely review of the barriers and opportunities facing economic regeneration.
He said: “They demonstrate the need to build on good practice, de-risk projects, focus on investment and jobs, and get more for less.”
Welcoming the reports on behalf of the northern RDAs, Alan Clarke chief executive of One North East, said: “Economic regeneration can have a strong future, if we're prepared to take the tough choices necessary and focus more limited resources where we can generate the best impact on the economic recovery.”
The North East Chamber of Commerce (NECC) said its call for a “North East Economic Recovery Test” was more vital than ever in light of the Northern Way report. The NECC’s 2010 manifesto outlined the need for decision-makers to question whether a particular project helped or hindered business recovery before pushing ahead with it.
Ross Smith, NECC head of policy, said: “Policy changes are needed to make investment much more attractive in the North-east.
“This includes a much more developer-friendly planning system, commitment to infrastructure improvements and proper incentives for local authorities to deliver development which will attract businesses into the region.”
Last year the Northern Way published a report calling for a radical rethink of public/private finance to balance a perceived equity gap between the North-east and the South-east.
The study claimed the North-east is a victim of a “troubling imbalance” in the distribution of venture capital (VC) investment in the UK which, it says, is failing to deliver adequate funding to support growing businesses outside the greater South-east.
The report proposed a public/ private partnership with a “sufficient critical mass” of funding that could be delivered directly to businesses in each major city region.
However it warned that Teesside’s growth potential will be constrained unless the Government simultaneously addresses infrastructure issues, including transport capacity and high-speed broadband communications.
NECC and the Confederation of British Industry backed the report, which claimed public funds are needed to top up private investment and take some of the risk out of vital regeneration projects.
Public funds are expected to be thin on the ground, though, with the Government looking at ways of cutting the £178bn national debt pile.
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