This forum ran from 18 May 2006 to 27 September 2006 and is now closed.
Thank you for these contributions on the subject of Core Cities, Smaller Cities and Larger Towns. It is helpful to hear your views, and we will take account of them.
This webforum discussion forms part of DCLG’s Cities and Towns programme, in which we are speaking with cities and towns across England, in particular key stakeholders, about their vision, what will enable and hinder achieving that vision, and how the Government can help.
Ministers have undertaken a number of Summits in 2005 and 2006, with Core Cities, Small and Medium Cities and Larger Towns; as well as two webchats in May 2006; and we have heard a wide range of comments and suggestions from cities and towns.
We are continuing to work with Core Cities, Smaller Cities and Larger Towns in helping them to achieve their vision, and will be responding to their business cases and working with them on their Local Area Agreements over the next few months.
Thank you again for your contributions. You have raised a number of interesting points, and we would like to respond briefly to three of them.
Regional Economic Performance
The Government wants to see all regions of England performing well; and that is why it has set Regional Economic Performance Public Service Agreement (REP PSA) target 2: to make sustainable improvements in the economic performance of all English regions by 2008, and over the long term reduce the persistent gap in growth rates between the regions, demonstrating progress by 2006. The REP target is assess in terms of the gap between the greater south east (i.e London and the two surrounding regions, the South East and the East) and the rest of the country, rather than focussing on London specifically.
The latest figures show the gap in Gross Value Added between the Greater South East and the rest of the country narrowing. Across both 2003 and 2004, average GVA growth rate per head for the top three regions was 4.3% compared to 4.9% for the bottom six regions. This is a combination of faster economic growth in North and Midlands in the past few years and slower growth in the South, made up of a slight rise (0.2%) against trend GVA growth in NMW, and a fall (0.9%) in GSE). However, we should not read too much into one set of figures. These may simply reflect a cyclical trend rather than any long-term change.
Turning to the issue of London, London is a global city and generates very high GVA per head partly because of its sheer size which enables it to benefit from the economies of scale, specialisation and so on that permits.
Further, strong growth in London is important for the whole UK economy. There are strong links between growth in the South East and growth in the other regions suggesting that London’s growth is not at the expense of other regions.
Constraints on London’s economic development would be likely to harm the economy and job growth of England as a whole, by potentially preventing some private sector investment from happening at all and by diverting other investment to our European and international competitors.
You can see more information on regional economic performance on the DCLG website at: www.communities.gov.uk/index.asp?id=1122989.
City-Regions and Different Types of Settlements
The Government wants City-Regions to work for the benefit of all types of cities, towns and areas. We recognise that the needs, form and function of Core Cities, small cities, larger towns and rural areas are all different, but we believe they can work together for everyone’s benefit, by recognising their differences and developing complementary roles. For example, emerging research on medium cities suggests they prosper by finding a distinctive economic niche which is complementary to that of a major city in the vicinity.
Planning for Housing in Rural Areas
It is not government policy to minimise housing growth in rural areas. Draft Planning Policy Statement 3 (published December 2005) requires regions to provide the strategic framework for housing provision in rural areas in regional spatial strategies. Within this framework, local planning authorities, in their local development frameworks, should make sufficient land available for both market and affordable housing in order to sustain rural communities.
The focus for significant development should be market towns or local service centres that are well served by public transport and other facilities. However, development will need to be provided for in villages and other small rural communities where it’s needed to contribute to their sustainability.
Kenneth Cameron
Department of Communities and Local Government
September 2006