Parkinson Report calls for renewed commitment to regeneration

15th January 2010

A new report today 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. 

In response it calls for further reforms to financing and delivery of those projects with the strongest potential to deliver economic gain from new jobs, industries and renewed communities.

The report - "The Credit Crunch, Recession and Regeneration in the North: What's Happening, What's Working, What's Next?" - was produced by 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.

Welcoming the report, Hugh Morgan Williams, Chairman of the Northern Way Steering Group, said:

"This report is a compelling and inspiring call to action. It couples realism about the scale of the challenge and the tough choices we face, an understanding of the serious constraints facing private sector developers and investors, with practical examples of how we can move forward. It includes important messages for Government, as well as organisations working on the ground. Above all, it encourages us all not to give up, but to redouble efforts and renew our commitment to a better economic future for all."

ENDS

Media Contacts:

Nicola Hughes

Communications Manager

T: 0191 229 6752

M: 07771 805 949

nicola.hughes@thenorthernway.co.uk

Notes for editors: 

1. The Northern Way is a unique initiative, bringing together the cities and regions of the North of England to work together to improve the sustainable economic development of the North towards the level of more prosperous regions.

1. The report "Recession, crunch and regeneration in the North: What's happening, what's working, what's next?" was commissioned by the Northern Way and produced by Michael Parkinson, Director of the European Institute for Urban Affairs.

1. Michael Parkinson's report will be launched at The Regeneration Momentum conference, taking place today (15 January) at the Bradford Media Centre.