traditional rural buildings as instruments of rural development

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Chris Bell discusses his research so far looking into the adaptation of traditional rural buildings for new purposes and the economic value derived from this. The research is funded by an ESRC CASE award in partnership with the National Trust.

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Traditional Rural Buildings as Instruments of Rural Development

Chris Bell

Countryside and Community Research Institute

ESRC CASE Studentship in collaboration with the National Trust

Outline

• Research context• Methodology• Findings (including use)

Research Context

Heritage values:

• Intrinsic value e.g. historical significance

• Instrumental value – how heritage assets can be used to achieve a goal e.g. aid rural development

“The historic environment is an important asset in the economic development and regeneration of rural areas and has the potential to make an even greater contribution in the future.” HELM

Traditional Rural Buildings

Traditional farm/working buildings• Ubiquitous in British countryside• Functionally redundant • Sense of place and local distinctiveness• Planning policy

Research Context

Sustainable rural economic development• What is this?

- maintaining income generation and job creation• How to foster this?

- Exogenous processes (external)? Endogenous processes (internal)? Both? - Local economic growth i.e. theories of export base, net income, growth poles, and immobile resources.

Research Context

- ‘The Leaky Bucket’ – fill it faster or plug the holes

“Pouring money into an area has minimum long-term impact if the wealth flows straight out again because there is nothing to hold it in the area” NEF (New Economics Foundation)

Source: NEF

Research Context

Key research question- How well does the initial investment from the adaptive

re-use of traditional rural buildings generate benefits for the local economy, in other words how well is it linked to local businesses and local people?

•Conversion works•New use

Initial investment into local economy

Re-spent locally?

Need local economic linkages

Methodology

6 stage process:

1. Literature review and conceptualisation2. Methodological design3. Primary data collection4. Data analysis, LM3 model development and

computation of multipliers5. Stakeholder consultation (National Trust)6. Toolkit development (use of findings)

Methodology

Measuring local economic linkages:

• Adapted LM3 model incorporating elements of a simple Keynesian Multiplier analysis - focuses on first 3 rounds of expenditure - LM3 score (the multiplier) falls between 1 and 3

LM3 Example

1.£1 enters local economy2. 80% spent in local businesses = 80p left in

local economy. 3. 60% of that 80p then spent in local businesses

= 48p left in local economy

(£1 + £0.80 + £0.48) / £1 = 2.28

LM3Round Activity Effect

1 Grant income plus contribution from National Trust or tenant

Direct

2 Expenditure on contractors and materials

Indirect

3 Expenditure made by contractors and suppliers

Indirect

3 Household expenditure Induced

Round Activity Effect

1 Attributable turnover from building use

Direct

2 Expenditure on goods, services and labour

Indirect

3 Expenditure by suppliers Indirect

3 Household expenditure Induced

Conversion works

Building use

Methodology

Primary data collection

• 30 buildings in England

• Model local economic impact of 1) conversion works, 2) building use, or both

• Defining the boundary of ‘local’ - drivetime

• Structured field interviews and telephone interviews

MethodologyBuilding locations

Methodology

Primary data collection

• 30 buildings in England

• Model local economic impact of conversion works, building use or both

• Defining the boundary of ‘local’ - drivetime

• Structured field interviews and telephone interviews

Methodology30minute Drivetime Map for Sheringham in Norfolk

Methodology

Primary data collection

• 30 buildings in England

• Model local economic impact of conversion works, building use or both

• Defining the boundary of ‘local’ - drivetime

• Structured field interviews and telephone interviews

Data

Conversion works:• 22 buildings• 14 Listed, 8 unlisted• 14 in-hand, 8 letBuilding use• 25 buildings• 15 Listed, 10 unlisted• 12 in-hand, 13 let

Data

Contractors:• 11 firms (24% response)

Suppliers:• 11 firms (25% response)

Householders:• 75 (13% response)

Methodology

Improving LM3• Estimating local expenditure beyond third

round• Additionality• Displacement• Attribution• Sensitivity analysis

Conversion Works Income Model (30min drivetime)

Conversion Works Employment Model

LM3 – Conversion WorksModel category Number of models Models within category

Building type 3 Animal housing, crop storage & processing,

other

Building size 2 < 464m2, > 464m2

Designation 2 Listed, Unlisted

SIC class 3 Accommodation and food services,

manufacturing, other

Tenure 2 In-hand, let

Total 12

LM3 – Building UseModel category Number of models Models within category

Building type 3 Animal housing, crop storage & processing,

other

Business age 2 < 5 years, > 5 years

Business size (by turnover)

2 < £75,000, > £75,000

Indigenous 2 Indigenous, non-indigenous

SIC class 3 Accommodation and food services,

manufacturing, other

Tenure 2 In-hand, let

Total 14

Findings - Summary

Conversion WorksVariable Highest Income

MultipliersHighest Employment Multipliers

Building type Animal housing OtherBuilding size < 464m2 < 464m2

Designation Listed ListedSIC class Manufacturing OtherTenure Let In-hand

Findings - Summary

Building Use

Variable Highest income multipliers

Highest employment multipliers

Building type Animal housing Crop storage and processing

Business age < 5 years < 5 years

Business size (turnover)

> £75k > £75k

Indigeneity Non-indigenous Indigenous

SIC class Accommodation and food services

Manufacturing

Tenure Let (30min), In-hand (county)

Let

Findings – Conversion Works

30 minute drivetime n Income

multiplierEmployment multiplier

Total income generated (£m)

Total jobs created (FTEs)

Animal housing

7 1.75 - 2.34 1.74 - 1.90 12.4 - 18.4 6.9 - 8.3

Crop storage and processing

5 1.49 - 1.67 1.56 - 1.61 1.5 - 1.8 3.3 - 4.2

Other 10 1.22 - 1.34 1.75 - 2.06 16.3 - 19.9 4.2 - 5.4County

Income multiplier

Employment multiplier

Total income generated (£m)

Total jobs created (FTEs)

Animal housing

7 1.82 - 2.63 1.91 - 2.15 12.8 - 20.6 7.5 - 9.5

Crop storage and processing

5 1.60 - 2.26 1.56 - 1.61 1.6 - 2.5 3.3 - 4.2

Other 10 1.37 - 1.60 2.03 - 2.46 18.3 - 23.8 4.8 - 6.5

Building type

Findings – Conversion Works

30 minute drivetime n Income

multiplierEmployment multiplier

Total income generated (£m)

Total jobs created (FTEs)

Listed 14 1.38 – 1.55 1.98 – 2.39 26.2 – 32.7 10.9 – 14.6Unlisted 8 1.29 – 1.36 1.26 – 1.29 3.3 – 3.8 5.0 – 5.6

County Income

multiplierEmployment multiplier

Total income generated (£m)

Total jobs created (FTEs)

Listed 14 1.47 – 1.76 2.21 – 2.73 27.9 – 37.0 12.2 – 16.8Unlisted 8 1.43 – 1.68 1.26 – 1.29 3.6 – 4.7 5.0 – 5.6

Designation

Findings – Building Use

30 minute drivetime n Income

multiplierEmployment multiplier

Total income generated (£m)

Total jobs created (FTEs)

Indigenous 11 1.33 – 1.56 1.11 – 1.12 1.1 – 1.5 60.5 – 67.4Non-indigenous

12 1.47 – 1.67 1.10 – 1.11 0.9 – 1.1 138.7 – 154.2

County Income

multiplierEmployment multiplier

Total income generated (£m)

Total jobs created (FTEs)

Indigenous 11 1.37 – 1.62 1.12 – 1.12 1.2 – 1.5 60.6 – 67.5Non-indigenous

12 1.52 – 1.78 1.11 – 1.11 0.9 – 1.2 138.7 – 154.3

Indigeneity

Findings – Building Use

30 minute drivetime n Income

multiplierEmployment multiplier

Total income generated (£m)

Total jobs created (FTEs)

Accommodation and food services

7 1.49 – 2.09 1.11 – 1.11 0.9 – 1.4 88.2 – 98.2

Manufacturing 9 1.49 – 1.69 1.17 – 1.18 1.0 – 1.3 27.8 – 31.2Other 9 1.38 – 1.53 1.10 – 1.10 0.8 – 0.9 99.0 – 110.0

County Income

multiplierEmployment multiplier

Total income generated (£m)

Total jobs created (FTEs)

Accommodation and food services

7 1.75 – 2.82 1.11 – 1.11 1.1 – 1.9 88.6 – 98.6

Manufacturing 9 1.49 – 1.71 1.17 – 1.18 1.0 – 1.3 27.8 – 31.2Other 9 1.41 – 1.63 1.10 – 1.10 0.8 – 1.0 99.0 – 110.0

SIC Class

Using the Findings

• Workshop with senior National Trust policy staff

• Produce a set of principles/guidelines summarising the importance of considering local economic impact in strategic planning and when planning individual adaptive reuse projects.

Thank You

christopherbell@connect.glos.ac.uk

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