Liz And Tommy Present YouWith

Tackling the UK’s Inner City Problems…

Partnerships and private initiatives

• 1991 – city challenge scheme established to encourage local authorities to compete for funding.

• City challenge is open to authorities with the most severe urban problems.

• In Leicester the City Council came up with ideas to beautify the Inner City areas, with new shops, bars and restaurants.

• Hello….

Criticisms to Urban Policy…

• Insufficient funding – local authorities incomes are declining, spending on urban policy has been relatively small when compared to the massive expenditure spent in other areas of the economy.

• Renewed public sector is needed in order to make many sites attractive for private development.

• No less than six government departments are involved, as well as many voluntary organisations and private developers.

• Government policy is not doing enough for most inner cities apart from London Docklands. A recent review of urban programme spending suggested that it took between £7000 and £18 000 to create a new job and that for a £137 million spent between 1981 and 1984 only some 500 jobs were created.

Urban Development Corporations

• UDC’s were government sponsored agencies introduced in 1981 with the sole of directive land in the inner city:

• They have powers that could:• Grant planning permission• Provide loans and grants• Promote development by advertising• Build infrastructure• Acquire, hold, manage and dispose of land and other property

Enterprise zones• In 1981 the government declared a number of enterprise zones• They were set aside for commercial and industrial development• The basic idea of the enterprise zone stemmed from the concept of freeports,

the creation of small zones free of government restrictions and subject to low taxation.

• Substantial long term advantages were offered to firms located there, these include:

• Exemption from rates• Exemption from development land tax• Simplified local planning system • General reduction in the government bureaucracy

Enterprise zones were rapidly developed. By 1986, approximately 63000 jobs were located in these zones.

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