Barnsley Council should have greater control over local regeneration budgets, according to new research published today (Wednesday) by the Centre for Cities. The research argues for the creation of an ‘Economic Development Contract' that would enable Barnsley to set its own regeneration spending priorities.

The report says that Economic Development Contracts (EDCs) could replace the complex system of disconnected funding pots and agencies that currently control regeneration spending in Barnsley and other English towns. A single fund would be established, giving Barnsley the ability to push ahead with key local priorities, such as the regeneration of the town centre and the ‘Remaking Barnsley' strategy.

The report argues that greater financial flexibility would help Barnsley to raise more money for development. This would help to bring in more private investment – like the Barnsley Markets and Gateway Plaza projects - and to promote regeneration beyond the town centre.

Adam Marshall, Centre for Cities researcher and report author, said:

“Barnsley – and other towns across England – needs more financial freedom to make regeneration happen. The current maze of regeneration funding is inefficient. Dozens of departments and agencies are involved in decisions that could be taken more effectively if funding was controlled locally. Economic Development Contracts would help to solve this problem.”

The report also recommends:

• Elected mayors for ‘city-regions' around Greater Birmingham and Greater Manchester, who would control substantial regeneration, transport and skills spending. They would also be able to levy up to five per cent on the business rate to spend on strategic transport projects.
  
• A small group of other city-regions could gain devolved powers after Birmingham and Manchester, including Leeds and Sheffield. Barnsley would gain from being part of one of these empowered city-regions – for example, through more investment in transport links.

City Leadership: Giving City-Regions the Power to Grow, by Adam Marshall and Dermot Finch, is available here

Cllr Stephen Houghton, Leader of Barnsley Metropolitan Borough Council, said:

"Barnsley welcomes this report from the Centre for Cities - especially the conclusion that England's smaller cities and towns need more powers in order to regenerate and grow. This report lays out important policy changes that would give towns like Barnsley more freedom to build up their local economies."

Notes to Editors:

Local Area Agreements were introduced in 2004 to bring together funding streams and improve local government's financial flexibility. They are composed of four blocks:

1. Children and Young People
2. Safer and Stronger Communities
3. Healthier Communities and Older People
4. Economic Development and Enterprise

Economic Development Contracts (EDCs) would replace the ‘fourth block' of Local Area Agreements. They would join up existing regeneration funding streams, and devolve greater control over spending decisions and outcomes to the local level.

EDCs would establish an agreed set of regeneration objectives, allowing funding streams from central, regional and local government bodies to be pooled and devolved. Funds from the Regional Development Agency Single Pot, the Local Transport Plan, Single Regeneration Budget (and successors), the European Union, LEGI (for those areas that get it), LABGI, and the local authority (capital and revenue funding) itself could be included.

EDCs could also give Yorkshire Forward, the Government Office for Yorkshire and the Humber, and other agencies the confidence to pool and devolve more substantial regeneration funding to Barnsley.

The Centre for Cities is an independent urban research unit, based at the Institute for Public Policy Research (ippr). Launched in March 2005, it is taking a fresh look at how UK cities function. Tom Bloxham MBE is the Chair of the Centre for Cities Steering Group.

The Centre's research work this year focuses on eight cities and towns: Birmingham, Manchester, Liverpool, Sunderland, Derby, Doncaster, Barnsley and Dundee.