UK government policies

• 3 ways UK government policy decisions play a big role in regeneration?

  • infrastructure investment
  • planning policies
  • migration and deregulation policies
• Infrastructure investment

  • improving transport infrastructure systems can help continue economic growth and be a catalyst for new development and regeneration, as isolated areas become more accessible
• 2 examples of UK government investing in infrastructure:

  • HS2 - link London to major cities with reduction in travel time, helping balance North and South divide as people can live further away from London but still enjoy the best jobs, spreading wealth
  • Airport Development - since 1960s capacity of UK airport has been increased to cope with rising demand for air travel, airports like Heathrow have expanded and there is investment in regional airports
• 4 type of planning policies affecting rate and type of regeneration?

  • planning laws
  • house building targets
  • housing affordability
  • permission for fracking
• planning laws - both local and national governments have regulations in place affecting regeneration, some impacting degree of development that can take place

  green belts is undeveloped land surrounding urban settlements that prevent outward spread of these settlements making them more densely populated - green belts are usually farmland but have been instances where authorities have lifted restrictions and allowed developments to take place

  for example, decision to build new homes on green belt land in Maghull in Liverpool was unpopular among locals
• house building targets - many reasons for shortages in homes in UK like many living alone, people living longer and high levels of immigration

  National Planning Policy Framework for England set out to build 1.5 million new homes between 2015 and 2022 - between 2015 and 2019 authorities missed target by 46,000 homes a year putting pressure on local authorities to grant permission for housing developments
• housing affordability - planning policies only go ahead if authorities set aside a proportion of homes as affordable

  in Shetland, authority criticised for only 16 out of 62 new homes built in 2018-19 being affordable

  lack of new homes means skilled workers are unable to move into an area = economic growth and regeneration of an area slowing down
• permission for fracking - planning policies can be side stepped if authorities believe works are in national interest

  e.g. in hope of reducing future reliance on imported natural gas, local authorities have lifted restrictions, making it easier to approve sites for test drilling to see if fracking is viable

  has caused controversy as people believe environmental cost outweighs economic benefit
• international migration policies can both hinder and benefit regeneration

  increase number of people migrating puts pressure on housing availability but more migrants increase tax revenue, kickstarting economic development
• deregulation of financial markets = more foreign direct investment into UK, with Canary Wharf and international banks being set up there like HSBC

  large projects have pump priming where national governments fund part of a scheme and have the expectation of further investment coming from private sources

  • Case Study - Foreign Investment in London real estate
  • London is a global hub so attracts businesses from all over the world
  • between 2014 and 2016 foreign investors purchased many newly built homes in the capital
  • most of the investment use to come from wealthy Russians, now Asia dominates