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Renew

Progress on the economic, social, physical and environmental aspects of regeneration requires an integrated approach which joins up planning and delivery across these aspects, so that change is mutually reinforcing.

3. Taking a lead - our new approach

The Spending Review 2004 and the Executive's Infrastructure Investment Plan set out our spending commitments on capital projects. These commitments underpin our approach to regeneration - improving Scotland's physical infrastructure and public services to meet the needs of business and communities.

The Executive and its agencies, especially Scottish Enterprise, Highlands and Islands Enterprise and Communities Scotland, are already playing a key role in regeneration. And, as highlighted in this statement and Appendices, there is already a considerable amount of regeneration activity under way.

But we aim to go much further. We want to play a wider, more strategic and much more ambitious leadership role on regeneration, by:

• Setting clear geographic priorities for regeneration and working with the private and public sectors to achieve real and lasting transformation there;
• Prioritising the investment that can make the greatest difference;
• Establishing a single point of contact at the Executive for public and private sector partners for specific priority initiatives, to facilitate effective discussion with the range of relevant policy interests;
• Making sure that key players, especially Communities Scotland and Scottish Enterprise and Highlands and Islands Enterprise, work closely together in partnership to plan, deliver and invest in regeneration;
• Removing the barriers to regeneration led by others, especially the private sector, and making it easier for others to work with the Executive and its agencies to secure a 'mixed economy' of investment;
• Maximising the impact of our investment by identifying and seizing new opportunities for collaboration across the Executive and its agencies on spending, and creating favourable conditions for investment;
• Modernising the planning system to ensure that development plans are renewed and kept up to date every 5 years;
• Promoting and demanding good design and architecture, and using sustainable development principles to deliver better places;
• Taking action right across the Executive, especially through targeted programmes like the Community Regeneration Fund, to support the renewal of our most deprived neighbourhoods;
• Supporting the creation of mixed communities;
• And, in doing all of this, promoting our vision of an open, just and inclusive Scotland, where respect and understanding are fostered and where everyone can live, work and take part in society to their full potential.

In assuming this national role, we will work closely with private sector interests, take full account of the role of local authorities as the key strategic player at local level, and recognise the role of community planning in bringing together key participants to act as a bridge to link national and local priorities better.

Realise

We believe that the landscape of players, policies and funding needs to be clearer, simpler and better joined up.

Working in partnership - policies, infrastructure and finance

A wide range of policies and programmes have a direct or indirect impact on regeneration. And a wide array of players from the public and private sectors are involved in delivering regeneration on the ground.

We believe that the landscape of players, policies and funding needs to be clearer, simpler and better joined-up and that we need to do more to enagage with the private sector and encourage their involvement and investment in regeneration. The purpose of this statement is not to superimpose another framework on the range of existing policies, or to create new objectives or processes: but to complement existing strategies and help ensure that the need to regenerate and renew communities across the country is tackled proactively in an integrated way.

For the Executive, the Enterprise Networks and Communities Scotland, working with local authorities, the private sector and others, are at the forefront of regeneration delivery - working together to promote economic growth and tackle poverty and disadvantage.

• Communities Scotland leads on housing investment and the regeneration of Scotland's most deprived communities. This includes managing the Community Regeneration Fund and other community regeneration programmes; investing in new and improved housing and the creation of mixed tenure communities; and promoting and supporting effective community engagement. It has also established the Scottish Centre for Regeneration, to identify and promote best practice in community regeneration, building on lessons from Scotland, the UK and further afield.
• Scottish Enterprise and Highlands and Islands Enterprise have a central role to play in large-scale regeneration projects and in targeted support for community regeneration initiatives based on their economic potential. This may include facilitating development of the overall vision and masterplan; setting up delivery vehicles; remediation of land; property provision; place marketing; and skills development, including access to training and employment opportunities.

Other national agencies, from Scottish Natural Heritage and Historic Scotland, to the Scottish Environmental Protection Agency and Architecture and Design Scotland, to sportscotland and Transport Scotland, also have a role to play.

Yet it is first and foremost at the regional, local and neighbourhood level where regeneration initiatives actually happen; where communities, local authorities, Communities Scotland, Scottish Enterprise, Highlands and Islands Enterprise (and their Local Enterprise Companies) and others lead, plan and deliver programmes; where developers, the construction industry and other businesses make regeneration real; and where the private sector invests and takes risks.

Community Planning Partnerships, which bring together the public, private and voluntary sectors at the local authority level, can and should take the lead strategic role in regeneration at this level, for example through the development and delivery of Regeneration Outcome Agreements ( ROAs). In addition, the regular renewal of the Development Plan by planning authorities will ensure that future development needs are actively considered in a comprehensive and co-ordinated way, with extensive opportunities for local communities to participate fully.

The Executive's policies, investment and funding programmes across all portfolios already have a major impact on regeneration. A few core policies are absolutely central to bringing about the economic, social, physical and environmental transformation of communities:

• Smart, Successful Scotland highlights the importance of transforming areas of untapped potential to make them attractive places to do business and to create employment and wealth, and of developing learning and skills at all levels to boost economic growth;
• The National Planning Framework addresses the spatial and land use dimensions of regeneration across Scotland and emphasises the importance of city-regions as drivers of economic growth;
• The Housing Policy Statement sets out our vision for housing across Scotland and the role of housing and estate renewal in regeneration, including the use of policies like community ownership where the opportunity for accelerating the process of housing improvement is most significant;
• The Cities Review recognised the significance of Scotland's cities as engines of national economic growth and led to the establishment of the city-region visions and strategies for co-ordinating their future development;
• Our approach to Closing the Opportunity Gap promotes the community regeneration of Scotland's most deprived neighbourhoods through improvements in employability, education, health, access to local services and the quality of the local environment;
• The recently published Sustainable Development Strategy gives priority to improving the quality of life of individuals and communities in Scotland, securing environmental justice for those who suffer the worst local conditions; and
• Our lifelong learning strategy, Life Through Learning: Learning Through Life promotes a Scotland where people have the confidence, enterprise, knowledge, creativity and skills they need to participate in economic, social and civic life; through, for example, community learning and development in some of Scotland's most deprived communities.

Modernising the planning system through the recently introduced Planning (Scotland) Bill, forthcoming policies, such as the National Transport Strategy; Employability Framework and associated strategy for reducing 16-19 year olds not in education, employment and training ( NEET), also have a key role to play. Other policies make a significant contribution: Ambitious, Excellent Schools and Determined to Succeed aimed at raising education and skill levels; health improvement policies such as Improving Health in Scotland and Prevention 2010; and our focus on tackling anti-social behaviour to make communities safer. Appendix B summarises some of the key policy and funding connections that are important for our regeneration policy.

The private sector

As we make clear throughout this statement, regeneration is not just about public sector organisations and public sector expenditure. The private sector is an essential player in regeneration. Where the private sector is willing and able to invest in the effective and sustainable transformation of an area without public sector involvement, then that opportunity should be grasped. Indeed, much of the purpose of public sector activity should be to act as a catalyst for, or lay the foundation for, private sector activity. We must also recognise that the wide-ranging improvements we want to see will take a life cycle of investment of more funds than traditional public processes and national economic policies can provide.

Scotland has one of the longest-established and respected financial and advisory sectors in the world. And we have long experience of Public Private Partnerships ( PPP) on which to build potential regeneration solutions for the future. Yet much more needs to be done to ensure that private sector players, such as developers, banks and the construction industry, view Scotland as 'open for business' on regeneration; and that they are fully aware of the opportunities available. We want to encourage private sector involvement in regeneration; to tackle real or perceived barriers to their involvement; and to secure a co-ordinated 'mixed economy' of investment which delivers sustainable regeneration and value for money. And looking forward, we want to engage in dialogue with the private sector on new forms of financial instrument to secure additional investment in transforming Scotland.

Infrastructure and investment

Our investment in Scotland's infrastructure - in housing; in transport; in water and sewerage projects; in new health facilities; in schools, colleges and universities; and in better sports and cultural facilities - also has an impact on regeneration. Our Infrastructure Investment Plan provides a clear picture of where we will target our investment over the next 10 years, enabling the private sector to plan ahead and gear up to take advantage of the opportunities available. Yet we recognise that constraints in our transport and water infrastructure can act as a block on regeneration. Appendix B outlines what we are already doing to address these constraints.

Scotland has a successful track record of using PPP to deliver investment in key infrastructure projects. PPP is working well and making a vital contribution to accelerated investment in public services. We believe that where it is appropriate and offers better value for money than direct delivery and conventional funding PPP is an effective way of delivering improvements to public services.

PPP is not however the only mechanism for levering private sector investment. Registered Social Landlords ( RSLs) across Scotland have a track record of attracting private sector investment in social housing. This has been accelerated through the Executive's Community Ownership Programme, which transfers the ownership and management of council housing to independent, not-for-profit registered social landlords. Indeed, the three whole transfers in Glasgow, Scottish Borders and Dumfries and Galloway have resulted in the transfer of nearly 100,000 houses to new, not-for-profit landlords and are expected to deliver nearly £2 billion of housing investment over the next 10 years. Tenants in Western Isles and Argyll and Bute have voted in favour of transfers which will be concluded later this year. Possible future transfers in Stirling, Inverclyde, Renfrewshire and Highland will deliver further significant private sector investment.

We are already providing £20 million to support three pathfinder Urban Regeneration Companies ( URCs) in Clydebank, at Craigmillar in Edinburgh and at Raploch in Stirling. These URCs are special purpose vehicles, bringing together the public and private sectors, to drive forward the delivery of complex, tightly focused urban regeneration initiatives. These URCs plan to lever over £400 million of private sector investment to support infrastructure and land improvements, the creation of business parks, new community facilities and new housing and environmental improvements. Other mechanisms, such as public-private Joint Venture Companies like the EDI Group (see case study) and other financial instruments for levering private sector investment, such as bond issues, land trusts and Property Investment Limited Liability Partnerships, are already being used in a preliminary way to deliver regeneration initiatives across Scotland and the rest of the UK. However, we have not so far considered their effectiveness or appropriateness at a national level; and, to date, we have provided little advice or support on such approaches to those involved in regeneration. We intend to change this.

The voluntary sector and the social economy

The voluntary sector has an increasingly important role in the delivery of services, especially those vital to promoting community regeneration. The Social Economy Review (2003) and Futurebuilders Scotland (2004) recognised that the social economy is active in many areas that contribute to the Executive's strategic objectives, including employment, training and childcare. The growth and development of the social enterprise sector is a key aspect of Scottish Executive policy in relation to the social economy. A Social Enterprise strategy will be published in summer 2006.

As highlighted in Appendix C, the Executive is already taking action to coordinate our policies, activities and investment more effectively and to attract private sector investment into regeneration initiatives. But, through our new approach, we want to increase the pace and impact of our interventions.

Our new approach

We will:

• Modernise the planning system to ensure that the renewal of development plans takes account of changing regeneration opportunities, and to ensure quicker decisions on individual planning applications to unlock investment. In addition, the Planning Bill includes specific provisions for major applications to ensure that they are processed expeditiously to achieve high quality outcomes;
• Set a clear framework, in particular through formal Memoranda of Understanding, for Communities Scotland and the Enterprise Networks to collaborate effectively at a strategic and operational level on the planning and delivery of regeneration, and ensure that other agencies play their full part in support;
• Ensure that regeneration is a key factor in future spending and investment plans, not just on a portfolio by portfolio basis, but in an integrated manner across the Executive as a whole;
• Seek to realign and consolidate the range of funding streams that support regeneration to inform strategic decisions in the next Spending Review;
• Maximise the regeneration value of our expenditure and investment by better coordinating the location and timing of our investment and achieving greater synergy across and between domestic and European funding streams;
• Examine the use of joint venture vehicles, PPP or single contract and area-based PPP packages to finance wider regeneration projects involving investment in schools, other public services and facilities and commercial premises;
• Examine the potential of innovative financial mechanisms and instruments for delivering regeneration, use these mechanisms where appropriate and provide information and advice to others who are considering their use;
• Improve our approach to project appraisal and value for money in regeneration and seek to apply the techniques and tests we have developed for PPP projects to regeneration;
• Require Scottish Water to provide sufficient strategic capacity over the period 2006 to 2014 to meet all estimated new housing developments and the domestic requirements of commercial and industrial developments to cover the changing needs of communities whether driven by the Executive's regeneration policies or wider issues;
• Provide funding of around £14m each year to fund any required improvements in local water infrastructure where, through its affordable housing programme, the Executive is acting as developer;
• Develop and implement a National Transport Strategy which, among other things, supports regeneration; and issue statutory guidance on regional transport strategies;
• Commence a Strategic Projects Review by 2007 to determine our priorities for transport infrastructure for the next decade;
• Maximise the impact of reduced European funding streams by targeting resources on the areas of greatest need;
• Evaluate the effectiveness of the pathfinder URCs in levering private sector investment and delivering complex regeneration projects;
• Learn from Community Benefit pilots to ensure that investment in regeneration delivers the optimum opportunities for people and businesses;
• Issue guidance to Community Planning Partnerships on their role in regeneration and the priority it is given;
• Use the Regeneration Outcome Agreements ( ROAs) that are now in place in all local authority areas across Scotland as the foundation stone for effective joint working on community regeneration by Community Planning Partnerships and, where appropriate, channel funding streams focused on the most disadvantaged communities through ROAs;
• Make Business Improvement Districts ( BIDs), initiated by local businesses to secure additional services to improve the business environment, possible across Scotland;
• Support Community Planning partners to deliver the equalities agenda and promote good equalities practice as integral to community regeneration;
• And, as part of monitoring and evaluation of regeneration policy, monitor compliance with the Race Equality Duty and other equality duties as they come into being.

Re focus

Capturing the unrealised potential of people and places must be at the heart of our approach to regeneration.

Our geographic priorities

The evidence from past initiatives outlined in Appendix A shows that the sustainable transformation of specific places requires achievement across a range of economic, social, physical and environmental outcomes and that there are a number of 'ways of working' that make success more likely.

Most importantly, it is clear that real and sustained regeneration cannot happen if there is an absence of economic opportunity available to people living in a specific place. Capturing the unrealised potential of our people and places must be at the heart of our approach to regeneration.

The role of cities

The evidence base underpinning the Executive's Review of Scotland's Cities illustrated the vital role of cities in driving their regional economy.

Cities remain the focal point for people, production of goods and services, technology development as well as retail, leisure and recreation. Numerous studies show that cities will increasingly drive future economic, social and physical development. A consistent set of factors underpin their success - universities, clusters of industry, transport hubs, pools of skilled labour.

Successful cities are complemented by a network of towns and villages, each with its own particular identity, needs and aspirations. The Executive and our agencies are keen to complement our cities with well-connected regions which can provide supporting services, contain multiple centres of employment and provide residential and recreational amenities.

Since devolution, the market, supported by targeted public sector interventions, has strengthened the relative position of our cities:

• Edinburgh is the second largest financial services centre in the UK after London, the sixth largest investment management centre in Europe and fifteenth largest in the world. Key regeneration projects include the development of the Exchange and Waterfront Edinburgh, which aims to transform derelict and contaminated land around Granton into a world-class living and working environment;
• Glasgow is now established as the UK's second retail centre after London. There has been continued economic growth in the city over the past decade and Glasgow is now Scotland's largest centre of employment. Investments in regeneration along the Clyde Waterfront and elsewhere, along with major investment in social housing through the Glasgow Housing Association, are further enhancing the competitiveness and image of the city and attracting businesses and people;
• Aberdeen is already recognised as an internationally connected global energy hub and is now taking advantage of the excellent diversification opportunities that renewable energy offers existing oil and gas suppliers;
• Dundee has emerged as a thriving regional economic and commercial centre which boasts growing biotechnology, high-tech manufacturing and digital media sectors;
• Stirling is strategically located at the heart of Scotland with excellent transport connections, a growing population and a reputation for a high quality of life; and
• Inverness has had strong population and economic growth over the past thirty years and is developing as a centre for high-tech manufacturing.

It is in cities and their surrounding areas that significant economic opportunity is apparent. Scotland's four main city regions already account for approximately 82% of Gross Value Added ( GVA) in the Scottish economy and 78% of the country's workforce. The Glasgow city-region is a striking example of the extent to which economic growth is driven by our key centres, accounting for 45% of Scotland's Gross Domestic Product ( GDP); 40% of Scotland's jobs; 44% of Scotland's exports; and 35% of Scotland's population.

That's why, under our new approach we will exploit the comparative advantage of our city-regions. Investing in key regeneration projects in these areas can deliver sustained economic growth, by creating new business locations, bringing under-used land back into economic use and creating employment opportunities for people not currently in work.

The National Planning Framework recognises that there is scope for spreading the benefits of economic activity more widely throughout Scotland, to relieve pressures in high growth areas such as Edinburgh and Glasgow and provide additional opportunities in areas such as Ayrshire, Inverclyde, West Dunbartonshire and Dundee. At the same time, we are clear that the employment benefits of economic growth should also reach those within and on the edges of our cities and that we need to consider local labour markets, in terms of the supply of, demand for and nature of employment opportunities, and people's skills levels and job-readiness. This underlines the importance of improving education and learning and of sustained action to tackle skills and employability, especially for those furthest from the labour market, as part of a joined-up approach to regeneration. The Executive's forthcoming Employability Framework and related strategy for tackling the issue of young people not in education, training or employment ( NEET) will set out how we intend to work with others to address this issue.

Setting our priorities: opportunity and need

Our approach to regeneration must be founded on realism. And that means hard choices. We have to face the fact that the Executive and its agencies cannot realistically aspire to regenerate everywhere at the same level of engagement at the same time. We have to prioritise our investments to reflect the finite nature of our resources and the fact that, in many cases, the market will be capable of driving renewal without public sector intervention.

In determining our geographic regeneration priorities for the coming period, we have considered a range of factors, including market opportunity, availability of labour, and the extent to which concentrations of deprived neighbourhoods and vacant and derelict land could link to emerging economic opportunities. We have also considered the work done by Scottish Enterprise in determining economic development zones throughout the country and drawn heavily on the opportunities highlighted within the spatial perspectives section of the National Planning Framework. We remain firmly committed to the priorities identified in the National Planning Framework - to coordinated action for the Clyde Corridor and West Edinburgh and to the important initiatives that are already in hand, such as the redevelopment of Ravenscraig. We are determined to ensure that disadvantaged communities benefit from development - economic opportunity alone is not a sufficient criterion for determining our priorities.

On this basis, we have decided that our current national regeneration priority should be the Clyde Corridor, encompassing the areas covered by the Clyde Gateway and Clyde Waterfront initiatives. These projects have the potential to stimulate economic growth on a national scale and act as drivers for smaller community regeneration projects throughout the wider city-region while addressing the concentrated deprivation in the area. For example, the Gateway initiative aims to create 21,000 new jobs, 10,000 new homes, 400,000 square metres of employment space, and 46,000 square metres of retail space for the benefit of the city-region.

We will also support major regeneration initiatives with a regional impact, initially in Inverclyde and across Ayrshire. These projects will look to address specific constraints in these areas, with positive benefits ultimately dispersing throughout the regional economy.

These are initial priorities which will be kept under review in light of progress and economic and social developments across the country. However, the Scottish Executive's commitment to regeneration is for the long term. We will assess the effectiveness of the different types of intervention that we make and learn lessons for the future.

The next National Planning Framework will have a key role in promoting urban and rural regeneration. It will set out the Executive's strategic development priorities more precisely, informed by comprehensive spatial analysis. In addition, as part of making the National Planning Framework a more powerful instrument for securing delivery of national policies and programmes, we propose that, in future, developments of national significance should be subject to a new process for determination. This will give Scottish Ministers the opportunity to intervene where necessary to expedite decisions. These national developments could include major areas of regeneration.

Clyde Corridor

Glasgow has experienced consistent economic growth over the past decade, with productivity above the Scottish average and unemployment having been significantly reduced. The city is also being physically transformed by large-scale renewal projects, mainly led by the private sector, and by unprecedented investment in private and social rented housing.

However, the long-term decline of traditional industries has left a legacy of under-used assets - both land and people. Almost 100,000 people of working age in the city are currently economically inactive and dependent on Incapacity and other state benefits. Glasgow City also contains 12% of all vacant and derelict land in Scotland.

A major challenge for the Glasgow Community Planning Partnership, the Clyde Waterfront Strategic Partnership and others involved in regenerating the city will be to ensure that these latent resources can be utilised to meet the demand for employees and commercial space.

There is a concentration of Scotland's most deprived communities within the Clyde Corridor, where social exclusion, economic inactivity, physical dereliction and decay have been long-standing problems. However, the area boasts a formidable set of attributes which makes it ripe for regeneration. These include:

• Access to a major centre of population;
• Available land for sustainable business development;
• A global gateway, close to Glasgow International Airport;
• Internationally renowned academic institutions;
• Proximity to Glasgow city centre, the UK's second biggest retail centre; and
• High quality private sector developer activity and ambition.

With public and private sector investment in the Clyde Corridor already estimated at £2.8 billion over the next 10 years, the Clyde Waterfront and Gateway projects will have a significant impact on the whole of the Scottish economy. Moreover, given Glasgow's high share of concentrated deprivation, these projects also have the potential to make an impact on Scotland's overall levels of poverty and deprivation.

Clyde Waterfront

The regeneration of the Clyde Waterfront has been one of the most striking symbols of Glasgow's continuing renewal. The individual developments which make up the Clyde Waterfront regeneration plan have, to a considerable extent, been market-driven. However, the public sector has played an important role in taking an overview and in identifying and pursuing particular opportunities such as the construction of the digital media campus at Pacific Quay; the development of the international financial services district at the Broomielaw; the establishment of Clydebank re-built; and in facilitating the mixed residential, commercial and leisure developments at Glasgow Harbour and Renfrew Riverside.

Public sector partners will need to work effectively in partnership to maximise the impact of our collective investment. This will include ensuring that people in local and surrounding communities have the requisite skills to take advantage of the opportunities arising from the project, strengthening the linkages between new developments and existing communities and determining the next set of priority locations along the Clyde.

Clyde Gateway

The Clyde Gateway project has been developed by Scottish Enterprise, Glasgow City Council and South Lanarkshire Council to exploit the economic development potential of the proposed M74 Northern Extension and the East End Regeneration Route.

The 25 year plan incorporates developments in the East End of Glasgow and adjacent areas of Lanarkshire, aimed at promoting economic activity, improving the environment and closing the opportunity gap between this area and other parts of Scotland.

The East End of Glasgow, together with adjoining parts of Lanarkshire, contains some of Scotland's poorest communities and has suffered from persistent physical, social and economic deprivation. Population is declining faster than in the rest of the city-region, economic activity is extremely low, and there are low levels of employment. The areas also contain almost 30% of all derelict and contaminated land in Glasgow and South Lanarkshire and there are significant drainage infrastructure and contamination constraints. When implemented, the improvements to transport infrastructure will make the Gateway area one of the best connected urban centres in Scotland, in close proximity to Glasgow city centre. Subsequent physical infrastructure works, to be undertaken principally by public sector partners, will allow the creation of a new, highly accessible, quality business location.

A real opportunity exists for the public sector to address specific market constraints and allow the private sector to drive renewal, as they have done along the Clyde Waterfront. Given the scale and complexity of the Gateway initiative and its current state of development we believe that the best way of harnessing the efforts of all the partners to deliver the vision is by the creation of a dedicated Urban Regeneration Company for the Gateway to drive the initiative forward and provide the long-term certainty needed by private sector investors.

Successful delivery of the Clyde Waterfront and Gateway projects will make a real contribution to the economic and social development of the city-region and Scotland as a whole, capitalising on the economic growth potential of Glasgow, where it is forecast that Gross Value Added ( GVA) could grow by an average of 2.4% per annum over the next decade. The regeneration of the Clyde Corridor stands to bring massive benefits to the national economy, not least in bringing substantial resources of land and human resource back into economic use.

In designating the Clyde Corridor as a national priority, we will put these flagship regeneration projects at the forefront of our agenda.

Our new approach

We will:

• Work with Glasgow City Council, South Lanarkshire Council and their partners to establish an Urban Regeneration Company ( URC) to drive forward and deliver the regeneration of the Clyde Gateway;
• Provide start up funding and further support to the Gateway URC;
• Engage in close and sustained collaboration with all local partners to ensure that the Gateway and Waterfront visions become a reality;
• Ensure that the status of the projects is reflected in the priorities of our delivery agencies;
• Assess the extent to which we can prioritise investment from across the Executive's portfolios in support of the regeneration of the area;
• Assess the case for infrastructure investment in the Clyde Corridor as part of future Spending Reviews;
• Improve transport connections through our support for the West of Scotland Transport Partnership and the Strategic Projects Review;
• Support the Glasgow bid for the Commonwealth Games as a springboard for further area regeneration in Glasgow that will deliver real and lasting benefits for the people of Glasgow as well as a world-class games;
• And, work with Glasgow Community Planning Partnership to foster a more strategic approach to regeneration, which ensures that the spend and activities of the Council and its partners and regeneration funding streams such as the Community Regeneration Fund (£124m - 2005/08), Cities Growth Fund (£36m - £2006/08), and Working for Families (£5m - 2006/08) link effectively to the economic opportunities arising from the Clyde Waterfront and Gateway projects.

Inverclyde and Ayrshire

Both Inverclyde and Ayrshire have suffered the effects of the decline in traditional industries, such as manufacturing and coal mining and have persistently high levels of unemployment, deprivation and depopulation. However, both have many assets, such as good transport connections, increasing property markets, high quality natural environments, a strong cultural heritage and considerable scope for leisure and tourism activities.

Inverclyde and the three local authority areas which make up Ayrshire as a whole have the potential to become better and more fully integrated into the Glasgow city region and wider economy of the central belt. The opportunity to feed into and share the economic growth potential of the regeneration activity in the Clyde Corridor should be a prime objective as regeneration plans for areas such as Inverclyde, Irvine Bay in North Ayrshire and Kilmarnock Town Centre in East Ayrshire evolve.

On their own, these projects will not have a transforming effect on the wider region. However, when combined with other investment, they can bring added impetus to the immediate project area and can contribute to the development of the wider city-region economy.

The local authorities in North Ayrshire and Inverclyde are developing masterplans for the regeneration of Irvine Bay and Riverside Inverclyde and for spreading the benefits to the wider communities. They intend to take these initiatives forward through the establishment of dedicated Urban Regeneration Companies.

As in the Clyde Corridor, Community Planning Partnerships in Inverclyde and North, East and South Ayrshire have an important role to play in setting clear regeneration objectives that capitalise and build on individual projects in their respective areas.

Our new approach

We will:

• Provide start-up funding and further support to establish two new pathfinder URCs to deliver the regeneration of Irvine Bay and Riverside Inverclyde;
• Pursue opportunities for regeneration with a regional impact in Inverclyde and across Ayrshire;
• Ensure that the status of the projects is reflected in the priorities of our delivery agencies and local Community Planning Partnerships;
• Support selected projects and shape them to ensure that they reflect our wider regeneration objectives;
• Ensure that the economic development impact of these projects on the wider city-region is maximised;
• Improve transport connections through our support for the West of Scotland Transport Partnership and the Strategic Projects Review;
• Consider the extent to which investments in enabling infrastructure will benefit the regeneration of regional priority areas;
• Work with the Community Planning Partnerships in Inverclyde and the three Ayrshire authority areas to foster a more strategic approach to regeneration which links effectively with local and regional economic opportunities;
• And, work to ensure that all of these activities deliver real and lasting benefits for people who live and work in these areas.

Re develop

Although physical development on its own will not revive communities, land and property remain central to effective regeneration

Land and property

As noted in Appendix A, the evidence from past regeneration programmes indicates that, on its own, physical development will not deliver effective regeneration. Nonetheless, the development of land and property is still central to regeneration, especially in areas which remain blighted by industrial restructuring, such as ex-coalfield areas, and in the most deprived areas. This is underlined by the fact that people in the most deprived areas are almost five times more likely than those in the least deprived areas to live within 600 metres of a derelict site and almost 10 times more likely to be living close to multiple derelict sites.

Development can generate new economic opportunities - and related jobs both at the construction stage and for the longer term. It can provide new or improved homes. It can bring improvements to local facilities and services and the natural and built environment. Furthermore, visible activity on the ground provides a clear signal of change and can generate renewed confidence and investment in an area.

As part of its commitment to sustainable development, the Executive's land use planning policies promote the reuse of vacant and derelict and brownfield land for development, in preference to greenfield land. Similarly, the Executive is committed to securing the clean up of contaminated land that is creating unacceptable risks to public health, biodiversity or property. We support such action through targeted funding. However, we also recognise that the problems, risks and uncertainties of developing land, especially where that land is vacant, derelict or contaminated, can sometimes inhibit regeneration. For example:

• The need for land remediation to tackle contamination from mainly historic industrial uses may be too time-consuming, technically difficult and/or costly to be economically viable for the private sector alone;
• The value of a remediated site may sometimes be less than its original purchase price plus the cost of remediation; and/or
• It may be difficult to assemble the right site for regeneration because land is in the hands of a number of owners and/or because a minority of these may be reluctant to accept compensation unless forced to do so through a Compulsory Purchase Order ( CPO). Such procedures are sometimes perceived as complex and time-consuming and, as such, unattractive to local authorities.

There are also land use planning issues which can inhibit regeneration. For example:

• Out-of-date local plans can inhibit or discourage private sector developments by failing to offer any certainty that they will get planning permission; and/or
• Decisions on planning applications for major developments can take too long, sometimes as a result of the need to negotiate Planning Agreements for specific development sites.

We are clear that where land can be developed through private sector investment, through the planning system and/or through innovative use of public/private partnerships or joint venture vehicles, this is what should happen. However, we recognise that this is not always possible and that, whilst we are already taking action, the Executive, its agencies and the wider public sector needs to do more to 'oil the wheels' of the development process; to provide gap funding to stimulate market interest; to realise the value and potential of public sector land, assets and investment; and to act as a catalyst for change.

As highlighted in Appendix C, the Executive is already taking action to tackle the problems of vacant, derelict and contaminated land and to maximise the regeneration impact of land; to stimulate economic growth, create jobs and improve the quality of life for surrounding neighbourhoods. But we want to do more.

Our new approach

We will:

• Work with private and public sector stakeholders to improve the land remediation and assembly process for example through simplifying or providing guidance and support on Compulsory Purchase Orders ( CPOs);
• Maximise the regeneration potential of public sector land and assets and play a more proactive role in strategic land acquisition to facilitate regeneration;
• Examine mechanisms for realising increases in land values arising from public sector investment in development;
• Work with stakeholders in Scotland to ensure that the UK Government's proposals for Planning Gain Supplement are workable in a Scottish context and support the Executive's regeneration objectives;
• Provide a further £24 million over the years 2006 to 2008 to tackle vacant and derelict land. In addition to Glasgow, North Lanarkshire and Dundee, this new funding will support land remediation for the Clyde Gateway project in South Lanarkshire;
• Complete the development and implementation of guidance and regulations on disposal of public sector land under section 11 of the Local Government in Scotland Act 2003;
• Work with the public and private sectors to tackle the run down of former coalfield areas;
• And, work with others to gather and disseminate information and best practice on land-related issues.

Re unite

A key focus of our housing and regeneration policies is the creation of mixed communities.

Creating Mixed Communities

A key focus of both our housing and regeneration policies is the creation of mixed communities - communities where, among other things, there is a mix of incomes and sufficient range, diversity, affordability and accessibility of housing within a balanced housing market. Evidence demonstrates that these communities are more likely to be sustainable in the long term.

Scotland's most deprived areas are characterised by high concentrations of social rented housing. In the most deprived areas two out of three households are social rented, while in the least deprived nine out of ten are owner occupied. This tenure mix, or lack of it, within the most deprived areas results from the most disadvantaged people being dependent on social housing and historical social housing building patterns. If we are to turn around the most disadvantaged communities, it is essential to achieve tenure mix, and create opportunities for those who move up in income terms to meet their aspirations by moving up the housing ladder locally, rather than moving out. This is partly about the quality of local services such as schools, leisure and retail facilities, about the overall characteristics of the community and about investment in better private and social housing.

As highlighted in Appendix C, our mainstream housing and planning policies and funding instruments are already geared to encouraging more mixed communities, and to ensuring that there are sufficient numbers and variety of housing to give people genuine choice and that difficulties in moving between or within areas and tenures are minimised. The modernised Right to Buy has an important role in this - enabling people to take control over their housing choices and fulfil their aspiration to home ownership. We also want to create a housing system which supports growth and employment by enabling people to live in areas convenient for their work.

The housing system as a whole is interlinked. Measures introduced to improve one particular part of the housing picture often have implications elsewhere. We need to consider all aspects of the system (both subsidised and market housing) if our policies are to be fully effective. Our initiatives on land-use planning, transport, water services infrastructure and the economy will play a major role in influencing what can be achieved. Similarly, the successful delivery of our housing objectives will help to meet our aspirations for tackling poor health and poverty and promoting sustainable development. But we want to increase the pace and ensure that our housing policies and programmes support the creation of mixed communities. And we are keen to do more to explore new approaches and new mechanisms with the specific aim of creating mixed, stable and sustainable communities.

Our new approach

We will:

• Invest £1.2 billion over the three years to 2007/08 and attract significant private sector investment to provide 21,500 affordable homes (over 16,500 socially rented and nearly 5,000 low-cost homes);
• Continue to ensure that housing investment is linked to our regeneration priorities through the targeted management of our Affordable Housing Investment Programme ( AHIP);
• Introduce a new Strategic Housing Investment Framework for the distribution and management of housing investment resources, balancing investment in regeneration priorities with the need for affordable housing in other areas;
• Modernise the planning system, making it more proactive in releasing land through the development plan process and faster in the handling of applications for housing development;
• Do more, through initiatives and programmes such as Homestake and Grants for Owner Occupation, to encourage private sector developers and Registered Social Landlords to build for sale or rent in the most deprived areas;
• Use our housing investment to stimulate good design across Scotland, helping to attract people to areas which they might not otherwise consider;
• Build on existing housing policies and instruments to deliver a small number of mixed tenure demonstration projects in areas where there is potential to link opportunity and need and where there is scope for major change in the existing housing mix;
• Provide £50 million over the three years to 2007/08 through the Housing and Estate Regeneration Fund ( HERF) to provide new housing in support of local regeneration priorities;
• Introduce Housing Renewal Areas to tackle housing renewal in areas of poor or declining standards;
• Examine evidence on the relationship between allocations and sustainable regeneration and consider whether further guidance on allocations policy and practice is required;
• And, continue the modernised Right to Buy scheme to offer the opportunity of home ownership to people who might not otherwise have had that chance.

Re juvenate

Regeneration is about creating vibrant, safe communities where individuals and families want to live and businesses want to invest and grow.

Growing Vibrant Communities

Regeneration is about creating vibrant, safe and attractive communities where individuals and families from all backgrounds want to live and businesses want to invest and grow: communities which are well planned and well designed; communities with a diverse and attractive environment; communities which provide opportunities for culture and sport; and communities with a sense of identity and pride.

We need to look closely at our built environment, at the quality of open spaces and at the streetscapes. We need to create places where people can choose to exercise and children can play outside. We want to give people the opportunity to walk or cycle rather than drive. We want local services, such as schools, health and other public services, to be accessible and integrated into the fabric of life in our communities, so that people have the support they need when they need it and can participate fully in decisions affecting their environment. We want to foster a sense of pride and identity in our communities without fear of crime and other forms of antisocial behaviour.

Liveability

Investing in good design and public spaces that are a genuine source of civic pride is a sound investment which can help transform the perception and reality of our neighbourhoods, towns and cities. Well designed and efficient buildings and public spaces make communities more desirable places to live and work; they help retain and attract services, investment and job opportunities; and they can bring prestige to an area and raise its commercial and public profile.

Regeneration projects should therefore embrace good design as a means of achieving value for money and sustainable development. Well designed projects which function well and are adaptable to changing circumstances are valued, respected and liked by the communities they serve. They can have long, effective lives and relatively low life-cycle costs to the owner, user and communities.

Dereliction, a lack of green spaces, poor quality housing, crime and vandalism and other forms of anti-social behaviour have a wider impact on the health and psychological well-being of our communities. We know that damage to the environment hits our most disadvantaged areas hardest and that people's life chances and opportunities are damaged by a poor quality of life and a degraded environment. We therefore aim to put environmental justice and sustainable development at the heart of our approach to regeneration.

Our recent response on the Cultural Review promotes the economic and social benefits of culture. Meanwhile, the National Strategy for Sport, Sport 21, provides a vision for the development and delivery of Scottish sport. These policies make it clear that culture and sport should be open to all and play a critical role in creating vibrant and strong communities as part of wider regeneration initiatives. They can be important drivers of regeneration and can also be used to enliven regeneration plans and projects and involve communities. As highlighted in Appendix C, we are already taking action to create and grow vibrant communities. We intend to do much more.

Our new approach

We will:

• Support the Glasgow bid for the 2014 Commonwealth Games as a springboard for further regeneration in Glasgow;
• Help local authorities and others embed culture in their planning activities and promote the beneficial regeneration impacts of culture;
• Through our Sustainable Development Strategy, make improving the quality of greenspace in Scotland a priority: building on the investment which is already being made to deliver projects throughout Scotland, identifying the most effective delivery mechanisms, and releasing funding opportunities through a review of funding streams;
• Support Architecture and Design Scotland in its strategic role of enhancing the knowledge and skills of people involved in the development process, promoting best practice and assisting with design review and masterplanning;
• Use our investment to promote better design;
• Publish a Planning Advice Note on Designing Safer Places;
• Review the range of funding for local environmental regeneration projects with a view to simplifying the range and scope of funding streams so that funding is directed at projects in a way that secures the most significant outcomes, especially for Scotland's most deprived communities;
• Provide £8 million over the next 5 years through Historic Scotland's, new Historic Environment Regeneration Fund to drive the regeneration of some of our historic places and disadvantaged communities;
• Provide further advice to planning authorities and developers on securing sustainable buildings through new advice on building standards and advice on the use of micro-renewables;
• Work across the Executive and with partners such as sportscotland to increase participation amongst disadvantaged and under-represented groups;
• Promote cultural planning as a tool in developing regeneration initiatives;
• And, provide further advice and guidance to planning authorities on taking account of culture and sports as part of the renewal and updating of Development Plans.

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