‘Urban renewal is our biggest and most urgent challenge. The hearts of our cities are threatened with decay and the loss of community. Unless the Government and local government organise more effectively to deal with these problems, they will be as great in a decade’s time as they are today.’
These words were not written by John Prescott as an introduction to the Urban White Paper 2000, but by Reg Freeson, Labour’s Minister of Housing and Local Government, in 1970.
So how has Labour tackled this recurring problem of urban decay? It has created jobs, assisted public transport, improved the environment and it has invested in the community. The New Deal has put people back to work. Capital receipts are being utilised. The Regional Development Agencies are spearheading regeneration. The £30 million Phoenix Fund is promoting better access to inner city business support and finance. And the publication of the first urban white paper in more than 20 years demonstrates the Government’s commitment.
But there is still much left to do. Our country is blighted by tremendous economic regional disparities. GDP per head in the North West is 88.2, while in the South East it is 110.8. An overheated South East economy continues to grow while other regions lag behind.
Public, private and European funding must be focused on urban areas. We have to build upon the Urban White Paper. A new Cabinet post, Secretary of State for Urban Renewal, should be created, ensuring a holistic approach towards regeneration. Urban renewal should be made a key objective in allocating public expenditure across all government departments.
Investment must be targeted effectively within and between regions so that we can tackle the problem of regional disparities, which have led to depopulation of many of our cities.
Local authorities must drive forward this process. One overdue reform is the repeal of Part V of the 1989 Local Government and Housing Act, which prevents local authorities from having a stake of more than 19.9 percent in companies.
VAT should be equalised between the conversion of old properties and new buildings if we are serious about regeneration. Mixed housing tenure should be a condition of any new development. Good schools, improved public transport, access to the arts and green spaces are an essential part of living in revitalised cities. Our cities should be attractive to pedestrians as well as being convenient for the car user.
Regional centres of excellence should promote good urban design and social inclusivity. The pilot schemes in scholarships for entrepreneurship should be extended nationally. The promotion of the knowledge economy must go hand in hand with social enterprise.
In England today, 58,000 hectares of brownfield land, equivalent to the size of the West Midlands, is either vacant, derelict or available for redevelopment and more becomes available every year. This land should be brought back into use by 2021. Regional Development Agencies should be equipped to convert properties for mixed use. It should be made easier for local authorities to compulsory purchase derelict buildings to help implement urban regeneration strategies.
Cities will only be revitalised when they are conducive to working, living and leisure. Government must take the lead by providing the framework and giving local authorities and Regional Development Agencies the funds and flexibility to act in accordance with local wishes. Elected Regional Assemblies would bring added strength to this endeavour.
A windfall tax on profits of oil companies is one way in which additional revenue could be raised. These steps will enable Labour, if re-elected, to meet the challenges of urban renaissance, ensuring that the problems of today do not resurface in another thirty years’ time.