§ Mr. MansTo ask the Secretary of State for the Environment when he will announce the winners of the pilot scheme for challenge funding of local authority capital expenditure. [9585]
§ Mr. GummerOf 326 bids submitted earlier this year, 189 bids involving 217 authorities have been selected for support. The challenge fund of £600 million will bring in £1,200 million from other sources, including almost £700 million from the private sector, to spend on local authorities' highest priority capital projects.
Details of individual successful bids will be placed in the Library of the House on Monday 16 December and my right hon. Friend the Minister for Local Government, Housing and Urban Regeneration will also be writing to all hon. Members in England.
§ Mr. HargreavesTo ask the Secretary of State for the Environment what progress has been made with the single regeneration budget challenge fund; when the outcome of round 3 will be announced; and if he will make a statement. [9586]
§ Mr. GummerThe single regeneration budget challenge fund has been a great success and is a tribute to the enthusiasm and commitment of the local partnerships which have put forward bids and are running schemes. For the third round, there has been an even higher standard of bids than previously in both the quality of the proposals submitted and how they are presented. This is reflected in a success rate of nearly 60 per cent. for those submitting final bids. In particular, about a quarter of recommended bids have come from previously unsuccessful partnerships.
Taken together, schemes supported by the three rounds of the challenge fund will transform hundreds of localities for the better, and substantially improve the quality of life for local communities. Projected results for the lifetime of the 550 schemes supported by rounds 1 to 3 include more than 650,000 jobs created or safeguarded, more than 500,000 people trained and obtaining qualifications, more than 90,000 business starts, more than 250,000 dwellings built or improved and more than 40,000 voluntary groups supported.
The challenge fund has continued to encourage local partnerships. I am particularly pleased that the voluntary sector and local communities are increasingly involved in challenge fund schemes. This is partly a result of efforts by Government offices for the regions, strengthening the national bidding guidance and the dissemination of information through organisations such as the Community Development Foundation, the National Council for Voluntary Organisations and the Commission for Racial Equality.
368WThe challenge fund aims to make public and private resources work together more effectively to support local strategies for regeneration. Regeneration needs to address local needs and opportunities across the board. I have therefore been impressed by the way in which bidders have linked their bids to other regeneration activity, notably that supported by training and enterprise councils, European structural funds, the national lottery and regeneration programmes such as English Partnerships and urban development corporations. Bidders have also taken account of the Government's competitiveness and sustainability agendas and local strategies, including those relating to housing and health.
It is important that challenge fund schemes deliver the results and benefits which they have promised to local people. For that reason, we shall continue to place a strong emphasis on the effective management and monitoring of schemes, introducing improvements where necessary.
There will be a fourth round of the SRB challenge fund in 1997–98 along the same lines as earlier rounds, with guidance to bidders issued in the new year.
Analysis of round 3
For the third round, there were marginally fewer final bids compared with round 2–310 as against 329—but marginally more successful bids—182 as against 172.
The cost to the SRB of the 182 recommended bids is currently estimated at £44.8 million in year 1, 1997–98, and over the lifetime of bids, that is up to seven years, would amount to £897 million overall. These figures are provisional and are subject to detailed confirmation following further discussions between GORs and successful bidders.
There is a good spread of successful bids across the SRB objectives, with most bids having multiple objectives. It is noteworthy that over 90 per cent. of the bids are focused on employment and education objectives, over 70 per cent. of the bids have economic development as an objective, 53 per cent. of bids include elements focused specifically on ethnic minority communities, nearly 50 per cent. of bids have housing as an objective and 65 per cent. of bids have crime prevention and community safety as an objective.
The attraction of private investment is an important objective of most SRB challenge fund schemes. As with earlier rounds, successful round 3 bids stand to attract about £2.50 in private investment for every £1 in challenge fund support.
Effective involvement of a range of key partners is at the heart of the challenge fund approach. There is private sector involvement in 83 per cent. of recommended bids, with local authority and training and enterprise council involvement at 91 per cent. and 81 per cent. respectively. Voluntary sector involvement in bids has continued to increase: it now stands at 59 per cent. There has also been a very large increase in the number of bids that include promotion of initiatives of benefit to ethnic minorities as an explicit objective, up to 53 per cent. from 37 per cent. in the second round. In addition, given the location of bids, ethnic minorities will benefit from a much higher proportion of bids even though they are not specifically intended as the beneficiaries.
369WMost bids are concentrated on small areas, with 59 per cent. covering areas with a population under 25,000. This is slightly up on the first two rounds of the challenge fund, and chimes with the advice given in the bidding guidance to concentrate resources in order to make a significant impact. About 5 per cent. of bids are region-wide.
Details of the 182 individual bids which have been successful in round 3 will be placed in the Library of the House on Monday 16 December and my right hon. Friend the Minister for Local Government, Housing and Urban Regeneration will also be writing to all hon. Members in England.