Recession slowing regeneration efforts

11 Mar 10
Government efforts to close the gap between England’s most deprived neighbourhoods and the rest of the country have been set back by the recession, a study has shown.
By Neil Merrick

11 March 2010

Government efforts to close the gap between England’s most deprived neighbourhoods and the rest of the country have been set back by the recession, a study has shown.

Between 2001 and 2007, the widening of the gap had been halted and partly reversed, according to analysis of the National Strategy for Neighbourhood Renewal. But this trend might now be at risk, said the study, carried out by consultancy Amion for the Department for Communities and Local Government.

‘There are signs that, towards the end of the period, slowing economic growth was beginning to have a negative effect,’ the March 4 report said.

Districts identified in 2001 as needing support had been most successful in cutting unemployment and raising educational achievement. However, other indicators showed worsening violent crime and mortality rates.

About £2.4bn was spent on neighbourhood renewal between 2001 and 2007. This represented ‘reasonable value for money’, the report said. It pointed out that the £1.6bn estimated savings achieved through lowering unemployment in the NSNR districts were roughly five times the cost of measures aimed at tackling the problem.

A separate report, on the New Deal for Communities (part of the NSNR), was published on March 4. It found that 74% of residents in the 39 areas that benefited from the programme were satisfied with where they lived – up from 13% in 2002.

Each area received an average of £50m to spend on education, health, housing and other programmes.

Professor Paul Lawless, director of the NDC national evaluation at Sheffield Hallam University, said the benefits of the NDC far exceeded its costs, especially in areas such as crime and mental health.

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