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Importance of place

Sustainable Cities Conference 22 November 2007 Economics forum – the economics of sustainability Professor Mark Kleinman Director, Migration and Social Research, CLG. Importance of place. Globalisation driving ‘place’ as a competitive asset Journey from manufacturing to knowledge economy

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Importance of place

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  1. Sustainable Cities Conference 22 November 2007Economics forum – the economics of sustainabilityProfessor Mark KleinmanDirector, Migration and Social Research, CLG

  2. Importance of place • Globalisation driving ‘place’ as a competitive asset • Journey from manufacturing to knowledge economy • Cities need to develop clear view of their offer – economic, physical, environmental, social and cultural • Success will increasingly be defined by quality of life, sustainable development, enterprise and sense of community

  3. Cities as drivers • Cities: • drive economic performance of regions and country as a whole • are where we will meet challenges of social justice and inclusion • are key to tackling climate change • Need to manage tension between these imperatives • In fact, economic growth will increasingly depend on sustainable development

  4. Macro drivers play out differently in different places Globalisation Demographic change Climate change Impacts differently in places Globalisation: More integrated global economy, mobile finance and footloose firms and rapid technological change Climate change: greater chance of extreme weather, need to decarbonise economy Demographic change: Growing population, ageing society, smaller households, migration

  5. The Sub-National Review • Ensure that localities and regions have the tools and incentives to respond quickly to changing economic circumstances. • All areas, including the most deprived, are able to contribute to and benefit from economic growth.

  6. Three Broad Principles • Managing economic development and regeneration policy at the right levels – proposes a devolved approach, giving local authorities and regions the powers to improve economic outcomes • Ensuring clarity of rolesat each level – clear objectives at each level with streamlined decision-making, rationalised strategies and funding streams and reduced bureaucracy • Enabling places to reach their potential – an inclusive approach to developing regional strategies and incentives to promote economic growth and tackle problems in the most deprived areas

  7. Reforms in four key areas • Strengthening the local authority role in economic development • Collaboration across sub-regions • Strengthening the regional tier • Clearer objectives and responsibilities within central Government

  8. Strengthening the local authority role • Proposal for new focused economic development duty • Concordat between local and central Government • Reform of NRF • more intensive approach in fewer areas • targeted on poorest neighbourhoods within LAs • focus on worklessness • Business Rate Supplement • Reform of LABGI/BIDs • Economic development indicators as part of LA performance management framework • Delegation of RDA funding14-19 education funding to LAs • Employment and skills boards

  9. Collaboration across sub-regions • Multi-area agreements • CDCs • Statutory sub-regional authorities • Reformed PTAs • ESBs

  10. Strengthening the regional tier • Single integrated regional strategy – RDAs to develop, working closely with LAs • Regional economic growth objective • LA scrutiny of RDAs • Regional Assemblies will cease to exist in their current form • Expanded Regional Funding Allocations exercise • More effective RDAs

  11. Central Government reform • RDAs sponsored by BERR • BERR takes responsibility for regional economic performance PSA • Homes and Communities Agency sponsored by CLG • CLG to produce a clear framework for regeneration

  12. Role of government • Economic assets: e.g. Regional Economic Performance PSA (BERR), clear view of role of cities and city-regions in driving performance • Human capital: education, skills, innovation • Quality of place: CLG focus e.g. Housing Green Paper, Local Government White paper, planning policy reform, 2016 target, EP, Housing Corporation, CABE, ASC

  13. Responsive places • Successful places are those developing and capitalising upon their assets in the context of the macro picture • Assets should be understood broadly: physical, economic, human and social capital • Role of government is to support investment in each of these aspects, providing framework and tools for effective action at regional, sub-regional, Local Authority and neighbourhood level, to ensure sustainable economic growth

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