HC Deb 21 June 2002 vol 387 cc584-90

Motion made, and Question proposed, That this House do now adjourn.—[Jim Fitzpatrick.]

2.33 pm
Mr. Andrew Love (Edmonton)

I want to highlight the level of deprivation and social exclusion in my constituency, which is characterised by a weakened economic base resulting in concentrated unemployment and consequently social disadvantage and a poor physical environment. I shall illustrate that with reference to two recent residents' surveys in the area, the first by MORI, which was carried out in our neighbourhood renewal area. The neighbourhood renewal scheme covers the 10 per cent. of most deprived wards in the country, including four wards in my constituency; 30 per cent. of my constituents or 24,000 people live in those wards. Just over 1.000 respondents were interviewed by MORI, which gives the study a reasonably good statistical reliability of plus or minus 3 per cent. A small area study was also carried out in one of my neighbourhood renewal wards, which has about 1,500 residents. Two hundred people responded, so reliability is not as good—plus or minus 7 per cent.

The findings of both studies are interesting. For example, there is a high incidence of households with children—43 per cent., compared with a national figure of about 29 per cent. There is a high incidence of one-parent families locally—17 per cent., against a national figure of 7 per cent. Perhaps not so surprisingly, the studies showed a large ethnic minority population—about 43 per cent. If we include the Greek and Turkish Cypriot communities, that rises to 50 per cent.

The area shows all the classic signs of deprivation and disadvantage, such as low skills—35 per cent. have no qualifications at all; poverty—the average weekly income in the area is £294, which does not compare well with the London average of £492; low self-esteem—only 26 per cent. of local people think that the area has community spirit, compared with 49 per cent. at national level.

Like many other local authorities, Enfield has a wide variety of area-based initiatives. I mentioned my neighbourhood renewal area, covering four of the most deprived wards. There is also a sure start initiative, involving 67,000 local residents; an objective 2 area for European structural funding, which runs up the eastern side of my constituency; and an education action zone, which stands out a little from all the other initiatives.

The problem is that all the various initiatives overlap in a way that is confusing to local people. There are separate departmental objectives and priorities. Some are driven locally through the local authority, some regionally and some at the departmental level. For example, economic regeneration has become the responsibility of the London Development Agency, but social regeneration is still locally driven.

We often speak of neighbourhoods, but everyone has a different definition of the term. Recently in the London borough of Enfield, the ward level, which has been the traditional proxy for the neighbourhood, has just increased in size by 50 per cent. because of boundary changes.

All that leads to additional complexity, greater fragmentation and bureaucratic overload. When are we going to reduce the number of separate area-based initiatives? How can we reduce and, we hope, eliminate overlap at local level, which is so confusing to people? What impetus is being given at departmental level to prioritising greater coherence, focus and targeting in our most deprived areas?

Last year, following the national consultation exercise carried out by the social exclusion unit, the national strategy action plan entitled "A new commitment to neighbourhood renewal" was produced. That outlined the need for a long-term comprehensive approach to deprivation and tried to address that on the basis that No one should be seriously disadvantaged by where they live". The plan set a time scale of 10 to 20 years for achieving that.

A neighbourhood renewal fund was created to narrow the gap between the most deprived 10 per cent. of areas and the rest of the country. In Enfield we received £4 million, which was allocated to the four wards that I mentioned over a three-year period. The local authority has chosen—rightly, in my view—to include a fifth ward that was not designated, because of the severe disadvantage experienced by people living there.

Within the neighbourhood renewal function, the local authority retains the flexibility to use some of those funds for disadvantaged areas across the entire local authority. As a result, neighbourhood renewal must address health, crime, housing and the environment, and try to narrow the gap between the level of all those services locally and the average across the country.

I accept that that cannot be done without the bending or re-allocation of mainstream services discussed in the report, but I believe that the target is ambitious and the time scale tight. It is important to recognise the pump-priming role of neighbourhood renewal funding in creating new and innovative services and changing the way in which mainstream services are provided in the locality. We need to give careful consideration to the level of resources that will be needed in our neighbourhood renewal function if we are to achieve the objectives that we have set for it.

Similarly, we need to look carefully at and address the significant erosion that there has been in social capital in deprived areas, and my study contained some alarming conclusions. Only 17 per cent. of the population are actively involved in any way in the community, and in the past year, only 15 per cent. have done any voluntary work, and that is against a backdrop nationally of 24 per cent. But perhaps the most surprising finding was that 70 per cent. of people said that they did not want to be involved in any way.

If regeneration is to be successful in such an area, the first thing that we must do is to create a sense of ownership for what is happening in the community, and people must feel involved and empowered through the process. The only way in which that can be achieved is to build capacity locally. That was traditionally a service that was provided through the single regeneration budget, but as the Minister will know, that ended with round 6. Those budgets have now been absorbed into the regional development agencies, and they are given flexibility to pursue their own objectives. The RDAs recently issued a statement saying that they will continue to prioritise social regeneration, but people question how much of a priority will be given to that capacity building.

Last year Enfield received £59,000 in neighbourhood renewal funding. If that is the only source of capacity building, frankly, we will not be able to achieve much, so, again, I should like those budgets to be expanded so that we can address the real decline in social capital locally.

The action plan that was brought forward highlights the need to co-ordinate services and to address the needs of each locality, and it does that through what is called a local strategic partnership. One was set up in each of the 88 designated districts throughout the country. After a pretty sticky start, I have to admit that Enfield's strategic partnership is now up and running and, I believe, functioning effectively. It is certainly bringing together the public, private and voluntary sectors, as was intended.

But the strategic partnership has not yet achieved any links with the local communities that it is supposed to serve. Although a forum that brings together the police, the local authority, the NHS and the education department is a good thing in itself, it will not necessarily end up being accountable to the community. It could just as easily, like many of those services themselves, become remote and unresponsive. We need to create links with the community and to inspire people to become involved, to participate and to support the objectives that we are trying to achieve.

That can best be done through neighbourhood management, and there have been some pathfinders. Sadly, last year, because the view was taken that the local strategic partnership had not developed to the proper extent, Enfield was not included. But if we are to overcome the problems that I think exist in my local neighbourhood renewal area, it is critical that we have one of those neighbourhood management pathfinders in order to carry out our work.

Much of the neighbourhood decline can be traced back to the rise in unemployment that comes when industries move away and, classically, that is what happened in my neighbourhood renewal area, where unemployment levels are significant. I want to illustrate that by drawing a comparison with two other areas, not in Enfield but in the authority next door, which the Minister will know well. One is a new deal for communities area in Seven Sisters and the other is a single regeneration budget area in Northumberland Park. I choose Northumberland Park because it lies immediately adjacent to my neighbourhood renewal area. Both those areas cover a significant population of between 12,000 to 15,000 people.

Unemployment in the ward immediately adjacent to Northumberland Park stands at about 11 per cent. In Northumberland Park, unemployment is 13 per cent. In Seven Sisters, it is 14 per cent. Of the long-term unemployed in my area, one in four have been unemployed for more than a year. Perhaps surprisingly, the study shows that there is a significant lack of motivation among the unemployed—84 per cent. are not looking for work. The Government introduced an employment zone to deal with that deep-seated unemployment in the Northumberland Park and Seven Sisters area. That has been a good development. Their evaluation of the past two years of employment zones shows that more than 17,000 jobs have been created in the 15 zones around the country—at no cost to the Government. Extension of employment zones is long overdue. As I am immediately adjacent to the Haringey employment zone, where there are high levels of deep-seated unemployment, it is important that Enfield should be given some consideration when that happens.

Finally, I want to talk about the levels of deprivation and poverty in my area. As I said earlier, the gross weekly wage in the neighbourhood renewal area is around £294 per week, but in the most deprived ward it is as low as £218. If one compares that with Northumberland Park, at £228, or the new deal for communities area, at £239, one realises that the area is very deprived. Thirty per cent. of local people are on housing benefit and 23 per cent. are on income support. One in three people find it extremely difficult to cope on their income.

We have to deal with the multiple problems of deprivation that my constituents face. To do that, we need a range of different programmes—a strengthened neighbourhood renewal process, a neighbourhood management pathfinder to link into the community to involve and mobilise it to support what we are trying to achieve, and, perhaps most importantly, an extended employment zone.

Taking forward the neighbourhood renewal objectives is a laudable aim that I wholeheartedly support, but we can achieve the major objective of bringing the 10 per cent. who are most deprived up to the average only by targeting investment and support at the most deprived communities.

2.47 pm
The Minister for Social Exclusion and Deputy Minister for Women (Mrs. Barbara Roche)

I begin by warmly congratulating my hon. Friend the Member for Edmonton (Mr. Love) on his success in securing the debate, and on the cogent and thorough way in which he advanced his arguments. I am delighted to he able to respond both as Minister for Social Exclusion and as the Member of Parliament for a neighbouring constituency.

As my hon. Friend said, social exclusion covers a wide range of issues. The Government's social exclusion unit has carried out projects on subjects such as truancy and school exclusions, rough sleepers and teenage pregnancies. However, I shall concentrate on neighbourhood renewal.

Edmonton suffers from many of the characteristics of the inner city, which were well described by my hon. Friend. The local neighbourhood renewal strategy identifies local people's key concerns as fear of crime, poor local environment, high unemployment, low incomes and poor access to health care. Those concerns perfectly reflect the linked problems that often combine to socially exclude individuals and communities. However, I know that my hon. Friend would agree that for many communities such as Edmonton, disadvantage is not their defining feature. There is another side to Edmonton. Despite its problems, it remains a vibrant, friendly and multicultural area with enormous potential. It also benefits from a strong and active local community. My hon. Friend was right to say that local buy-in is necessary for the initiatives and the neighbourhood renewal to succeed. That is crucial to the success of the neighbourhood renewal programmes that are happening in Edmonton now.

As my hon. Friend said, Enfield, in which Edmonton falls, was identified by the national strategy for neighbourhood renewal as one of the 88 areas to receive additional funding for regeneration. The community in Edmonton has embraced the new opportunities that the funding provides, but I accept that we have responsibilities, too.

For more than 20 years, under-investment in areas such as Edmonton has meant that places with the most need often receive the worst services. We have witnessed the problems that poor services can store up—unemployment, disaffection, deteriorating environment, vandalism and crime. That is why, in 1997, the Prime Minister set up the social exclusion unit and established tackling social exclusion as a key priority for the Government.

Eighteen months ago, the social exclusion unit published the national strategy for neighbourhood renewal. That is now being taken forward by the neighbourhood renewal unit. It is a long-term strategy that aims to make postcode poverty a thing of the past, and to ensure that in 10 to 20 years, no one should be seriously disadvantaged by where they live.

The principle at the core of the strategy, and all our programmes to tackle social exclusion, is to make mainstream services work properly for everyone. My hon. Friend rightly highlighted that. We are pumping extra money—some further £43 million in total—into public services in the next three years. My priority is to make sure that that money helps those communities that need it most. That is why Departments are being measured on where they are doing well, not on the average. We have introduced floor targets—the minimum standard that every area in the country should reach—for, for example, health, education, crime and housing. "Floor targets" is a bureaucratic term for action that is incredibly exciting. They are the social equivalent of the minimum wage. For deprived communities, they will mean better schools, improved health care, safer streets and better housing. All sectors must work together to make sure that that happens.

I was pleased to hear my hon. Friend's remarks about Enfield's local strategic partnership. It has brought together the local authority, local businesses, the voluntary sector and community groups to provide new initiatives and services on crime, health, employment, housing, the environment, and education and skills training. Their draft neighbourhood renewal strategy outlines how the partnership will spend the £4.2 million Enfield has been allocated through the neighbourhood renewal fund.

The national £900 million neighbourhood renewal fund was established by the Government to help local authorities and their partners improve core public services. They can spend the funding not only on their services, but on community groups and the services of providers such as the national health service. To achieve those challenging targets, all providers must ensure that they own the services that they want to provide. I know that that is important in the Enfield area, where access to primary health care is a concern. In Enfield, neighbourhood renewal funding is currently contributing to the Fit for Life programme at the Healthy Living centre.

Further funding for neighbourhood renewal has been allocated to Enfield through the community empowerment fund—more than £300,000 for three years. Enfield Voluntary Action is now co-ordinating the development of the community empowerment network.

What else are we doing? Nearly £200,000 has been allocated to Enfield through the neighbourhood renewal community chest for the first two years. These were established by the Government to provide easily accessible small grants of between £50 and £5,000 to community groups. In Enfield, the Scarman trust administered awarding the grants in the first year, with the community empowerment network participating on the decision-making panel. So far the response has been encouraging. Edmonton has also developed its own regeneration projects. The Edmonton partnership initiative is a major scheme aimed at improving the local area, and all sections of the community are working together on it.

We are currently working across government to ensure that the outcomes of the spending review continue to support the aims of neighbourhood renewal funding. My hon. Friend will forgive me if I do not comment on the outcome of the review, but my right hon. Friend the Chancellor will be making an announcement in due course.

I understand the disappointment that the people of Edmonton felt at not being successful in their bid to be a neighbourhood management pathfinder in the first round. We will be considering whether there should be a second pathfinder round, and what form it should take. I understand my hon. Friend's comments on that matter.

I am also aware that unemployment is a significant problem in Edmonton, with nearly 70 per cent. of the population receiving some form of benefit. Running alongside the new deal, employment zones are one of the initiatives that the Government are testing to tackle long-term unemployment. Between April 2000 and the end of February 2002, they helped more than 22,000 people into work.

My hon. Friend is right to talk about the success of what has happened in Haringey. The employment zone there has been performing particularly well. In the first year of its operation, 55 per cent. of the jobseekers in the zone found work, of whom more than 80 per cent. were still in employment after 13 weeks. Decisions on the future development of employment zones will be made in the light of emerging evaluation findings. We expect initial results to become available in December 2002.

We should also applaud the good work that is already going on to help people in Edmonton find work. For example, the New Direction training centre is providing vocational training in road safety, communication skills and business start-up, to enable local people to become self-employed. The technology centre is supporting new and existing community and micro-businesses owned or managed by women, and the Enfield Employment Network is delivering projects targeting individuals and—very importantly—building links with local employers. The New Direction training centre is also attracting people into the copywriting and design business in the Paper Project. There are, therefore, important things going on.

My hon. Friend rightly mentioned the importance of capacity building, and I absolutely agree with what he said. There is a vital role to be played by the regional development agencies in tackling unemployment and supporting local economies through the local strategic partnerships. As part of the 2000 spending review, regional development agencies were given an expanded role as strategic drivers of regional economic development, and they will benefit from a larger and more flexible budget of around £500 million more per year by 2003–04.

The Government's approach—giving communities the opportunity to set their own priorities and the support to develop their own initiatives—represents a fundamental change. I say frankly to my hon. Friend that I recognise that these new ways of working have inevitably led to some stresses and strains, especially over shared decision making with community groups, and over local priorities and their financing. I am sure he would agree that "partnership" is an extremely easy word to use, but it requires a great deal of time and effort to make it work.

I appreciate what my hon. Friend said about the number of area-based initiatives. That matter has been brought to the Government's attention and we are looking closely at it. The Government's regional co-ordination unit is carrying out a review of area-based initiatives, which aims to tackle the problems of variety and complexity that my hon. Friend mentioned, and improve the way in which they interact with other local activity.

It is important that the local strategic partnerships work well and have a role that is understood by everybody and that seeks to knit some of those issues together. It is absolutely right that the Enfield local strategic partnership is now emerging as a key player in the regeneration of the area. I wish it all the best and look forward to seeing it go from strength to strength.

What emerged very clearly from my hon. Friend's speech is that strong leadership at all levels is absolutely necessary. I know that he never misses an opportunity vigorously to put the case for Edmonton, and the potential exists for that community to move forward. We must develop local people's skills by building on those that they already have but, importantly, by building on their confidence. I was struck by the survey figures that my hon. Friend gave the House at the beginning of his speech.

These communities need the confidence to break the cycle of deprivation in their neighbourhoods, and the only way that they can do that is by having initiatives of this kind, which are not led at the top but driven by local communities and local people. I feel absolutely sure that, with my hon. Friend's leadership, his community will succeed.

Question put and agreed to.

Adjourned accordingly at two minutes past Three o'clock.