The European Union scraps GAP funding for the cleaning up and redevelopment of derelict land
Euro Ruling Ruins Britains Urban Regeneration Hopes,
BRITAINS hopes of renewing its decaying inner cities and preserving its countryside has been dealt a crushing blow by the EU.
A European Commission ruling that Gap funding schemes for urban regeneration are illegal under European law has been branded perverse and bizarre by a DETR select committee this week. The ruling means public/private funding schemes to help house builders use derelict or unviable wasteland rather than greenfield sites, must end.
The result is likely to have a devastating effect on the Governments target to renew Britains deprived towns and cities with modern, higher density housing - a cornerstone of Labour policy.
Pierre Williams, spokesman for the House Builders Federation, said: This is a terrible blow for towns and cities across the UK, the Government and the house building industry.
House builders have listened to the call for change and are close to hitting the target of 60 per cent of new homes being built on brownfield - or previously used - sites. This was largely due to government funding which subsidised house building in some of Britains most deprived inner-city areas. Without this, house builders will have to turn down the opportunity of developing many of these areas as they cannot be expected to work at a loss.
Whilst the government has already increased Regional Development Agency spending and allowed the agencies greater flexibility to undertake direct development, such a programme is never likely to match both the resources and creativity of a public/private
partnership which to date has secured 3 of private investment for every 1 from public funds
Residents in major cities like Birmingham, Leeds, Manchester and Newcastle have all seen their city centres transformed by urban regeneration projects. But the idea was to expand on this and give outlying areas the opportunity to benefit in the same way. Now all of this is at serious risk because of an annoying and frankly silly European ruling. This funding was essential to concentrate homes on previously used land, promote sustainable development, secure an urban renaissance and reduce social exclusion. In many cases only small amounts of public money were needed to tip the balance and make derelict areas viable for development.
This view is endorsed by the DETR select committee which said: This has severe consequences for the regeneration of cities and brownfield sites and is a body blow for urban renaissance. Not only are planned schemes now at risk, but the good work that has already been achieved in many areas may be undermined. As a result planned jobs and other benefits will not be delivered to brownfield sites and deprived communities. The longer sites lay derelict and undeveloped, the greater the effect on market confidence. Areas already suffering from urban decay may enter a spiral of decline as the cancer spreads, making it even more difficult for future regeneration efforts to succeed. Illogical and ill-considered Commission decisions such as this on the Partnership Investment Programme bring the European Union into disrepute.
The DETR itself, said of the ruling: We are extremely disappointed. The Partnership Investment Programme did not provide a state aid for developer-led projects. Under the scheme the payments made are the minimum necessary to allow regeneration schemes to proceed. They are designed solely to deal with land problems and local property market failures.