Levelling up: can charities get a piece of the action?

The UK is one of the most geographically unequal countries in the developed world. It ranks near the top of the league table on most measures of regional economic inequality. Fixing this is a priority for a government elected in 2019 on a pledge to address inequalities in former industrial regions, and in coastal and isolated rural areas.

So far, over £8bn has been put aside by the government for additional investment in so-called ‘left behind’ areas. The policy also appears to enjoy public support. The recent success of the Conservative candidate in the Hartlepool by-election, and the election of mayors in Teesside and West Yorkshire show that voters will back politicians with strong levelling up messages.

Local authorities and businesses are eager to bid for the first pots of levelling up funding that are coming onstream. But is there room for charities to get involved, and is there still time for them to shape the levelling up agenda?

This was the focus of a webinar organised by NPC, the think tank and consultancy for the charity sector.

Defining levelling up

There are different views about what the phase ‘levelling up’ actually means. But Tom Collinge, policy manager at NPC explained that this has become clearer now that various initiatives under the government’s levelling up agenda have got under way:

The Levelling Up Fund is a £4.8bn fund to invest in infrastructure that will regenerate town centres, upgrade local transport and invest in cultural and heritage assets.

The Towns Fund is a £3.6bn fund to support the regeneration of towns.

The UK Community Renewal Fund will provide £220 million additional funding to help places across the UK prepare for the introduction of the UK Shared Prosperity Fund (the UK’s replacement for structural funding from the European Union).

The Community Ownership Fund will provide £150 million to help community groups buy or take over local community assets at risk of being lost.

Levelling up funds: making the case for charities

Looking at this funding from a voluntary sector perspective, Tom acknowledged that charities may find it hard to see how they can fit into the kind of work that is eligible for funding. A lot of the focus is on capital spending – transport infrastructure, repairing buildings and creating new parks. An NPC analysis of the levelling up funds found that as much as 87% could go on capital investment. This could be challenging for charities whose work involves delivering services in areas such as youth provision, addiction or homelessness.

Even so, Tom suggested that charities shouldn’t write off their chances of accessing these funds. He explained that a lot of the language used in the funding documents is ambiguous – there are repeated  references to ‘community’ and ‘community assets’ without making clear what they mean. This ambiguity could work in charities’ favour. At the same time, many charities work under the banners of skills, employment, heritage and culture. It’s up to charities, therefore, to identify elements in the funding that match what they can offer.

Deadlines are tight: bids for the first funds must be submitted by June 18. So, the time has come, said Tom, for charities to be vocal and make an economic case for levelling up funding.  Collaboration with local authorities and metro mayors is likely to be crucial, and Tom suggested that charities with already good relations with local stakeholders are more likely to succeed in their bids.

Levelling up : the local perspective

Kim Shutler, Chair of Bradford District Voluntary and Community Sector (VCS) Assembly agreed that collaboration with local councils is key for charities looking to bid for levelling up funds. But although Bradford’s VCS has a strong relationship with local government, Kim explained that making the voluntary sector’s voice heard can be challenging.

While Kim has experience of partnering with statutory services in delivering mental health support to adults, bids for levelling up funds are handled differently. She was critical of the lack of clarity in how charities can influence the levelling up agenda in meaningful and sustainable ways, and suggested that the top-down nature of the process is detrimental to grass-roots charities.

Where charities can succeed, she suggested, is to demonstrate to local authorities and other partners that the voluntary sector has a compelling story to tell. Learning the language of the people with the money, making a good business case and articulating what charities can bring to the table means the voluntary sector can find a way into the levelling up process.

Shaping the levelling up agenda

As corporate director of children’s services at Barnardo’s, Lynn Perry is well placed to talk about levelling up. Much of what the charity does involves working at the heart of communities, in partnership with local agencies, young people and families. 

Charities like Barnardo’s have a unique understanding of the challenges facing the country’s poorest communities. Lynn believes that this perspective strengthens the voluntary sector’s offer, not just in terms of service delivery, but in designing policies and thinking about community assets.

Looking at the bias towards capital projects in the levelling up funds, Lynn argued that a broader definition of infrastructure is needed. Support for families, care for the elderly and improving the lives of disabled people is every bit as important as 5G and better transport. And with the right social infrastructure, young people who get early and continued support can grow up to be the nurses, engineers and climate scientists we’ll need in the years to come.

Lynn observed that this is a unique moment to recognise the value charities can bring to the levelling up agenda. During the pandemic, the voluntary sector has played a vital role in supporting communities in ways that some public services could not. She believes that the future of the levelling up agenda should be shaped by working with communities and the charities that support them. And, along with Kim Shulter, she stressed the need to make better use of the insights and social data collected by charities to demonstrate the real value of the voluntary sector.

Tom Collinge supported this, and suggested that while it might be too late for charities to influence the existing levelling up funds, they should be looking towards the Shared Prosperity Fund. The delay in its introduction may be beneficial, giving the voluntary sector time to think about making the case for revenue funding.

Raising the voice of the voluntary sector

The UK has a long road to follow before it can say the work of levelling up is done. As the Institute for Fiscal Studies has observed,

“The differences between regions are rooted in history going back decades, even centuries. Having fundamental effects on them will require reallocating capital spending for sure, and a whole lot more — investment in skills, in health, in early years, and a coherent and long-term industrial strategy.”

Working with local stakeholders, charities can bring their insights, skills and experience to this process, both in terms of accessing funds and influencing future programmes. It’s now time for the voluntary sector to speak up on levelling up.


Further reading: more from The Knowledge Exchange on community development and regeneration

How empowering the community can help us create better places to live

Places can be defined in a lot of different ways: the geographic location, the physical buildings, the people who live there and the relationships that are formed. Central to places should be the people who live and interact there. Putting people, and communities at the heart of placemaking can benefit the physical infrastructure of a place, by identifying what is needed. And allowing residents a say in their local area can also give communities a sense of empowerment and ownership of their place, somewhere they can be proud to call home and somewhere they feel safe, included and valued.

Can places empower people?

In short… YES! Positive places have the power to lift the community up, give them a sense of empowerment, worth and inspiration. But places also have the power to alienate and dis-empower.

Places which are run down, with no or low levels of community engagement can contribute to communities becoming disparate, isolated and can reinforce negative stereotypes, particularly those which relate to poverty, deprivation and social exclusion. Making places that are thriving hubs for communities to be built upon can have a significant impact on the experiences and quality of life for communities living within them. Work being done by organisations like SURF show how important effective regeneration projects can be in revitalising places and the people who live there.

A recent RTPI blog post emphasised the importance of place on helping to reduce the impact of poverty and break some of the more significant socioeconomic barriers marginalised groups within communities can face. It emphasises the importance of place-based urban policy and how core policy features like the planning of a space or the design of a building can actually have a significant impact on the people who interact with that space.

A national standard for community empowerment

As important as the physical space are the people who live and work within it.

In the policy context of the Community Empowerment (Scotland) Act 2015, What Works Scotland, along with others drafted a set of ‘fit for purpose’ national standards for community empowerment, to build on those published in 2005. It was hoped that the new standards would provide clarity and focus on ways to help strengthen and improve participation and engagement at a local level. There are seven standards: Inclusion; Support; Planning; Working Together; Methods; Communication; and Impact.

Identifying and making the most of community assets

Asset based development was originally created as a description of how local residents grow collective efficacy and what they use to do so. It involves paying attention to what is in a local place – not what we think should be there, or what is not there. These ‘assets’ are found within a community and can be physical, such as infrastructure, but can also be the skills and knowledge of local people.

The key concept centres on the fact that everyone has something positive that they can contribute to a community. It follows that, if everyone does or is given the opportunity to contribute positively to their community, then there will be less requirement for spending on services from local government. It can also mean greater accountability at a community level for making changes that actually impact positively and directly on the lives and experiences of people who live and work there. Taking time to identify these assets and feeding this into how places are created can be a key part of ensuring communities feel empowered and valued.

Community anchors are an important tool

Community anchors have been identified as vital in many instances to ensure the continued development and capacity building of communities within a place. Their roles can extend across the community from building capacity and resilience, to supporting local democracy and helping to drive social change within a community. Community anchors play an important role in empowering communities and getting them involved in the design and delivery of services in their area.

A report published by What Works Scotland in 2018 examines the developing roles of community anchors within communities. The report explores the developing discussions between the community sector, public services and policymakers and considers how they might work more closely together to deliver bespoke and localised community driven policies.

Summing up

Empowering communities to feel valued and engaged is a key part of developing places that are inclusive and enjoyable places for people to live. Promoting communities as key agents of change within the areas in which they live not only improves the community, but can also help on an individual level, fostering a sense of pride and value. Creating better places is a key strand to regeneration and planning policy. Putting communities at the heart of creating places will ensure that places not only meet the needs of local people but are inherently connected to them.


If you enjoyed this article you may also be interested in:

Idox Information Service customers can read our research briefing on Asset Based Community Development via our website.

Follow us on Twitter to keep up to date with our latest blog posts and find out what topics are catching the eyes of our Research Officers.

“The great British sell-off” – losing community assets to balance budgets

Since 2016, local authorities have been allowed to invest the proceeds of assets sold by April 2019 (now extended to 2021-22) into transforming frontline services, something they were previously prohibited from doing.  Following years of austerity and the extent of recent government funding cuts, it is not surprising that councils have used such money in this way.

However, the rate at which such assets are being sold has raised concerns over the potential loss of publicly-owned buildings and spaces.  Earlier this year, coinciding with the launch of their Save our Spaces campaign, Locality highlighted that on average more than 4,000 publicly owned buildings and spaces in England are being sold off every year – “more than four times the number of Starbucks in the UK.”

‘Financial predicament’

This year’s National Audit Office (NAO) report on the financial sustainability of councils highlights the financial predicament facing councils across the country. While it notes that the sector has done well to manage substantial funding cuts since 2010-11, financial pressure has increased markedly since 2014. In real terms, there has been a reduction in government funding of 49.1% since 2010, representing a reduction in local government spending power of 28.6%.

These cuts are coupled with rising demand for services and other cost pressures. For example, demand has increased for homelessness services and adult and children’s social care. The NAO highlights that from 2010-11 to 2016-17:

  • the number of households assessed as homeless and entitled to temporary accommodation under the statutory homeless duty increased by 33.9%;
  • the number of looked-after children grew by 10.9%; and
  • the estimated number of people in need of care aged 65 and over increased by 14.3%.

Other cost pressures have included higher national insurance contributions, the apprenticeship levy and the National Living Wage.

It is perhaps no shock that Northamptonshire county council became the first local authority since 1998 to be issued with a section 114 notice earlier this year, indicating it was unable to balance its books and at risk of being unable to set a legal budget for 2018/19. Nor is it indeed a shock that the NAO have identified other councils that are in danger of following suit in the next three years.

Despite this dire financial situation, it seems worse is to come. It has been recently announced that local services are to face a further £1.3bn cut in government funding in 2019/20. The revenue support grant, the main source of government funding for local services, will be cut by 36% next year – the largest annual deduction in almost a decade.

While the 2018 Budget has made provision for extra funding for adult social care, recent analysis suggests this falls short of what is needed to plug the projected funding gap.

Plugging the gap

In a desperate bid to raise finances, councils have been trying to find alternative income streams. A growing reliance on the use of reserves to offset funding reductions is an approach highlighted as unsustainable by the NAO. Most councils plan to increase or introduce charges for various services and many have also been making use of the government’s flexibility offer of using capital receipts to make improvements to services.

According to the NAO, in the year to April 2017, £118.5m of such capital receipts were used in this way. Locality has reported that the rate of asset sales has been consistently high for the last five years, with an average of 4,131 publicly owned buildings and spaces being sold off each year. Many councils are hoping to sell off their historic town halls to save much needed money. But it’s not just buildings that are under threat; council-owned parks and other land are also at risk. A recent parks survey, published by the Association for Public Service Excellence (APSE), found that 85% of councils surveyed expect a cut in parks and green space funding in the next year. In January, Knowsley council voted to go ahead with proposals to sell 10% of its parkland to fund the running of its remaining parks, since funding for its green spaces is to end in March 2019.

Locality warns that selling such assets on the open market could result in them being lost to the community forever as they have no real influence over what they will be used for; and could potentially lead to social, economic and environmental decline.

Indeed, concerns have been raised over the programme of disposing of council assets by Norfolk County Council, which has recently been reported to be looking to save £10m by selling its assets.

Locality suggests that community ownership is the answer to saving such assets under threat. Community Asset Transfer, set up in 2003, enables councils to sell assets to community organisations at below market rates in return for demonstrable community benefit.

In a bid to increase affordable housing supply, for example, Leicester City Council has sold council land worth more than £5m for less than £10 as part of deals with housing associations. However, the Locality report shows that less than half of councils have a Community Asset Transfer policy. It also notes that while community ownership is a ‘powerful alternative’ to losing public buildings and spaces, it is not straight forward, and community organisations face a number of barriers, including:

  • funding;
  • lack of expertise;
  • limited time; and
  • a lack of clear process.

With 95% of councils surveyed expecting the sell-off of publicly owned buildings and spaces to play an increasingly important role in the next five years, it is surely paramount that something is done to protect important community assets from being lost.

Way forward

Locality has called for the government to create a Community Ownership Fund and for a change in legislation to make it easier for community organisations to gain control of such assets.

Or perhaps councils could follow the example of others who, instead of selling their assets, are using them to generate revenue. Lewisham Council for example, is planning to raise £500k through hosting large commercial events in its parks.

Whatever route local authorities take, it remains to be seen if others will follow in the  footsteps of Northamptonshire or succeed in counteracting continuing cuts to maintain services and balance budgets; and indeed protect important community assets.


If you enjoyed reading this you may also like our previous blogs on the civic use of heritage assets and the value of green spaces.

Follow us on Twitter to discover which topics are interesting our research team.

SURF conference 2017 – What Scotland has learned from 25 years of regeneration

Mural of a taxi being elevated by ballons, Glasgow

Fantastical floating taxi mural, part of Glasgow’s City Centre Mural Trail

By Steven McGinty

If regeneration has been so successful, why are there still so many pilots?

This was just one of the many thought-provoking points raised at the Scottish Urban Regeneration Forum’s (SURF) 25th Anniversary Conference, where the very activity of regeneration was put under the microscope.

In a packed room of delegates, the day opened with two opposing views.

  • The first argued that although regeneration had undoubtedly had its failures, there had been a number of important successes, which had resulted in better places and opportunities for both communities and individuals.
  • The second – and more pessimistic perspective – was that regeneration policy had entirely failed, and that the areas experiencing poverty and deprivation had barely changed over the past 25 years (particularly in Glasgow, where much of the regeneration activity has been focused).

This provided a useful lens through which to view regeneration, as we moved onto a day of workshops and debates on 25 years of regeneration policy, starting from New Life for Urban Scotland all the way up to City Region Deals.

Below I’ve outlined some of the most interesting points to come from these sessions.

Universal income

There was broad agreement that regeneration was about more than building homes, and that one of its core purposes was to tackle inequality.

Universal Basic Income is a policy in which everyone in society is given a sum of money, without any conditions. This policy – likely to be popular – was proposed by a delegate, highlighting its potential for addressing increasing levels of income inequality. A pilot study is already underway in Finland, with participants reporting lower stress levels and greater incentive to work. The Scottish Government has also recently committed to funding local experiments in Fife, Glasgow and North Ayrshire Councils.

Communities need assets

In many of the debates, it was felt that community ownership of buildings and land was key to ensuring a fairer distribution of society’s wealth. Other benefits of community ownership include protecting key local services/facilities (which may have otherwise been lost) and offering better stewardship, as the community have a greater understanding of local needs.

Research has also shown that local communities – who have replaced private landlords – have outperformed the landlords they have replaced. In the past two decades, the value of their land has increased by almost 250%.

Distinctiveness of place

Delegates highlighted that local areas often need local solutions.  For instance, a representative from the Bute Island Alliance noted that addressing their declining population was key to their regeneration goals.

Community consultation

There was a strong feeling that communities had to be consulted. A representative from a local charity explained that “if you are working for a community, then it must include the community”. Others, suggested that some communities would not have the capacity to make decisions on regeneration projects. Yet, this was quickly deemed patronising, with many noting the series of failures by public officials.

Charrettes were seen as an ideal tool for consulting with communities. The Scottish Government define a charrette as:

an interactive design process, in which the public and stakeholders work directly with a specialised design team to generate a community vision, masterplan and action plan.”

The representative from the Bute Island Alliance highlighted that this process had been very helpful in the development of their regeneration plans.

Bringing communities together

It was widely acknowledged that communities are becoming more diverse, and that it’s important to include all members of society. One delegate recounted her experience of Social Inclusion Partnerships (SIPs) – an initiative which aimed to reduce social exclusion – explaining that this model was very successful at engaging with black and minority ethnic (BME) groups. We’ve also seen the Scottish Government recognise the need to encourage young people to get involved in local planning decisions.

Building an inclusive economy

Regeneration has always found it difficult to respond to wider political, economic, social and technological factors. Over decades, deindustrialisation and the change to a more knowledge-based economy has caused significant challenges for communities. For regeneration policy to be successful, it was suggested that people would need to be equipped with the skills to take part in future industries; otherwise we may see inequalities widen. Cities such as Dublin have seen rents increased dramatically due to the inward migration of highly-skilled technology workers, putting pressure on household budgets and showing the challenge for regeneration.

Final thoughts

In the past 25 years there has been an important shift in regeneration, moving from house building programmes to a more holistic approach, which includes policy areas such as health, employment, and the environment. However, the most recent Scottish Government regeneration strategy was published in 2011. It might therefore be time to revisit this strategy and provide a new vision for regeneration, taking recent learning and the changing environment into account. Maybe then, in the next 25 years, there will be no doubt over the successes of regeneration.


The Knowledge Exchange provides information services to local authorities, public agencies, research consultancies and commercial organisations across the UK. Follow us on Twitter to see what developments in policy and practice are interesting our research team.