This last feature is intended to provide a rationale for
regeneration. The current diversity of initiatives and range of projects
makes regeneration policy virtually impossible to control with any
consistency.
An econometric model, based on the model discussed in the
report, could directly contribute to
making regeneration policy far more manageable. It could considerably assist
government in effectively prioritising, comparing and monitoring
regeneration schemes.
Content and
recommendations
LFIG Regeneration Group’s aim is to put forward practical
options open to Government in order to effectively engage the private sector
in urban, rural and regional regeneration.
The first section of the report deals with the role of the
public sector in regeneration. This role changes over time and varies from
region to region depending on the political complexion of the local
authority and the skills of the individuals involved.
The report contains a number of recommendations, including
simplifying regulations relating to regeneration, integrating regeneration
programmes, and greater operational flexibility on the part of public sector
regeneration agencies.
The report also
calls for a better career structure in the planning profession, a reduction
in the “silo” mentality approach on the part of professionals, an increased
understanding of financial implications by masterplanners, and improvements
in knowledge, understanding and use of private finance in the local
government sector in particular.
It goes on to propose mechanisms for dealing with excess
profits being returned to the public sector, developer contributions to
infrastructure development costs, better use of revenue streams to create
asset value and investor confidence, and the use of Government bonds where
other alternatives are not feasible.
It recommends that
a new criterion for decision-making, “satisfaction over time”, should be
developed to replace the current “value for money” concept.
The main body of the report deals with the practical
application of funding structure models to regeneration. The report does not
advocate any one model. It suggests, however, that a flexible and responsive
consideration of approaches to financing regeneration will help to achieve
the results the Government is seeking.
Examples of private sector funding and delivery models which
can deliver public sector requirements are considered.
The final section states LFIG Regeneration Group’s
conclusions and recommendations.
Comment
Although this report is concerned with issues of finance and
regeneration, we are well aware that regeneration is about people, not just
buildings. This is why public sector intervention is essential. It is the
public sector that can represent the interests of local communities – and
should reflect their aspirations.
Whilst this report, Effective Regeneration Action: Finance
and Regeneration, focuses on practical financial issues, regeneration
policy is about improving the quality of life of people. Corporate profits
are necessary in order to achieve this. Crucial as the human aspects of
regeneration are, we acknowledge at the outset that we have not discussed
them in this report.
The Labour Finance & Industry Group
(LFIG) provides support for policy
development in key areas of Government interest. Its members include
Ministers, MPs, MEPs and Lords, and senior figures from the UK business and
finance community, academics and local government.
LFIG Regeneration Group,
which has produced this report, is one of LFIG’s working groups. This
report, “Effective Regeneration Action: Finance and Regeneration”, is
based on a series of meetings held over the past 18 months. These
gathered evidence from senior members of the finance,
development, university and other sectors, with experience of working with
the public and private sectors at local and national levels. Its findings
are supported by a robust econometric model.
The Group’s aim is to promote practical solutions in response
to changes at both local and regional levels brought about by the
restructuring of the economy. It seeks to reinvigorate public debate and
thinking on regeneration issues in the UK.
LFIG
Regeneration Group is
headed by:
Dr Stephen Gruneberg
(Chair), Research Fellow in the School of Construction Management and
Engineering at the University of Reading. An industrial economist, author
and co-author of several books specialising in the construction and property
sectors, his research interests cover the economics of the construction
industry, strategic decision making, corporate planning and property
development.
Nicholas Waloff
(Vice Chair), a regeneration funding consultant, who heads his own
company, Waloff Associates Ltd. He specialises in business planning, public
affairs and financial communications for public and ex-public sector
organisations, as well as emerging markets.
Edward McCauley
(Secretary), the original founder of the LFIG Regeneration Group in
2003. He is Managing Director of Diligentia Ltd, which provides an auditing
service to evaluate and compare the performance of buildings.
To obtain copies of the report, (Price £30 plus P&P) contact:
Central Books Ltd, 99 Wallis Road,
London E9 5LN
tel: 00 44 (0)845-458-9910; fax: 00 44
(0)845-458-9912
email:
mo@centralbooks.com
website :
www.centralbooks.com
ISBN 0-946693-01-3; ISBN 978-0-946693-01-6
