Regeneration policy is in disarray following a “disastrous” EU Commission ruling, stated an environment select committee report published this week.
The EU decision that most UK Private Investment Programmes (PIP) or gap funding schemes are illegal is described as “perverse” and “illogical” by the report, which says the consequences will necessitate a return to direct development, widely seen as a discredited 1970s policy.
The authors point out that this will require legislation to make new CPO powers essential, and that it is doubtful that the RDAs have the skilled staff to undertake such work.
Chris Brown, chair of the RICS urban regeneration panel, said: “Unless an acceptable alternative for PIP is put in place soon, regeneration in many areas will grind to a halt.”
