The Credit Crunch, Recession and Regeneration in the North
Regeneration Finance Report
A new report warns that regeneration projects vital to
the economic growth of the UK could be hindered by a lack of
investment from the private and public sector. The
report - "The Credit
Crunch, Recession and Regeneration in the North: What's
Happening, What's Working, What's Next?" - was
produced by Professor Michael Parkinson CBE, Director of the
European Institute for Urban Affairs, and commissioned by The
Northern Way. It shows that a likely 'public sector
recession' could jeopardise the continuance and development
of many projects vital to economic growth in the North of
England.
The report expands on and updates the lessons in Professor
Parkinson's previous report, published a year ago for the
government.
The government, Regional Development Agencies and local
authorities have stepped in effectively to keep momentum going
where possible. But Parkinson warns that early cuts
in public sector capital could now choke off the recovery in
those communities which most require investment, but where the
private sector is not yet able to return in strength.
Based on evidence from private sector investors and
developers, delivery bodies and agencies working on the ground,
the report surveys the current market conditions. It
finds evidence of good practice, but also uncertainty about how
to deliver through more difficult times to come.
Michael Parkinson concludes:
"A wide range of evidence paints a consistent picture.
After a very good period, much of the North has been badly
affected by the crunch and recession.
Many good people are doing many good things on the ground to
limit the potential economic, social and physical damage to
places in the North. We have shown many examples of what is
possible even in adversity. But often their levers are limited
and their resources declining.
It is crucial that policy makers nationally and locally do
all they can to sustain the gains that have been made in the
North in recent years and to limit the potential damage
threatened by the worst credit crunch and deepest recession in
living memory."
The report highlights a range of policy measures needed
going forward:
- Local authorities to adopt a new ethos which includes an
increase in entrepreneurial skills and a more innovative and
developer friendly approach.
- The development and use of new revenue models, including
Accelerated Development Zones and Local Asset Backed
Vehicles.
- The creation of a Northern Investment Bank to provide
finance for regeneration schemes in the North.
- A long term strategy which aligns priorities in national
infrastructure projects such as HS2 (High Speed Rail line)
with local and regional priorities.
- A shift in the focus of regeneration projects towards the
future growth industries of education and knowledge, health,
energy and the low carbon economy, creative industries and
communications.
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