Audit Commission

The neighbourhood regeneration services provided by Newcastle City Council are 'fair' but have 'uncertain prospects for improvement', according to an independent report released today by the Audit Commission.

On a scale from zero to three stars, the Audit Commission inspection team gave the services a 'fair', one-star rating. Inspectors recognised the difficulties of tackling deep-rooted problems of deprivation and unemployment in the Council's five priority areas for regeneration. The inspection focused on Elswick, Scotswood Benwell and Walker - and noted the Council's neighbourhood regeneration efforts in these areas, also recognised by residents. However, only in Elswick has significant progress been made against regeneration targets, delivering a real impact on the community.

Although the Council appreciates the need for rapid progress, and the effects of the 2008 reorganisation should help, it was too early for inspectors to assess whether plans were effective and fully integrated to deliver the required change.

Dave Jennings, Audit Commission senior manager, said:
'Newcastle City Council has made progress in renewing some of its most deprived wards, with regeneration initiatives underway and local communities highly involved. Social deprivation is being tackled and compared with similar parts of the country, crime has reduced and educational success increased. It still lags behind on health and the local economy. The Council is committed to speeding up regeneration and new strategies and bodies such as the Regeneration Delivery Board are in place, but it needs to form clear action plans with objectives defined at a local level.'

Inspectors noted strengths including:

• Residents have been heavily involved in regeneration planning in Walker and Scotswood Benwell and in major projects in Elswick, and residents recognise the opportunities they have to influence decisions
• Elswick is clearly benefiting from renewal and the gap has significantly narrowed between the area and the city as a whole in measures like crime, educational attainment, health and employment and overall ‘vitality’
• Targeted programmes aim to give disadvantaged groups new pathways into work
• ‘The Walker Promise’ is supporting housing renewal, and neighbourhood workers in Elswick and Scotswood Benwell are helping manage the environment
• There has been some investment in new facilities, such as the Excelsior Academy, Nunsmoor Community Centre and customer service/health centres

However, weaknesses include:

• There are still significant gaps between the most deprived and the least deprived areas in the City
• The Council has had a reputation for slow and cumbersome processes and decision-making in the past
• No new housing has been built in Scotswood and no new shops and limited community facilities in Walker
• The Council is not effective at assessing whether its neighbourhood regeneration efforts are providing value for money, which would help future planning

Inspectors made a number of recommendations, including:

• Setting clear targets and action plans to delivery physical, social and economic regeneration level
• Local Council economic regeneration teams should be given more responsibility deliver plans, with decision-making devolved and involving local officers and bodies
• Implementing systems to assess the costs and benefits to local communities of neighbourhood regeneration services and whether they are providing value for money for the public purse
• The Council’s economic regeneration and procurement teams should work together to provide more opportunities for local people and businesses to deliver services

The neighbourhood renewal inspection examined how the Council uses its powers and services to regenerate deprived areas for all residents, focusing on the three identified areas as ‘case studies’ of the Council’s approach.

Notes to editors

1. The Audit Commission is an independent watchdog, driving economy, efficiency and effectiveness in local public services to deliver better outcomes for everyone.
2. Our work across local government, health, housing, community safety and fire and rescue services means that we have a unique perspective. We promote value for money for taxpayers, auditing the £200 billion spent by 11,000 local public bodies.
3. As a force for improvement, we work in partnership to assess local public services and make practical recommendations for promoting a better quality of life for local people.
4. Further details about the role of the Audit Commission can be obtained from - http://www.audit-commission.gov.uk