Economic realities taking over planning and regeneration

The fall in the number of new planning applications is affecting developers and council planning departments, although there have not yet been widespread redundancies among planners. A recent article recommends that local authorities should shift their planning resources to policy and plan making, the possibility of using public sector gap funding to push forward sites and reconsideration of section 106 conditions by local authority planners take account of the market downturn.

Meanwhile a report from The Northern Way discusses the future for the regeneration of towns and cities in the northern regions of England, in the light of the recession and its impacts on finance available for regeneration. Again extensive adaptations are recommended to meet changed economic, financial and political conditions including needs to:

• Create and maintain a clear vision for regeneration

• Attract more investors and developers;

• Create a simpler system for the private sector to navigate;

• Optimise the use of declining public resources by prioritisation;

• Maximise the use of public sector assets; and

• Focus on long term public-private partnering.

Factors which appear to be preconditions for future regeneration success, include long term commitment and acceptance of greater levels of risk by the public sector in the provision of infrastructure, a departure from a public sector 'grant mentality', new models based on tax incremental finance, packaging mixed investment propositions, local asset-backed vehicles, the promotion of business improvement districts (BIDs), cutting across administrative boundaries, an attractive and diverse housing offer, reform of section 106 planning agreements, and reinstatement of empty property rate relief. None of these seem new, but may require rigorous, planned application to operate effective regeneration in any local area.

The major structural reforms proposed for the planning system in the UK and Scotland may be swamped by the pressures for shorter term responses to the recession.

In its new regeneration framework, the DCLG is considering making HCA, RDAs and local authorities apply economic tests to all regeneration projects seeking public funding. The tests are

• Improving economic performance

• Creating the conditions for business growth, and

• Creating places where people want to live.

But these are not always compatible, at least in the short term so much analyses and trade-offs may be required in reaching decisions. Tools for this are proliferating through IDeA, and consultants, including ARUP’s SPEAR tool which explicitly exposes trade-offs.

Reviewing the roles (fewer planning applications), IN Estates Gazette, No 0919, 16 May 2009, pp80-81,83 Rebuilding momentum in regeneration (Private Investment Commission recommendations paper 2) Northern Way, Stella House, Goldcrest Way, Newburn Riverside, Newcastle Upon Tyne NE15 8NY (Available on the internet at: http://www.thenorthernway.co.uk/downloaddoc.asp?id=674 ) Transforming Place, Changing Lives; taking forward the regeneration framework, DCLG 2009