Opening the door to regeneration reform

October 24, 2008

Nigel Keohane, Researcher
Regeneration and Renewal

It is not every day that government opens its doors to local government and offers it a piece of the action. But that is exactly what the launch last week of the Sustainable Communities Act has done for local authorities.

The road to the Sustainable Communities Act has been a long one. The ‘well-being power’ of the Local Government Act 2000 gave local authorities the capacity to undertake any activities that are considered to have a positive impact on the life of their local community. Now the 2007 Act offers an ongoing refresh to this process and encourages local authorities to bid for new powers.

Most significantly, the Act invited local authorities to make proposals for reform which they consider would contribute to promoting the sustainability of local communities. This initiative has so far gone largely unnoticed. Now, however, the Act is in the limelight as proposals for transfers of power are submitted to the LGA on their way to a shortlist to the Secretary of State over the next nine months.

Although ideas from councils are only just emerging, some themes on the horizon could potentially have a significant impact on local regeneration. For instance, the LocalWorks programme has suggested the possibility of promoting small businesses by increasing rate relief and promoting local renewable energy by removing the restrictive barriers to the local grid.

But, the New Local Government Network has set out other opportunities as well to address local regeneration, especially in the current economic climate. Just a few of the possible ideas include:

  • new freedoms from the 1985 Housing Act could be introduced to allow councils to set local interest rates and thus play a more proactive role in providing mortgages for their local areas;
  • the myriad of grants, incentives and schemes on offer to promote local economic regeneration and development could be combined into a single regeneration grant;
  • responsibility for post-19 skills and training could be devolved to councils;
  • benefit savings realised through local worklessness initiatives could be returned to the local authority;
  • flexibilities to adjust local right-to-buy rules and buy-to-let planning permission criteria could allow local authorities to respond to immediate local housing concerns.
Nonetheless, the impact of the Act will be decided by the enthusiasm of the local government community and the commitment of central government. A number of triggers would help to ensure that the Act is given the consideration that it deserves at the local level. In the first place, Local Strategic Partnerships could set aside time to think about how their community could maximise its potential. Second, new methods of citizen engagement could unlock new ideas for empowering local people. On the other hand, how likely is it that central government will actually let go of the reins or the purse strings? The devolutionary agenda that has unfolded over the past ten years suggests optimism. If councils can make a strong case for why they need new powers to promote local regeneration then the onus will be on the Government to devolve power. And, having unlocked the door, central government will surely not let everyone to leave empty handed.


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