Alex Neil, cabinet secretary for infrastructure and capital investment, launches Scotland’s regeneration strategy
Scotland’s new regeneration strategy pledges to renew the government’s focus on community-led solutions. Good news for housing associations? Austin Macauley reports
After years of what has been dubbed ‘initiativitis’, it’s refreshing to read a government strategy that kicks off by stressing that it has no intention of launching into wholesale changes.
In his foreword to Achieving a sustainable future, Alex Neil, Scotland’s cabinet secretary for infrastructure and capital investment, says the document ‘does not seek to radically change viable development models, but instead looks to build on previous success and encourage innovative ways of working where this can support progress’.
The contrast between the Scottish Government’s regeneration strategy, published this month, and the UK government’s Regeneration to enable growth is striking.
The latter talks in rather woolly terms about localism as if it’s something new, as though most of what’s gone before failed miserably, and that everything can be achieved through the devolution of powers and responsibilities. It’s adamant that it will ‘radically change’ things, but that it’ll be hands-off after that. A kind of ‘we’ve done our bit, now it’s down to you’ approach.
If you were to sum up the message of Scotland’s strategy it would, ironically, be something like ‘we’re all in this together’. The rhetoric is dominated by partnership working, of central government maintaining a strategic role in guiding the vision, of local authorities maintaining their role as coordinators of regeneration and economic development in their areas, but also of the need for genuine community-led regeneration.
Rather than attempt a broad critique of the strategy, the purpose here is to examine where housing associations fit in – following on from our coverage of RSLs in England and Wales.
HOUSING ASSOCIATIONS AND THE WIDER ROLE FUND
Like their counterparts elsewhere in the UK, Westminster’s welfare reform agenda is a key concern for Scotland’s RSLs both in terms of its direct impact on tenants and the knock-on pressure this will have on housing associations.
With welfare and tax systems continuing to be outside the Scottish Government’s control, making the most of limited resources is crucial. In its response to the strategy consultation, the Glasgow and West of Scotland Forum of Housing Associations (GWSF) argued localised interventions were where the government could make its money go furthest.
Housing associations, particularly the community-controlled ones represented by GWSF that have been working in some of the most deprived areas of Scotland for more than 30 years, effectively play a ‘community anchor’ role. Provide greater support for these organisations, and indeed many other RSLs and others such as development trusts, and you stand more chance of success.
So it’s not surprising that while the overall tone of the document was warmly welcomed, there was widespread disappointment that it also delivered news that the funding stream dedicated to enabling housing associations to fulfil this role would be succeeded by a new fund with a broader remit.
The Wider Role Fund, which had already been cut to £6m for 2011-12 from £10m the previous year, will be replaced by the People and Communities Fund. Although precise details won’t be published until the new year, the strategy confirms that it will be open to community anchor organisations in general, including development trusts. And though it will be increased to £7.9m per year for 2012-15, this still represents a lower level of support than that provided by the Wider Role Fund in its first six years.
‘We wouldn’t want to see the contribution of RSLs reduced through resources being spread too thinly,’ was the response of Alan Ferguson, director of CIH Scotland.
Indeed, the GWSF consultation response highlighted the dangers of reducing this support, citing evidence of the ‘multiplier effect’ it has had by levering in funds from other sources. It singled out Renfrewshire, where £567,000 of Wider Role funding brought in £634,000 in match funding for community-controlled housing associations in 2010-11.
Despite the apparent dilution of the fund, Jim Harvey, director of GWSF, believes that while it remains important, ‘Wider Role is a very small part of the challenge that lies ahead’. The key issues are, he says, investment in housing more generally and how regeneration priorities are set.
Speaking before the strategy was published he said: ‘There needs to be a stronger focus on place and on neighbourhoods. How public services etc work together. The fact is we [community-controlled housing associations] have this neighbourhood model, unlike many agencies, and we have a unique relationship with residents. It’s about improving the reach of public services.’
Achieving A Sustainable Future has, he says, provided plenty of encouraging signs.
‘There are a lot of things in there that are interesting for us in terms of the language and tone. It’s very high level and there are not a lot of specifics, but I’m pleased to see more recognition of the role of community based organisations – there are positive statements about community-led regeneration. We would regard this as a starting point for further discussion with our members.’
GWSF has written to Alex Neil asking for a meeting in the new year to set out how his members, other RSLs and development trusts can take on a bigger role.
GREATER FOCUS ON PRIVATE FINANCE
But the issue of housing investment could prove more divisive. The strategy emphasises a move towards greater use of private finance and what the Scottish Federation of Housing Associations (SFHA) describes as an assumption ‘that public subsidy for socially rented housing will be forced ever downwards’. It’s an assumption which chief executive Mary Taylor argues is contradictory to the Scottish Government’s commitment to prevention.
‘We contend that investing in good quality affordable rented housing exemplifies the sort of preventative spending towards which the Scottish Government is moving, to stop problems from developing and to save itself money in the longer term. Constrained public finances should not mean that the traditional housing association grant model is broken and must be replaced. “Innovative” finance can higher rents, which risks increasing inequality when we should be increasing economic opportunity. There are strong economic and social arguments to prioritise investment in affordable rented housing during a recession.’
David Stewart, policy and strategy manager at SFHA, is concerned the strategy appears to suggest an overall movement towards private finance, rather than one which does so to free up public money for housing investment in deprived areas.
‘There’s an awful lot of talk of innovation funding, new ways of funding development – but when you look at it it’s alternatives to bank loans, things that need to provide a return. In some areas you’ll be funding housing through market rent and for sale, but in the current climate it isn’t going to work in poorer areas in need of investment.’
KEY POINTS FROM SCOTLAND’S REGENERATION STRATEGY
* Improvement guide for local authority economic development services to be produced
* Community Empowerment and Renewal Bill to be introduced
* Feasibility of a Scottish Charitable Bond to be investigated
* £500,000 Community Ownership Fund to help communities explore taking ownership of sports facilities
* Vacant and Derelict Land Fund to help local authorities tackle issues with long-standing vacant and derelict land, worth £26.6m from 2012-15
* £25m per annum Regeneration Capital Grant Fund to be used in the short-term to provide support for urban regeneration companies
* Scottish Government to consider bringing forward primary legislation to roll out tax increment financing (TIF) more widely across Scotland.
* Four ‘enterprise areas’ focused on manufacturing opportunities in growth sectors to be established
* National review of town centres to find long-term regeneration solutions
* £10m House Building Infrastructure Loan Fund