Neighbourhood-level regeneration: a critical stage in tackling socio-economic deprivation

Frontier Economics’ latest research underscores the importance of neighbourhood interventions in tackling socio-economic deprivation across England.

A new report commissioned by the Independent Commission on Neighbourhoods (ICON), and produced by Frontier Economics, synthesises national and international evidence on how targeted interventions at the neighbourhood level can improve outcomes for communities facing deprivation.

ICON, launched in September 2024, was established to explore the role that neighbourhoods play in people’s lives and to provide evidence-based recommendations for effective, locally driven regeneration policies in England. Frontier’s research aimed to answer key questions on how neighbourhoods should be defined, why they matter, what interventions have been most effective, and how to build a strong national and local policy framework for neighbourhood renewal.

Neighbourhoods matter

The report emphasises that socio-economic deprivation clusters at the neighbourhood level—not just at broader regional or city scales. It highlights the existence and “stickiness” of ‘neighbourhood effects’, where deprivation in a local area can further entrench poor outcomes for residents over time, impacting education, employment, health, and social mobility.

Findings from across the UK and internationally suggest that neighbourhood-focused policies can successfully break cycles of deprivation and can do so in a way that is considered excellent value for money according to UK Government guidance.

Successful neighbourhood regeneration has three stages

The report identifies three key stages in effective neighbourhood regeneration, each building on the last to create sustainable change.

This starts with Stage 1, where capacity and social infrastructure are built in neighbourhoods. This involves establishing local governance structures, upskilling residents, and strengthening community networks to lay the groundwork for long-term success.

This is followed by Stage 2, which involves conducting a multi-dimensional, neighbourhood-led set of initiatives that target issues such as crime, health, education, and housing in a coordinated manner.

Stage 3 is economic integration. This involves linking neighbourhoods to wider economic opportunities through regional growth strategies and wider investments in transport, for example.

Each of these stages reflects a critical step in the regeneration process, building incrementally to address immediate needs while laying the foundation for long-term success.

This approach aligns well with the UK Government’s Missions

The report’s findings align closely with the UK Government’s five missions, particularly those focused on:

Taking back our streets – Community-led interventions have been shown to reduce crime and anti-social behaviour, strengthening local pride and safety.

Building an NHS fit for the future – Local investment in community health infrastructure and coordination, green spaces, and social services can improve public health and reduce pressure on local services.

Breaking down barriers to opportunity – Neighbourhoods appear to affect education outcomes, access to skills training and employment prospects. Locally delivered initiatives can target and tailor support to the most disadvantaged neighbourhoods.

Kickstarting economic growth – Neighbourhood-focused regeneration lays the groundwork for sustainable economic development by making areas safer and more attractive for investment. They also help connect residents to economic opportunities.

The report recommends that neighbourhood regeneration should be embedded into England’s economic and social strategies, ensuring that interventions are long-term and stable, locally driven and integrated with wider policies.

Conclusion

Overall, the report suggests neighbourhood-based approaches could play a key role in tackling socio-economic deprivation in England. By fostering local leadership, ensuring sustainable funding, and integrating economic opportunities, policymakers can create lasting improvements in deprived communities. This research provides a strong foundation for future policy efforts and contributes to the growing case for neighbourhood-led regeneration as a key driver for social and economic improvement.

Click here to read the full report: The Evidence for Neighbourhood-Focused Regeneration