Press Release - English Regions: An early progress report on
the New Deal for Communities programme
11 February 2004
Sir John Bourn, head of the National Audit Office, reported to
parliament today that there are early indications that the New Deal
for Communities programme, under the Office of the Deputy Prime
Minister, is helping to tackle the problems of deprived communities
and, despite some difficulties that have been encountered, the
programme holds potential for future success.
The thirty-nine NDC partnerships that have been established
throughout England have been successful in developing plans which
reflect the priorities of community residents. The NAO found that
some 50,000 residents (11%) have been involved in the NDC
programme, a higher level of community engagement than in
international regeneration initiatives studied for the report.
Significant investments are being made to address worklessness,
crime, education, skills, and the physical environment, and a
number of high-profile initiatives have been undertaken. Local
service providers recognise the important contribution of NDC
partnerships, with 41% of those surveyed saying that the
partnerships were very influential in shaping their own
strategies.
While there is a great deal of enthusiasm within the affected
communities there are a number of risks that need to be addressed
in order to ensure the future success of the NDC programme. The NAO
found that NDC partnerships need to assess their community
engagement efforts and identify strengths and weaknesses. They need
to step up their efforts to balance consultation with delivery, to
manage expectations, and to communicate their progress to
residents.
The operating processes established by many NDC partnerships are
not, at this stage, sufficiently robust. Action needs to be taken
to strengthen basic processes related to governance, financial
reporting, and project appraisal criteria. A lack of basic
financial and performance reporting data hinders NDC partnerships’
ability to demonstrate effective delivery and performance, to
monitor their own performance, and to draw comparisons and learn
from each other. It also makes the tasks of the bodies accountable
for NDC partnerships (usually local authorities) and government
offices more difficult. Poorer operating processes have also led to
project delays and the disengagement of potential partners.
NDC partnerships have a mixed record in working constructively
with service delivery agencies, primarily local and national
government departments. NDC partnerships and mainstream bodies need
to be more active in seeking opportunities to work with each other
to achieve sustainable solutions to the problems facing deprived
communities.
In many cases there are tensions between NDC partnerships and
their accountable bodies, usually the local authority. The lack of
clarity surrounding the role of accountable bodies has resulted in
a wide variety of approaches. Where accountable bodies are too
hands-off, or where they engage in micro-management, positive
relationships are more difficult to build and the risks to
long-term success are increased. ODPM needs to work towards
clarifying the role of accountable bodies, with an emphasis on the
risk-management role they can play.
Sir John Bourn said:
"It is encouraging that, in a short time, 39 community
partnerships have been established, engaged with residents to
develop long-term plans, and started to make significant
investments to tackle deprivation. This is a new approach to
regeneration in England, and while there have been some problems
ODPM has acted quickly and effectively to address them. My report
identifies a number of issues that need to be addressed for the
remaining years of the programme."
Notes for Editors
The New Deal for Communities programme was launched in two
trenches – 17 communities in 1999 and a further 22 communities in
2000 – and involves an investment of £2 billion over ten years.
Responsibility for the programme lies with the Office of the Deputy
Prime Minister, Neighbourhood Renewal Unit.
Community-centred boards have been established in 39 of the most
deprived neighbourhoods in England, with broad mandates to invest
in sustainable projects to tackle problems of worklessness,
education and skills, health, crime, and housing and the physical
environment. The majority of voting members of NDC boards are
elected community residents, and they are encouraged to work with
mainstream service providers in developing and delivering
sustainable solutions.
Accountable bodies are charged with ensuring that NDC boards
adhere to accepted standards of financial propriety and corporate
governance, and are accountable to the government for the use of
NDC funds. In the vast majority of cases the local authority acts
as accountable body.
Government Offices in the regions have day-to-day responsibility
for oversight of the NDC programme, and must approve any investment
of NDC funds above a delegated level (usually £250,000).
More information on the NDC programme, including published
reports and evaluation, can be found on the Neighbourhood Renewal
Unit website http://www.neighbourhood.gov.uk/.
Press notices and reports are available from the date of
publication on the NAO website at http://www.nao.org.uk/. Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
The Comptroller and Auditor General, Sir John Bourn, is the head
of the National Audit Office which employs some 800 staff. He and
the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 11/04
All enquiries to Bill Schaper, NAO Press Office:
Tel: 020 7798 7335
Mobile: 07795 120838