SG 2011 Building a Sustainable Future

Regeneration Discussion Paper

Building a SuStainaBle Future

The Scottish Government, Edinburgh 2011

Regeneration Discussion Paper

Building a SuStainaBle Future

Crown copyright 2011

ISBN: 978-0-7559-9948-4

The Scottish GovernmentSt Andrews HouseEdinburghEH1 3DG

Produced for the Scottish Government by APS Group ScotlandDPPAS11175 (02/11)

Published by the Scottish Government, February 2011

The text pages of this document are printed on recycled paper and are 100% recyclable

BUILDING A SUSTAINABLE FUTURE

REGENERATIONDISCUSSIONPAPER iii

Contents

ForewordbyAlexNeilMSP,MinisterforHousingandCommunities.................................................1Introduction...........................................................................................31. . Whathavewelearntandwhatshouldourprioritiesbe?................62. . Investingintheeconomicpotentialofourcommunities...............113. . Communityledregeneration.........................................................304. . Tacklingareabaseddeprivationlocalneighbourhoodservices..41Annex...................................................................................................51


REGENERATIONDISCUSSIONPAPER 1

Foreword

chieving equality of place and people are central aims of thisGovernmentsEconomicStrategy.Regeneration isacrucialpart

of growing the Scottish economy; creating jobs and prosperity andimprovingthelifechancesofScotlandspeople.TheGovernment remains committed to regeneration andwith ourpartnersacrossnationaland localgovernment, thewiderpublic,privateand thirdsectorsandcommunitiesthemselvesweare investing intheeconomicpotentialofourcities,townsandneighbourhoods,bringingmuchneeded investment,skillsandbusinessopportunities,anddeliveringrealbenefits for localpeople jobs,trainingandemployment.Therehavebeenanumberofmajorchangestothepolicyandfundingenvironmentfor regeneration in recentyears: theConcordatbetween theScottishGovernmentandlocalgovernmentandthecommitmenttoanoutcomesfocussedapproach;thereformof theenterprisenetworks;anddevelopmentand implementationof the3social policy frameworks, which provide the strategic framework for tackling thelongstanding inequalities thatexist inScotland.All thishas changed theway thatregeneration is delivered in Scotland, creating new opportunities and requiringdifferentapproaches.The changing landscapemeans that our approaches to regeneration also need toevolvetoensurethatdifferentinterventionsareaseffectiveastheycanbeandworkwelltogether.Muchhasbeenachievedbutthepersistentproblemsassociatedwithpovertyanddeprivationremain.WeknowthatthereisstillalottodobeforeallofScotlandcan flourish in linewith theGovernmentspurpose.That iswhy itmakessensetobringpeopletogethertoreflectonhowregenerationcanbestevolveinthefuture.The recession and economic crisis has hit the development industry particularlyhard. It is clear that previous regeneration models that relied on debt financecoupledwithrising landandpropertypriceshavenotdelivered inrecenttimesandare unlikely to do so for the foreseeable future. Attracting investment toregeneration sites traditionally viewed as more risky has also become morechallenging.Recessioncanoftenmean thatmoreplacesenteracycleofeconomicdeclineandmorepeoplerequiresupportandservices.TheScottishGovernment is facingan11%cut in itsbudget in real termsbetweenthisfinancialyearand2014/15thatmeansarealtermscutof3.3billionandareductionincapitalfundingof33%by2014/15.Takentogetherwiththechallengesfacingsomeofourcommunitiesandthewidereconomy,itisclearthatcontinuingasweare isnotanoption.Wewillneed tomake toughchoicesaboutourpriorities,andwewillneedtodevelopnewmodelsandnewapproacheswithourpartners inthepublicandprivatesectors.Weneedour interventionstobesustainableforthe

A


2 REGENERATIONDISCUSSIONPAPER

long term and to deliver outcomes thatmeet the aspirations of the communitiesserved.Thisdiscussionpaper is thestartof thatdebate. It isnota reviewof regenerationpolicyand itdoesnotseektoprovidealltheanswers.Looking forward, itsetsoutwheretheGovernmentseesthemainregenerationchallengeslyingandthetypesofquestions we will need to ask ourselves about our interventions and theireffectiveness. It also brings together some current and new thinking aboutalternativeapproaches.Aboveall, it ishopefullya springboard forawiderdebateand discussion about how we make all of Scotlands communities resilient andattractiveplacestolive,workandinvestin.Wewanttohearfromourpartners,andcommunitiesthemselves,abouttheirthoughts,ideasandaspirationsforthefuture.

AlexNeilMinisterforHousingandCommunities

February2011



Introduction 1. Thispaperisintendedasastartingpointforawiderdebateanddiscussionabout

regeneration in the current climate. This is not an exhaustive review ofregeneration policy but focuses instead on key challenges, opportunities andprioritiesgoingforward.Inadditiontopublishingsupportinganalyticalpapersonour website, we will be using a number of planned events and seminars inFebruaryandMarchasaplatformforhighlightingtheissuesraisedinthepaperand to listen to the views, ideas, thoughts and suggestions of others.We areinterested in hearing from local government, the wider public sector, thirdsector,businesses,thedevelopmentindustry,potentialinvestorsinregenerationand communities themselves. For more information visit our website atwww.scotland.gov.uk/regenerationdiscussion.

2. Regeneration isa termthatmeansdifferent things todifferentpeople,ranging

from largescale development activities that promote economic growth toneighbourhood interventionsthat improvequalityof life,andthe linksbetweenthem. For thepurposesof thispaper,we refer to the commondefinition thatregenerationistheholisticprocessofreversingtheeconomic,socialandphysicaldeclineofplaceswheremarketforcesalonewillnotsuffice.

3. RegenerationdirectlycontributestotheScottishGovernmentsoverallpurpose

sustainable economic growth. Investing in Scotlands deprived communitiesgenerates growth and employment and can help to tackle the poverty anddeprivation thatstillholdsback toomanyofScotlandspeopleandstops themfulfilling their potential. It is a shared agenda across central and localgovernment, the wider public, private and third sectors and communitiesthemselves.

4. Improvingtheeducation,healthandemploymentprospectsofvulnerablegroups

notonlypromotes theGovernments targetsof social cohesion (to reduce thedisparitybetweentheregionsofScotland)andsolidarity(toreduce inequalitiesamong people), but also improves economic participation and productivity. Inaddition, it potentially offers higher value for money from public spending interventions which increase the resilience of people and places, help todecrease theneed forpublicexpenditureon services andbenefits in the longrun.

5. Derelict sites and buildings, contaminated land, poor quality housing, an

unskilledworkforce, lackofemploymentopportunities,health inequalitiesandinsufficient transport infrastructure are key factors contributing to thepersistenceofareabaseddeprivation.Ourapproachistoinvestinpolicieswhichtacklethesemarketfailuresandothersocialproblems,totransformplacesandcommunitiesforthebetter.Inaddition,interveninginacommunityexperiencingeconomicshock, forexample ifamajoremployer leavesanarea,canhalt thatdeclineandmaintainalocaleconomy.



6. The2007Concordatbetween the ScottishGovernment and local government1

recognises the role of councils and councillors as leaders in their localcommunities. Italsosetsoutthe jointcommitmentoftheScottishGovernmentand local government to an outcomesfocused approach to the planning anddeliveryoflocalservices,basedaroundtheNationalPerformanceFrameworkbutwiththeflexibilitytoreflectpriorityoutcomesaroundparticularlocalneeds.

7. The3jointScottishGovernment/COSLAsocialpolicyframeworks(EquallyWell,AchievingOurPotentialandtheEarlyYearsFramework),andGetting itrightforeverychild(GIRFEC),whichprovidesthedeliveryframeworkforallservicesandagenciesworkingwith childrenand families,alongsideEqualCommunities inaFairer Scotland,provide the strategic framework for tackling the longstandinginequalitiesthatexistinScotland.

8. The work of Community Planning Partnerships and their commitment to

delivering an outcomesfocused approach as set out in Single OutcomeAgreementsisthekeymechanismfordeliveringchangeatlocallevel.Underthisframeworksitarangeofpolicies,programmes,organisationsandserviceswhichimpactuponourneighbourhoods.

9. Other service providers and delivery agencies also have a key role to play. Interms of economic development, Scottish Enterprise, Highlands and IslandsEnterprise, Scottish Water, transport and other infrastructure providers alongwith our housing investment programme all impact upon the economic andphysical regenerationofour cities, towns and villages. In addition, the secondNationalPlanningFramework(NPF2)identifiesspatialprioritiesforregenerationactivity.

10. The delivery of public services in the future is currently the subject of

considerationbytheChristieCommission,whichisduetoreportinJune2011.11. There have been a number of major changes to the policy and funding

environmentforregenerationinrecentyears,astheprecedingparagraphsshow.TheConcordatandoutcomesfocussedapproach, socialpolicy frameworksandthe reform of the enterprise networks have all changed the way thatregeneration isdelivered,presentingopportunitiesfordifferentdeliverymodelsand different approaches. The economic crisis and recession, and, as a result,reducedpublic financeshave also affecteddelivery and created challenges forthe future.Thispaper thereforeconsiders the impactof thosechangesonourregeneration policies and outlines some of those key challenges andopportunities facing regenerationpractitioners in the future. Itbrings togethercurrentandnewthinkingandposesquestionsforwiderconsideration.

1http://www.scotland.gov.uk/Publications/2007/11/13092240/concordat



12. Thestructureofthepaperisnotareflectionontherelativepriorityorotherwiseof an issue.Regeneration is a topicwhich coversmany interconnected issuesandthe linkagesbetween issues isoftenthemost importantaspect.Thepaperdoesnottrytocoverallpolicyareasrelevanttoregeneration,forexample,theimportance of greenspace in regeneration and other design and placemakingissuesarenotcoveredindetail.Giventheconcentrationofproblemsassociatedwith deprivation experienced in our towns and cities, this paper has apredominantly urban focus. However, we recognise the problems that fragileruralareasexperienceandwehavealsodrawnoutexamplesand lessons fromruralareaswhererelevant.

Chapter 1 considers what we have learnt from previous regeneration

initiatives, highlighting where more needs to be done to achieve theoutcomesweareseekinginScotlandsmostdisadvantagedareas.

Chapter 2 considers how we fund regeneration development andinfrastructureinthecurrenteconomicclimate.

Chapter 3 explores the rationale for, and options to encourage, greatercommunityledregeneration.

Chapter 4 reflects on the role thatmainstream policies, programmes andservicesplayintacklingtheneedsofourmostdeprivedcommunities.

13. Finally, there isaneed toconsider the rangeofpossiblemeaningsof the term

communities for regeneration purposes. Possible definitions might includerecognised local neighbourhoods, villages or towns, statistical boundaries (forexample Scottish IndexofMultipleDeprivation (SIMD)datazones),or areasoflowordecliningeconomicactivity.Analternativetoaspatialapproachmightseegroupsthatareformedaroundcommon interestsoradesiretoachievesimilaraims, or might identify individuals and families with similar support needs totackle theproblems theymaybe facing.Theremaynotbeoneanswer to thatquestion,butconsidering thealternatives fordifferentcircumstancesmayhelpustodeterminefuturepriorities.



Chapter1:Whathavewelearntandwhatshouldourprioritiesbe?

14. Concentrationsofdeprivationinourtownsandcitieshavebeenamongthemost

challenging and persistent public policy issues. For more than 40 yearsgovernmentshaveinstigatedinitiativesdesignedtomoderatethescaleofsocial,economic and physical disadvantage. A separate analytical paper providing abroadoverviewofregenerationpracticeandlessonslearnedintheUKcontextispublished on our website, as well as analytical papers on private sectorinvolvement in regeneration, an exploration of the economic rationale forregeneration and briefing papers summarising lessons learned through ourlearningnetworks.Thischaptersummarisesthelessonsfromthereviewofpastregeneration experience, the impacts of the credit crunch, looks at somestatistics for Scotland by deprived areas and considers the challenges for thefuture.

Keyfindingsfrompreviousregenerationinitiatives 15. The need for a combined physical, social and economic approach to

regenerationhasbeenwellprovenand remains important.However,evidenceshowsthattherehasbeenatendencyforregenerationactivitiestofocusmainlyonphysicalchangeanddevelopment,astangibleandvisibleachievements.2TheGoWellresearchprogrammehasfoundthatintheGlasgowcommunitiesstudiedtherehasbeenmoreprogressintermsofphysicalthansocialregenerationthusfar.3SimilarlyFyfesreviewofScottishinitiativesstatesthattherehasoftenbeenan imbalance between physical, social and economic programmes, run bydifferentorganisationswithdifferentpriorities.Hestatesthere isaneedtousethe Scottish Government focus on outcomes to develop a stronger, sharedapproachtotacklingtheproblemsofthemostdisadvantagedareas.4

16. Theimportanceofaddressingworklessnesstoachievelastingtransformationof

areas is a key consideration, although it has been found to be a consistentlydifficult challenge for regeneration initiatives to address. The assumption thatwealthgeneratedbyeconomicdevelopmentwouldtrickledown to thepoorthroughjobcreationisnowwidelydiscredited.5Evidencesupportstheprovisionof tailored support and skills development, alongside integrating anunderstandingoflocalgeography,culturalattitudesandwidereconomicfactors.

2Shaw,KandRobinson,F(2010),UKUrbanRegenerationPolicies intheEarlyTwentyFirstCentury:ContinuityorChange?TownPlanningReview,81(2)3 GoWell (2010), Progress for People and Places: Monitoring Change in Glasgows Communities,EvidencefromtheGoWellsurveys2006and20084Fyfe,A(2009),TacklingMultipleDeprivationinCommunities:ConsideringtheEvidence,AndrewFyfe,ODSConsulting,ScottishGovernment5Tallon,A(2010),UrbanRegenerationintheUK,Routledge:LondonandNewYork



17. Partnership working, along with strong leadership and clear visioning, hasbecome theacceptedapproach to regeneration.Partnershipsare seen to limitsomeofthepitfallsofearlierformsofurbanregenerationbysharingexpertise;expanding access to financial resources; and helping meet the needs of localresidentsthroughcommunityparticipation.However,ithasbeensuggestedthatsomecritical thinkingabouthowpartnerships shouldbe ledandwhether theyare appropriate in all circumstancesmay be beneficial. For example, Ball andMaginn (2005)have suggested that there isaneed forgreaterattention tobepaid to the ways in which projects are managed and the contexts in whichpartnershipsareusefulandwhentheyarenot.6

18. The leveloffundingandprojecttimescalesarekey.Evidenceshowsthatmany

regenerationinitiativeshavebeenlargelyisolatedfrommainstreamprogrammesand services,withgovernments tending topursue shortterm initiatives ratherthantakinga longertermperspectivedrivenbychanges inmainstreamserviceswithgreaterlocalcoordination.7WehaveanopportunityinScotlandtobuildonthe focusonoutcomesto integratebetterapproaches forthe longterm.EqualCommunities inaFairerScotland setsouta shared commitment todoing this.Weneedtoassesswhetherthisishappeninginpractice.

19. Theneedtoengagecommunitieshasbeenacentraltenetofregenerationpolicy

for decades; evidence of positive engagement and knowledge of differentmethods has grown, but the way the engagement is conducted remains key.Recentevidencepresentedby theGoWell researchershighlight thatwhile thephysical changes in the study areas have resulted in some positive feelingsamong those surveyed, the loss of social health, in terms of emotional andpsychologicalwellbeingfeltbythosesurveyedwasstark.Theresearcherspointto the need for community networks and cohesion, along with realempowermentandinvolvementindecisionmakingthataffectslocalpeople.

20. Moreacknowledgement isneededoftheroleofwidereconomicfactorswhen

planningneighbourhoodinterventions.Researchershighlightthatgapsbetweenpolicy intentionsandoutcomes remaindue toan insufficientunderstandingofthe function played by a neighbourhood area in the wider housing andemploymentmarketandtherelationshipwithsurroundingareas.

Currentcontext 21. Theeconomiccrisishasmeantthatmanytraditionalmodelsofregenerationare

now fractured.Developmentactivity fuelledbyrising landandpropertyprices,funded via debt finance has been shown to be unsustainable. In addition,reducedpublicsectorfundingandcapitalgrantmeanswehavetocomeupwithnew financial models and different ways of funding development, and the

6Ball,M andMaginn, P (2005)Urban Changeand Conflict: Evaluating theRoleofPartnerships inUrbanRegenerationintheUK.HousingStudies,20:1,928.7Tallon,A(2010),UrbanRegenerationintheUK,Routledge:LondonandNewYork



relationship between the public and private sector will need to adaptaccordingly.

StatisticsondeprivedareasofScotland 22. The following statistics demonstrate that the majority of Scotlands social

problems drugs, crime, antisocial behaviour, poor educational attainment,unemployment,poorhealthareconsiderablymoreacuteinasmallnumberofdisadvantaged areas. High correlations are found between living in deprivedareasandarangeofnegativeoutcomes,butthisdoesnotnecessarilymeanthatliving inadeprivedarea leadstothesenegativeoutcomes.Althoughapersonsneighbourhoodcannotbeclaimedtodeterminetheirlifeoutcomes,neverthelessitdoesplayanimportantroleinshapingopportunitiesandlifecourses.Problemstendtobemultiple,aswellasmoreconcentratedinparticularlocalities.

23. The Annex to this paper shows how these social problems are geographically

concentratedacrossScotland.24. For mainstream policies, programmes and services like justice, health and

education, it isclear thatanareabasedapproachmayenablemorevulnerablegroupstobetargetedwhichwouldhaveadisproportionatelypositiveimpactontheoveralllevelsoftheproblems.

Justice62%ofprisonerspreviouslylivedinthe25%mostdeprivedareasofScotland(priortobeingimprisoned).(PrisonerStatisticsMarch2009)55%ofreferrals to theChildrensReporterare forchildren living in the25%mostdeprivedareas of Scotland. This includes offence and nonoffence referrals. (Scottish ChildrensReporterAdministration)32%ofadultsinthe10%mostdeprivedareassaythatdrugdealingormisuseisaproblemintheirneighbourhood.Thiscomparesto12%ofadultsinScotlandasawholeandonly2%ofadultsinthe10%leastdeprivedareas.(SHS2009)EconomicActivityThe employment rate in the 15%most deprived areas of Scotland is 57.5% compared to76.6%intheotherareasofScotland.(AnnualPopulationSurvey2010)IncomeandEmploymentdeprivationTherearearound779,300peopleinScotlandwhoareincomedeprived.Around270,600liveinthe15%mostdeprivedareas(equatingtoaround35%ofallincomedeprivedpeoplelivinginthe15%mostdeprivedareas).(SIMD2009)



Therearearound373,000peopleinScotlandwhoareemploymentdeprived.Around123,000live in the15%mostdeprivedareas (equating toaround33%ofallemploymentdeprivedpeoplelivinginthe15%mostdeprivedareas).(SIMD2009)HealthMenbornin200709inthe10percentleastdeprivedareasofScotlandcanexpecttolivefor13.4yearsmore than those in the10per centmostdeprivedareas (81.1years comparedwith67.7years).(GROSLifeExpectancyinSpecialAreas,20072009)In 20012004, the rate of hospital admissions related to alcohol misuse per 100,000populationwas just over 3 times higher in themost deprived areas than in less deprivedareas.(NHS:InformationServicesDivision(ISD))Education85%ofS4pupils inthemostdeprivedareasobtainedSCQFLevel3orhigher inEnglishandMaths(thisisaproxymeasureforlevelsofliteracyandnumeracyinschoolpupils)comparedto94%inlessdeprivedareas.(ScottishQualificationsAuthority2008)The exclusion rate in the 10% most deprived areas of Scotland is 91 per 1,000 pupilscomparedtojust12per1,000pupilsintheotherareasofScotland.(SummaryStatisticsforSchoolsinScotland).

Challengesforthefuture 25. Considering these findingsand thecurrentcontext, thereareanumberofkey

challengesforregenerationinthefuture:

Previous development funding models are no longer viable. In an era ofconstrained budgets, we need to maximise the resource we have andconsidernewandsustainablewaysoffundingphysicalregeneration.

Weneed todomore toensure thatweare tackling thedeeprootedsocial

problemsofourmostdisadvantagedareas.Thismeanshavingan increasedfocusondeliveringarangeof interrelatedoutcomeswithfundsandactivitydirectedthroughlocalservicestobringaboutimprovementsinemployment,health, education, crime and the environment. We should look tomainstream policies, programmes and services to incorporate a consciousareabased focus on improving the prospects of deprived neighbourhoodswithintheirstrategies.

Weneedtounderstandbetterthewidereconomicandspatialfactorsatplay

whendesigningneighbourhood interventions.This isparticularly true ifweare to address the persistent problem of worklessness in some of ourcommunities.



Toensureregenerationislastingandsustainable,moreneedstobedonetosupporttherolecommunitiesthemselvesplayinregeneration,includinghowcommunitiesareempoweredto improvetheirneighbourhoodsattheirownhand.

26. Thesechallengesformthebasisfordiscussioninthechaptersthatfollow.

Questions

Are thereother key issues fromprevious regeneration initiativeswe shouldtakeintoaccountthatarenotreflectedabove?

Doyoufeelthelistofchallengesistherightone? Are there other regeneration priorities you feel theGovernment should be

addressing?



Chapter2:Investingintheeconomicpotentialofourcommunities

27. Thefinancialmodelthatunderpinnedmuchphysicalregenerationduringthelast

decadeisnowfractured.Thebanksandinvestorsthatfinanceddevelopmentsinthepastareunlikelytodosointhesamewayinthefuture.Riskaversionamongdevelopers will make it difficult to attract interest in regeneration sites.Regenerationprojectsthatpreviouslyreliedonresidentialdevelopmenttopropup riskier speculative commercial developments have had to recalibrate theirapproach as funding sources have dried up. Similarly there is a risk thatspeculative infrastructure and site development by the public sector fails toattractfurtherprivateinvestment,leavingvacantsitesandemptypremises.

28. Commentators report a flight from risk and flight to quality. Thismeans that

marginalplaces,projects,partnersandpeoplearemostthreatened.Researchonthe credit crunch for the UK Department for Communities and LocalGovernment8,whichsurveyed250partnershipsdeliveringregenerationprojectsacrossEngland, found that residentialleddevelopmentshadbeenhardesthit,with a reduction of 50% or more over the previous 12 months. Commercialproperty retail, industrial, leisure and mixeduse developments was lesspressedbutactivitywas stillconsiderably slowed.Allplaceshadbeenaffectedbuteconomicallyand financiallymarginalplaces,projectsandpeoplearemostvulnerable.

29. Regeneration has traditionally been an activity which takes place in marginal

communities,thoughweare interested inviewsastowhether itshouldremainsoorwhetherweshouldwidenour focus, forexample,by intervening inareasexperiencing economic decline. There are difficult choices and decisions to bemadeaboutwherewederivethegreatestimpactfromourinvestment.Thereisstill considerable need in ourmost disadvantaged areas but preventing otherareasfromslippingintoeconomicdeclineisalsoimportant.

30. Itisclearthatanoverrelianceongovernmentgrantwillnotbefeasibleaspublic

finances tighten. It is also questionable whether private sector investment insuchschemeswilleverreturnona likeforlikebasis.Partnershipsbetweenthepublic, private and third sectors and the use of public resources in thosepartnershipswillbecomeincreasinglyimportant.Commentatorshavenotedthatthepublicsectorshouldbecomemoreofaninvestorinlongtermregeneration,sharingtheriskandrewardsandrecyclingthemforfutureprojects.9

8 Parkinson et al, (2009), The Credit Crunch and Regeneration: Impact and Implications, AnIndependentreportfortheDepartmentforCommunitiesandLocalGovernment9 edited by Hackett, P (2009), Regeneration in a Downturn: What Needs to Change?, The SmithInstitute,p.30



31. In this chapter we are interested in looking at new approaches to fundingdevelopment; how we maximise the impact of our existing investmentsincluding,forexample,ourhousingbudgets;howwe linkopportunityandneedandensurethatourinvestmentsarebenefittingthewidercommunity;andhowwesupportdeliveryofregeneration.

Ourapproach 32. TheScottishGovernmentsEconomicStrategy isfocussedonstimulating lasting

improvements in Scotlands longterm economic potential. The GovernmentsEconomic Recovery Plan developed through an ongoing dialogue withScotland'sbusinesses,academics,communitygroupsand individuals,alongwithourpartnersinlocalgovernmentandthethirdsectorssetsoutourapproachtobringing about economic recovery and growth.10 The Plan has recently beenupdated.

33. We are already investing record levelsof funding to improve thephysical and

economic fabricofour cities, townsand villages.Despitea cut to the ScottishGovernmentsbudgetofover11% inrealtermsbetweenthisfinancialyearand2014/15thatmeansarealtermscutof3.3billionandareductionincapitalfundingof33%by2014/15,wehaveensuredthatourmostdisadvantagedareaswillnotloseout.

34. We have prioritised our investment to achieve maximum impact. Subject to

Parliamentary approval of the budget, in 201112 the Scottish Government,workingwitharangeofpartners,will:

Continue to supportourUrbanRegenerationCompanies (URCs) in someof

our poorest communities, with priority investment in the Clyde GatewayURC,givenitsimportancetodeliveringthe2014CommonwealthGamesandprovidinga lastingeconomic legacyfortheeastendofGlasgow.Over25mwill be made available for 201112 from the Scottish Government andScottishEnterprise.

Continueto invest invacantandderelict land insomeofourmostdeprivedcommunities but refocus the funds objectives on stimulating economicgrowthandjobcreationinasmallnumberofprioritysitesofnationalorlocalimportance.Approximately10mwillbemadeavailablefor201112.

Use the 50m Joint European Support for Sustainable Investment in CityAreas (JESSICA)Holding fund established inpartnershipwith the EuropeanInvestmentBanktoinvestinrevenuegeneratingregenerationprojectsin13ERDFeligiblelocalauthorityareas.

Continue to support the contributionmade by Registered Social Landlords(RSLs)totheregenerationofcommunities.Approximately6mwillbemadeavailablethroughtheWiderRolefundforRSLsin201112.

10http://www.scotland.gov.uk/Publications/2010/03/03084300/2



Continue to invest in our learning networks to support those working todeliverregenerationtoidentify,shareandapplypracticeandinnovation.

Introduce a new 50m competitive funding arrangement to maximise thedeliveryofnewaffordablehomesfromRSLsandlocalauthorities.

ThroughtheNationalHousingTrust(NHT),in11LocalAuthorityareas,makeavailable around1,000 affordablehouses for thenext510 years. Thiswillhelp to kickstart constructionon stalledhousing sites and it is anticipatedthattherewillbelaterphasesoftheNHT.

PositionScotlandattheforefrontofdevelopingsectorsthroughourNationalRenewables InfrastructureFundwhichhasbeenestablished to support thedevelopmentofportandnearportmanufacturing locationstostimulateanoffshorewindsupplychaininScotland.

Completethe445millionM74Completionproject.Atitspeak,constructionof the project will employ 900 people. When completed, the project willimprove the accessibility of large areas of the Clyde Corridor and providemajoropportunities forurban regeneration andnewdevelopment. Studiessuggest that the M74 Completion project will act as a catalyst for newdevelopments, creating up to 20,000 jobs and further enhancing theeconomicprospectsoftheClydeGatewayURCarea.

Encourageotherlocalauthorities,workingwiththeScottishFuturesTrust,tobringforwardTaxIncrementalFinance(TIF)proposalstokickstarteconomicdevelopment,whereviable.

Continueto investover250million inourEnterpriseAgenciessotheycancontributetothedeliveryofsustainableeconomicgrowth.

Continue toworkwith the private sector to investigate howwe canworktogethertosupportthefinancingofdevelopmentinfrastructure.

35. Maximising our investments and ensuring we are creating synergies between

investment programmes is important. Effective spatial planning can help toensurethatdisadvantagedcommunitiesareabletoaccessnewopportunities.

36. We recognise the importance of town centres and local high streets to the

economic,socialandcultural fabricofourcountry.Workingwithourpartners,the60mTownCentreRegenerationFund(TCRF)hassupportedprojectsupanddown Scotlands high streets which, at their core, aimed to create the rightenvironment to support better town centre retail, business, community andleisure facilities.Research isunderway toassess the impactofvarious typesoftowncentreregenerationactivity, includingactivities fundedthroughtheTCRF,tolearnfromthefundanddrawlessonsfortowncentreregenerationingeneral.In addition, we are working closely to support those regenerating our towncentresandtosharepracticethroughourTownCentresandLocalHighStreetslearningnetwork.

37. We are interested in hearing views on how we could further support town

centres, includingwhetheranynationalor local regulationorpowers couldbeusedtoassistwiththis.



38. Wearecommittedtosupportingbusinessandthelocalfamilybusinesseswhichare themostprevalent typeofbusinessonScottishhighstreets.Access to therightsupportandadviceisimportant,whetherstartinguporgrowingabusiness,and Business Gateway delivered through local authorities aims to giveindividualsgoodqualityinformedadvicerelevanttotheirbusiness.

39. Alongside this, we have been reducing the business rates bill burden for the

majorityofScottishbusinessesandtheSmallBusinessBonusScheme ishelpingto sustain tens of thousands of small high street businesses through theeconomicdownturn.

40. Wewanttoensurethatourinvestmenthasalastingimpact.Howweharnessthe

potentialofkeyevents,sportingorotherwise,isimportant.Forexample,weareworking closelywithGlasgow City Council and its partners to ensure that the2014CommonwealthGamesismorethanamajorsportingeventforthepeopleoftheeastendofGlasgow,anddeliversandlongandlastingeconomiclegacyforthearea.

Challengesforthefuture 41. Despite these important measures and other action to help the economy

weather the storm of the recession, the challenges facing the developmentindustryoverthenextfewyearsareconsiderable.Nationalandlocalgovernmentand the wider public sector will also need to find ways of making limitedresourcesgo further.Fundamentally, therewillnotbeenough capitalgrant tosustainpreviousregenerationmodelsoractivity.Wewillneedtomakedifficultchoicesaboutwhereandwhyweintervene,andtherationalefordoingso.Thiscouldincludeconnectivity,opportunitiesforadditionalinvestmentandresource,likelyprivate sector involvement,and theeconomic impactofour investment.Weareinterestedinviewsonhowprioritiesmightbedecidedinthefuture.

42. Weneed tomakebestuseofexistingpotsof funding andmaximise resource

where possible, including European funding. Scotlands Structural Fundsallocation is likely to reducebeyond the currentprogrammeperiod (200713);butwewillworktoensurethaturbanregenerationremainsapriorityandthatEuropeaninvestment(ERDF,ESF,RSA,JESSICA)continuestomakeacontributionto the regenerationofourmostdeprived communities,alongside the ScottishRuralDevelopmentProgramme(SRDP)andfundingforbusinesssupport.

43. We are also interested inhearing viewsonhow the ScottishGovernment can

provide funding for regeneration in awaywhich supports flexibility and longtermpartnershipsbutstillachieveskeydeliverablesandoutcomes.Forexample,should we rationalise the various regeneration funding streams and provideflexible support to local partnerships who may, for example, wish to useresourcestopreparesitesandputinfrastructureinplace,orshouldwecontinuetosupportspecificventuresandinitiatives?



44. URCshavebeenakeyregenerationmodel inScotlandwhichhasallowedusto

testavarietyofapproaches.Todate, theURCshave relied largelyonScottishGovernmentandScottishEnterprise for their core funding.Whilsta significantamounthasbeenachieved,thedramaticdeterioration inmarketconditionshasposedanumberofeconomicchallengesandhashadanimpactontheirabilitytoleverinprivatesectorinvestment.Lookingahead,weneedtoconsiderwhetherthecurrentapproachtosupportingURCsissustainableinthelongerterm,giventhecontinuedpressureonbudgets.Wealsoneed toconsiderhowwesupportotherareas,andwhetherchannellingourfundingintoasmallnumberofprojectsis the most effective use of resources. Do we need to develop a differentapproachtofundingandsupportingregenerationthatprovidesanalternativetocore grant funding, moving towards an investmentled model that enablesdeliverybyarangeofnewprivateandpublicsectorpartnerships?

45. Newandsustainablepartnershipsandfundingmodelswiththeprivatesectorare

needed.Regenerationareasneedprivate sector investment toboost the localeconomy and provide sustainable growth and jobs, but investors need to beencouragedtodothis.Weneedtothinkabouthowwepackageriskandreward,and howwe can incentivise development.We are interested in hearing frompotentialinvestors,developers,businessesandothersintheprivatesectoraboutbarrierstoregeneration investmentandhowthepublicandprivatesectorscanworkmoreeffectivelytogether.

46. Therearealreadyanumberofnewandinterestingmodelsbeingdevelopedata

national and local level, and these followbelow.We are interested inhearingaboutotherpossibleapproachesandideas.

InnovativeapproachestofundingdevelopmentJESSICA 47. TheScottishGovernmentandtheEuropeanInvestmentBankhaveestablisheda

50mJESSICAHoldingFund,with investmenttobedeliveredfrom2011viaoneor more Urban Development Funds, run by specialist fund managers. Thesefunds will offer debt or equity investment to projects capable of generatingsufficientrevenues.Thereare13ERDFeligiblelocalauthorityareas.

48. JESSICA is a new way of funding regeneration activity which aims to balance

commercial, social and economic objectives, and could be a valuable tool infostering an investmentnotgrant culture. Itwill need to be used alongsidegrant or other sources of finance. However, it can bring private sectorinvestment,perspectivesandskillstobearonpubliclandopportunitiesatatimeofconstraintinpublicfinances,whenmarketlendingcanmakeitdifficulttogetprojects started or restarted. The evergreen nature of the fund is a majorbenefitwhenpublicresourcesarescarce.



49. FortheUrbanDevelopmentFundtobesuccessful,itmustoperateasagenuine

investmentfund,albeitonethatbalancesvariousobjectivesnotablytheneedtogeneratereturnsanddelivereconomic/regenerationoutcomes.Therewillbewinnersandlosersbutitshouldfocusresourcesonthoseprojectsthathavethebestchanceofsucceedinginthelongerterm.

50. Thiswill require somethingofa culture shift forproject sponsors, thewider

developmentcommunityandevenwithingovernment.Projectsponsorswillnotapply to the Government; and politicians or civil servants will not takeinvestmentdecisions. JESSICA isagenuinepartnershipwith theprivate sector;one thatwe hopewill unlock stalled projects, derisk developments currentlyconsidered toomarginal for commercial lenders or investors, and deliver jobsandeconomicbenefitsinsomeofourmostdeprivedareas.

TaxIncrementalFinancing(TIF) 51. TIF isan innovativewayofkickstarting localeconomicgrowthbyallowing the

public sector to fund public infrastructure judged to be vital to unlockregeneration in an area, and which may otherwise be unaffordable to localauthorities or undeliverable through the private sector. TIF is a partnershipapproachwith the private sectorwhich enables local authority borrowing forsuchupfront infrastructureonthebasisofapredicteduplift infuturerevenues(nondomestic rates in Scotland) resulting from additional new developmentgeneratedbythenew infrastructure.TheuseofNDRmeansthattheproposedinfrastructuremustbeabletounlockappropriatecommercialdevelopment.

52. ScottishMinistersaresupportiveofuptosixpilotprojectstotestapplicabilityof

TIFtoScottishcircumstances,andhaveaskedtheScottishFuturesTrusttoworkinconjunctionwithinterestedpublicbodiestodevelopappropriateschemesthatcanbeputforwardforMinisterialconsideration.LegislationallowingTIFpilotstoproceedcameintoforceinDecember2010.

53. Anyproposal foraTIFprojectmustdemonstrate toScottishMinisters that the

enabling infrastructure will unlock regeneration and sustainable economicgrowth; generate additional (or incremental) public sector revenues (net of adisplacementeffect);andbecapableofrepaying,overanagreedtimescale,thefinancing requirements of the enabling infrastructure from the incrementalrevenues. Ministers recognise that the TIF approach may only be suitable incertaincircumstances.

Scottish Ministers announced in September 2010 their provisional agreement for City ofEdinburghCounciltouseTax IncrementalFinancing (TIF)tofundtheEdinburghWaterfrontregenerationproject,thefirstofitskindintheUK.ThisdecisionwasbasedonaclearvalueformoneyrationalesetoutintheCouncilsbusinesscase.AccordingtotheCouncilsbusinesscase,thisTIFhasthepotentialtounlockanadditional660mofprivateinvestment,creating



upto4,900FullTimeEquivalent jobs.Finalagreement isexpectedearly in2011,withworkoninfrastructurecommencingin201112.Aswellas its involvementwithCityofEdinburghCouncil,theScottishFuturesTrust(SFT) isactivelyengagedwithotherlocalauthorities,helpingthemunderstandTIFapplicationsand,whereappropriate,todevelopbusinesscasesfortheirrespectiveTIFproposals.GlasgowandNorth LanarkshireCouncils, in conjunctionwithSFT,haveadvancedbusinesscasesfortheirrespectiveTIFproposals,BuchannanGalleriesandRavenscraig.BothCouncilsareexpectedtosubmittheseforMinisterialapprovalearlyin2011,withGlasgowproposingtocommenceworkin201112.

Loans,leveragemodels,equityshares 54. JESSICA is an emergingmodel for channelling loans and equity investment to

regenerationprojects.Publicsectorleveragemodelsmaybeanotheroption.Themostprominentexampleofa leveragemodel inaction is theNationalHousingTrust, which seeks a shift from traditional grantbased models for fundingaffordable homes by providing Scottish Government guarantees to localauthorities,whichinturnleverageadditionalinvestmentfrompublicandprivatesectors.We are interested in ideas about how thesemodelsmightwork in aregenerationcontextatlocalornationallevel.

LocalAssetBackedVehicles(LABVs) 55. LABVsallowlocalauthoritiestousetheirassets,usuallyland,toleverlongterm

investmentfromtheprivatesectorforregenerationprojects.Theyaredesignedtobringtogetherarangeofpublicandprivatesectorpartners inordertopoolfinance, planning powers, land and expertise and to ensure an acceptablebalance of risk and return for all partners. Private sector partners invest cashand/orequity,withtheLABVprovidingreturns,ashareofwhichisreinvestedinfuture regeneration activity. Revenuegenerating sites can be packaged withpoorersites,spreadingriskacrosstheportfolio.Investmentscanbeattractivetopensionfundsandotherlongterminvestors.

OneofthefirstLABVsdevelopedwasISISBritishWaterways.BritishWaterwaysownarangeof land holdings near to canals. ISIS is a property regeneration partnership established in2002 by British Waterways, AMEC and Igloo Regeneration Fund (an investment fund ofAviva) to transform this land into mixeduse developments. One of its projects is a jointventurewithGlasgowCityCouncilontheGlasgowCanalRegenerationproject.Morerecently,GlasgowCityCounciltransferreditsnonoperationalpropertyportfoliointoanewpropertycompany,CityProperty(Glasgow)LLP.Thenewcompanysecuredborrowingof120magainsttheassetsheld.ThismoneywasthenpaidtoGCC,withtherevenue incomegenerated by the property portfolio repaying the loan over a 20 year period. The Councilplans to use the capital income generated from the transaction to boost expenditure inpriorityareas,includingeducationandsocialwork.



56. Weareaware thatothercouncilsareconsidering the feasibilityofsettingupaLABVtocoordinateandmanagedeliveryofeconomicdevelopmentortosecureborrowing against assets held for use in other council activities. We areinterestedtohearfromcouncilsasplansdevelop.

Governance 57. Forming strong partnerships with the private sector at an earlier stage in

developmentwillbe important todelivering regeneration in the future, ratherthanthepublicsectorsellingterms.Weare interested inhearingaboutmodelswhich involve theprivate sectormore in governance anddecisionmaking andtheroletheScottishGovernmentmightplayinfacilitatingthis.JESSICAisagoodexample of investment decisionswhichwill bemade by a board representingprivate,aswellaspublicinvestmentinterests.

ManchestersCommissionfortheNewEconomyisprivatesectorledandconsistsofboth public and private sector members, reflecting the diversity of the business base inGreaterManchester.ThisgivesNewEconomyasignificantconnectiontobusinessneedsanddesires, whilst also reflecting the priorities of local government through the GreaterManchesterStrategy.NewEconomyprovidesafocussed,strategic,coordinatedand joinedupapproachtotacklingeconomicprosperityacrosstheManchesterCityRegion.

BusinessImprovementDistricts(BIDs) 58. The Business Improvement Districts (BIDs) model remains an important and

uniquesourceoffundingforourhighstreets.BIDsservetwokeypurposes:notonly improving the trading environment and commercial potential for thosebusinesses involved intheBIDsbutcontributingtothe localcommunity'swiderregenerationaspirations.

59. There are currently 10 BIDs in Scotland 9 town centres (Bathgate, Alloa,

Kirkcaldy,Falkirk, Inverness,Elgin,Dunfermline,ClarkstonandEdinburgh)and1business park BID in Clackmannanshire. A further 13 are currently indevelopment.

BathgateisthelargesttowninWestLothian.Thedeclineofmanufacturing,theexpansionofa nearby New Town, and the development of retail parks in the surrounding area haveimpactedontheeconomy.However,thereisawealthofindependentshopsinthearea,withover400businessesinthetowncentre.EnterprisingBathgateLtdwasestablishedtorunandmanageanewBIDinMarch2008.ThecompanyworkedcloselywithlocalbusinessestointroduceaPremisesImprovementSchemeand a PublicRealmDesignGuide for Bathgate town centre. These schemes linked to theprioritiesidentifiedbylocalbusinessesattheoutsetoftheBID,andofferedtheopportunitytohighlighttheimpactofintroducingaBIDinBathgate.



InMarch2009,thePremisesImprovementSchemewasimplemented;grantsofupto1,000were offered to businesses for shop front improvements or other external and internalimprovements tobusinesspremises.Thoseoccupyingvacantproperties receivedadditionalsupportandmaximumgrantsincreasedupto1,500.Inoneyear,thisschemeawarded54,144ingrantsto93businesses,withtheaveragegrantbeing582.Itresultedintotalexpenditureonpremisesimprovementof412,862.Forevery1investedbytheBID,businessesinvestedover6inpremisesimprovement.60. TheuseofBIDS isnotnecessarily restricted to large townsorcities.ABIDcan

also focus on a particular sector or theme rather than a district, for example,tourism or agriculture in rural areas. BIDs Scotland is currently working withDevelopmentTrustsAssociationScotlandwith theaimofdevelopingruralBIDswhichwillsitwithinanexistinglocaldevelopmenttruststructure.

Bonds 61. Bondsareloanstocompanies,localauthoritiesorthegovernment.Theyusually

payafixedrateofinteresteachyearandaimtopaybackthecapitalattheendof a stated period. Corporate and government bonds are traded on the stockmarket,sotheirvaluecanriseandfall.

62. Bondinvestmentscaninclude:

corporatebondsissuedbycompanies giltsbondsissuedbytheUKGovernment bondfundspooledinvestmentscoveringarangeofbonds

63. The Scottish Government has no powers to borrow for capital investment

purposesatpresent,whetherthroughissuingbondsorbyanyothermeans. The Scottish Futures Trust is currently working with local authority partners to examinewhetherbondsissuescouldbeawayoffinancingcapitalexpenditure.Bondsareamethodofborrowing,whichrequirerepayment.Theyneedtobeadministered,whichcouldmakethemlessattractive to localauthorities thanalternative sources, suchas thePublicWorks LoanBoard(PWLB).The statutory restrictions on local authority borrowing applies equally to bonds as toborrowing from thePWLB i.e. they canonlybeused forcapitalexpenditureof the localauthority. The statutory duties that allow local authorities to borrowmoney through theissueofbondsalsoensurethattheydetermineandkeepunderreviewthemaximumamounttheycanaffordtoallocatetocapitalexpenditure.Thisrequiresalocalauthoritytodeterminethemaximumitcanaffordtoborrow,irrespectiveofthetypeofborrowing. 64. Bondsarenotnecessarilyanewfinancingoptionbutcouldbeanalternativeway

forinterestedlocalauthoritiestoborrowmoney.



Planningpolicy,conditionsandagreements 65. TheGovernmentiscontinuingaprogrammeofworktoensurethattheplanning

system is proportionate, efficient and properly resourced, enabling fasterdecisionmaking,anddeliveryoftherightdevelopmentintherightplace.

Development Delivery The Government has published a Development

DeliveryandViabilityReportwhichincludesthefindingsoftheScotlandwideauditof the issuesaffectingdevelopmentand infrastructureand theactiontheGovernmenthastakentosupportthedeliveryofdevelopment11.

CompulsoryPurchaseOrder Compulsorypurchase is a valuable tool that

local authorities can use to free up blocked land and assemble sites.Compulsory purchase can facilitate regeneration and other projects in thepublic interestthatwouldotherwisenotbepossible. Inthesummerwewillissue new guidance to help local authorities make the best use of thecompulsorypurchasepowersavailabletothem.In2011wewillalsofacilitatefurther training events and other opportunities to share and promotecompulsorypurchasegoodpractice.

PlanningObligationsTheGovernmentcommencedsectionsofthePlanning

etc.(Scotland)Act2006dealingwithPlanningObligations(previouslyknownas planning agreements). The relevant sections and associated regulationscameintoforceon1February2011.WewillupdateCircular1/2010:PlanningAgreements,inlightofthesenewprocedures.

DevelopmentchargesTheGovernmenthascommissionedaresearchstudy

intodevelopment charges. The research will explore the potential of a"phased"or"tariff"styleapproachtopayfor infrastructurewhichwillassistwith developers cash flow and ensure the requirement for infrastructureprovision does not impede development. The researcherswill report theirfindingsinMarch2011.

Planning feesPublic consultationon Resourcing aHighQualityPlanning

Systemclosedattheendof2010.WearenowworkingwithCOSLA,SOLACEandHeadsofPlanningScotlandtodevelopafeestructureandperformanceframeworkthatismoreproportionateanddeliversamoreeffectiveplanningsystem.

66. Thespatialplanning implicationsofdevelopments inregenerationpolicywillbe

reflected in the third National Planning Framework (NPF3). It is important toconsiderwhether the spatialpriorities currently identified are likely to remaintherightoneslookingforwardandhowspatialprioritiescanbestbearticulated.

11Thereportisavailableat:http://www.scotland.gov.uk/Publications/2010/12/23134428/0



Questions

Shouldregenerationactivityremainsomethingwhichtakesplaceinmarginalcommunitiesorshouldwewidenourscope?Whatelseshouldweconsider?

Which funding models do you feel have the most potential to deliverregenerationprojectsinthefuture?

Whatotherinnovativeapproachestofundingdevelopmentandinfrastructureshouldwebeconsideringandhowwouldthesebefunded?

Giventherelianceoncorepublicsectorgrantfunding, istheURCmodelthemostsustainablemodeltodeliverregenerationinthelongerterm?

Howshouldspatialregenerationprioritiesbeselectedinthefuture? How can we encourage private sector investment in regeneration in the

futureandhowfarshouldthepublicsectorgoinsecuringthis,i.e.,shouldthepublicsectorminimiseriskandprovideaguaranteedreturn?

Maximisingourhousinginvestment 67. We need to ensure that through our investments we are creating the right

opportunitiesand the right synergies tomaximise thebenefitof limitedpublicfunds.Thelocusandroleofhousingassociations,forexample,inhelpingdeliverwiderregenerationobjectivesisimportant.

68. Therehasbeenastrong tradition inScotlandofhousingled regeneration.This

includestheNewLifeforUrbanScotlandAreas(includingCastlemilkandWesterHailes) during the 1990s along with multiagency projects with large housinginvestmentatCrownSt,GorbalsandNewMonklands in Lanarkshire.Althoughtheevaluationsof these12andother initiativespoint to thepositive impactonthephysicalamenityandappearanceoftheareas, improvements inthequalityof life of residents (for example in education and employment skills)was lesssuccessful. While the core housing contribution is critical as a stimulus andcatalyst for energising local residents and showing practical and tangibleimprovementsinlocalcommunities,weareinterestedinexploringhowhousingassociationscoulddomoretodeliversocialandeconomicoutcomes,particularlyin relation to tackling poverty and creating training and employmentopportunities.

Inthe1990sGlasgowCityCouncil,GlasgowDevelopmentAgency(GDA)andScottishHomesdevelopedavisionforthe40acregapsiteleftbehindafterthedemolitionofhighriseblocksintheGorbals.

12http://www.scotland.gov.uk/Publications/1999/10/bcbfcd4de6924001a5a9aa74ec5d5d2d



Themasterplanincludedmixedtenure,highqualityhousingservedbyarangeoflocalshops,publicservicesand leisure facilities.Strongpublic/privatepartnershipswere formed,withnearly100mofprivatesectorinvestmentleveredoverthecourseofthedevelopment.20yearslaterand1500newhomeshavebeenbuilt,with75%forhomeownershipaswellassocialrenting.Newfacilitiesforthecommunityincludeanewsupermarketandlocalshops,ahoteldevelopment, library,arts installations,theGorbalsParkandother landscapedareas.Theprojecthasrebuiltthecommunity,engaging localpeopleandreturningasenseofcivicpride,includingthereturnofformerresidents.TheprojecthasalsorebrandedandrevitalisedthewiderGorbalsthroughintegratedurbandesign,housingandcommunityfacilities,aswellas improving economic outcomes through a range of jobs, training and employmentinitiatives. 69. We would also like to encourage better connections between local RSLs and

wider Community Planning arrangements. The experience of RSLs lookingbeyond their core housing functions evenwith the existence ofWider Rolefunding ismixed. ThemajorityofRSLshave some role in local regenerationactivity but others are less able/interested in wider community regenerationissues. It isalso thecase thatnoteveryCommunityPlanningPartnership (CPP)fully understands the potential of RSLs in their area to contribute to widerregenerationoutcomes.Closerworkingwouldbringbenefitstoallconcerned.

70. A Scottish Centre for Regeneration guide forHousing Associations on how to

work successfullywithin local structuresandprocesses todeliver regenerationmaybehelpfulinthisrespect.13

CunninghameHousingAssociationhasuseda30mhousingledregenerationprogrammetodevelop trainingandemploymentopportunities for localpeople inNorthAyrshire.TheRSLwill replace 300 poor quality properties in the Vineburgh area of Irvinewith new energyefficienthomesovera fiveyearperiod.On thebackof thecapital investment theRSLhasdevelopedtwoemployabilityprogrammes.The Jobs From Construction project will ensure that the Vineburgh construction contractdeliversbenefits for localunemployedpeople.15%of the total labour requirement for theprojectissourcedfromthelocalcommunity.InparticulartheRSLjoinedWiderRolefundingwithESFmonies,FairerScotlandFund,contributionsfromNorthAyrshireCouncilanditsownresourcestosupportconstructiontrainingplacesfor12previouslyworklessindividuals.TheHousingCareersTrainingProgrammeisaimedatunemployedyoungpeopleandschoolleaversandprovides10places.Usingthemodernapprenticeshipmodel,participantsdevelopskills and experience through placements in professional environments offered byCunninghameHA,NorthAyrshireCouncilandAyrshireNorthCommunityHA.TheyalsostudyforCIHHousingCertificateLevels2and3atKilmarnockCollegeonaparttimebasis.

13 SCR (2010), Routes into Regeneration: A Guide to Structures and Planning for HousingAssociationshttp://www.scotland.gov.uk/Resource/Doc/94257/0099825.pdf



Question

How can we encourage RSLs to play a greater role in local regenerationstrategies?

Linkingopportunityandneed 71. We also need to ensure that our investment is benefitting local people,

supportingthelocaleconomyandprovidingjobsandtrainingopportunities.Howweprocuregoodsand servicesmatters.Done inparticularways,procurementpromotes and secures high quality design, creates diversity of products andcontributesto localeconomiesbyusing localproductsand labourandavoidingunnecessaryleakageofresources.

72. This can be particularly important for rural areas, where fewer employment

optionsmeansthatthesustainabilityoflocalfirmsisallthemoreimportant.73. The current economic climate may make securing community benefits more

challenging but it is also important that we dont miss opportunities for thelongerterm.

CommunityBenefitsinProcurement(CBiP) 74. TheScottishGovernmentand localauthoritiespromote theuseofCommunity

Benefit clauses contract clauses which deliver targeted training andrecruitment,SMEandsocialenterprisedevelopmentin(principallyconstruction)contracts.Contractscanachieveamixtureofapprenticeships,workplacementsandupskillingofstaff.

75. Targeting trainingand jobopportunitiesat local residentsmeans that theynot

only benefit from the physical improvements in their area, but social andeconomicoutcomesarealsoimproved.

R3,aconsortiumofTaylorWimpeyandCrudenHomes,wasappointed in January2007astheprivatesectordevelopmentpartnerforRaplochURCshousebuildingprogramme.TheURCslegallybindingcontractwithR3secured:

Atargetof225jobsandtrainingopportunitiesforthoseoutofwork NewtenderopportunitiesandsupportforStirlingbusinesses Newtenderopportunities,supportandmentoringforsocialenterprises AspecificallydevisedCommunityEngagementStrategy

TheDeveloperalsoprovidedaCommunityResourceCentre.Theresourcecentreshowcasesinformationonlocalhousingdevelopments(bothforsaleandrent)andhousesarecruitmentoffice,wherelocalpeoplecanregisterforjobsandtrainingonthesite.



The URC has also established a Community Enterprise which is a Learndirect and SQAaccreditedlearningcentre.Thecentreprovidestrainingandworkexperienceopportunitiesinboth constructionandhorticulture inaddition topersonalandemployabilitydevelopment.TraineesarethenbetterabletoaccessthejobscreatedthroughtheCBiPwithR3andotheremployers.

Supportforlocalbusiness 76. Building the capacity of local businesses to help them bid for development

contracts supports the local economy and increases the sustainability andconfidenceofthelocalconstructionsector.

77. PublicContractsScotland(PCS)waslaunchedinJuly2008toprovidebusinesses

witheasyaccesstocontractopportunities.Sincethelaunch: 49,000suppliershaveregistered(84%areSMEs); 83%ofnotesofinterestincontractsadvertisedcomefromSMEs; asofOctober2010,74%ofcontractsawardedthroughPCSgotoSMEs.

RiversideInverclyde(ri) initiallysetuptheInverclydeConstructionForum(ICF) inSeptember2008havingsecuredpartnershipsupportfrom InverclydeCouncilandRiverClydeHomes.riworked to evolve the forum into amore active community and, in late 2009, helped theforums transition toan independent, constitutedbodywith registeredmembers runbyaSteeringCommitteerepresentingabalancedcrosssectionofthe localconstruction industryandthecommunity.ICF aims to improve the competitiveness of its membership, encourage companydevelopment and thereby enhance members potential for winning new contracts. Keyactivitiesinclude:

Providingthemechanismfordebate,discussionandnetworking; Visibility/awarenessoftenderopportunities; The promotion of Community Benefits Clauses in PreQualificationQuestionnaires

(PQQs)andtenders; Ensuring local businesses are ready for, and skilled in, the PQQ and tendering

processes; Actingasaconduitforallrelevantindustryinformationfromnationalorganisations

andrepresentingtheviewsandconcernsofICF; Sharingbestpracticeandinnovation; CreatinganenhancedindustryperceptionandimageofInverclydeconstructionand

supplychaintherebyincreasingopportunityforbusinessawards; Facilitating business expertise improvement and workforce development

opportunities;and Usingavailable informationfromarangeoforganisationsto improveaccesstothe

constructionindustrynetwork



Localmaterialsandsuppliers 78. TheScottishGovernmentandlocalauthoritiesrecognisetheimportanceofusing

localmaterialsandsuppliersinregenerationactivity,bothintermsofthequalityofmaterialsandeconomicvitality.

East Ayrshire Council received a grant from the Governments Town CentreRegeneration Fund to carryoutextensive street surfaceworks inKilmarnock towncentre. The works were completed using three materials: Caithness stone slabs,silvergreygranite cubes,andpinkAltamiragranite kerbs.TheCaithness slabsarequarriedinScotlandandrepresentapproximately70%ofthetotalmaterialsusedinthe surface finish.All the road stone forming the subbaseontowhich the surfacefinish is placed is sourced from local quarries. Bespoke metalwork for pedestrianguardrails and railings was manufactured and installed by Kilmarnock company,AnnandaleDesign.

Question

Are thereanyprocurement issuesorotherbarrierswhichpreventyouusinglocalgoodsandservices?

SupportingdeliveryTheroleoftheEnterpriseAgencies:ScottishEnterpriseandHighlandsandIslandsEnterprise 79. Therehasbeenasignificantshiftinresponsibilityforthedeliveryofregeneration

and localeconomicdevelopmentover recentyears.Under the2007Concordatwith local government a range of reforms designed to support theimplementationoftheScottishGovernmentEconomicStrategywereannounced.ThisincludedareformoftheenterprisenetworkintendedtoincreasetherateofScotlands sustainable economic growth, to simplify the delivery landscape,reduceduplicationanddriveupeffectivenessandefficiency.

80. Scottish Enterprise and Highlands and Islands Enterprise were refocused to

concentrateoninterventionswhichwouldmakethemosteconomicimpact.TheLocal Enterprise Companies (LECs) and Local Enterprise Forums (LEFs) wereabolishedandreplacedwitharegionaldeliverymodelforenterprisesupporttoreduce bureaucracy and improve local delivery. This saw responsibility (andresources)forlocaleconomicdevelopment,includingtheBusinessGateway,and



localregenerationgoto localauthorities,withScottishEnterpriseretaining leadresponsibilityforregenerationprojectsofregionalornationalsignificance14.

81. These reforms were designed to recognise the role of local authorities in

developinglocaleconomiesandtoensurebetterintegrationwithotherservicesprovided to businesses by local authorities such as planning, environmentalhealth,consumerandtradingstandards.ItalsoreflectedtheGovernmentsbeliefthat wherever possible local services to local areas should be based on anassessment of local need and be delivered by local authorities and theircommunityplanning,privateandthirdsectorpartners.

82. Highlands and Islands Enterprise retains its remit to strengthen local

communities,inadditiontogeneratingsustainableeconomicgrowth.Theagencyis involved in a number of initiatives to support fragile communities in theHighlandsandIslands, includingassistingthemtoacquireanddevelop landandassets.Reflectingthedifferenteconomicstructure in lowlandScotland,ScottishEnterprisedoesnothaveaspecificcommunitiesremitbutitworkstoensureallcommunities can access the opportunities available in the wider economy. Itassists community initiatives which have the potential to realise regional ornationaleconomicimpact.

83. GivenScottishEnterprisesremit,itscommitmenttoregeneration isonprojects

thathold the greatestprospectofmaking an additional impacton theoverallScottish economy. Such projects include: the Edinburgh BioQuarter, ClydeWaterfront, FifeEnergyPark,DundeeWaterfront and Energetica inAberdeen.Scottish Enterprise also continues to provide funding for Urban RegenerationCompaniesfollowingthe2007reforms.

84. Variousgrantsschemesoperatedbytheenterpriseagencieshaveanimpacton

local economies. For example, Regional SelectiveAssistance (RSA) is themaininvestment grant scheme for business in designated areas of Scotland, theassisted areas. The grants help to create and safeguard jobs and encourageinvestmentintheassistedareas,whichwouldnototherwisebemade,makingapositive contribution toboth the local andnational economy. The grantshelpbusiness take forwarddevelopment thatwouldnotgoaheadwithout theRSAinvestment. In2009/10,RSAgrantsofaround53.4millionhelpedtocreateorsafeguard5,300jobsacrossScotland.

85. Local authorities spend an estimated 200 million per year on economic

development activities. These cover a very broad range of activities including:town centre and place regeneration; areamarketing and promotion; strategydevelopment; research and economic intelligence; support for business starts;specificsectorinitiatives;inwardinvestmentactivities;tradepromotion;businesspropertyandinfrastructureanddevelopmentofemploymentskills.

14SeeTheGovernmentEconomicStrategy,2007,http://www.scotland.gov.uk/Publications/2007/11/12115041/0



86. Localauthoritieshavealsobeenable to leveradditional resources through the

EuropeanStructuralFunds(ESF),enhancinglocaleconomiesandcontributingtosustainable economic growth. For example, on 30December 2010more than6.6millionwasmadeavailablefromtheEuropeanRegionalDevelopmentFund(ERDF)tosupportorganisations,includingtheBusinessGateway,toofferadviceandsupporttosmallbusinessandentrepreneurs.Projectsincludeinitiativesthatwill build on existing provision such as Enterprise Creation in DisadvantagedCommunitiesinGlasgowencouragingentrepreneurshipindeprivedcommunitiesandhardtoreachgroupswithtargetedworkshopsandaftercaresupport.

Impactofthereforms 87. The Economy, Energy and Tourism Committee is carrying out a fundamental

review of the purpose of an enterprise agency and the success of the 2007reforms.Itislookingattheimpactofthereformsandbusinessesexperienceofthemandhowthepartnershipbetweenlocalauthoritiesandnationalagenciesisworking. It is specifically looking at definitions of local, regional and nationalregenerationanddeliveryofprojectssince the reforms.TheCommittee isalsolookingatthepotentialofdifferentdeliverymodels.

88. TheGovernmentbelievesthatthereformshaveenabledtheenterpriseagencies

to focuson interventions thatwillmosthelp togrow Scotlandseconomyandlocal authorities to deliver integrated economic and enterprise developmentservices.Clearlytherefocusinghashadanimpactonthewaythattheseservicesaredelivered.We recognise that there isstillprogressand improvement tobemadeandwouldwelcomecommentsonhowthismightbeachieved.

Buildingcapacityinlocalauthoritiestotacklechallenges 89. ThechangingnatureofScottishEnterprise,and,inparticular,thedisappearance

of the Local Enterprise Company network, has altered the way that localeconomicdevelopmentactivity isdelivered.Wearekeentohear fromcouncilsabout how this activity is progressing, including any challenges or barriersexperienced,andhowtheScottishGovernmentcouldbestsupportthiswork.

90. We are working with the Scottish Local Authorities Economic Development

Group(SLAED)andtheImprovementService(IS)todeliveraframeworkthatwillenable localauthorities tobeproactive ineconomicdevelopment,both inandacrosslocalauthorityareas.Eachofthe32SingleOutcomeAgreementscontainspriorityoutcomesrelatingtoeconomicdevelopment.Takingaholisticapproachwe know that achieving economic outcomes can often improve wider socialoutcomes for communities. Economic development is therefore central to anumber of key outcomes for local authorities and their community planningpartners.Thisworkwillhelprefineandfocusservicesandresourceswherethey



canbeofmostbenefitacrosstherangeofeconomicdevelopmentinterventions,toeliminatewasteandmaximiseresources.Theframeworkwillbefinalisedby1April2011androlledoutacrosslocalauthoritiesshortlythereafter.

91. We are also working with local authorities through the Development and

InfrastructurePartnersgrouptoencouragedevelopment,including:

Promoting Economic growth a Planning and Economic Recovery Summitwas held in July 2010 which brought together the ScottishGovernment,local authorities, enterprise agencies and business. A follow up jointGovernment/COSLAworkingsessionwillbeheldinspring2011.

Development finance we will continue to work with COSLA and local

authorities to share innovative approaches to development finance. Forexample, work is progressing with Fife council to investigate potentialfinancialmodelstodelivertheinfrastructurerequiredfordevelopments.

Investing in Skills work has already been undertaken on this as part of

DeliveringPlanningReform.Thishas includeddeliveryofa rangeof skillsand training events through the Scottish Governments PlanningDevelopment Programme including development economics and viability.Considerationisbeinggiventocontinuethisskillsrequirement.

Questions

HowcouldtheScottishGovernmentand itseconomicdevelopmentagenciesbestsupportregenerationactivityinthefuture?

Havewegotthebalancerightbetweensupporting investmentswhichstandto make the greatest contribution to the Scottish economy and deliveringlocalandregionalregenerationprojects?

What more could the Scottish Government do to support its regenerationdelivery partners and ensure practitioners have the necessary skills andknowledgeneeded?

QuestionsSummary

Shouldregenerationactivityremainsomethingwhichtakesplaceinmarginalcommunitiesorshouldwewidenourscope?Whatelseshouldweconsider?

Which funding models do you feel have the most potential to deliverregenerationprojectsinthefuture?

Whatotherinnovativeapproachestofundingdevelopmentandinfrastructureshouldwebeconsideringandhowwouldthesebefunded?

Giventherelianceoncorepublicsectorgrantfunding, istheURCmodelthemostsustainablemodeltodeliverregenerationinthelongerterm?



How can we encourage private sector investment in regeneration in thefutureandhowfarshouldthepublicsectorgoinsecuringthis,i.e.,shouldthepublicsectorprovideminimalriskandaguaranteedreturn?

Howshouldspatialregenerationprioritiesbeselectedinthefuture? How can we encourage RSLs to play a greater role in local regeneration

strategies? Are thereanyprocurement issuesorotherbarrierswhichpreventyouusing

localgoodsandservices? HowcouldtheScottishGovernmentand itseconomicdevelopmentagencies

bestsupportregenerationactivityinthefuture? Havewegotthebalancerightbetweensupporting investmentswhichstand

to make the greatest contribution to the Scottish economy and deliveringlocalandregionalregenerationprojects?

What more could the Scottish Government do to support its regenerationdelivery partners and ensure practitioners have the necessary skills andknowledgeneeded?



Chapter3:Communityledregeneration 92. The Community Empowerment Action Plan: Celebrating Success, Inspiring

Change15,waslaunchedjointlybytheScottishGovernmentandCOSLAinMarch2009.Theprinciplessetout in thesharedplanweredevelopedafterextensivedialoguewithpeople from variouspublic sectoragencies, the third sectorandcommunitiesthemselves.

93. Atitsheart,theCommunityEmpowermentActionPlan(CEAP)isfoundedonthe

fact thatScotlandscommunitiesarea rich sourceofcreativityand talent,andthatcommunitiescomingtogethertoworkonthethingsthatmattertothemisakeywayofunlockingthatresource.

94. Government at national and local level recognise that supporting Community

Empowermentcan leadtobetteroutcomes,reinvigorated localdemocracyandimprovedqualityoflife.

95. In the context of regeneration, it iswell proven that communities themselves

haveavaluableroletoplayininfluencinganddeliveringaspectsoftheprocess,and that community involvement is likely to result in more sustainable andsuccessfuloutcomes.ThisisequallytrueinurbanandruralScotland.

96. However, in ourmost disadvantaged and fragile communities it is particularly

importantthatcommunitieshaveaccesstoadequateandappropriatesupportinorder to fulfil their potential to do things for themselves. This need for highquality community capacity building is even more important today given thescaleofthechallengessetoutintheotherchaptersofthispaper.

97. The Scottish Government and COSLAs three joint social policy frameworks,

GIRFEC,andourapproachto improvingCommunitySafety,areallunderpinnedbyabelief inthebenefitsofempowering individuals,familiesandcommunitiesandthatbeliefinformstheplanningsystemthroughScottishPlanningPolicyandtheNationalPlanningFramework.

98. Thisapproach toempowermentalso resonatesstronglywith theChiefMedical

OfficersviewsetoutinhisAnnualReportfor200916:thatitisimportanttomovetoanassetsbasedmodel for improvinghealth.This recognises thestrengthsandabilitiesof individualsandcommunities to takecontroloverhow to tackletheirownproblems.Theassetsapproachwillnotonlyproducepositivehealthoutcomespeoplewillalsoexperiencean increase intheirskillsandcapacitiesandgeneralaspirations.

15http://www.scotland.gov.uk/Publications/2009/03/20155113/016http://www.scotland.gov.uk/Publications/2010/11/12104010/0



Ourapproach 99. Since 2007, the Scottish Government, working with a range of partners, has

backeditscommitmenttoCommunityEmpowermentwitharangeofresources.Someofthemostsignificantinclude:

TheClimateChallengeFund (CCF)a27.4m fundover200811.Atotalof

261 communities have benefited from 331 awards approved by the CCFIndependentGrantsPanel.SubjecttoParliamentaryapprovalofthebudget,theScottishGovernmentwillextend theCCF into201112at theenhancedfundinglevelof10.3m.

Wehaveprovided30mWiderRolefundingover200811. Rural Community Empowerment is being supported through the LEADER

approachwith some 52m available over 200713. Active help and advicefrom theRuralDirect service isalsoavailable for communities inaccessingandchannellingtheseandotherfunds.

Cashback for Communities has invested 20m in a range of projects since2007,benefittingover300,000youngpeople.

Investing 250k over two years in a programme run by the DevelopmentTrust Association Scotland (DTAS) which aims to learn from and promotegood practice in transferring assets from local authorities to communitygroups.Thefinalreportoftheprogrammewillbepublishedinspring2011.

7moftheTownCentreRegenerationFundhasbeeninvestedincommunityledprojects.

The development of the VOICE (Visioning Outcomes in CommunityEngagement) community engagementdatabase and theBetterCommunityEngagement skills programme were both designed to support improvedpracticeinhowthepublicsectorworkswithcommunities.

The publication of our quarterly community empowerment enewsletterhighlights and shares examplesof communityempowerment from alloverScotland;

Investing over 250k p.a. over 200811 in Planning Aid for Scotland, anorganisationwhichprovidesadvice,trainingandinformationtocommunitiesacrossScotlandonplanningandenvironmentalmatters.

MeetingtheSharedChallengeProgrammehas invested0.5mover200810toencourageandsupportcommunityledapproachestohealthimprovementthroughoutScotland.

Making available a 3.4m fund over two years to support the skillsdevelopment of the community learning and development workforce,includingpractitionersengagedinbuildingcommunitycapacity.

Challengesforthefuture 100. TheCEAPwasalwaysintendedasamilestoneonajourney,recognisingthat

fullyrealisingthepotentialofScotlandscommunitiestodothingsforthemselves



was a longtermprocess. There arenoeasy fixes, and a lotofhardwork andtoughconversationsarerequiredifwearetoensurethatcommunitiesplayafullpartindeliveringasuccessfulScotland.

101. However,wearebuildingonalotofgoodworkalreadyunderwayacrossthe

country where community groups are playing key roles in delivering changelocally.Wearekeen to increasemomentum in thisarea througha sharedandsustainedeffort.

102. Inthischapterwewanttoexplorethreeareaswherewethinkmoreneedsto

bedonetorealisebetterthebenefitsofcommunityledregeneration.Theseare:

leadership culturechange,and resources

103. Thesechallengesarebasedonourexperiencetodateandonconversations

withpeopleinvolvedincommunityledregeneration.Thereareobviouslystronglinks between each of these issues. Theremay be other key areaswe shouldexplore,andwedbekeentohearaboutthose.

104. Thischapteralsosuggestspracticalstepswecouldtaketomovethedebate

on and continue to shape practice in supporting communityled regeneration.Wearekeentohearaboutotherkeyareasthatweshouldconsider.

Leadership 105. It is clear that leadership from local and national government, the wider

public sector andwithin communities themselves is critical to supporting anddeveloping communityled solutions to the problems facing our mostdisadvantagedareas.

106. However, it is fair to say that thereare currentlydifferingviewsabout the

extenttowhichthe leadershipchallenge isbeingmet.Wehaveheardconcernsfrom some people about the firmness, clarity and visibility of leadership forchampioning communityled solutions across the public sector.We also knowthatmanypublicsector leadersareverypersonallyandpublicallycommittedtotheprinciplesofcommunityempowerment.

107. Wealsohearconcernsaboutwhether there isanewgenerationof leaders

emerging in our communities; the people who will lead and develop ourcommunitybasedorganisationsoverthecomingdecades.Otherstellusoftheircontinued optimism that talent and commitment in our most disadvantagedcommunitiescontinuestothrive.



108. Therewillalwaysbedifferingviewsabouttheextent,natureand impactofleadership inall itsforms inrelationtocommunityledregeneration.Leadershipisnotaneasythingtomeasure.

109. Animportantissuealliedtoleadershipisgovernance.Thisisahighlycomplex

area. It can cover the critical role of local and national elected members,accountability frameworks across the wider public sector and governance ofindependentcommunitybasedorganisations. Itcanalsocoverthemechanismsforhowcommunitiesinfluenceservicesataneighbourhoodlevel.

110. Ifweareto increasethemomentumbehindcommunityledregeneration, it

isimportantthatwereflectonanyissuesthatmightraiseforgovernance.Areasfor scrutinymight include:ensuring clear linesof accountability foroutcomes;andequalitiesandfairness.

Cordale Housing Association is at the heart of a 15year programme of communityledinvestment in the LevenValley. Likemany former industrial towns, industrial restructuringleftbehindalegacyofeconomicandsocialdeclineinRenton.Ledbylocalpeoplefromitsbeginningsintheearly1990s,CordaleHousingAssociationhas,withScottishGovernmentinvestment,builtormodernisedmorethan400homesinRenton,someof them transferred from thecouncil followinganalmostunanimous tenantsballot.Other developments include 40 recently completed Extra Care apartments, a CommunityDevelopment Trust, a Social Enterprise Centre, an IntegratedHealthy Living Centre and aYouthCentre.Thevillagesupermarket,chemistandpostofficewereallbuiltbyCordaleand thehousingassociation has been centrally involved in delivering the Central Renton RegenerationStrategyaimedattransformingthecommercialandsocialheartofthevillage.Cordale and its partners have helped createmore than 150 local jobs between 2001 and2006 and its Employment Ladder Initiative provides skills and opportunities in theHA forschoolleavers.Rentonisanexampleofacommunitywhichhasgenuinelyempowereditselfandwheretheleadership, drive and determination of a small number of individuals has resulted in thetransformation of the town and local community. Community leadership is now firmlyembeddedinthelocalculture,notleastamongstyoungpeople,mostofwhomhaveastrongcommitmenttostayinginRenton.

Questions

Whatdoyouthinkmightrealisticallyandpracticallybedonetopromoteandsupport leadership in communityled regeneration in the public sector, thethirdsectorandincommunitiesthemselves?

Whatdo you think the key issues forgovernance in relation to communityempowermentmightbe.



CultureChange 111. It is accepted that there has to be a degree of culture change across the

public sector, the third sector and communities themselves in order to fullyrealise the potential and talent of local people to help improve their owneconomic,socialandphysicalcircumstances.

112. Atitscore,thisisaboutpeoplefromvariousbackgroundsviewingeachother

differently.Forexample:

Thereisscopeforthepublicsectortothinkmorecreativelyabouthowtheycannurture local communityorganisations tohelp themdelivera rangeofinterrelatedoutcomesforlocalpeople,forexample,improvementsinsocialcapital,health,employment,learningandskills.

Localcommunityorganisationsshould looktoworktogethertodeliver localneedsjointly.

We should foster an approach which encourages communities and thoseworkingwith them tobuildon theassets theyalreadyhave tohelpdeliverchange.ThisshouldbuildontheassetsbasedapproachsetoutbytheChiefMedical Officer that is, the strengths and abilities of individuals andcommunitiestotakecontroloverhowtotackletheirownproblemsasaneffectivewayofworkingwithcommunities.

Local communities should look to understand the constraints that publicsectororganisationssometimeshavetoworkunder,whetherlegal,financialorintermsofgovernance.

The public sector should look to respond flexibly to the needs of localcommunities,making space for communityled solutions rather than beingdrivenbyprofessionalororganisationalneeds.

113. Noneofthisisnew.Theseissuescouldbeidentifiedinarangeofevaluations

ofareabased regenerationorpublicservice reformprogrammesover thepastfewdecades.WeshouldalsostressthatthereareplacesinScotlandwherethesepositiveinfluencesoncultureareinevidenceandhavebeenforyears.

114. Thechallengeweface, in itssimplestform, ishowwemakedevelopingand

supportingcommunityledsolutionsapartofmainstreambusiness,ratherthanan occasional project, addon or experimental programme. This will presentchallenges including, for example, shifting resources, changing the pattern ofservice delivery and design, and potentially reassessing professional roles andresponsibilities. In this respect, thereareparallelswith the challenges faced inmovingtowardsinvestinginearlyinterventionandpreventionmodelsofservicedelivery.



One innovative method of community engagement, particularly effective in allowingcommunities to participate actively in planning for the physical regeneration of theirneighbourhoods,isthecharettemethodology.Acharetteisaninteractivedesignworkshopinwhichthecommunityworktogetherwithdesignprofessionals,the localauthorityandanumber of technical experts and stakeholder groups, to develop a specific communitymasterplan.Anenergisingprocess,charetteworkingallowsallstakeholderstocontributetoanevolvingprocess,extractingvitallocalknowledgeandempoweringcommunitiestoshapetheirfutureenvironments.Supportedbyspecialistdesigners, localcontributorsareable toassist in theproduction of proposals that reach beyond what might normally have been achievablethroughtraditionaldevelopmentprocesses.Thecontinualpresentationandtestingof ideasallowsalayeringofunderstandingandknowledgetobeestablished,refiningtheproposalsinaconcentratedtimeframesothatpositivedesignopportunitiesaremaximised.Crucially, the charette approach focuses all contributors, regardless of their particularinterest, towards theultimateobjective thecreationofavibrantand successfulplace inwhichcommunitylifecanflourish.The charette approach was successfully piloted in March 2010 as part of the ScottishSustainableCommunities Initiative(SSCI).Buildingonthesuccessofthisseries,theScottishGovernment intends to mainstream the approach across Scotland and allow people toparticipateactivelyintheplanningoftheircommunities. 115. Thereareanumberofapproachesthatmayhelpdeliveramoresystematic

approachtocommunityledregeneration.Wedwelcomeviewsonthese:

Providing clarity aboutwhat any given community can achieve for itself isimportant. Given the scale of the challenges faced by some of our mostdisadvantagedcommunities, locallybasedcommunityorganisationswillnotbeable tomeet themalone. Jointworkingbetweenpublicand thirdsectorandcommunitybasedorganisations,with localpeopleplaying theirpartasfullyaspossiblewillbeessential.

Staff in thepublic sector shouldhave the skills required towork alongsidecommunitiesand todo thingswith them rather than to them.Wearealsointerested in developing genuine models of coproduction which enableindividualsandcommunitiestomanagetheirowncircumstances,supportedby,butnotdirectedby,publicservices.Weplantopromotetheoutputsfromthe Better Community Engagement Skills programme in 2011 across thepublicsectortoachievethis.

Community organisations need to be able to assess their strengths andweaknesses,besupportedtoplananddevelopnewactivity,andbeabletoorganisetheirgovernancetoensuretheyare inclusiveandsustainable. It isimportant thatwe considerhowbest toorganise this supportandnurturecommunity organisations in a strategic way at local and national level inordertobuildtheircapacity.

116. Giventhis,wearekeentohearviewsonhowpeoplecanbestattaintheskills

andknowledgethattheyneed,bethisthrough learningfromeachotherabout



what can be achieved; case studies; events such as seminars and study visits;learningnetworks,actionlearningandpeerreviewsothatwecanmakelearningopportunitiesevenmoresuccessful.

Questions

How could communityled solutions best be incorporated into mainstreamservices and the community planning process and how would this affectorganisationalstructuresanddelivery?

How might we disseminate learning more effectively and bring togetherpractitioners to share skills and discuss approaches including, for example,peersupport?

Whatmorecouldnationaland localgovernmentalongside thewiderpublicandthirdsectorsdotosupportcommunityorganisations?

Resources 117. Resourcingcommunityledregenerationhasalwaysbeenachallenge.Finding

public sector staff time to support or engagewith communities, or volunteertime to run community organisations, as well as finding money and suitablepremisestoruncommunityledprojectsisdifficult.

118. Giventhescaleofthefinancialpressuresfacingthepublicsector,andsome

charitable funders, thischallenge isgoing tobegreater thanbefore.But thereare also opportunities, including looking more seriously at the role localcommunitiesplayindeliveringchangeinordertohelpreducepressureonpublicservicesinthemediumtolongterm.

119. The evidence base on how communityled activity can reduce demand on

localpublicservicesinourdisadvantagedcommunitiesispatchy.Insomeareas,forexample,communityledhealth, it isrelativelystrong,asevidencedthroughtheMeetingtheSharedChallengeprogramme,butagenerallackofconsistencymakes it difficult to ask public sector leaders in particular to make toughdecisions on funding competing priorities. We need to improve the evidencebaseandconsiderhowwedeployitinawaythathasanimpactonthosetakingresourcedecisions.

120. The Community Empowerment Action Plan recognises that it is through

locallybased communitycontrolled organisations, often referred to asanchors, that empowerment happens. These are the organisations whichdelivercommunityledregeneration,whethertheyaredevelopmenttrusts,localhousingassociations,churchgroups,communitycouncils,tenantsorganisationsoranyothermodel.



121. We are interested in views on the strategic direction that funding andsupportforthesecommunitybasedorganisationsshouldtake.Therearealreadya number of different ideas and approaches being tested, and these followbelow.Weareinterestedinhearingaboutotherpotentialapproaches:

Communityassetownership

122. Thenumberofcommunitygroupsowningassetsisgrowing.Thisapproachis

seen as a key way of ensuring a community organisations sustainability byproviding a secure base in the community and possible opportunities fordevelopingrevenuestreams.

123. There isanopportunitytobuildontheworkdonetodateonassettransfer

by the Development Trust Association and on experience from otherprogrammesliketheWiderRoleprogrammeandTCRF.Weshouldalsoconsiderhowwecanworkwith theBIGLottery inScotland toseehow thisprogrammemightlinkwithandsupporttheirGrowingCommunityAssetsprogramme.

EdayPartnershipwas formed to tackledeprivationandenhance thequalityof life for theislandersofEday,bydeliveringawiderangeofregenerationinitiativesthataddresshousing,employment,transport,tourismandsustainableenergygeneration.Thepartnershipwasformedin2005withsupportfromarangeofexternalpartnersincludingOrkneyIslandsCouncil,Highlands&IslandsEnterprise,theEuropeanMarineEnergyCentre,ScottishNaturalHeritageandCommunityEnergyScotland.Effective joint working and collaboration between partners has broken down barriers todeliveryandallowedfortheprovisionoflifelineservicesinthecommunity,suchas:efficient,affordable housing; GP services through community income; regular events to improvecommunity cohesion; development of a subs

SG 2011 Building a Sustainable Future

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