Introduction

The previous two chapters have analysed an array of labour market and enterprise policy interventions that have developed in relation to deprived neighbourhoods and demonstrated their often limited effectiveness. In seeking to better understand the reasons why these policies have had only a restricted impact, part of the explanation relates to the nature of the governance structures and institutional arrangements responsible for their development and implementation. In this respect, progressing and delivering effective policy to tackle the economic problems of deprived neighbourhoods generates particular challenges. First, tackling multiple and reinforcing elements of deprivation concentrated within a given locality requires integrating multiple policy objectives and agendas often characterised by significant differences and tensions. Second, as the economic problems of deprived areas are rooted within processes operating at wider spatial scales but also require responses tailored and implemented with sensitivity to local difference, policy responses need to be coordinated across and within different spatial levels.

This chapter explores the governance and institutional terrain within the British context to explore how these two related factors – integration of differing policy agendas and coordination across and within spatial levels – have influenced the nature and effectiveness of the policy response. First, the chapter outlines the institutional structures and governance arrangements responsible for delivering economic development to deprived neighbourhoods. Consideration then turns to the issues raised by integrating differing rationales and policy agendas related to economic interventions in deprived neighbourhoods set out in Chapter One, and the extent of coherence and tension within these agendas is examined in relation to the role of different government departments and mainstream policies. Second, the chapter turns to consider the issue of different levels of intervention, examining the rationales for intervention at different spatial scales and how different types of activities have been pursued at varying neighbourhood, local, subregional, city-regional and national levels. The chapter then moves on to specify the principal barriers to policy integration and coordination and how these vary locally, and concludes by identifying key issues related to governance arrangements and policy delivery in relation to the economic development of disadvantaged areas.

The institutional and governance context: complexity, fragmentation and decentralisation

Central features of the governance structures and institutional arrangements in relation to subnational economic development and regeneration activity in the British context are their complexity and constant evolution.