Competitive urban policy and the regeneration game

The introduction of competitive bidding in the allocation of urban policy funding through City Challenge and the Single Regeneration Budget has significantly changed the British Government's approach to the problems of inner city decline and deprivation. Great claims have been made by the Government about the beneficial effects of competition, particularly in relation to City Challenge. This paper reports on research carried out on the impact of City Challenge on authorities that were unsuccessful in securing funding. The results suggest that some new partnerships have been formed (mainly with the private sector), some projects have proceeded in spite of the lack of funding from City Challenge, and some authorities have adopted new ways of working, including more corporate, cross-departmental and inter-agency liaison. However, there is widespread disillusionment with the competitive bidding process. The wider implications of the introduction of competition into the allocation of urban funding are discussed, and it is concluded that the current approach can never be a viable alternative to a more substantial and rational resource allocation based on an assessment of need on a national basis.