The current context
When we think of regeneration solely in terms of the physical renewal of a place we can forget the critical wider socio-political context in which it takes place, says Dave Adamson
Purely physically orientated regeneration tends to focus us on this or that High Street, or a specific item of infrastructure, or a housing renewal programme for a particular estate or street. It is all too easy to forget that pre-recession structure and pattern of economic activity will do nothing to combat poverty and challenge the high levels of inequality that 30 years of neo-liberal policies have created. With calls for more Keynesian approaches to be adopted, jobs that reward them appropriately. For example, the health of a local high street is far more the product of the level of local disposable income levels than it is the result of regeneration initiatives. The difference between Cowbridge and Pontypool is stark the wider objectives of regeneration are to improve the quality of life in a place that has usually been challenged by economic decline and patterns of severe poverty.
Regeneration strategies are used to to reinstate a place to economic, social and cultural viability. In Wales this has been recognised in recent years far more clearly and regeneration agencies are concerned to deliver social renewal alongside physical renewal. The housing sector has been particularly proactive in developing the wider gains from physical regeneration programmes. As exemplars, the ARBED and the WHQS programmes have tapped the potential for community benefits and the i2i Can Do Toolkit and its subsequent development has illustrated the benefits that can be gained from social procurement and associated supply chain development and targeted recruitment and training. Of the £14.3 million delivered to date in ARBED Phase Two, 100 per cent has been retained within the Welsh economy, creating 45 jobs for disadvantaged people and an overall 204 sustainable jobs. The impact of the expenditure on the Welsh economy has been in a ratio of £2 gain for every £1 spent. Additionally, in the 3,785 homes delivered at the time of press there were average fuel savings of £305 per year making a critical contribution to the eradication of fuel poverty (Welsh Government, February 2014).
Limited recovery
However, these type of benefits are currently significantly challenged by the wider economic climate. Despite signs of recovery from recession, most experts believe this is limited to the economy of the South East of England and has yet to reach the post-industrial areas of the UK, including Wales. Many commentators also argue that a simple return to the orthodoxy established by neo-liberal economics is being identified as an unlikely long-term solution to current problems of low family incomes, precarious employment and poor working conditions.
Welfare reforms
The current UK government austerity programme also results from its attachment to neo-liberal ideology. The quest for a small state and the end of welfare provision has been the holy grail of the Conservative Party since the days of Mrs Thatcher. As in the 1980s, the current welfare reforms are raising levels of poverty, creating homelessness and perhaps for the first time in recent history driving families to hunger. As in 1985, with the publication of Faith in The City, it is our church leaders who are leading the moral outrage around the impoverishment of a significant section of society. With users of food banks set to top one million in 2014 there are levels of actual destitution in our local communities that should disgrace any government of such a wealthy nation.
The Welsh Government has estimated that welfare reform has already removed almost £1 billion from the Welsh economy. It is essential to remember that this has been removed from communities that were already amongst the poorest in the European Union and facing health and educational outcomes that are unacceptable in a developed nation.
Higher income profile
This of course has a catastrophic affect on the outcomes from any regeneration strategy. Despite devolution offering some shelter from the excesses of Westminster, much of what determines the quality of life in our communities is driven by UK level policies around benefits, taxation and wage levels. The ultimate determinant of whether regeneration succeeds is the development of a higher income profile for the target community as people move into and it is clear that difference in disposable income is the primary cause.
Consequently, the local authorities successful in the Vibrant and Viable Places programme begin delivery of their local strategies in potentially the most hostile environment ever faced by a regeneration programme. There is some comfort to be had in the fact that at least Wales has a regeneration programme, although the austerity measures of the UK government have ensured that expenditure is a fraction of what is required in our most disadvantaged communities. It is likely that even in areas with the most successful outcomes we will only hold back the tide of welfare reform impact. However, this is better than the demise of regeneration faced by other regions of the UK.
CREW news
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Our next major event will be the conference to launch the report of our Deep Place Study of Tredegar. The study asks what we must do now to make our communities socially, economically and environmentally sustainable by 2030. The conference takes place on the 28th April and is already over-subscribed. If you wish to register your interest in receiving a copy of the report please email enquiries@regenwales.org.
All our other events are listed on our website.
Dave adamson is chief executive of CREW @ProfDaveadamsondave.adamson@regenwales.org