News

Government confirms £525 million to benefit communities

16th February 2006

The Government today confirmed the allocation of 525 million Neighbourhood Renewal Funds for the majority of the areas who are serving their communities well and making a difference.

In total 86 areas are to benefit from the Office of the Deputy Prime Minister's NRF in 2006/7. Local Strategic Partnerships in these areas have made good progress in achieving neighbourhood renewal objectives since they started in 2001. There is evidence that progress has been made in reducing crime and worklessness and improving health, education and housing.

The indicative allocations were announced by the Phil Woolas, Minister for Local Government and Neighbourhood Renewal, in July 2005 for 86 LSPs in England. The total NRF funds for 2006/7 announced were 525million.

Phil Woolas today said: "The majority of Local Strategic Partnerships are doing a good job serving their communities. We are committed to improving the overall quality of life for people living in our most disadvantaged areas. We want them to share fully in a better society where we see respect for people of all ages, races and faiths and respect for the communities they live in. The funds are to support local authorities, other agencies and communities to work together to achieve these goals."

However, the Government has decided to take action in relation to three LSPs who have not yet adequately shown how they are improving their performance in helping deprived areas.

The Government is to withhold 10 per cent of the indicative NRF allocation for the financial year 2006/7 from three LSPs - Birmingham, Nottingham, and Kingston upon Hull. This action has only been taken after the LSPs were given an extension to meet the ODPM's requirements.

The Minister added: "Local people living in these areas deserve the best possible performance from public service providers. This action therefore signals that poor performance will not be tolerated. This still leaves the LSPs the people they serve do not lose out."

Each LSP will be required to complete plans to demonstrate how national floor targets are to be met and the gap narrowed between the poorest neighbourhoods and the city average. This is a minimum requirement. In addition, Hull LSP has undertaken a review of Neighbourhood Renewal spend to be completed by the end of March. If the LSPs are able to demonstrate significant improvement by the end of April 2006 the funds withheld can be paid during 2006/07.

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