Transforming Places Changing Lives: Taking Forward The Regeneration Framework

Transforming places
changing lives
Taking forward the regeneration framework
www.communities.gov.uk
community, opportunity, prosperity
Transforming places; changing lives:
taking forward the regeneration framework
May 2009
Department for Communities and Local Government: London
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Transforming places; changing lives: taking forward the regeneration framework | 1
Transforming places; changing

lives: taking forward the
regeneration framework
A long term commitment to regeneration
1. Last year Government consulted on a new national framework to
shape the way that regeneration is carried out in England. The
approach was built on what we know works. It demonstrated a long
term commitment to regeneration which tackles the underlying
economic challenges that still hold back too many communities.
And it was clear that regeneration was at the heart of our drive to
increase social mobility and tackle child poverty.
2. This document sets out how the Government is taking forward the
delivery of the framework and includes, at Annex A, a summary of the
commitments that central Government and its key delivery agencies –
the Homes and Communities Agency; and the regional development
agencies – have made to deliver the regeneration framework. It also
acknowledges the central role of local government in regeneration and
in engaging with the communities it represents as well as the key role
of the private and third sector in regenerating local communities.
A clear definition of regeneration

3. As we set out last year, the Government’s view is that regeneration is a
set of activities that reverse economic, social and physical decline in
areas where market forces will not do this without support from
government1.
4. Successful regeneration strengthens communities by creating new

economic opportunities. It is a time-limited investment that transforms
places and economies so they do not need long term subsidy. It is not
an end in itself, and it is not mainstream funding or a substitute for it.
Regeneration is central to our ambition to create sustainable places
where people want to live, work, and raise a family.
5. As we set out last summer when we consulted on a new approach,

delivering our ambition requires a vision and commitment to the
economic transformation of a place, shared across public and private
1 Review of sub-national economic development and regeneration, HM Treasury, Department for Business,
Enterprise & Regulatory Reform (BERR), and Communities and Local Government, July 2007
2 | Transforming places; changing lives: taking forward the regeneration framework
stakeholders. Helping people prepare for work and compete for a job is
central to that approach.
Economic outcomes are key

We know that no community can survive in the long term without
employment opportunities. Work provides better social and
environmental outcomes and an opportunity for social and
economic mobility – particularly for the most disadvantaged in
society, for whom it can be an important first step on the road to
independence – and we know that those in employment are
happier,2 healthier,3 and are less likely to get involved in crime.4
Conversely, worklessness imposes a cost on society – which we
cannot afford to ignore.
The cost of labour market exclusion in deprived areas is one of the

many costs of deprivation. Initial analysis shows that the net
national cost of labour market exclusion in deprived areas is
£11.5bn per year.5 We know that this is only one part of the
picture, and will undertake further analysis as we implement the
regeneration framework.
Creating the right conditions for economic

transformation
6. As employers and workers become increasingly mobile, creating the
right conditions for improved economic performance in our towns,
cities and regions is more important than ever. We know that to create
and sustain new economic opportunities, places need to be able to
attract and retain skilled workers, support the health of the working
age population, provide the right transport and communication links,
have the right Public Service Infrastructure in place including health and
social care services, access risk and venture capital, support sufficient
and affordable housing, green space and business space, and offer a
2 Life Satisfaction: the state of knowledge and implications for government, Strategy Unit, December 2002
3 Is work good for your health and well-being? Gordon Waddell and A Kim Burton, 2006
4 Crime and Economic Incentives, IFS, 2000 (Meghir and Machin)
5 This analysis used DWP calculations of average changes in income, taxes and benefits for claimants of Job
Seeker’s Allowance (JSA), Incapacity Benefit (IB), and lone parents on Income Support (LP-IS). A distributional
weight (from HM Treasury’s Green Book) was applied to the change in individual income (net of the tax and
benefits system) that would result from a claimant entering work. The distributional weight reflects the greater
needs of worse-off individuals, meaning they derive greater benefit from extra income, compared with
better-off individuals. Fiscal costs of worklessness (benefits plus forgone taxes) were added to the weighted
change in individual income. The total costs per JSA, IB and LP-IS claimant were then multiplied by claimant
populations in “Deprived areas”, defined as the 10% lowest ranked Lower Super Output Areas on the 2007
Indices of Multiple Deprivation (as defined by CLG’s Departmental Strategic Objective 3.7). There are several
caveats to these figures. One is that the DWP calculations assume an average claimant, which may differ from
claimants located only in deprived areas; the figures also exclude unemployed and economically inactive persons
who do not claim JSA, IB or LP-IS. In addition, other dimensions of the costs of deprivation, e.g. forgone future
output and income due to low education and productivity, the additional costs of crime and healthcare, etc.
have not been considered. Further analysis is required to quantify these caveats – the existing analysis acts as a
starting point.
high quality of life for employees.6 Most commentators agree that

these local characteristics will become even more important in a
globalised world,7 and councils and other local partners will have a
crucial role to play in helping places to adapt, and create the conditions
for success.
7. Effective regeneration cannot happen without support from – and full

engagement with – the people and communities involved. Local
Government is uniquely placed to ensure that the needs of local
residents and businesses drive regeneration. At the same time we need
to make the links between regeneration investment and investment in
other key areas, like population health and well-being, which both
contribute to regeneration and are impacted by its outcomes. The
chances of success are greatly enhanced where the public sector and its
partners agree on and work together with the private sector and third
sector towards a shared strategy, rather than narrow remits or silos.
That is why we have worked with councils to empower them to bring
together a range of public sector partners through Local Area
Agreements (LAA) and Multi-Area Agreements (MAA).
8. Local authorities increasingly see fostering prosperity in their towns,

cities and neighbourhoods as core business and as the recession bites it
is becoming increasingly clear that local government has a vital role to
play to co-ordinate local efforts to mitigate the effects of the
downturn. Local Government provide the civic leadership which brings
the local public and third sectors together with private enterprise in
order to respond to and address their residents’ problems, needs and
ambitions – and to deliver solutions in a coordinated way by working in
partnership.
9. The third sector and in particular social enterprises also have an

important role to play in engaging with communities and improving
economic and social outcomes in deprived areas – and it’s important
that their experience and expertise is sought out.
Consultation feedback
10. The Government published a summary of responses to the consultation
in March 2009.8 It reported that:
• most respondents agreed with the analysis, including the
emphasis on economic outcomes as a key driver for
regeneration. However, a minority felt that the framework should
take greater account of the many physical, social and environmental
issues that many deprived areas face
6 Productivity in the UK (Treasury, 2001); The importance of transport in business’ location decisions, Department
for Transport (2004); European Cities Monitor 2008, Cushman & Wakefield (2008)
7 See, for example Florida, R. (2002) The Rise of the Creative Class: and How It’s Transforming Work, New York,
Basic Books.
8 Transforming Places; Changing Lives – a framework for regeneration summary of consultation responses,
Communities and Local Government, 2009.
• most agreed there is a need to target investment to maximise

benefits and ensure resources are not spread too thinly. However,
many felt that more thought needs to go into how deprivation is
tackled in rural areas, which are often ignored because of the focus
on areas of concentrated deprivation – which is predominantly
found in urban areas
• the framework’s primary commitment to deprived areas was
welcomed. However, some thought that there should be more
emphasis on promoting opportunities and growth and therefore a
greater balance between opportunity and need should be struck
• almost all respondents agreed with the principle that
communities should be given a stronger voice in
regeneration. In particular, respondents felt that the third sector
would have a key role to play in empowering communities, but this
would need to be backed up by resources and capacity building.
A large number of respondents felt that devolving decision-making
and funding to local authorities or sub-regional partnerships was the
best way to strengthen partnerships
The changing economic conditions

11. Since consulting on our new approach to regeneration, it has become
clear that the world is now facing the most severe financial and
economic crisis in decades. The aims the Government set out last year
still hold true in the current economic conditions. But the amount of
private investment available has shrunk drastically as the old model of
rising land values driving investment has faltered.
12. Professor Michael Parkinson’s recent report9 found that residential and
commercial property developments are particularly affected by the
economic downturn. Mortgage lenders are expecting prospective
buyers to raise a higher deposit and are lending on lower multiples of
household income. There is limited demand for new office and retail
space and few analysts envisage significant rental growth in the near
future. Developers are finding it difficult to raise finance for their
schemes. Landowners will be reluctant to release land.
13. Many residential and commercial schemes are on hold and few new
schemes are starting on site. Many practitioners expect that developers
and financial institutions will take a much more cautious attitude to
new regeneration schemes for several years. Investors in regeneration
– public, private, and third sector partners – are having to make
difficult decisions about priorities.
9 Parkinson, M (2009) The Credit Crunch and Regeneration: Impact and Implications CLG
14. This is not to say that the public sector can or should take over all of
that role – private investment remains a critically important component
of delivering successful places. Rather, the current economic challenges
point to the need for continued and effective dialogue with the private
sector to understand their priorities and identify where the public,
private and third sector can be mutually supportive.
Local authorities and the downturn

As well as leading local partnerships to deliver regeneration,
councils have a key role to play in maintaining momentum in
these difficult times, including through:
• maintaining public sector investment in infrastructure
• supporting housing and property markets
• supporting firms, individuals and jobs
They already have significant powers, including a power to
promote the social, economic and environmental well being of
their areas. The Government is consulting with local authorities
through the Central-Local partnership to see how it can further
support councils in dealing with the local impacts of the recession.
Local government has also demonstrated its willingness to work to
improve the support it gives to local economies. For example, the
Local Government Association (LGA) has committed to doubling
the number of local government apprenticeships to 15,000 to
help drive skills development and to work with central
government to improve benefit take up in local areas.
Capital grants for local authorities over the three years from
2008-09 will be a minimum of £22bn. Taking into account
supported borrowing, total capital support will be £27bn. Apart
from in exceptional circumstances, this capital is un-ring-fenced.
Authorities are using this flexibility to respond to the situation in
their areas.10
15. The recession does not only impact upon physical developments. It is
having a real impact on the lives of people all across the country –
through jobs and homes that have been lost, and the strain that it
places on communities. These impacts are being felt hardest in the
most deprived areas.
16. We are now acting to respond to the new challenges we face, and to
deliver the strategic framework we set out last year through improved
targeting; new resources; increased flexibility; clear policies; and a
focus on the outcomes we expect regeneration to deliver.
10 For further information about local government’s response to the recession see www.lga.gov.uk/recession
The Government’s response – targeting

17. In the current economic conditions it is even more vital that we make
sure regeneration investment is targeted in the right places, and
make tough choices about where to invest. As set out in Budget 2009
Government’s aim is to reprioritise regeneration investment to where
there are opportunities for transforming the economic prospects of
areas with lower economic performance. We will do this by targeting
market failures and making decisions at appropriate spatial levels –
improving the co-ordination of funding and delivery. When the
Government consulted on the regeneration framework11 last year it set
out four factors that can be analysed to help partners work together to
prioritise and target investment. They were:
• the level of deprivation
• the strength of the wider sub-regional economy
• the economic and social characteristics of the area and
• the dynamics of the area (whether it’s getting better or worse)
18. These factors – as outlined in Annex E of the consultation document –

can help local authorities, regional agencies, and partners identify
regeneration needs and opportunities and ensure that investment is:
• more tightly focused on economic outcomes and worklessness
• driven at the right spatial level – and as close to communities
as is practicable, making the most of opportunities that already exist
and
• targeted – not trying to transform everywhere – but investing
where it will have most impact by supporting those communities
where the most severe poverty and worklessness persists and
where there is the opportunity to deliver long-term change
19. At local level, LAAs led by local authorities, offer the key mechanism
to deliver a targeted and strategic approach. MAAs, and the new
regional strategy provide similar opportunities at sub-regional and
regional level. These will complement the establishment of employer-
led Employment and Skills Boards, usually at city-region level, bringing
much greater powers for local partners to direct public funds to
achieve local employment and skills priorities.
20. The national improvement and efficiency strategy, agreed between

central and local government in January 2008 commits local authorities
and regional improvement and efficiency partnerships (RIEPs) to work
on “improving economic and neighbourhood renewal leadership
capacity” in local government as one of key underpinning themes of
11 Transforming Places; Changing Lives – a framework for regeneration, Communities and Local Government,
2008.
the strategy. The LGA, IDeA and the RIEPs are working closely with the
Government to deliver on this commitment.
21. To support these local and regional approaches, last year Government
established the Homes and Communities Agency (HCA) – the new
national housing and regeneration delivery agency – focused on
creating thriving communities and affordable homes. The HCA is
working with local authorities and leaders; as well as regional
stakeholders up and down the country to identify priority places for
regeneration – bringing together the key partners in the public; private;
and third sector to deliver a tailored package of regeneration
investment to support the needs of local people and businesses.
22. The HCA is also working with local authorities and their partners to
retain sector capacity in regeneration, and has appointed a panel of
regeneration firms who can manage projects in partnership during the
downturn.
The Government’s response – resources

23. Investment, targeted in the right places, can help us to build long term
opportunities in those places that have been in decline while also
retaining jobs and capacity through the current economic downturn.
24. That is why we are planning to spend more than £6.5bn over the
next two years to promote the growth and regeneration of our
cities, towns, and communities and to prepare them for the upturn.
This includes investment by the Homes and Communities Agency and
regional development agencies (RDAs) as well as targeted support to
local authorities and their partners through the working
neighbourhoods fund, local enterprise growth initiative, and new deal
for communities.
25. The Pre-Budget report announced that we would be bringing forward

£775m of housing and regeneration investment from 2010-11 into
2008-09 and 2009-10. In 2008-09 we invested £130m to refurbish an
additional 13,000 homes through the decent homes programme and
£20m to deliver nine community infrastructure projects.
26. As a part of this package, we brought forward £180m to support key

regeneration projects that would not otherwise go ahead given the
current economic conditions. And we have asked the RDAs and HCA
to ensure they are focused on supporting businesses, jobs and
communities through the downturn whilst ensuring readiness to take
advantage of the upturn.
Housing
There continues to be a significant gap between supply and rising
demand for new homes and the Government remains committed
to raising the supply of sustainable housing over the longer term.
For decades, the housing market failed to keep up with our
ageing and growing population. This has led to significant
problems of affordability, particularly for those seeking to buy
their first home.
That is why it is important to ensure that regeneration is not used

as an excuse to constrain housing in areas of high demand. There
is no evidence to suggest that increasing the supply of homes in
areas of high demand would compromise regeneration. Indeed,
rationing homes in this way could reduce economic growth in the
most successful areas of a region, and so lower levels of economic
prosperity overall.
However, poor housing – be it public or private – can damage the

reputation of neighbourhoods, attract vandalism, drug dealing
and other forms of anti-social behaviour, contributing to reduced
private investment and, in some cases, abandonment. Run-down
and abandoned neighbourhoods can reflect intrinsically
unattractive locations isolated from jobs and amenities where
people with a choice prefer not to live and which remain
unattractive to private sector investment and business start ups.
Importantly, housing-led regeneration can provide:
• enhanced community assets, a source of income to support
investment, and a basis against which to raise finance and
• part of the ‘offer’ that a place can make to attract or retain
people, businesses and their resources, to build a career and
contribute to the economy
The housing market renewal programme is key to rebuilding
housing markets and communities where demand for housing is
relatively weak. The economic and housing market performance
of an area are interlinked, and the provision of new housing,
improving the quality of place, and linking this to the wider local
economy are critical linkages. That is why the Pathfinders
recognise the importance of job creation and the key role that
apprenticeships play in improving skills in the local workforce.
27. Budget 2009 announced an additional £500m to stimulate housing

development in the short term and support capacity in the house
building industry, leveraging in private development finance through a
combination of reducing up-front costs with equity, gap and
infrastructure funding, as well as expanding the provision of HomeBuy
Direct, and increasing funding for affordable housing.
28. As we made clear in last year’s consultation document, to be effective,

these investments in housing and physical regeneration must be
supported by economic interventions that create a sustainable
economic future for deprived places. That is why we have invested
£1.5bn in the working neighbourhoods fund – which gives
councils extra resources to deliver innovative local responses to long
term worklessness in deprived areas.
29. The future jobs fund builds on proposals made in the recently
published Tackling Worklessness Review led by Cllr Stephen Houghton,
Leader of Barnsley council, which set out a key role for local
government and the third sector, and in particular social enterprise, to
build economic opportunities, particularly for residents in
disadvantaged areas where long term worklessness is still too high.
30. It was developed in close consultation with local authorities through

the central-local partnership. The fund will create 150,000 jobs
between October 2009 to April 2011 providing real help for those who
are looking for work and who face significant disadvantages in the
labour market, particularly young people and those living in the most
disadvantaged areas.
31. Alongside this investment, we will continue to work with the RDAs as
they reprioritise their investments to maximise the impact of the single
pot on regional economies, learning the lessons from the recent
independent evaluation of RDAs.12 Key to this will be to ensure that
investment in physical regeneration and business investment
complement each other and support the RDAs overarching economic
growth objective.
The Government’s response – flexibilities

32. We know that effective regeneration schemes are often not held back
by a lack of resources but by a lack of flexibility. That is why, as well as
the significant investment we are making, we are also taking steps to
make delivery less bureaucratic and increase the number of strategic
decisions that are taken at the front line.
12 Announced in Parliament as a ministerial statement on 31 March 2009

33. We are giving councils more freedom to deliver by un-ring-

fencing money and simplifying programmes and targets,
alongside requiring them to better understand the challenges they
face (via the new economic assessment duty) and making them more
accountable to the communities they serve.
34. Because local economies often do not match administrative

boundaries, we are supporting city-regions to drive economic growth
and contribute to sustainable development. Budget 2009 announced
new pilot city-regions in Greater Manchester and Leeds. The
Government will work with these cities to develop proposals for new
strategy-setting powers over adult skills funding and new joint
investment boards with RDAs, the Homes and Communities Agency
(HCA) and other partners which will allow for better co‑ordination of
activity across planning, housing, transport, employment and skills.
The Government’s response – policies

35. Effective regeneration will not be delivered simply through targeted
investment. Bringing together capital investments and mainstream
spending by a range of government agencies to ensure they deliver the
right mix of infrastructure and activities can deliver more powerful
results. We cannot and should not make decisions about how
investments are put together and delivered from Whitehall – rather we
should respond to local and regional needs and opportunities. The
Government is therefore making a number of changes to the policy
framework that will enable agencies at each spatial level to deliver
more effective, targeted regeneration in future.
36. At neighbourhood level, we are continuing to build on the progress

central and local government have made in renewing some of the
country’s most deprived places. As well as providing targeted support
through the WNF, LEGI and NDC programmes, we are further
strengthening community-led organisations through the community
builders fund, and supporting local government to build partnership
capacity through a network of local improvement advisors and support
to neighbourhood resource centres and regional improvement and
efficiency partnerships (RIEPs).
37. But we can and want to go further, by ensuring that investment at

neighbourhood level is better integrated with wider regeneration
opportunities, and by promoting a more strategic approach to
supporting all deprived communities in all areas, which builds on the
learning and successes of neighbourhoods renewal. We will be
working further, and talking to key stakeholders, to identify what
additional support or action might be needed to make this happen.
38. Locally, alongside flexibilities for councils Government is legislating to

give communities more influence on how councils spend money and
requiring councils to promote democracy. We expect this package of
measures to build on existing good practice in local government to
ensure local people and businesses play a strong role in shaping the
interventions, plans and strategies that capture priorities and drive
investment.
39. Budget 2009 announced that we will go further – working with

interested local authorities and city-regions to assess the scope for
accelerating development by allowing investment in infrastructure to
be financed from the increased property tax base that could be
enabled. As part of this, the Government will explore with local
authorities the potential benefits, costs and feasibility of piloting such
an approach.
40. At a regional level, regional development agencies (RDAs) are

playing a vital role in supporting businesses through the current
economic downturn, and in ensuring that all regions are well-placed to
seize the opportunities for economic recovery. Aligning RDAs’ business-
focused capital expenditure with that of other bodies such as the
Homes and Communities Agency, and sub-regional and local partners,
including local authorities and city-regions, will deliver this more
successfully. That is why RDAs will:
• work with national, regional and sub regional partners to
deliver economic plans and investment which raise the
sustainable economic growth of the region and provide economic
opportunities to people throughout the region, helping to connect
areas of need with areas of opportunity
• work to new additionality guidance from June, drawing on
evaluation evidence, to strengthen the quality of appraisals. RDAs
will work collectively across the network to draw on evaluations
from across the country to develop similar programmes and projects;
and
• have an ongoing evaluation programme; ensuring that
evaluation is embedded in all projects; that the evaluation
programme is independently audited each year and the results of
the evaluation and audit published each year in the RDAs’
performance reports. In addition, we will look to the RDAs to
publish biennial summaries of the evaluation results
Regeneration, Climate Change, and the Environment

Physical regeneration can help remove the environmental barriers
which hold back local areas and provide an important catalyst for
reversing decline and improving prosperity. Improving air quality,
access to good quality green infrastructure, healthy waterways
and access to nature, can all help retain existing businesses whilst
also attracting new inward investment and enterprise.
It is important that regeneration projects take account of the

impacts of both current and future climate. These projects involve
significant amounts of long- term investment and it is therefore
important that decisions are made in a way that takes account of
both current climate and a range of future climate change impacts
(both risks and potential benefits). These may vary in different
parts of the UK, but could include, for example, increased flood
risk, water scarcity, and increased frequency and severity of
summer heat waves.
An increasing body of evidence and tools is being developed to

support better planning for climate change adaptation. Central to
these will be the UK Climate Projections, which will enable those
carrying out regeneration projects to gain a better understanding
at the local and regional level of the changing climate and future
climate risks for a particular area where regeneration is planned.
Tools such as these will be valuable in assessing future risks and
opportunities when decisions are made about regeneration
investment. This in turn will enable regeneration activity to be
carried out in a way that explicitly builds in provision and planning
aimed at reducing the risks presented by projected future climate
change and thereby helps to maximise the future benefits of
regeneration investment.
41. As set out in Building Britain’s Future: New Industry, New Jobs,13 there
is a vital role for better coordination of public sector work at the
regional and local level, working in partnership with the private sector.
Each region has a unique set of challenges and capabilities, and
understanding of these is critical to effective policy delivery, as is rapid
feedback to Government from delivery partners. That is why we are
legislating for a new regional strategy, prepared by the RDA and the
Local Authority Leaders’ Board which will deliver a shared long-term
vision for each region that supports clear prioritisation and alignment
of resources. It will bring together the key challenges and opportunities
faced by each region, and ensure that regeneration activity is targeted
where it is most needed.
13 Building Britain’s Future: New Industry, New Jobs, BERR (2009)

Rural areas
Most of rural England is well connected with strong links to
nearby towns and cities and good access to local markets and job
opportunities. Consequently, most rural areas have been
performing well in both economic and social terms. However the
evidence also shows that there are some rural areas where levels
of economic performance are below average and prospects for
growth are more limited, with sparse populations and associated
low densities of businesses and restricted labour markets. It is
therefore important that the needs of rural areas and market
towns are taken into account in developing local and regional
strategies.
42. We want to ensure that the regional strategy and associated delivery
plans are used to identify and map priority places for
regeneration and set out policies for prioritising functional economic
areas to give clarity and an incentive to the private sector to invest in
them.
Thames Gateway and the Olympics

The growth of east London and the wider Thames Gateway is
crucial to the sustainable growth of London and critical to the
future prosperity of the UK. The Thames Gateway has a number
of economic drivers – Stratford, the Olympics, Canary Wharf,
Ebbsfleet and London Gateway – which offer continued potential
during the downturn. But to make the most of this potential,
we need to address the area’s long-term market failures and
co‑ordination/capability deficits.
To secure a lasting legacy from the Olympics, the five host

boroughs, together with their partners, are developing a strategic
regeneration framework to guide the regeneration of the area.
Government and the Mayor of London are jointly establishing a
company centred on securing a lasting legacy for the Olympic Park
after the 2012 Games and one that is fully integrated with the
wider regeneration plans for east London. This will include the
creation of thousands of new homes and jobs, world class
sporting, education and cultural facilities as well as the largest
urban park created in Europe for more than 150 years.
43. In London, the London Plan already identifies broad areas for
regeneration and the main locations for growth and investment
opportunity, and it is proposed that it should in future set out which
areas should be prioritised for regeneration and how these have been
determined.
Aligning national regional and local priorities

44. The new Homes and Communities Agency will work in conjunction
with local Government and regional partners to deliver a tailored
package of regeneration investment for communities across England
that responds to both local and national priorities. The ‘single
conversation’ will be the approach by which HCA will work with
partners to:
• bridge local ambition and national targets
• achieve a mutually agreed vision
• invest in and support mixed use schemes which are key to the
creation of successful places
• agree and secure local delivery and funding
• achieve positive outcomes for people and places; and
• cover the full range of housing, growth, regeneration,
infrastructure and community activities that create successful
places.
45. The single conversation will integrate with existing joint working and
strategic governance arrangements, building upon prioritisation and
decision making already put in place through multi-area agreements,
city and sub-regional partnerships, urban regeneration companies and
other such mechanisms. In particular, the single conversation’s
outcomes will be expected to align and integrate with the new regional
strategy, with a clear and identifiable relationship between it and new
local agreements.
46. In order to ensure effective alignment, the single conversation is

happening – where appropriate – in partnership with the RDAs. This
means that the two Agencies will work together, in a way consistent
with local aspirations and plans (as set out in local area agreements
and multi-area agreements). This will secure a complementary and
aligned local investment agreement with partners that covers and
reflects an area’s housing and regeneration need, market opportunity,
planning policy, land supply and development viability. The agreement
should provide a shared basis for directing investment; supporting
mixed use regeneration which is key to regeneration and the creation
of successful places.
47. It is also important that links are made with the contribution of other
public sector partners to regeneration. Capital investment in the
NHS, for example, was £3.6bn in 2007-08 alone. As a major employer,
procurer and purchaser of goods and services, the NHS plays a key role
in local economies. Making the right links now will also help reduce
costs to the wider public sector in future, for example by ‘age-proofing’
housing developments.
48. Annex B sets out a timeline of how these arrangements will be

implemented.
Measuring success
49. The consultation proposals published last year signalled a shift in
emphasis from output towards outcome targets – giving local
Government and other local and regional partners the flexibility to
meet local needs – matching the approach government has
increasingly taken across the broader public sector and in particular in
relation to local authority performance management. This approach
was welcomed in consultation with respondents agreeing that
regeneration success should be measured by the outcomes that it
will deliver for communities, with a priority focus on improving
economic outcomes.
50. The consultation framework set out three priority outcomes that
should be used to guide targets set for Government expenditure on
regeneration in future.
51. These outcomes were strongly welcomed in consultation but there

were concerns raised about how they worked together. Some
respondents argued that the third outcome measure – creating
sustainable places where people want to live and can work, and
businesses want to invest – could be used to justify investment in too
broad a range of activity that had limited effect on economic outcomes
and therefore failed to tackle the underlying drivers of decline and
deprivation. We recognise the risk, but equally, we understand that
improving outcomes across a range of measures can provide an
important catalyst for reversing decline and improving prosperity by
attracting new investment.
52. The answer is to ensure that they are not a list from which to choose,
but instead that they must all be achieved if regeneration is to be
judged successful. Government therefore formulates them as:
• improving economic performance and tackling worklessness,
particularly in the most deprived areas
• creating the right conditions for business growth which could
include investment in infrastructure, land use, and a better public
realm; and
• creating sustainable places where people want to live and can
work and businesses want to invest.
World class places

Because of the importance Government attaches to creating high
quality places which are attractive to businesses and residents, a
cross-Government quality of place strategy, world class places is
being developed to draw together in one place a clear narrative
explaining the activities that are already underway to improve the
quality of the built environment as well as setting out a number of
areas in which government intends to take action to make further
improvements.
53. These new outcomes for regeneration have been agreed across
Government as the standard against which all future regeneration will
be judged. HCA and RDAs will work to deliver these priority outcomes,
focusing on economic performance; jobs; and creating sustainable
places. It is important that we measure performance consistently from
the national to the neighbourhood level. We have therefore identified
key measures within the national indicator set (NIS) which will be used
as the best measures available. These include indicators measurable
below the district level – and we encourage local partners to
disaggregate these indicators where possible to enable monitoring and
targeting of the most deprived neighbourhoods.
54. We have been careful to balance indicators that cover the quality of
places as well as economic outcomes. Creating places that are
attractive, prosperous, safe and sustainable, promote health and well
being and combat health inequalities, with a good mix of facilities,
services and opportunities, strong sense of identity, ample green space,
a lively public realm and good community life are central to achieving
improved economic outcomes over the longer term.
55. This means providing people with safe and attractive places to live and
work; enhancing connections to jobs, opportunity and education;
respecting environmental limits and enhancing the local environment
wherever possible (for instance, through the provision of new or
improved green infrastructure); planning for the long-term and
adapting to climate change; meeting the diverse needs of existing and
future residents and contributing to a higher quality of life. It is
important to recognise the distinctiveness of each place; value and
make the most of the historic environment and ensure the right mix of
cultural and leisure activities are available to communities and build
green space/infrastructure into new developments.
Measuring progress
Experience shows us that if we can effectively tackle the
underlying economic causes of deprivation the social benefits will
follow.14 Regeneration investment should create more jobs or help
people to access jobs over the longer term. That is why the most
important indicators are:
• overall employment rate (NI 151); and
• working age people claiming out of work benefits in the
worst performing neighbourhoods (NI 153).
But local partnerships will also need an understanding of the
drivers across a full range of indicators in order to properly assess
what is holding an area back from economic recovery. From the
current National Indicator Set we have identified the following
headline regeneration indicators to help monitor progress:
• overall/general satisfaction with local area (NI 5)
• the environment for a thriving third sector (NI 7)
• serious violent crime rate (NI15)
• serious acquisitive crime rate (NI16)
• reduction in schools where fewer than 30 per cent of pupils
achieve 5 or more A*– C grades at GCSE including English and
Maths (NI 78)
• proportion of children in poverty (NI 116)
• all-age all cause mortality rate (NI 120)
• working age population qualified to at least Level 2 or higher
(NI 163)
• 16 to 18 year olds who are not in education, employment or
training (NEET) (NI 117)
• average earnings of employees in the area (NI 166)
• new business registration rate (NI 171)
• working age people with access to employment by public
transport (and other specified modes) (NI 176)
• planning to adapt to climate change (NI 188)
14 See Annex B of Transforming Places, Changing Lives

Conclusion
56. Despite the successes of our approach to regeneration over recent
years, challenges remain and we must redouble our efforts to ensure
regeneration delivers transformative change for those places where
poverty and worklessness are still too high. With the commitments set
out in this framework we can be confident that we have the clear
leadership in central and local government; the resources; and the
capability to take those strides in the years ahead.
Annex A: What will be

different
57. This annex brings together the commitments central government and
the key delivery agencies – the HCA and RDAs – have made to deliver
the regeneration framework.
Partnership working between the Homes and Communities

Agency and regional development agencies
The HCA and RDAs deliver regeneration in the regions. It is vital
that they work in partnership to ensure that they invest their
funding in a co-ordinated way, and in support of shared priorities
for an area. Therefore, the two agencies will work together on
joint investment planning in each region by:
• holding ‘single conversations’ where appropriate with local
areas, meaning that the two agencies will work together, in a
way consistent with local aspirations and plans (as set out in
local area agreements and multi-area agreements), and, at the
same time, consistent with the objectives set out in the
regeneration framework; and
• working together with local authorities through the new ‘duty
to involve’ to make sure that the views of local residents and
communities are heard when making decisions about
regeneration and investment.
The Homes and Communities Agency

To deliver against the regeneration framework, the HCA will:
• support the development and implementation of regional
strategies in each region
• develop local investment agreements with its partners that
cover an areas housing and regeneration need, market
opportunity, planning policy, land supply and development
viability, in the context of new regional strategies and building
on existing strategic priorities where they exist, for example
through city regional partnerships, MAAs and LAAs, and on
local investment programmes, such as those of URCs and EDCs
• invest in and support mixed use regeneration which is key
to the creation of successful places
• develop integrated regeneration and housing investment
programmes to tackle deprivation and improve the economic
prospects of deprived areas, including through supporting
physical improvements, infrastructure and commercial
developments
• work to support and retain capacity in the regeneration
sector, through the HCA Academy and partnership
arrangements
• ensure that investment in housing and regeneration is
linked to employment and provides opportunities to support
training, including apprenticeships and local labour schemes
within the construction industry
• work with partners to ensure that investment in stock is
complemented by investment in people – for example
through the use of area based grant
• ensure that strategic priorities for housing and regeneration are
worked through at regional and sub-regional levels with local
and regional partners. The HCA will work with city-regions
to align investment through joint investment boards
• meet the needs for low carbon housing growth,
promoting effective regeneration in changing economic
conditions
• build the capacity of local authorities and sub-regional
partnerships to deliver economic growth and regeneration; and
• report annually on its role in delivering the priority outcomes
in this framework
Regional development agencies

RDAs will work with local authorities, the HCA and other
partners, to:
• invest in capacity to deliver sustainable economic
development and regeneration activity; and
• identify the functional economic areas within the region
that are the priority areas for regeneration in consultation
with local authorities, businesses and the third sector15
RDAs will also:
• work with national, regional and sub regional partners
to deliver economic plans and investment which connect
areas of need with areas of opportunity, through regional
strategies, MAAs and the development of area based
investment plans
• work to new additionality guidance from June, drawing on
evaluation evidence, to strengthen the quality of appraisals.
RDAs will work collectively across the network to draw on
evaluations from across the country to develop similar
programmes and projects; and
• have an ongoing evaluation programme; ensuring that
evaluation is embedded in all projects; that the evaluation
programme is independently audited each year and the results
of the evaluation and audit published each year in the RDA’s
performance reports. In addition, we will look to the RDAs to
publish biennial summaries of the evaluation results.
15 Where RDAs and local authorities identify business support as a regeneration priority they should work together
to comply with the guidelines on business support simplification to ensure there is no duplication or
proliferation of services.
Government Offices
Government offices, as the voice of central Government in the
regions, will:
• work with local authorities to ensure efficient performance
against ambitious local area agreements that deliver key
regeneration outcomes. This will require disaggregating
indicators (where possible) to enable monitoring and targeting
of the most deprived neighbourhoods to ensure that no area is
left behind
• work with groups of local authorities to develop multi-area
agreements that deliver robust and ambitious economic
growth and regeneration outcomes
• work with regional efficiency and improvement partnerships to
build capacity across the region and identify areas where
capacity may need to be strengthened
• provide support and challenge to regional partners over
the development of regional strategies, ensuring effective
spatial prioritisation – including functional economic areas in
the regional strategy and site-specific areas in the LDF and SCS
– and that links are made to wider public sector investment and
strategies (for example through Strategic Health Authorities
and Primary Care Trusts)
• work through LSPs and with other local partners to support
the development of effective regeneration strategies and
their implementation plans; and
• feedback to Whitehall Departments about good practice
and barriers to the implementation of regeneration policy.
National Government
Central Government will:
• align central government investment behind regional
strategies and their implementation plans
• revisit investment appraisal processes that impact on
regeneration, including how to effectively measure wider
community and economic benefits from investment
• encourage partnerships across sub-regions, including
through the process of agreeing multi-area agreements and the
city/region pilots
• introduce a duty on central government, local government and
their key partners to consider how their strategic decisions can
better tackle socio-economic disadvantage through the new
Single Equality Bill; and
• continue to deliver flexibilities to local partners by supporting
the development and delivery of local and multi area
agreements.
To support the cross-Government approach, Communities and
Local Government will:
• monitor the key outcomes in this framework in the most
disadvantaged areas
• promote a joint approach to regeneration at all levels by
compiling a map of regeneration priority areas (from
regional strategies) to help steer capital investment decisions
across the public sector and in the private sector; and
• continue to work towards making all social housing decent
and go further, by encouraging landlords to ensure works to
improve their housing stock and estates and, through the
Decent Homes programme, contribute to wider objectives such
as access to employment opportunities.
Annex B: Timeline
2007 2008 2009 2010 2011 2012
• Mid-2007: Review • Early 2008: London • Late 2008: Economic • Early 2009: LAAs • Early 2010: LEA Duty • Early 2011: 80% of • 2012-2013: RSIP 2
of Sub-National Plan published Prosperity Boards refreshed. comes into force. all local adopted and
Economic incorporating both the (EPBs), Local • Early 2009: Three • 2010-2011: RS and authorities’ key implemented.
Development and Early and Further Economic further MAAs signed RSIP adopted and development
Regeneration Alterations in the London Assessment (LEA) off by the Prime implementation planning
(SNR) published. Plan (consolidated with Duty and Single Minister. commences. documents (DPDs),
This set out a series alterations since 2004). Regional Strategies • April 2009: Leeds and • Late 2010- early within the LDF,
of proposed reforms • Mid-2008: local area (RS) put forward in Greater Manchester 2011: new local adopted in
that would enable agreements (LAAs) the Local city-region pilots economic accordance with
regions and local agreed with central Democracy, announced in 2009 assessment duty their agreed local
areas to respond government for all 150 Economic Budget. comes on stream. development
better to economic first tier local authorities Development and • Early 2009: • 2010-2011: scheme. DPDs
challenges. for the period 2008- Construction Bill comprehensive area Committed considered to be
2011. The development (LDEDC). assessments lifespan for New most important
of LAAs is led by local • Late 2008: RS activated. Deal for include core
authorities and local preparatory work • Early to Mid-2009: Communities strategies and those
strategic partnerships started in some HCA’s ‘single (NDC) comes to an plans with large
(LSPs). These are 3-year regions and led by conversation’ end. NDC areas housing allocations.
investment plans. RDAs and interim approach trialled. succession strategies • 2011-2012:
• Mid-2008: First set of Local Authority • Mid-2009: First HCA to be in place. sustainable
multi-area agreements Leaders’ Boards. This Corporate Plan community

(MAAs) signed by 7 is a long term plan, developed. strategies may be
groups of councils and for a period of about • Late 2009: If the refreshed based on
local stakeholders, and 15 years, which LDEDC Bill receives findings of local
agreed by central aligns Regional Royal Assent local economic
government. These are Economic Strategies authorities can begin assessments.
3-year investment plans. (RES) and Regional working towards • 2011-2012: RSIP
• Late 2008: Homes and Spatial Strategies establishing EPBs first revision.
Communities Agency (RSS). • Late 2009: Revisions
(HCA) launched as the • Late 2008 to Early to RDA appraisal
national housing and 2009: First LAA guidance published.
regeneration agency for Annual Review. • 2009: Local Authority
England, with an annual Leaders’ Boards and
investment budget of joint working
more than £5bn. It is a arrangements for
non-departmental public development of RS
body sponsored by and RS
Communities and Local Implementation Plans
Government (CLG). (RSIP) submitted for
agreement.
ISBN 978-1-4098-1445-0
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Transforming places

Department for Communities and Local Government

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Transforming places; changing

A clear definition of regeneration

4. Successful regeneration strengthens communities by creating new

5. As we set out last summer when we consulted on a new approach,

Economic outcomes are key

The cost of labour market exclusion in deprived areas is one of the

Creating the right conditions for economic

high quality of life for employees.6 Most commentators agree that

7. Effective regeneration cannot happen without support from – and full

8. Local authorities increasingly see fostering prosperity in their towns,

9. The third sector and in particular social enterprises also have an

• most agreed there is a need to target investment to maximise

The changing economic conditions

Local authorities and the downturn

The Government’s response – targeting

18. These factors – as outlined in Annex E of the consultation document –

20. The national improvement and efficiency strategy, agreed between

The Government’s response – resources

25. The Pre-Budget report announced that we would be bringing forward

26. As a part of this package, we brought forward £180m to support key

That is why it is important to ensure that regeneration is not used

However, poor housing – be it public or private – can damage the

27. Budget 2009 announced an additional £500m to stimulate housing

28. As we made clear in last year’s consultation document, to be effective,

30. It was developed in close consultation with local authorities through

The Government’s response – flexibilities

12 Announced in Parliament as a ministerial statement on 31 March 2009

33. We are giving councils more freedom to deliver by un-ring-

34. Because local economies often do not match administrative

The Government’s response – policies

36. At neighbourhood level, we are continuing to build on the progress

37. But we can and want to go further, by ensuring that investment at

38. Locally, alongside flexibilities for councils Government is legislating to

39. Budget 2009 announced that we will go further – working with

40. At a regional level, regional development agencies (RDAs) are

Regeneration, Climate Change, and the Environment

It is important that regeneration projects take account of the

An increasing body of evidence and tools is being developed to

13 Building Britain’s Future: New Industry, New Jobs, BERR (2009)

Thames Gateway and the Olympics

To secure a lasting legacy from the Olympics, the five host

Aligning national regional and local priorities

46. In order to ensure effective alignment, the single conversation is

48. Annex B sets out a timeline of how these arrangements will be

51. These outcomes were strongly welcomed in consultation but there

World class places

14 See Annex B of Transforming Places, Changing Lives

Annex A: What will be

Partnership working between the Homes and Communities

The Homes and Communities Agency