The public accounts committee (PAC) said the New Deal for Communities programme was showing "early promising signs", but highlighted the problem of difficult relationships between councils and community-based partnerships set up to run the programmes.
The committee's chairman, Edward Leigh, the Tory MP for Gainsborough, said: "It is too early to judge the full results of the New Deal for Communities [NDC] programme, but there are some promising signs that it is achieving successful neighbourhood renewal."
He added: "At the same time I am disappointed that mistrust and tensions between NDC partnerships and local authorities have got in the way of progress. The Office of the Deputy Prime Minister must address this, for example by setting out clearly local authorities' responsibilities with respect to the programme."
Under the programme around £50m has been earmarked for 39 separate deprived areas over a 10-year period. The money is supposed to be spent according to local priorities set by partnership boards led by local representatives.
In a number of areas the programme has been dogged by delays and bitter disputes between community groups, local councils and professionals implementing the scheme.
In its report on the programme, the cross-party committee found: "Local authorities have not had sufficiently clear guidance on how best to manage their relationship with NDC. Some have attempted to micro-manage their local NDC for example, by introducing excessive scrutiny over project proposals.
"Other authorities have merely acted as bankers, offering little or no professional support and advice.
"Government offices could play a more positive role where there are tensions or disengagement between boards and local authorities."
The programme was launched by the deputy prime minister, John Prescott, in 1999 as a means of giving local communities greater influence over the way in which funds were directed to tackle deprivation. NDC boards are expected to work in partnership with existing agencies to reduce crime, unemployment, poor health, low educational performance and improve the physical environment.
Elsewhere in its report, the committee urged Mr Prescott's office to work with other government departments to streamline initiatives aimed at deprived communities, noting that in some areas the NDC scheme was only one of more than 50 different initiatives.
It also warned that it was important that problems in a selected neighbourhood, such as crime and disorder, were addressed rather than displaced to adjacent communities.
The regeneration minister, Lord Rooker, said: "We welcome the PAC's report, which recognises the New Deal for Communities is an innovative approach to tackling the toughest regeneration challenges, and is already showing signs of success.
But he acknowledged the problems with the programme. "NDCs can only deliver real, lasting change when local people and partner agencies work together. In some areas, barriers and mistrust have built up, and I share the committee's disappointment at this."
Lord Rooker added: "NDCs are not a threat to the traditional structures, but an asset. Those that are showing the most impressive results so far are in areas where the local authority appreciates this and actively supports and engages with the partnership."
Link:
http://society.guardian.co.uk/regeneration/story/0,,1304309,00.html