In Denmark, town centres are often the heart of an area, especially in rural areas. Historically shops, grocery stores and restaurants are located alongside libraries, cultural centres, and town halls in such town centres. However, the trends of e-commerce, outmigration and new mobility patterns seen in Denmark generate pressures on town centres in small and medium-sized towns, creating a risk of losing the core of the centre. That issue formed the background to the Partnership for Vibrant City Centres initiative (Partnerskab for levende bymidter), which was initiated by the Danish government. The Partnership focuses on efforts needed to ensure that small and medium-sized towns throughout the country continue to have vibrant town centres (Planinfo 2020). The Partnership’s work has focused on small to medium-sized towns (ranging from 4,000-20,000 inhabitants). Almost one million Danes live in such towns, which are often also the main towns in the municipalities. It is thus crucial for the development of both the towns and the surrounding rural areas that a vibrant town centre be maintained with the necessary functions and features of an attractive urban life (Bolig- og Planstyrelsen 2021).

The Partnership’s task is to explore how the state, municipalities and businesses can best promote vibrant town centres. The Partnership is intended, among other things, to develop a toolbox of proposed solutions and specific methods for town centre development and transformation, including spatial planning approaches that can help to develop and transform town centres (Bolig- og Planstyrelsen 2021). In addition, the Partnership should produce recommendations for government initiatives that can support the municipalities’ work on sustainable and inclusive urban development (Regeringen 2020). The Partnership was chosen as the Danish case study, representing a national support initiative directly originating at state level with cooperation between various actors. This case study was conducted through desk research and interviews with a representative from the Partnership secretariat and a representative from Aabenraa municipality, which participated in the initiative with its test town Rødekro.

The Partnership consists of several actors, broadly composed of municipalities, organisations and state actors (see information box 2 for a full list of members), with a secretariat that runs day-to-day operations. The Partnership was set up as an initiative consisting of two phases. Phase 1 started in August 2020, when the Partnership started reviewing both Danish and international experiences in relation to developing and maintaining vibrant town centres. Phase 1 brought together the most important Danish actors concerning the town centre, actors with different opinions and interests. The diverging opinions and interests of the actors lent validity to the process, resulting in strong recommendations (Interviewee 1). The first phase ended in May 2021 with the publication of a series of recommendations and a toolbox for municipalities (shown in information box 3) to use in their work to create vibrant town centres (see Bolig- og Planstyrelsen 2021).

Phase 2 ran from 2021 to 2022 with the aim of qualifying and expanding the toolbox and recommendations by testing them in practice. The municipalities applied to the initiative with towns in their municipalities via an open call issued by Bolig- og Planstyrelsen (the agency in charge at the time) (Plan- og Landdistriktsstyrelsen 2023a). Each municipality had to apply with a test town and submit an application for its test town project, describing its vision for the development of a vibrant town centre and the activities and strategies connected to the town centre plan (Vordingborg Kommune n.d.; Kaalund 2021). Following the open call, five test towns were selected. Phase 2 was carried out in cooperation with the five municipalities and their test towns, namely Ringsted, Vordingborg, Rødekro, Vojens and Lemvig. Specific development strategies were drawn up based on the Partnership's toolbox, with the development strategies intended to form the framework for a more targeted and integrated effort by both public and private actors in the town in question. Phase 2 resulted in several specific experiences concerning work on vibrant town centres (Plan- og Landdistriktsstyrelsen 2023a). Overall, the initiative was meant to inspire and show how work and collaboration on developing vibrant town centres can look. The aim of the first phase was to reconcile stakeholders with conflicting interests, while the aim of the second phase was to showcase examples and promote the work (Interviewee 1). 

Information box 3. The Partnership's recommendations based on Phase 1

In Denmark, municipalities can use various channels to identify and raise funds for urban development projects. Phase 2 of the Partnership was a pilot programme under which municipalities could apply for state support and funding. There are several types of funds that municipalities can apply for, which requires navigating various sources. It is possible to raise project funds for city centre collaborations via governmental funds or EU funds. Overviews of state funds can be found on websites that gather calls in the same place. Such portals contain relevant information about current funds, application deadlines and application forms and provide guidance on how to structure a project application (e.g. Statens-tilskudspuljer.dk) (Planinfo n.d.). One important player in Denmark when it comes to funding sources is Realdania, a philanthropic association that supports projects all over the country. Realdania issues grants for projects, which organisations and persons can apply for via an application form. All projects must by based in Denmark and focus, for example, on the built environment and activities connected to architecture, urban development and spatial planning (Realdania 2023). 

However, not all municipalities in Denmark are equally good at navigating and applying for funding. Municipalities differ significantly in that respect depending on the resources that they have at their disposal. Most funds or initiatives supporting municipalities are based on applications. That requires the municipalities to mobilise resources in order to have sufficient time to make the application and to have the relevant skills/expertise for writing applications. There are indications that some municipalities tend to be better at both finding and writing applications than other municipalities. That might create an imbalance, with some municipalities receiving opportunities as they are more skilled in terms of project language and formulating objectives. The representative from the Partnership secretariat explained that issue as follows: “Through this type of initiative we reach some municipalities that are good at writing applications and projects and thinking about how they can use us to get there and so on. We also need to get hold of cities and municipalities that have not started and might not be so good at such processes” (Interviewee 1). The representative from Aabenraa municipality explained that: “We have quite a lot of experience with these ministry pools and we have people who are good at finding and writing applications. It is a good supplement to the municipal funds, so we take advantage of the opportunities. With experience, the process of finding and applying for funding gets easier. But otherwise, the process can be difficult” (Interviewee 2).

As in other Nordic countries, spatial planning and sustainable urban development mainly take place at the municipal level in Denmark. However, such national support initiatives enable the state to steer the municipalities and encourage them to work on sustainable urban development (Huynh et al. 2022). The Partnership is a top-down initiative, originating at state level, that is aimed at Danish municipalities and their needs in relation to urban development. The initiative formed part of the Growth Plan for Trade and Logistics (Vækstplan for handel og logistik), a plan aimed at strengthening Danish trade and commerce launched by the Danish government in January 2020. The Partnership was announced in August 2020 and initiated by the Housing and Planning Agency (Bolig- og Planstyrelsen) under the Ministry of the Interior and Housing

After the Danish election in 2022, the agencies were reorganised. Since 2023, the Planning and Rural Development Agency (Plan- og Landdistriktsstyrelsen) is the agency in charge of national planning and is responsible for spatial planning and urban development, as well as the development of rural areas and small island communities. The agency comes under the Ministry of Church Affairs (Kirkeministeriet) (Plan- og Landdistriktsstyrelsen, 2023b).

(Indenrigs- og Boligministeriet). The purpose of the initiative was to gather specific proposals for solutions and recommendations for government initiatives (Regeringen 2020). 

In towns of a certain size, the municipality is often a necessary and central player, especially if the town centre is facing physical changes (Interviewee 1). To some degree, the Danish municipalities have different roles and ways of working today than in the past; nowadays urban development partly involves communicating with the town and residents about what they want and then facilitating the goals. Strategic decisions need to be taken to ensure sustainable urban development and vibrant town centres, but these should ultimately be anchored within the local context (Interviewees 1 & 2). In the second phase of the Partnership, the test towns were to focus particularly on two aspects: (1) strengthening the locally anchored private-public urban cooperation and (2) focus on strategic development by preparing a joint development plan for the town centre (Plan- og Landdistriktsstyrelsen 2023a). Although the Partnership was a top-down initiative, the municipalities were relatively free in how to use the initiative to suit the local context in relation to their test town (Interviewee 2).

There are a number of channels and networks between municipalities and the state, allowing for dialogue between the parties. However, in general the municipalities have expressed the need for more opportunities for dialogue and, in particular, more direct channels to allow the municipalities to explain their situation, the challenges they are facing and the kind of support they need. State initiatives and programmes with collaboration between state agencies, municipalities, other organisations and private actors seem to function as a channel for direct dialogue, with longer cooperation leading to a better understanding of one another’s needs. The Partnership provided an opportunity for the municipalities to be in direct dialogue with agencies. One interviewee stated that: “With the Partnership, we have been very close to the same group for a long time and could talk about some issues and challenges directly. There is an advantage in that we work closely with the agencies. They begin to understand our challenges and needs and we have gained some understanding of theirs. Through collaborations like this, it is also possible to exchange experiences with other municipalities and learn from one another” (Interviewee 2).

Municipalities make strategic and urban planning choices that can help to promote the development of town centres (Bolig- og Planstyrelsen 2021). Phase 2 of the Partnership initiative shows how to launch urban development plans, how to organise such work and how to implement activities. The representative from the Partnership secretariat explained that as follows: “The Partnership initiative aims to inspire municipalities and towns to work on these issues and shows how the work can be designed and organised. However, it is too short an initiative to be able to measure the effects and evaluate them, as the test towns had one year to work on these issues in the second phase. Instead, it can be seen as an evaluation of how to get started” (Interviewee 1). As mentioned above, the purpose of the test towns was to test the new urban development tools and methods drawn up in phase 1. The tools and methods were not new in the sense of radically altering the way in which urban development work is to be conducted. Rather, the toolbox served as a good overview of various solutions and methods. The municipalities could thus take the tools, adapt them to the local conditions and subsequently use them (Interviewee 2).

For work on a town centre plan, the test towns in the Partnership initiative received guidance from relevant agencies and other key actors in the form of analyses, sparring and knowledge sharing. In addition, the state co-financed activities in the test cities/municipalities in connection with the preparation of the town centre plan (bymidteplan) in the amount of up to DKK 100,000. The activities focused, for example, on involving the town’s residents and the town centre’s key players in the design of the plan and outlining specific solution options (Kaalund 2021). As mentioned, the municipalities participating in phase 2 were relatively free to decide on the kind of activities and plans they wished to carry out. Some participating municipalities decided to be more ambitious and used the Partnership initiative to build further on a long-term plan. They were already on the verge of redrawing the city plan, so the initiative served as a good starting point for involving more people in the process and anchoring it locally (Interviewee 2; Vordingborg Kommune n.d.).

The considerable interest in the Partnership’s work shows that vibrant town centres are high on the agenda for municipalities, businesses and citizens. In Denmark, the development of larger urban areas and metropolises has historically been given high priority. Now the focus has shifted somewhat and there is political will to work on questions concerning the development of small to medium-sized municipalities/towns. That is now on the state agenda, as shown, for example, by the state support initiatives targeting small to medium-sized towns. Besides the Partnership for Vibrant City Centres, which finishes in 2023, more initiatives are either being launched or planned (Interviewees 1 & 2). The experiences from the test towns are included in the government's work on developing and maintaining vibrant city centres, for example in the "Experimental scheme for free city centres" (Forsøgsordning for frie bymidter) (Kirkeministeriet 2023).

Interviewees 1 and 2 both pointed out that the short time frame of Phase 2 had both pros and cons. The positive aspects highlighted were faster decision processes, more measures by local politicians and flexible state support that could be managed to suit local challenges. However, the interviewees said it would have been beneficial if the initiative had run over a period of several years and with more financial support. The initiative was set up to kick-start processes and inspire work on small and medium-sized towns, as well as to lend visibility to the fact that town centres are important and a political priority (Interviewees 1 & 2).

The experiences from the five test towns in the initiative point to the need for more funding and other types of support for collaborative city centre projects. Resources in a broad sense, such as money, skills, networks and time, are essential for a town centre collaboration. However, there is no single solution that fits all, as the basic conditions of Danish towns vary. The results shows that there is a need among cities and municipalities for resources to be allocated to both project management (for the day-to-day operating budget) and project development (implementing activities and development projects, i.e. project budget) (Planinfo n.d.).

The Partnership for Vibrant City Centres was a state-initiated initiative that ran from 2020-2023, focusing on the development of small to medium-sized towns. It was a national support initiative geared to the question of how municipalities can work on sustainable urban development in connection with creating attractive and vibrant living areas. In Denmark there is a political focus on supporting small to medium-sized towns that are facing a number of issues, including new commerce trends and mobility patterns. It is vital for development of both the town and the surrounding rural areas that a vibrant town centre be maintained with the necessary functions and features of an attractive urban life. 

The initiative aimed to inspire municipalities to work on the development of vibrant town centres and to help municipalities that are about to launch a new town centre collaboration. Experiences from the initiative show that work on vibrant town centres requires a long-term local political focus and a holistic strategy with a clear and unambiguous direction for the town centre. Municipal commitments and governance, together with local enthusiasm and local anchoring, are key to implementing urban development support initiatives. The Partnership initiative highlighted the fact that town centres are important political priorities and created visibility and inspiration as to the form such work can take in a local context.

Some take-aways about communicating, navigating and applying for state support can be drawn from the Partnership initiative. Firstly, the set-up of the initiative, with close and direct channels between state agencies, the private sector and municipalities, creates an improved forum for dialogue, allowing the parties to communicate their views, perspectives and challenges. That was underlined as important, since the municipalities in particular can express what kind of support they need and how it should be designed so that they themselves can work on sustainable urban development. However, initiatives with longer time frames and more financial support were considered to be beneficial for continued work on sustainable urban development. Secondly, state support often takes the form of various initiatives and programmes that municipalities can apply to. Some municipalities in Denmark are better able to navigate and apply for state support than others. That is partly related to previous knowledge and expertise in writing good project applications. The initiatives aim to spread knowledge and inspiration among all municipalities in relation to urban development work. Yet there is still an imbalance, with some municipalities receiving direct state support through such national support initiatives, while others receive indirect support in the form of inspiration.