News

You win some, you lose a lot

News

Lucy Barnard

30 October 2010

Essex, Kent, South East

When chancellor George Osborne announced last week that he was scrapping the government’s Thames Gateway programme, the news signalled more than just another cut to the UK’s vastly reduced regeneration budget.

In many ways, his decision to stop putting taxpayers’ money into a ringfenced pot for the area signified the end of the Gateway dream – a dream that has cost the public purse more than £1.1bn since 2001 and this year alone amounted to around £230m.

The ambitious plan for the 40-mile area between east London and parts of Kent and Essex was devised by former environment secretary Michael Heseltine more than 20 years ago, and was worked up by former deputy prime minister John Prescott as an exemplar of New Labour’s approach to regeneration. It aimed to provide 160,000 homes between 2001 and 2016. But a decade on, it is estimated that only 60,000 homes have been built in the area since 2001, while the plans have been slated as confused and fragmentary.

Instead of Prescott’s grand dream for a linear extension of the capital, the coalition intends to develop the area on a more piecemeal basis.

With all ringfenced central government development aid cut, regeneration schemes within the Gateway, such as Bellway’s £1.9bn Barking Riverside housing scheme and plans to regenerate the area around Purfleet and Grays, will have to fight with rival projects across the country for the scant public resources available. Previously, this cash was given to fund infrastructure projects in the Gateway and to provide gap funding to developers.

Last week, Osborne also confirmed plans to axe a number of the bodies involved in bringing regeneration to the Gateway. Consigned to the “bonfire of the quangos” were the London Thames Gateway Development Corporation and the Thurrock Development Corporation. In addition, he announced the abolition of the London Development Agency, which is involved in key regeneration projects.

But there was better news for the Olympic Park Legacy Company, which will continue to receive state funding but will be folded into London mayor Boris Johnson’s Mayoral Development Corporation.

“The cuts indicate a bold moving of the chips to the localism square,” says Peter Andrews, chief executive of the doomed LTGDC. “Our research shows that grant is now acting as the sole catalyst for housing starts in the Gateway. Without significant re-engagement from the private sector, cutbacks could see housing growth begin to flatline.”

Instead of Prescott’s
top-down planning approach, any future major development projects are likely to be driven by council-run local enterprise partnerships. This week, the Thames Gateway London Partnership – a sub-regional alliance including 11 local authorities – was working up plans for an LEP covering the London area of the Gateway.

Any further infrastructure investment is likely to come from the new homes bonus scheme or TIFs.

However, it is clear that Prescott’s grand dream is over. “Schemes will still happen, and one day those houses will be built,” says planning expert Stefan Webb. “But no one will notice. The targets will disappear and the area won’t be called the Thames Gateway any more.”

There were plenty of losers in last week’s spending review, but some winners, too. Lucy Barnard assesses what is left of a plan to bring thousands of new homes to the Thames Gateway after central funding was cut When chancellor George Osborne announced last week that he was scrapping the government’s Thames Gateway programme, the news signalled more than just another cut to the UK’s vastly reduced regeneration budget. In many ways, his decision to stop putting taxpayers’ money into a ringfenced pot for the area signified the end of the Gateway dream – a dream that has cost the public purse more than £1.1bn since 2001 and this year alone amounted to around £230m. The ambitious plan for the 40-mile area between east London and parts of Kent and Essex was devised by former environment secretary Michael Heseltine more than 20 years ago, and was worked up by former deputy prime minister John Prescott as an exemplar of New Labour’s approach to regeneration. It aimed to provide 160,000 homes between 2001 and 2016. But a decade on, it is estimated that only 60,000 homes have been built in the area since 2001, while the plans have been slated as confused and fragmentary. Instead of Prescott’s grand dream for a linear extension of the capital, the coalition intends to develop the area on a more piecemeal basis. With all ringfenced central government development aid cut, regeneration schemes within the Gateway, such as Bellway’s £1.9bn Barking Riverside housing scheme and plans to regenerate the area around Purfleet and Grays, will have to fight with rival projects across the country for the scant public resources available. Previously, this cash was given to fund infrastructure projects in the Gateway and to provide gap funding to developers. Last week, Osborne also confirmed plans to axe a number of the bodies involved in bringing regeneration to the Gateway. Consigned to the “bonfire of the quangos” were the London Thames Gateway Development Corporation and the Thurrock Development Corporation. In addition, he announced the abolition of the London Development Agency, which is involved in key regeneration projects. But there was better news for the Olympic Park Legacy Company, which will continue to receive state funding but will be folded into London mayor Boris Johnson’s Mayoral Development Corporation. “The cuts indicate a bold moving of the chips to the localism square,” says Peter Andrews, chief executive of the doomed LTGDC. “Our research shows that grant is now acting as the sole catalyst for housing starts in the Gateway. Without significant re-engagement from the private sector, cutbacks could see housing growth begin to flatline.” Instead of Prescott’s top-down planning approach, any future major development projects are likely to be driven by council-run local enterprise partnerships. This week, the Thames Gateway London Partnership – a sub-regional alliance including 11 local authorities – was working up plans for an LEP covering the London area of the Gateway. Any further infrastructure investment is likely to come from the new homes bonus scheme or TIFs. However, it is clear that Prescott’s grand dream is over. “Schemes will still happen, and one day those houses will be built,” says planning expert Stefan Webb. “But no one will notice. The targets will disappear and the area won’t be called the Thames Gateway any more.”