NAO slams running of Gateway scheme

24 May 07
Ambitions to regenerate the Thames Gateway area will fail unless costs are tackled and Whitehall departments and agencies co-operate, government auditors warned this week.

25 May 2007

Ambitions to regenerate the Thames Gateway area will fail unless costs are tackled and Whitehall departments and agencies co-operate, government auditors warned this week.

The National Audit Office criticised the scheme's project management, particularly the lack of an overarching implementation plan and the absence of financial information.

The government could only estimate that capital investment had totalled £7bn since 2003, despite the region being singled out for regeneration in 1995. Investment was also criticised for being directed at ineffective projects.

The report added that more funding was needed to deliver the infrastructure and services to allow communities to thrive.

The government's plans for the Thames Gateway – the area from Canary Wharf to the mouth of the Thames estuary – are intended to reverse 150 years of decline and transform the region into a desirable place to live and work.

But the NAO pointed out that house building rates would need to double to 12,500 a year if the target of 160,000 new homes by 2016 is to be met.

The lack of transport infrastructure was identified as the main barrier to development in the area and a major challenge, because not enough has been done to involve transport agencies in the planning for the process.

David Corner, director of regions, regeneration and renewal at the NAO and the May 23 report's author, said: 'It's too early to say it's failing, but there needs to be a step change in the way Whitehall works between departments. A priority is to establish a cross-government board… We want to see that board has clout.'

The NAO also called for a robust implementation plan to be created, with details on what needed to be done and on costs.

Thames Gateway chief executive Judith Armitt said many of the NAO's recommendations had already been taken on board.

'Since my appointment in November 2006, we have put an interim plan in place; we have established a cross-government approach; we are recruiting a director of delivery; and later this year we will publish an overall delivery plan for the Gateway to ensure the provision of 160,000 homes and 180,000 jobs by 2016,' she said.

'There are big challenges ahead but there is now a relentless focus to deliver this vital economic project.'

PFmay2007

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