Regeneration in the north of England will stall as the economy faces a “public sector recession”, a report published today has warned.

Today, the European Institute for Urban Affairs – part of Liverpool John Moores University – published its 85-page report “Credit crunch and its impact on regeneration”.

It said the squeeze on public sector funding could compound existing problems caused by the lack of private sector finance. The report quoted a chief executive at one regional development agency in the north that said the prospects for urban development in the area looked bleak.

“Construction and regeneration have been the hardest hit of any single sector. I don’t see an end for a very long time. There is a public sector squeeze. There is a black hole in regeneration. Unless something radical is done we are destined for five years of piecemeal and very small development,” he said.

The study, which was led by Professor Michael Parkinson at the European Institute for Urban Affairs, said too much emphasis has been placed on short-term rescue remedies rather than longer term funding strategies.

“Many are concerned about what will happen when time-limited programmes run out,” says the report. It highlights the soon-to-end Kickstart programme, which accounted for over 50% of housing starts in the northwest in 2009.

Rescue initiatives such as the government’s Housing Stimulus package were criticised for causing confusion and bureaucracy.

They were also said to fly in the face of calls for simplification of public programmes as represented by the Total Place Initiative.

To read the full report click here: Credit crunch and its impact on regeneration – European Institute for Urban Affairs

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