Scottish Government

CHAPTER ONE INTRODUCTION

Introduction

In recent years local economies across the UK have enjoyed greater economic buoyancy than for a considerable period of time. However, the gap between the poorest communities and the average has remained stubbornly resistant to change. This disconnect between economic opportunities, particularly those generating large numbers of jobs, and more disadvantaged communities is a critical issue. It is this imperative to link opportunity and need that is the basis of this research.

Linking Opportunity and Need

Linking opportunity and need ( LOAN) is an approach to capturing the interventions that seek to enable disadvantaged individuals and communities to compete for and access the employment and training opportunities arising from regeneration investments. The approach, in its simplest form, is straightforward as it aims to connect opportunities on the demand side of the labour market to need on the supply side. This is illustrated in Figure 1.1.

Figure 1.1: Linking Opportunity and Need Concept

LOAN tends to focus on employability interventions that are designed to link the employment opportunities of an investment to local unemployed residents. However, LOAN can be extended to wider local economic development issues. In such instances, LOAN interventions can build on the opportunities from investments for:

• The local business base. Local small and medium-sized enterprises ( SMEs) can be supported in accessing sub-contractor and supply chain opportunities stemming from the investment.
• Area connectivity. Using the investment as an opportunity for change, transport links can be developed that better serve both the investment and neighbouring communities. This might include improved public transport or road infrastructure.
• Area profile. A high-profile investment can be used to promote the image of an area and improve its place competitiveness.

Challenges in Linking Opportunity and Need

While the approach is simple, the evidence base suggests that delivery has generally fallen short (Campbell and Meadows, 2001 ¹; DCLG, 2007 ²; Glass and McGregor, 2000 ³). There have been a large number of investments in or close to disadvantaged areas, but the economic or employment legacy from the development has often been small or non-existent. An important contributory factor is that the number of local variations to every LOAN approach means that a 'one size fits all' approach is not possible. Some of the key variations are:

• The investment can vary from a small scale, fixed-term, one-off development to a large-scale area regeneration project spanning many years.
• The opportunity can vary from a handful of construction jobs to thousands of end-use jobs.
• The need can vary from targeting a small number of individuals in a specific client group to residents of multiple disadvantaged communities across a city or region.
• The approach can vary from a one-off training programme delivered by one organisation to a multi-agency partnership approach consisting of recruitment, training and wider activities.

Aims and Objectives

Under the auspices of the Scottish Centre for Regeneration ( SCR), the Scottish Government ⁴ has commissioned this research with the specific aim to:

"identify, and explore in detail, good practice approaches taken to connecting regeneration investment to the needs of disadvantaged areas and groups in the United Kingdom".

The research does not attempt to generate a generic solution, rather it sets out to explore and understand the challenges and success factors from a range of good practice approaches. Notwithstanding some of the difficulties associated with the transferability of approaches from one context to another, the lessons identified can potentially help shape future policy and so improve our record at linking opportunity and need.

Report Structure

The body of the report is organised as follows:

• Chapter 1 explains the context of the research and sets out its aims and objectives.
• Chapter 2 describes the case study selection process and the methodology used to investigate the 12 case studies. An overview of each of the case studies is then given with the specific 'opportunity' and 'need' identified, a summary of the project activities outlined and the key project outputs recorded.
• Chapter 3 uses the case studies to outline what the design and development stage of a LOAN approach involves. In so doing, the case studies highlight the importance of a clear understanding of the specific 'opportunity' on offer and the 'need' to be addressed. This is followed by a discussion of the development of the construction and end-use phases of a LOAN approach, the ways in which these can be resourced and the role of partnership working in this process.
• Chapter 4 uses the case study approaches to consider how a LOAN approach should be implemented and managed for a successful outcome. It focuses on the challenges of working with employers (both private and public sector) at the construction and end-use phases and sustaining their engagement longer term. The challenges and approaches to engaging and sustaining beneficiaries are also considered. The importance of monitoring progress concludes the discussion on implementation.
• Chapter 5 summarises the major challenges faced in the successful roll out of a LOAN approach and draws key lessons from the case studies to inform future developments.

The report is supported by a Case Study Appendix, which details each of the 12 LOAN case studies in full.