A government report published today has concluded that with the right leadership and resources, regeneration schemes in the UK should be able to ride out the impact of the credit crunch.
The Parkinson Report, commissioned by local government minister John Healy, found that pressure on the financial model that has underpinned regeneration is likely to get more intense.
However, it said that while new schemes will continue to suffer from the financial crisis, regeneration must continue by looking ahead and making long-term decisions now, in time for the upturn.
It determined that projects yet to begin were at the most risk, while more schemes in the North and the Midlands had been affected by the downturn than those in the South East.
The author of the report, Professor Michael Parkinson from the European Institute for Urban Affairs at Liverpool John Moores University, said:
‘Regeneration has had a very good ten years, but the credit crunch has shaken the sector. If the regeneration pipeline dries up - the investment, confidence, momentum, skills and capacity, which has been built up in last decade, may face even greater pressure.
‘However difficult the market is now it is not dead. Many schemes are continuing especially those that are financially sound or have government backing. The successful principles of regeneration are even more important now. The challenge is doable. Everybody must stick to their guns, not panic and keep their eye on the longer term horizon.’