5.

8 - The role of the government in regeneration

Why build HS2 now?
- planned construction of HS2 reverses all government’s transport policies since 1945 – been in favour of expanding the road network
- road-building programme has simply noy kept place with growing vehicle ownership and use
o worst congestion is in London and South-East England (economic core), Birmingham and Manchester, and Leeds
o government report in 2008 estimated that by 2025 road congestion would cost £22 billion each year in lost time
- the UK needs new infrastructure to catch up with a rapidly growing population
- Route: Phase 1 will be between London and Birmingham and Phase 2 will then lead NW to Manchester and NE Leeds
- Benefits: Improved journey times between major cities, 49 minutes phase 1, and 60,000 construction jobs will be created
- Problems: planned route will pass right through the Chilterns AONB – communities along the route will not gain from it (no intermediate stations)
- Time: If approved, construction will begin in 2017 and should be completed around 2030 – both phrases

Role of central government

- Too expensive for private companies to invest in
- Government will get involved as it requires massive amount of money and when there is rarely a profit
- Viewed as an investment from government: franchising fees from train companies to run services, and an economic multiplier which should result from the
improved transport links
- Cost benefit analysis: this will weigh up the costs against economic growth
o one objection to HS2 is it might only benefit London
o improved accessibility between northern cities should also produce economic growth

Meanwhile, in Cornwall ...

- population is growing rapidly and there is a housing shortage
- two challenges for government – Can the loss of green filed landscapes be balanced against housing needs? + Should planning restrictions be lifted in Green Belts
or AONB?

The fracking debate

- has power to make decisions affecting development via the planning laws
- central government have been attracted by the perceived benefits of fracking – produce home-produced natural gas supplies and reduce imports
- allowing fracking improves UK’s energy security
- this decision conflicts with landscapes of value

Deregulation
- Margaret Thatcher’s government decided to deregulate which resulted in a new era of prosperity for the UK’s financial sector
- Involved -> any bank could trade in shares and opened up the freedom of individuals to invest. Barriers stopping overseas banks from setting up offices in London
were also removed
- Allowed foreign investors in UK without seeking UK government approval
- London Docklands regeneration allowed space for these expanding financial institutions to set up large offices in Canary Wharf

5.9 – Regenerating rural places

Newquay, Cornwall
- departures board includes international flights to Dublin and Dusseldorf
- ‘old economy’ -> primary sector jobs that have been declined
- ‘new economy’ -> quaternary sector is small and tertiary activity is growing
Industry Reasons for its decline
Farming - falling farm revenues (want lowest possible price for supplies_
- cheaper imported food from overseas
- reduction in EU subsidies and government grants
Fishing - stock of fish have declined due to over-fishing of young fish in previous years
Tin and copper mining - many tin and copper mostly have been mined out
- tin prices have collapsed due to overseas being cheaper
- UK’s tin is more expensive overseas due to strength of pound
Quarrying - French TNC owner cut the labour force down to 800 and moved to Brazil -> China clay reserves
- quarries now use technology to extract China clay

Cornwall’s isolation
- Remote from the rest of the UK and not ideal for operating national or international businesses
- Journey times are long and expensive
Rebranding the countryside (Cornwall)
- Never short of tourists
- Rebranding strategies for Cornwall -> farm diversification, popular restaurants, spectacular gardens, and outdoor pursuits
- Attract both domestic and international tourists

Attracting investment
- Has to compete with other areas that all qualify for government regional aid
- Recognised by EU as being less economically advantaged and get government assistance and investor incentives

5.10 – Regenerating urban places

Regeneration in Glasgow
- “People make Glasgow” – Ideas from 1,500 people across 42 countries
- Regeneration to attract investors – rebranding as international centre, lit up movements - creating a 24-hour city, flagship development, making it a place people
want to live
- Titan crane was abandoned for 20 years but turned into a tourist attraction
- Peak in population of 1.1 million in 1940s – now 598,000
- investing in galleries and concert halls

Regeneration in Plymouth
- In the 1960s, the historic naval city of Plymouth used to attract people from all over the world to see its rebuilt city centre
- Plymouth economy has declined since the 1960s and now its city centre looks dated -> the shipyards have been reduced in size and the city now competes with
Portsmouth to keep ship repair and servicing going
- Plymouth’s remoteness makes investment hard to attract
- Central government spending cuts have forced it to sell some of its buildings to the private sector
- Regeneration projects -> a new shopping complex in the city centre, a cruise terminal to attract international tourists, are branded Plymouth science park, and a
proposed sport and leisure partnership with Plymouth Argyle football club

5.11 – Regeneration – how successful?

Changes in Barking and Dagenham
- Women machinists Ford Dagenham car assembly plant when on strike for equal pay with men in 1966
- Food employed 40,000 people and cows sorry housing schemes offer residents for better housing
- in 2002 Ford ended car assembly after 71 years

Deprivation in Barking and Dagenham

- between 2004 and 2007 deprivation levels in barking and tackling him increased so much that it became the 22nd most deprived local authority in the whole of
England
- 2015: London’s highest adult unemployment rate, 27% of residents earn below London’s living wage, and it was 9th place for most deprived local authority in the
whole of England

Measuring deprivation
Economic: Income and employment deprivation
Social: education skills and training, health, and housing and services deprivation
Environmental: living environment deprivation

Measuring the success of regeneration

- Economic, social, demographic, and environmental
5.12 - urban regeneration: the players
Different sources of investment
- private sector investment -> Westfield shopping centre
- public sector investment -> London’s 2012 Olympic and Paralympic Games
- public private partnerships -> London Docklands regeneration 1980s and 1990s

Key Players before and after the 2012 Games

1. UK central government agency
2. Local government - elected councils
3. Regional government - the London Assembly
4. Stakeholders in the local economy
5. Environmental stakeholders
6. Stakeholders in people
 5.13 - rural regeneration: the players
Rural Disadvantage
- Regeneration is harder involved than in urban areas and the rural economy faces major challenges
- with a much lower population density in rural areas that struggled to maintain significant customers to make profit means that private investors prefer to
invest urban rather than rural areas
- The lack of rural investment naturally leads to a lack of opportunity and high-income employment
- Young, well qualified residents are forced to leave and find work elsewhere causing ‘brain drain’

Key players in Cornwall regeneration

1. the EU
2. UK central government agencies
3. Local government
4. Stakeholders in the local economy
5. Environmental stakeholders
6. Stakeholders and people