SDC - TFiL - Summary Report
SDC - TFiL - Summary Report
SDC - TFiL - Summary Report
Empowering communities to
improve their neighbourhoods
Report Summary
Sponsors
Acknowledgements
Drafting team Funding for the project was provided by the Homes
and Communities Agency (HCA), the Department for
This report was prepared by Helen Eveleigh with support Communities and Local Government (CLG), the Department
from Ian Fenn, Lizzie Chatterjee, Shirley Rodrigues and for Energy and Climate Change (DECC) and the Energy
Andrew Lee. Efficiency Partnership for Homes (EEPH). The Commission
for Architecture and the Built Environment (CABE) provided
With special thanks to: support in kind.
Stewart Davies, Bob Knowles, Alison Mathias, Anne Power, The Commission would like to thank funders and all those
Jonathan Davis, Helen Walker, Peter Matthew, who have participated in this project. All contributions
Harriet Festing, Tereza Kadlecova & IfS, Andrew Purvis, have been greatly appreciated. This report sets out the
Maria Arnold, Jayne Ashley, Sue Dibb, James Greenleaf, Commission’s views based on the research and Task Group
Tim Jenkins, Duncan Kay, Andy Long, Claire Monkhouse, and Steering Group discussions outlined above. It does not
Alice Owen, Shivani Reddy, Rhian Thomas, Kay West and necessarily reflect the views of all project participants or
Becky Willis. funders.
Stewart Davies SDC Commissioner – Chair Bob Knowles Empower Community Fund
Anne Power London School of Economics (LSE) Ross Mitchell/Mark Brown E nergy Efficiency Partnership
Alison Mathias Homes and Communities Agency (HCA) for Homes
David Green UK Business Council for Sustainable Energy Chris Jofeh Arup
Peter Matthew D
epartment for Communities and Mike Reardon G
reater Manchester Environment
Local Government Commission
Mark Johnson G
reater London Authority (GLA)/ Dennis Moynihan T hames Gateway Institute for
Osborne Energy Sustainability (IfS)
Gavin Purchas Department of Energy and Climate Change Jonathan Davis C ommission for Architecture and the Built
Environment (CABE)/The Transition Studio
Task Groups
The project was also informed by three Task Groups which provided invaluable expertise in the following areas:
• Task Group 1: Practical delivery of infrastructure at neighbourhood level
• Task Group 2: Business and funding models for delivering neighbourhood retrofit
• Task Group 3: Engaging communities in neighbourhood retrofit.
Anne Power, LSE (Chair) Bob Knowles, E mpower Community Alison Mathias, HCA (Chair)
Tessa Barraclough, Peabody Fund (Chair) Alexandra Allen, Sustrans
Rory Bergin, HTA Chris Brown, Igloo Regeneration Graham Ayling, EST
Bruce Collinson, HCA Abigail Burridge, L ocal Government Matthew Bennett, Soho Community
Association Environment Fund
Jonathan Davis, C ABE/The Transition
Studio Andreas Crede, Serco Erik Bichard, University of Salford
Andrew Day, Countryside Properties Jonathan Davis, C ABE/The Transition Liz Cox, new economics foundation
Studio
Stephen Hilton, Connecting Bristol Jonathan Davis, C ABE/The Transition
Nicholas Doyle, Places for People Studio
Ed Hobson, CABE
Nick Gibbins, U
pstream/
Andy Howe, Environment Agency Charles Drury, Sense International
Jones Lang Lasalle
Sarah Jeffcote, U
K Green Building Anna Eagar, Community Energy Direct
Sean Hanafin, Citi
Council Nicky Gavron, London Assembly/GLA
Michael King, C ombined Heat &
Chris Jofeh, Arup Power Association Alex Grayson, E mpower Community
Lesley Seymour, Buro Happold Fund
John Mason, EDF Energy
Rob Shaw, AECOM Anna Minton, Writer/Journalist
Chris Morrison, T ransition Town
Andrew Tucker, E nergy Saving Trust Brixton Annemarie Naylor, Development
(EST) Trusts Association
Dennis Moynihan, IfS
Helen Walker, H
elen Walker Olivia Powis, NHF
Michael Newell, Norton Rose
Associates Olivia Powis, N
ational Housing Helen Walker, H
elen Walker
Federation Associates
Whilst these opportunities are recognised at a national level quality of life for everyone we must look at new ways of
for major infrastructure projects, they are not realised for working. This means looking at ways in which we can make
local physical infrastructure. By local physical infrastructure existing resources work harder through efficiencies, and
we mean buildings (domestic and non-domestic – including finding new ways to access private finance.
derelict buildings), roads, pedestrian routes and cycle
paths, public space, green infrastructure (parks, gardens, How we deliver these works is as important as the
playing fields, trees etc.), blue infrastructure (canals, lakes, physical changes – working at the local level provides the
rivers, etc.), underused land, waste and recycling facilities, opportunity to strengthen communities, to build their social
underground utilities of electricity (including recharging capital and their capacity to respond to local challenges.
points), gas, water, Information and Communication There is potential not only to transform places but to
Technology (including superfast broadband), and heat transform society. To achieve this we must consider how we
networks. can galvanise, support and empower communities to come
together to decide how to improve the long-term wellbeing
At the same time we are facing a scarcity of public funds. In of their local areas.
2009 the UK’s budget deficit was the largest it has been in
peacetime history. According to the Chancellor,1 in 2010 the It is in this context that the Sustainable Development
UK’s deficit is set to be among the largest in the world. The Commission has produced this timely report. We believe
new Government has made it clear that tackling the deficit there is a solution to these problems, a way of cutting
will be the most urgent task it faces. As such it has pledged our carbon emissions, making our places more resilient
to significantly accelerate the reduction in the deficit, which to the impacts of climate change and creating a better,
will mean substantial cuts in public sector funding. fairer and healthier society cost effectively. It comes in the
form of integrated neighbourhood retrofit programmes,
If we are to make the improvements required to tackle refurbishment works led by local people to improve the
climate change alongside delivering those wider economic, places they live in and equip them for a greener, albeit
environmental and social benefits that will improve the leaner, 21st century.
One of the most urgent drivers for upgrading existing The most significant contribution can be made from existing
infrastructure is the need to reduce the UK’s carbon buildings. The UK’s 21 million homes are responsible for
emissions by 80 per cent by 2050. As the Commission 27 per cent of our carbon emissions.3 The 1.8 million non-
for Architecture and the Built Environment (CABE) and domestic buildings are responsible for a further 18 per cent
BioRegional concluded from their involvement in the of UK carbon emissions.4 Given that 86 per cent of homes
eco-towns programme, a well-designed, well-built place standing today will be around in 20505 we need to improve
could help residents achieve a 75 per cent reduction in their the energy efficiency of these buildings.
total carbon emissions and a 78 per cent reduction in their
ecological footprint.2
In the current economic climate we need to look at how neighbourhoods through an integrated programme than
these measures can be delivered most cost effectively to through one which focuses on a single issue, such as
deliver maximum economic, environmental and social carbon. People want better places. This means places
benefits. Our research suggests that we cannot afford where they feel safe, homes that are affordable to heat,
to continue with the existing piecemeal approach to neighbourhoods that are resilient to extreme weather
upgrading neighbourhood infrastructure elements. events, well maintained public space and parks to relax and
In addition we need to look for ways of achieving these play, convenient pedestrian and cycle routes, and access to
benefits at the least cost to communities and individuals in public transport.
the current harsh economic climate, exploring new ways of
financing these projects and delivering them. Our research has identified a variety of different routes in to
engage communities. In Todmorden the community initially
The Commission believes there are clear benefits of came together to produce local food. They are now working
adopting a rational, integrated and co-operative approach. with a range of bodies including the council, schools,
These are reducing cost and disruption; engaging and doctors and other bodies to implement their plans.
enabling communities in determining the shape of their This includes the establishment of a social enterprise to
neighbourhoods; and utilising resources for local benefit. produce fish, vegetables and fruit; a network of people
keeping chickens for the sale of eggs; and working with
local traders to promote local food.
Reducing cost and disruption
Most significantly, this approach creates an opportunity for
Many infrastructure improvements deliver multiple people to work together in communities to build a stronger,
benefits. For example, improving green infrastructure more cohesive society and to encourage and enable people
improves the resilience of our places to impacts of climate to make sustainable choices in their day-to-day living. As
change such as flooding and overheating; it improves this report highlights, long-term shifts in behaviours and
physical and mental health; and it provides options for new habits are most likely to be achieved where communities
and improved pedestrian and cycling routes. An integrated have a strong role. The commission believes this approach
approach to spatial planning on an area basis will help to will engender positive long-term change by building the
identify opportunities for upgrades to maximise economic, capacity of neighbourhood groups, social enterprises, other
environmental and social outcomes. Integrated planning third sector bodies and local government to work together
and delivery of these works will save money through and solve local issues. Working through neighbourhood
shared infrastructure, single community engagement partnerships can empower communities to make decisions
processes and integrated delivery. It can also minimise about how their areas are managed, and about where
disruption for residents and businesses during construction the profits from new investment opportunities should be
and maintenance. directed to improve long-term well being.
Retrofit programmes focused solely on a single outcome, social enterprises, parish councils, local authorities and local
such as carbon reduction, will limit the potential to strategic partnerships. For the purpose of this report we call
deliver the multiplicity of benefits outlined in this these ‘neighbourhood partnerships’.
executive summary so far. We have reviewed over 80 case
studies, worked with almost 50 experts from the fields The case studies in the report are the success stories –
of community, delivery and finance and commissioned those that are managing to deliver real improvements
research on scenarios for neighbourhood infrastructure in the long-term well being of their local areas. From our
upgrades. From this we have found that the most common discussions with these communities and wider stakeholders
barrier preventing the integration and delivery of the wider however, it is clear that neighbourhood partnerships are too
sustainability benefits in retrofit programmes is the lack of often hindered by a lack of support (mentoring, technical,
a single body driving and coordinating the planning and organisational) and poor access to finance (especially for
delivery of work. The identification and/or development seed funding and core costs). This lack of technical support
of such bodies was seen as key to unlocking many of these and access to finance can hamper their ability to develop
issues, engaging others in the community and bringing schemes which utilise resources effectively to create
together public and private sector stakeholders. maximum economic, environmental and social value.
There is now an opportunity for Government to address
As our case studies demonstrate there are some bodies these problems through their recently announced plans
who are taking on this role. These come in a range of to support community organisers and to establish the Big
structures, which includes amongst others informal Society Bank.
community groups, co-operatives, development trusts,
There is a greater recognition of the need to work in delivery, through partnerships between energy companies,
partnership at a local level to improve the functioning of local authorities and other local organisations. Too often
existing places. The past year has seen development of a however, these pilots focus on single issues such as carbon
number of programmes and pilots to encourage greater and do not give an effective role to communities. If they are
partnership, particularly between energy companies, local to maximise use of resources effectively to deliver long-
authorities and community groups. These include DECC’s term improvements to the well being of their areas we
Community Energy Saving Programme, CLG’s Local Carbon need neighbourhood partnerships to take a wider focus.
Frameworks, London’s Low Carbon Zones and the Low
Carbon Communities Challenge. The Strategy for Household We have found from our research that there are some
Energy Management18 also sets out a new model of key principles which make an effective neighbourhood
A neighbourhood partnership’s role is to drive and Partnerships should gather together a team interested in
coordinate the planning and delivery of sustainability taking forward the neighbourhood retrofit work, develop a
improvements at a local level, which have been identified vision and targets, produce spatial neighbourhood retrofit
as priorities by the community. These partnerships should plans, and develop a delivery and funding model.
aim to improve infrastructure at a local level so as to deliver
carbon reduction and adaptation measures while at the
same time achieving wider economic, environmental and
social benefits.
Communities
Engaging communities in the development of their Trust in north London, savings due to community engage
neighbourhoods will significantly increase the long- ment were estimated to be in the region of £500,000.
term benefits neighbourhood partnerships deliver. Compared to other projects, there were fewer delays
This can be achieved through increasing participation and associated costs caused by responding to residents’
in retrofit programmes through simple word-of-mouth complaints, reworking designs at a late stage to meet user
recommendations and inspiration from real-life examples needs, and on-site events such as vandalism and crime.20
(friends, family and neighbours); encouraging and enabling
sustainable behaviour change through structured learning In south London, the award-winning Bellenden Renewal
from trusted intermediaries and support groups; or the Area benefited from community engagement from the
active involvement of communities in designing and outset. Southwark Council asked residents how they
managing programmes of works. Feedback from the New wanted their streets to look and allowed each street to
Deal for Communities (NDC) programme found that the choose designs for its walls, gates, paving and street
critiquing of local services by residents was ‘absolutely vital lighting. More than 60 local artists contributed, including
in making more focused, refined and fit-for-purpose local Antony Gormley and Zandra Rhodes, and the once-
delivery vehicles’. Its report noted that ‘some of the most rundown backstreets are now one of the most desirable
successful projects…are those where we have engaged neighbourhoods in the area. House prices are estimated to
residents in the design of the process; and some of our least be 15-20 per cent higher than in surrounding streets. Where
successful projects, including some of the disasters, have whole streets have been improved together, properties
been the ones where we haven’t.’19 are estimated to command premiums of up to 25 per cent.
Now, Southwark Council is using lessons learnt in Bellenden
Involving the community can also save money. On a £2.2 in its Low Carbon Zone, where residents are being used to
million housing redevelopment project for the Shoreditch spread information via community ‘EcoTeams’.
Local authorities (LAs) deliver, or have some responsibility These might include infrastructure owners (utility
for, more than 700 different services ranging from companies, registered social landlords), potential funders,
education, transport and public health, to environmental local businesses or social enterprises, other third sector
stewardship. Given their level of local knowledge, and the bodies, Local Strategic Partnerships (LSPs) and those with
fact that they own most of a neighbourhood’s public space, technical delivery skills.
the involvement of LAs is essential to any infrastructure
upgrades. Research shows that they are trusted by In south London, Southwark Council has established
communities – considerably more than energy suppliers. a Multi Utility Services Company (MUSCo) to integrate
LAs also exert influence over planning and finance, the delivery of utilities across 30 hectares of mixed-use
meaning they have a key role to play in the development of development at Elephant and Castle. The MUSCo comprises
neighbourhood partnerships. Dalkia (providing management services), Veolia Water and
Independent Fibre Networks Limited, working together
Why would local authorities want to become involved? with the council and the master developer, Lend Lease, to
Like central Government, they have environmental targets deliver carbon neutral heating, cooling, electricity, non-
to meet as outlined in their Sustainable Community potable water and data connectivity services to the area.
Strategies (SCSs) and accompanying action plans. The Having a single body responsible for a range of elements
Sustainable Development Lens, a benchmarking tool for cuts costs and minimises disruption by use of shared
local authorities developed by the Commission and the ducting and avoiding duplication of works. Other research
Improvement and Development Agency (I&DeA), shows highlighted in this report indicates that delivering energy
that upgrading existing infrastructure has a direct and efficiency retrofits through partnerships between local
positive impact on the majority of sustainability measures authorities and energy companies can deliver £6 billion
for their area. The recent announcement by Government in benefits over the lifetime of the strategy, compared to
to devolve more powers and responsibilities to local £4.2bn for a local authority-led model and -£0.3 billion for
government could enable the integrated partnerships to an energy company-only model.21
promote action at a local level.
We need to mainstream this approach if we are to achieve support integration at the local level. This will require action
the scale of activity required to meet Government targets from all departments across Government, not just those
on carbon whilst at the same time delivering a wide range with lead responsibilities on communities and climate
of sustainable co-benefits cost effectively. To achieve this change.
we need Government to:
Coordinate support
Prepare the ground
Support required by neighbourhood partnerships will vary
There is currently no clear policy support for retrofitting according to their stage of development and aspirations.
existing places to make them more sustainable. If we are Our research and case studies suggest key areas for help
to avoid substantial costs in future and we are to achieve are likely to be:
the multiple benefits of delivering retrofit through an • Handholding support and capability-building for
integrated, area-based approach Government must act local authorities and community groups on technical,
to give a clear policy lead to support the scale of works financial and legal issues, and project management
required to upgrade our neighbourhood infrastructure.
• Seed funding for core costs and research and
If we are to achieve this then Government must end the development projects
focus on single issue pilots and programmes and move • Development of best practice based on feedback,
to capture the benefits of joining up delivery on the monitoring (including effective data reporting), and
ground. For neighbourhood partnerships to be effective research and development projects
Government policies and programmes need to enable and • Development of procurement panels.
1 Government should support an integrated, 3 Given the urgency in tackling climate change
area-based approach to upgrading local and the critical role local authorities can
infrastructure as a cost effective way of play in enabling, encouraging and engaging
achieving maximum sustainable outcomes in people to undertake action, the local
an area. authorities’ role as local leader on climate
change mitigation and adaptation measures
How This would be supported by: ensuring existing
should be formalised.
and new polices and delivery programmes
(such as the new obligations on energy How This could be achieved through a requirement
companies post-2012) are flexible in operation to set mandatory targets on climate change
to support integrated delivery; improving mitigation and adaptation (National Indicators
the evidence base to assess the economic, 186 and 188) or by making this a duty on local
environmental and social benefits of this authorities.
approach; and developing pilot projects which
test integrated delivery.
4 Government should ensure that regulatory
frameworks for infrastructure and utility
2 Government should improve the evidence providers enable and support an integrated,
base on the cost-effectiveness and benefits area-based approach to achieving
(monetised and non-monetised) of working sustainable outcomes.
with communities to deliver sustainable
How A ‘fit for purpose’ review of existing regulatory
outcomes.
structures should be undertaken to identify
How This should include a review of current and potential regulatory obstacles preventing an
completed programmes – such as the Low integrated, area-based approach to upgrading
Carbon Communities Challenge, Greener local infrastructure.
Living Fund, NESTA’s Big Green Challenge, the
Community Energy Saving Programme (CESP)
and Scotland’s Climate Challenge Fund. It should
also look to learn from previous area-based
delivery programmes.
Unlock finance
6 Public sector funding mechanisms should 8 Government should minimise development
promote devolution of funding to neighbour risk through provision of clear policy support
hood partnerships to enable them to influence for neighbourhood retrofit.
decisions on how public sector money is spent
How The standards and timeline for introduction
in their area.
should be defined now but phased in as
How Neighbourhoods should be provided with mandatory over a period to enable building
greater information on local public expenditure, owners to prepare for these works. All homes
potentially by providing neighbourhood level should meet minimum energy efficiency
breakdowns as in the Local Spending Report. standards. The UK Government should also
The Government’s review of local government equalise VAT for repairs and refurbishment works
finance should look at the issues raised by the in domestic properties, with new build.
Total Place pilots, Total Capital case studies and
Total Capital and Asset pathfinders, and promote
ways to devolve greater financial autonomy to
neighbourhoods.
9 L ocal authorities should be enabled to borrow
against Feed-in-Tariff and Renewable Heat
Incentive income streams.
How T he Treasury should implement this as a matter
7 A new Green Investment Bank should of urgency now that Feed-In-Tariff is operational.
direct finance to a wide range of low carbon
infrastructure projects including energy
efficiency at a variety of scales, including
neighbourhood. 10 Government should create ways in which local
communities are able to derive long-term
How Support could be provided through:
benefits from the siting of low carbon energy
• p
roviding capital or guarantees where private infrastructure, such as new housing or wind
finance is unwilling to take the risk turbines, in their area.
• b
undling small projects to attract wider How This could include enabling communities to
investment purchase a share in the development, providing
them with an ongoing share of the increase in
• p
roviding a brokering service between private,
business rates or a community tariff. In addition,
public and third sectors
‘allowable solutions’ (i.e. offset payments for
• raising capital (for example, through Green new homes unable to meet zero carbon levels
Bonds) for sustainability projects identified by onsite) could be paid to the local authority and
the partnerships. used to fund low carbon projects identified in
neighbourhood partnerships’ delivery plans.
Sanford’s residents act as collective landlord and • New communal food growing and bicycle storage
therefore own, control and manage the estate. areas using recycled materials
When refurbishment works were required in 2002 • Repair and redecoration using sustainable and
they decided that they should take the opportunity to toxin-free materials, incorporating residents’
invest their maintenance fund in a programme of works own designs.
focused on improving sustainability and reducing their
energy consumption.
Working at a city region scale, Greater Manchester generate the high level of buy-in from partners to
is developing a high level of commitment from maximise economic benefits, the retrofit measures
public and private sector partners to ramp up will be delivered at neighbourhood level. Delivery
delivery scales and timings, resulting in greater structures will build on Greater Manchester’s long
economic benefits. history of working with communities to transform
existing places, such as Housing Market Renewal
In December 2009, Greater Manchester was Areas in Salford/Manchester and Oldham/Rochdale,
designated the UK’s first Low Carbon Economic Area Hulme and East Manchester. It will build upon their
(LCEA) for the Built Environment. The LCEA will build on experiences of delivering area-based retrofit and
the city region’s strong track record in regeneration in behaviour-change programmes.
the built environment, and its world-leading university
and research capabilities in the low carbon built The LCEA will also focus on developing new retrofit
environment. technologies; the associated supply chain; business
models; and how these can stimulate business
The LCEA programme is based around a five-year opportunities and increase employment levels.
retrofit programme, which will be one of the largest
initiatives of this type in the world. If its most Initial work on the design of the programme has
ambitious targets are realised, it is anticipated the been carried out by teams from Greater Manchester’s
works would save 6 million tonnes of CO2 from homes, commissions for the Environment and the New
public and commercial buildings in Greater Manchester, Economy. The Energy Saving Trust is closely involved
creating an additional £650 million for the economy with the design and delivery of programmes.
and supporting 34,800 jobs. In addition, assistance has been provided by the North
West Development Agency (NWDA) and the Homes
The scale of the retrofit works are intended to shift and Community Agency (HCA).
delivery from the current sporadic CERT-led approach
into a strategic programme that can be linked to job The designation of Greater Manchester as an LCEA
creation and other public sector initiatives to improve is anticipated to create market confidence through
quality of existing places. The scale will also enable widespread public- and private sector commitment to
testing of key features around funding and delivery. the retrofit programme. This support will be detailed
These include: in the Joint Delivery Plan, which will be agreed with
• financing models and mechanisms for attracting Government, its key agencies and NWDA. At a local
new sources of finance; and a level it is anticipated that the ten local authorities,
registered social landlords, private sector landlords,
• how Total Place principles can improve delivery universities and further education establishments and
and funding structures for retrofit works. new skills and training organisations will be signatories
While collaboration is required at city region scale to to the Plan.
The Heads of the Valleys Low Carbon Programme shown an interest in participating – especially given
is a regeneration strategy which has developed the financial savings (costs are estimated to be 20-30
a ‘low carbon zone’ model that is now being per cent lower when work is undertaken as part of
replicated across Wales to deliver jobs through the scheme) and improvement in visual quality.
upgrading existing housing. The social housing providers managing the delivery
are looking into the possibility of providing loans to
The programme has been developed in partnership private households, to cover the upfront costs of
between five local authorities (Rhondda Cyon Taf, these measures.
Merthyr Tydfil, Caerphilly, Blaenau-Gwent and Torfaen)
and is delivering large-scale home energy assessment, The Heads of the Valleys model is being replicated
energy efficiency improvements, and renewable across Strategic Regeneration Areas in Wales, through
energy technologies through a rolling programme of the ‘Arbed’ (Welsh for ‘to save’) scheme, which was
neighbourhood-scale, area-based delivery. launched in May. The scheme has a total value of £30m
and will target approximately 6,000 across Wales.
To date the programme has delivered over 1,500 micro Specifically the scheme aims to benefit people in fuel
generation renewable energy systems such as solar PV poverty through insulation measures and renewable
and solar hot water systems to social housing schemes. energy.
External wall insulation has also been installed to
suitable properties, and a rolling programme of cavity This guaranteed demand encouraged British Gas to
and loft insulation is underway. Additionally the open the UK’s first dedicated Green Skills Training
programme is gaining community integration through Centre in the area. The centre is intended to train more
a project which aims to improve the energy efficiency than 1,300 people each year. This will include specialist
of local rugby clubs and sports facilities. help to enable local long-term unemployed people find
work in the green economy. British Gas will also use the
Funding has been provided for retrofitting social centre to train its own staff in renewable technologies.
housing. However, many private sector residents have
Case study – S
outhwark Council: improving outcomes through
resident engagement
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