Download - District Councils’ Network Localising Growth
District Councils’ Network
LocalisingGrowthThe district contribution to delivering City Deals
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Contents
04 ForewordGreg Clark MP, Financial Secretary to the Treasury
& Cities Minister
06 Introduction
09 Part 1: Districts at the heart of a new growth agendaCouncillor Tony Ball, Deputy Chair,
LGA Economy and Transport Board 10
Simon Parker Director,
New Local Government Network (NLGN) 13
15 Part 2: Delivering the First Wave City DealsTony Goodwin, Chief Executive,
Tamworth Borough Council 16
Councillor John Burrows, Leader,
Chesterfield Borough Council 20
Andy O’Brien, Chief Executive,
East Staffordshire Borough Council 24
27 Part 3: Developing the Second Wave City DealsSteve Atkinson, Chief Executive,
Hinckley & Bosworth Borough Council 28
Andrew Bacon, Chairman,
Leicester and Leicestershire Enterprise Partnership 31
Councillor Sybil Ralphs, Leader,
Staffordshire Moorlands District Council 33
Oxfordshire Chief Executives' Group 36
Councillor Brenda Arthur, Leader,
Norwich City Council 41
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Foreword
Greg Clark MP, Financial Secretary to the Treasury & Cities Minister
Local loyalties are important, of course, and, to the greatest possible extent, the
boundaries of local government should be consistent with the character of the
communities they encompass. But identity is something that works at a variety of
scales and there’s no one set of pre-defined areas that can sum it all up.
Local economies are a prime example. These are shaped by factors which are in
constant flux – shifting over time with changes in transport links, technology and
trade patterns. Bureaucrats sitting in distant centres of power can draw as many
lines on the map as they like, but the reality on the ground will be very different.
Whether as investors, entrepreneurs, customers or job seekers, people follow
opportunities not boundaries.
However, while it’s impossible to say where one local economy finishes and
another begins, we can look to cities as focal points of economic activity – whose
importance goes well beyond their official ‘city limits’.
It’s on this basis that the City Deals programme works – seeking not only to
rebalance the ‘vertical relationship’ between central government and local
communities, but also to strengthen the ‘horizontal relationship’ between different
local players – whether in local government, the business community or civil society.
In a top-down system where the centre holds all the power, horizontal relationships
don’t really matter. The orders come down from above and everyone else does
what they’re told. The same policies are implemented everywhere so there’s not
much need for cross-border co-operation.
But in the decentralised system that we’re making progress towards, local
co-operation makes a big difference. This is especially true of the City Deals
programme:
• Firstly, each City Deal is a genuine two-way negotiation. It therefore makes
sense for different local interests to present a united front.
• Secondly, the City Deals are also tailored to the individual needs of each
participating community – there’s no one-size-fits-all solution presented
from on high. By pooling local knowledge, cities can make the most of this
responsiveness to local priorities.
• Thirdly, the City Deals agreed so far should be seen as a starting point, not
an end point for the ongoing decentralisation of resources and responsibilities
that this Government is committed to. The more that cities work across
boundaries the greater the potential for what could be achieved in future.
John Donne said that “no man is an island,entire of itself”. The same applies to localauthorities, including district authorities.
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This publication is a timely reminder that district councils have a big part to play
in this programme. Indeed, district councils have already helped to shape the first
wave of City Deals -- as shown by Tony Goodwin’s account of Tamworth
Borough Council’s involvement in the Birmingham City Deal.
The second wave of City Deals, currently in negotiation, brings a much larger
number of district councils into the process. And future developments –
like the implementation of Lord Heseltine’s report – can only widen the scope
for involvement.
I believe that through these policy developments, a new and better settlement
between central and local government is taking shape. It is an evolutionary, not a
revolutionary, change – and one based on practical local experience, not some
grand scheme dreamed up in Whitehall.
I’m encouraged by the fact that district councils are engaging with this process
and thinking through the implications. This collection of essays is proof of this
thought and engagement and I congratulate the District Councils’ Network for
bringing these important contributions together.
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IntroductionRecent research undertaken by the New Local Government Network for the
District Councils’ Network (DCN) showed that ‘economy and growth’ remains
one of the top priorities for district councils in the short, medium and long term.1
Promoting economic growth has long been one of the central purposes and
priorities of local government, particularly for district councils. Districts have
consistently demonstrated their ability to work with neighbouring authorities,
developers, small and large private sector businesses to deliver on major
regeneration, employment and housing projects. This is despite the prevailing
economic environment and the historical barriers restricting districts, such as
the centralisation of key powers and funding streams.
The depth and length of our economic malaise over the past few years not
only pushes economic growth up the local priority ladder for districts; but
strengthens calls for a whole new approach to delivering sustainable economic
growth, particularly in the regions outside of London and the South-East.
Local government and its partners have continually argued for greater
freedom and powers from Whitehall to put them in the economic driving seat.
Since coming to power the Coalition Government has slowly but surely begun to
listen. The Localism Act, National Planning Policy Framework, and establishment
of Local Enterprise Partnerships, were the early signs of this new approach
beginning to develop. The Treasury’s recent acceptance of the majority of
Lord Heseltine’s growth recommendations and promise of ‘Local Growth Deals’
by 2015 builds on these reforms, with economic powers and resources being
devolved to localities and away from Whitehall.
Whilst this year’s Comprehensive Spending Review will outline the extent of
the centrally controlled resources devolved through a ‘single funding pot’, there is
undoubtedly a re-setting of the economic relationship between central and local
government underway; one that frees local government and their private sector
partners to work within their functional economic areas, breaking-down barriers
and developing their own unique growth opportunities.
Symbolic of this policy trend is Coalition’s City Deals initiative. Originally focused
on urban centres such as Greater Birmingham and Sheffield, the Second Wave
has witnessed an acceleration of the programme well beyond the Core Cities
of England, with another 20 areas negotiating deals to devolve powers and
funding across transport, housing, skills and major infrastructure projects.
With an overwhelming focus on the ‘City’ in City Deals, the role of districts in
this vitally important policy narrative has been less prominent. However, the
fact remains that where Deals between local government, LEPs and Whitehall
stretch over two-tier local authority areas, districts are at the heart of delivering
this new localised approach to economic development.
1 New Local Government Network. The Road Not Taken – New Ways of Working for District Councils’ (March)
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The contributions in the following sections prove that districts have been at the
forefront of developing, negotiating and delivering City Deal proposals. From
Tamworth and Chesterfield in the First Wave, to Norwich and Oxford in the
Second Wave; collaboration between the tiers and types of local government,
neighbouring districts, LEPs and the private sector is helping to secure a new
growth agenda across England.
Recent research by the County Councils’ Network demonstrated the vital
contribution of two-tier areas to the growth potential of UK PLC,2 and if the
recovery is to pick up steam it is these areas that will help drive prosperity.
Whilst Local Growth Deals in 2015 are welcomed, unleashing the true potential
of county areas requires the Government to go further and faster in its commit-
ment to put local areas, and district councils, in control of their economic destiny.
Substantial resources across skills, transport, housing and infrastructure should be
devolved over the coming months to local partnerships, and flexibilities must be
provided for local government to continue to deliver localised growth strategies.
The trail blazers featured in this document prove that districts are up to the
challenge. The DCN will work with Government and our members to ensure all
districts are enabled to benefit from this new way of developing local economies.
2 County Councils’ Network. Counties & Economic Growth (May 2013)
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The role of districts in City Deals and economic development: What can districts do for us?
Councillor Tony Ball, Deputy Chair of the LGA’s Economy and Transport Board
& Leader of Basildon District Council, outlines the growing contribution of
district councils in promoting localised growth strategies. He outlines that the
national narrative on devolving power and resources from Whitehall to local
government plays to the existing strengths of district councils in delivering
economic growth and regeneration for local communities.
Growth continues to be the number one priority for central and local
government. District councils up and down the country have shown that they
are open for business and are committed to promoting growth in their areas.
This has been demonstrated clearly by:
• The range of approaches that districts have developed to help local
businesses to access finance, including providing direct loans and acting
as guarantors for banks.
• The record number of planning permissions that have been granted -
87% of applications were approved in 2011/12, a ten year high.
• The work that districts have been doing to attract inward investment and
facilitate trade, often using connections to councils abroad to market the
UK Plc offer.
• The brokering of links between local employers and skills providers to help
people get into jobs and businesses to access the workforce that they need.
• Intensified engagement with local businesses and the formation of a new
relationship and appreciation of the contribution of the private sector to
local growth.
It is encouraging that government policy has recognised the role that councils
have to play in economic development and have made devolution of powers
to councils, businesses and other local partners a key component of government
policy. This has happened most notably, through the eight City Deals that have
already been signed and the 20 that are currently being negotiated to devolve
powers and tools that were previously held nationally to localities in order to
enable them to unlock growth in their areas.
We need to build on these successes and follow the clear direction of travel set
by the Heseltine Review, which confirmed what the LGA and councils have long
been saying. Lord Heseltine called for a major rebalancing of responsibilities for
economic development between central and local government, observing that
“local leaders are best placed to understand the opportunities and obstacles to
growth in their communities.”
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With the economy in need of boosting, we cannot afford to be precious about
who is given the ability to drive this or have preconceived ideas about where
the next drivers of industry or knowledge will come from. Yes, cities and larger
conurbations often have larger economic bases and economies of scale behind
them. But the economic landscape is changing and becoming more sophisticated.
Gone are the Regional Development Agencies and their regional geographies,
which did not always suit the way that economies really worked. What we are
now seeing is the recognition of functional economic areas in government policy,
some of which operate on the basis of Local Enterprise Partnerships with others
more suited to a smaller geographic footprint.
This is where there is a crucial opportunity for district councils to claim the
recognition they deserve as engines of growth. They know the makeup and needs
of their local business sector, have intelligence on the local labour market, and
create the conditions to attract business investment and use international links
to facilitate trade. Effective LEPs are working with districts to gather this local
intelligence and identify the right policy levers to drive growth in the wider area.
In a LEP like mine, which spans three counties in the South East, it is quite often
our districts that bring the truly local lens to economic development.
Strategic priorities are set across the whole LEP area, but are implemented
through the relationships we broker on the ground. For example, trade
development is a key priority for the Southeast LEP. To make this vision a reality,
Basildon District Council is using links forged with Portuguese local government
as we explore opportunities in green sector technology to see how we can help
local businesses to access Portuguese, Brazilian and Angolan markets. We have
also during the past couple of years formed relationships with emerging economies
such as China and India, enabling our local companies to identify new opportunities
in these markets. This is an example of a district council punching well above its
head and taking charge of promoting its local economy. This new role has to be
performed in partnership with local partners such as local businesses and the
engagement with the private sector is crucial to identify barriers to achieving
local growth.
Which is not to say that there isn’t still work to be done to sort out economic
geographies and develop the collaborative arrangements that will support the
most effective action on local economic development. But it is all too easy to
get caught up in boundary discussions. Areas need to work out what is the best
geographical area that suits them, it may be the “functional economic geography”,
it may be the travel to work area, it may be the LEP – and in fact, sometimes
it is all three. English local government is accustomed to working with messy
geography, and indeed, to turning it into a strength. Economic development is
complex and does not lend itself to a cookie-cutter approach. District council
leaders are pragmatists. We’ll make things work, but we have to have a seat
at the table.
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Encouragingly, within the First Wave of City Deals, we have seen important
recognition of the role that districts can have. As part of the Leeds City Deal, the
city region is developing a model for prioritising investment projects based on
the value they add to the local economy. These priorities will in part be drawn
from projects identified by districts within the region. The Sheffield City Deal
gives the four district councils in the city region a governance role, inviting them
to play an active role in strategic decision making.
We have seen this spirit carried through in some of the Wave 2 City Deal bids.
For example, the Milton Keynes proposal covers 76.7% of the Milton Keynes
travel to work area, which goes beyond city boundaries. This means that district
intelligence and input will be key to making the right decisions. This was
recognised in the Milton Keynes expression of interest for their Wave 2 bid,
which highlights the importance of having districts involved, and indicates that
all authorities will have a representative on the board.
Looking ahead, the Government has committed to making Local Growth Deals
available from 2015, which means that the work to make those deals viable and
substantial has to start now. In theory, Local Growth Deals are meant to provide
all local areas the range of powers they need to drive growth in their areas,
underpinned by a single pot of growth-related funding. At a national level, the
LGA will be pushing hard for ambitious devolution and a single funding pot in
the order of the £58-70 billion that Lord Heseltine recommended, which
councils know all too well is never going to be an easy sell with central
government departments.
In the meantime, district councils have the opportunity to help build the case for
and shape the contents of Local Growth Deals. From our discussions with government
officials, we think this will mean that councils and their LEP partners will need to:
• Articulate clearly where the opportunities for growth in an area lie;
• Demonstrate good use of existing powers and flexibilities’;
• Expose the limitations in the current system; and
• Set out a compelling vision of what more could be achieved through a Deal.
District intelligence and input will be key to all of this. We are also going to have
to tackle head on the sometimes tricky issue of governance, which is key to giving
Government the confidence to devolve. Departments are seeking assurance that
councils and local partners are capable of putting together arrangements to
provide strategic oversight and democratic accountability for economic investment
and decision-making across a wider area. We need to build on the positive
examples, many contained in this publication, of where districts are collaborating
across boundaries for the greater good of the wider area, without losing the
identity of individual districts.
The LGA sees district councils as being vital to achieving local government’s
ambitions for devolution of growth-related powers and funding. Examples of the
excellent work that districts are doing to support growth – from direct lending to
businesses to prudential borrowing to build infrastructure to helping people get
into work – are the bedrock of our evidence base. As we step up our efforts to
make the promise of devolution become a reality, the leadership of district
councils will be more important than ever.
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Getting the governance right: collaboration offers district leaders a chance to lead on growth
Director of the NLGN, Simon Parker, argues that despite the prevailing
economic climate, City Deals offer a real opportunity for districts to lead on
the growth agenda. He suggests that the successful delivery of Deals stretching
across two-tier areas will rely crucially on an appreciation of organisational
scale, partnership working and successful local governance structures.
The new wave of City Deals has brought the role of districts to the fore.
While much of the UK’s potential for economic growth is tied up in big conurbations
like London and Manchester, there is a growing recognition that mid-size cities
like Ipswich and Cambridge have massive potential to ‘catch up’ with their larger
cousins. At the same time, cities like Birmingham are recognising that they need to
develop strong partnerships with outlying districts in their travel to work areas.
The challenge set by the City Deals is to go beyond focusing on your own patch
and to work collaboratively to drive growth across functional economic geographies.
To make the most of the deals, shires will need to form joint leaders boards,
pooled investment funds and perhaps even form full combined authorities.
But the evidence suggests that this kind of collaboration is the area where districts
need to up their game most urgently, and increasing the pace of change is particularly
important for those areas hoping to benefit from the emerging Heseltine reforms.
Recent NLGN research work, commissioned by DCN, showed that growth is
currently the second highest priority for districts, with housing expected to
dramatically rise up the agenda over the next five years. The overwhelming
majority of chief executives surveyed said that economic development was vital
to the future of their organisations. Districts have been helped by the fact that
new growth incentives – the community infrastructure levy, new homes bonus
and business rate retention – are primarily aimed at planning authorities; districts
rather than counties.
Some districts are using their new homes bonus to support new business support
schemes. Pendle Borough Council’s £340,000 investment programme, for instance,
provides grants of up to £10,000 for local businesses to improve their premises
or industrial processes. The HRA buy-out has helped Norwich City Council to
invest in new housing sites, build new council houses and finance green retrofitting.
This builds on longstanding examples of district entrepreneurship such as Woking’s
investments in green energy, which have grown to be worth as much as £25m.
The challenge for district councils is their scale. While some large districts might
be able to do a lot on their own, the vast majority have to work with their
neighbours to drive growth. The City Deal process recognises this – Ipswich is
paired with Suffolk County Council, Cambridgeshire with Cambridge City and
Brighton with Lewes. Counties have powers and resources that cities need, and
functional economic geographies almost always sprawl across several councils.
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NLGN’s research helps to explain why getting governance right is proving to be
the hardest part of the city deal process. The vast majority of districts think they
work well with the district neighbours, a finding evidenced by the rapid move
towards sharing senior officers in shires like Suffolk. They also think they work
well with the VCS and the private sector. But collaboration with counties and
neighbouring unitaries comes right at the bottom of the list.
This matters because shared governance across economic areas – whether in the
form of a joint leaders committee or a combined authority - can deliver real benefits.
Emerging evidence from Greater Manchester suggests that when councils come
together to pool capital funding in areas like transport into strategic, revolving
investment funds, they are able to borrow and invest much more money.
Greater Birmingham and Solihull LEP – which includes East Staffordshire,
Lichfield, Cannock Chase, Tamworth and Bromsgrove - is currently reviewing
the potential of a single capital pot for the whole area and are in discussion with
the Black Country LEP about the strategic function of local transport boards.
It is becoming increasingly apparent that the government wants to see some
kind of pooled governance structure across every LEP by 2015. Not only has this
become a virtual precondition for awarding City Deals, but the Heseltine agenda
makes it clear that areas which don’t put new governance in place might be less
competitive when it comes to handing out single pot funding, and may find that
their pot comes with more strings attached.
Areas that choose to flunk the collaborative challenge will therefore put themselves
at a significant disadvantage. That being the case, it makes sense for districts to learn
from their counterparts featured in this publication and start leading the agenda.
Looking ahead, it is possible to foresee the outlines of a new settlement emerging in
the shires where districts and counties work together to redistribute their services to
the most effective and efficient level, both to drive growth and secure savings. Strategic
economic development would be managed by a combined board at county or LEP
level, with significant sums of capital money pooled into a single investment fund.
Meanwhile, some county services would be run through joint boards at district levels
– for instance the preventative and community-focused aspects of social care. Front
and back office services would be shared, ideally across all local public services.
Such a settlement would allow local communities to benefit from the best of all
worlds: the scale to manage strategic investment decisions and raise more investment
capital at the shire level combined with a real understanding of every town and
village’s needs and the intimate democratic accountability that can be provided by
districts. It is always worth remembering that the ratio of members to residents in
a district might be 1:2,500, compared to something like 1:16,000 for a county.
Collaboration offers district leaders the chance to lead a redrawing of the local
government map on their own terms. There will be wins in terms of efficiency
and growth to pass on to local residents. Perhaps there will also be a convincing
response to champions of reorganisation like Lord Heseltine – radical joint working
has the potential to make his dream of a unitarised England completely obsolete.
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Delivering better skills – Tamworth and the Greater Birmingham & Solihull LEP City Deal
Tony Goodwin, Chief Executive of Tamworth Borough Council, discusses
the thinking behind their involvement with the GBSLEP, the journey they
have been on, and how they are playing a key role in delivering the Greater
Birmingham and Solihull City Deal.
Tamworth Borough Council is located in the south east corner of Staffordshire
and enjoys neighbourly relations with Lichfield and North Warwickshire district
councils. The borough council is a member of the Greater Birmingham & Solihull
Local Enterprise Partnership (GBSLEP). However, as a consequence of its
geographical location and administrative boundary, it is also covered by the
Staffordshire & Stoke LEP.
As a founding member of the GBSLEP, the Council in communion with local
business partnerships have focused much of their economic development
resource on securing the most from what was a new, but very productive,
working relationship with all members of the LEP.
Tamworth’s first step on the City Deal journey could well be described as a ‘blind
leap of faith’. Having left behind us a world of command and control, we found
ourselves with the freedom to make a choice. Our detailed understanding of our
functioning economic geography, a strong steer from local business and meaningful
relationship building with key partners and politicians meant that we were well
placed to take advantage of the opportunities LEP’s presented almost from day one.
With the support of the Southern Staffordshire Partnership, made up of our local
college and Chamber of Commerce, Staffordshire University and Staffordshire
County Council; Tamworth Borough Council had been developing close working
relationships with the West Midlands conurbation and, in particular, Birmingham
City Council for a number of years. Initially, this took the form of the City Region
agenda back in 2005, which led to a place on the Birmingham City Region Board
for the Southern Staffordshire districts three years later. This relationship then led
to a decision to accept an invitation to work alongside Birmingham City Council
and Birmingham Chamber to jointly develop the bid to establish the Greater
Birmingham & Solihull LEP.
A direct consequence of this initial relationship was the set of principles adopted
by the shadow board, key amongst these being:
a) Each participating local authority would be an equal member
b) ‘Balanced benefit - balanced growth’
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What this ensured was that firstly, the structures that underpinned the working of
the LEP reflected the sub geography of the patch and that work progressed on
the basis of ensuring that all parts of the LEP could play their role in, and benefit
from, growth. Secondly that Tamworth Borough Council, along with East Staffs
Borough Council, Lichfield District Council, and Cannock Chase Borough Council
each had a seat on the board and were therefore an equal partner at Board level
to the unitary authorities covering Birmingham and Solihull. Consequently, we
were very well placed to participate in and influence the various opportunities
that were coming the LEPs way. The council participated in genuinely transparent
discussions about where to site the Enterprise Zone; which schemes to promote
for Growing Places Fund; and what should be included in the City Deal.
Naturally there were some high expectations with the City Deal. In the main,
these were met as the council, either directly or through the Southern Staffordshire
Partnership, were involved in some of the key discussions with the Cities Minister
and senior civil servants. As discussions progressed, the City Deal was shaped and
reshaped and ultimately an agreement was reached. Not everything we hoped for
was included, but the final product reflected a position that both the GBSLEP and
the Government were happy with. Inevitably, the Deal included activity that would
be primarily city based such as developing an Institute for Translational Medicine
and a targeted Green Deal providing energy efficiency work to 15,000
Birmingham homes. However, it also focused on several issues fundamental to
the Tamworth economy. These included a new approach to improving our skills
base and a new investment stream to be known as ‘GBS Capital’, which would
provide a resource across the whole LEP area to help unlock key investment sites.
In describing the Tamworth City Deal story, I want to focus upon the work related
to skills in more detail, as this was something the council were very much involved
in shaping. Furthermore, it reflects how inclusive and relevant to Tamworth the
GBSLEP is, and also because it provides a practical route through which we were
able to share and address some of the challenges of being in a LEP that did not
include our county council.
Following discussions at the main LEP Board it was agreed to establish an
Employment and Skills Board (ESB). This would be supported by four sub boards
each covering the four parts of the LEP geography, namely southern Staffordshire
(in which Tamworth sits), Birmingham, Solihull, and North Worcestershire (where
three districts are also part of the GBSLEP).
The aim of the ESB was to provide a clear business focus to how we address
our immediate skills needs and to identify how we might do things differently to
achieve the longer term and fundamental uplift in our skills base. The chair of this
board would be the LEP lead for skills (Alan Volkaerts - Director of Jaguar Land
Rover in Solihull) supported by four other core members in their capacity as
local ESB Chairs – all business people.
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Once the structure was agreed, Alan Volkaerts came along to Tamworth to
meet with our Members, to hear our concerns on skills, discuss his thoughts
for a business led approach to skills, and to help develop what would become
the Skills Accelerator part of the City Deal. This engagement and dialogue was
essential; demonstrating the necessity of strong links between public sector
enablers and private sector deliverers on the skills agenda.
Our local ESB has since been contributing to shape and deliver the Skills
Accelerator across the three meetings to date. In addition to private sector
input we benefit from colleagues from the local colleges, University, NAS, and the
county council attending. Through this group we have influenced how the Skills
Accelerator programme works including what our growth sectors are. We have
been able to access funding to support our local capacity building and to develop
some locally relevant pilot projects. We are also working with the consultants
who have been taken on to develop a coherent LEP wide skills strategy which
will also include priorities for each of the four sub ESB levels. £500,000 of
funding is currently coming from the City Skills Fund.
Alongside the recruitment of local industry champions for each growth sector to
identify 'Fixers', key activities in the work programme include the development of:
• A ‘Skills for Growth Compact’ that will achieve systematic and sustained
business engagement with schools – 25% of businesses to be signed up
by 2015;
• An IT solution to facilitate connections between education and businesses;
• Meaningful local activity with schools, colleges and businesses to increase
involvement in the National Skills Show at the NEC in November;
• A virtual Apprenticeship Hub;
• A £1m capital investment in specialist equipment and tools to meet the
skills needs of growth sectors;
• Delivery of an AGE grant campaign to ensure the enhanced take up of
over 3,500 AGE grants.
Progress so far includes the recruitment of the Development Officer for the Hub;
the identification of sector champions; and a draft LEP wide skills plan. Each local
ESB is now tasked with supporting delivery in its part of the LEP area ensuring
that this programme is genuinely delivered LEP wide. It is here that we believe
we are playing a key role as a district council, helping to shape the final delivery
of this important element of the City Deal.
Another critical skills and employment issue for Tamworth is to significantly
increase awareness and uptake of apprenticeships. The borough needs a better
articulation and joining up of the support that is available to employers to help
young people and adults into work through apprenticeships. To provide a
consistent and coherent message for employers, a virtual hub is co-ordinating
promotional activities and messaging about apprenticeships, supported by the
major NAS PR campaigns. The hub will operate as part of the wider Skills for
Growth compact so that there is integration between the supply and demand
elements of apprenticeships and take up of AGE across the GBS area.
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In delivering Tamworth’s contribution to the skills agenda, the Southern
Staffordshire ESB has played a vital role as an ‘honest broker’, managing the
complexities and potentially conflicting skills agendas of the two LEPs. It is
through this partnership group we have been able to support the development
of the skills part of the City Deal. A key task is to increase the level of business
involvement and we want to appoint champions from each of our key sectors.
Involving the county council has been a challenge. The simple message
throughout is that this is about securing more resource and more support into
Staffordshire to address the skills deficit. This will be achieved through the offices
of the Southern Staffordshire Partnership, the leads for skills in both LEPs, who
will meet on a bi annual basis to ensure that both LEPs work in partnership to
support Tamworth and Southern Staffordshire.
The task for us now is to ensure that this part of the City Deal is as relevant to
Tamworth as it is to any other part of the LEP - so far so good. For Tamworth,
the journey continues but we are prepared as ever ‘to boldly go where none
have travelled before’.
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Sheffield City Region City Deal – A Chesterfield perspective
Councillor John Burrows, Leader of Chesterfield Borough Council & portfolio
holder for Regeneration, discusses his council’s contribution to the Sheffield
Region City Deal. He describes the structural economic issues the Deal is
seeking to address locally, as well as the council’s contribution to the local skills
agenda and the importance of strong and accountable local leadership.
Chesterfield Borough Council has played an increasingly active role in the
Sheffield City Region (covering the local authority areas of Barnsley, Bassetlaw,
Bolsover, Chesterfield, Derbyshire Dales, Doncaster, North East Derbyshire,
Rotherham and Sheffield) in recent years. Joint working between the authorities,
reflecting functional economic links at the city region scale, commenced in 2007
with the creation of the Sheffield City Region (SCR) Forum. More recently, this
collaboration has taken the form of the SCR Local Enterprise Partnership (LEP)
and the SCR Leaders Group. Formal participation in the SCR LEP was a significant
decision for the council as it represented a break with traditional administrative
boundaries and existing working relationships. However, this decision was
informed both by the scale of the regeneration challenges which continue to
face the borough and recognition of the potential to drive forward economic
growth through proactive engagement with the LEP.
In common with the wider city region, Chesterfield’s economy has long term
structural issues linked to the decline of traditional industries and the need to
secure a more diversified business base. The impact of this decline is apparent
across the area with a legacy of brownfield sites and a high level of worklessness
in local communities. These issues have been compounded by the current
weakness of the national economy and also, looking forward, the area’s high
level of dependence on the public sector for employment. With almost 40%
of jobs in the public sector, the full impact of public sector funding cuts are still
to be felt locally.
The recent refresh of the ‘Sheffield City Region Economic Overview’ document,
a precursor to the completion of a more comprehensive economic development
strategy, highlights the challenges that need to be addressed at city region scale.
These include: developing those sectors that will maximise the potential for
growth; promoting a culture of enterprise and innovation; improving connectivity
within and to the City Region; and ensuring that the skills are in place to enable
the City Region’s priority sectors to grow in the future.
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Despite its relatively short life, the City Region is developing a good track record
in securing resources and getting things done. This has already delivered significant
benefits for Chesterfield. For example, a number of Chesterfield businesses will be
supported to make new investment and create employment as a result of the
City Region securing £25 million from Round Three of the Regional Growth Fund.
The Chesterfield Waterside scheme, a £340 million regeneration project, has
secured £2.4 million from the LEP’s Growing Places Fund allocation to provide
enabling infrastructure that will unlock the first phase of residential development
on the site. Part of ‘Markham Vale’, a major employment site located in the borough,
has been included as one of three locations running along the M1 corridor that
make up the SCR’s Modern Manufacturing and Technology Enterprise Zone.
A SCR Inward Investment Team has been established and this team is responsible
for generating new investment leads and co-ordinating responses on behalf of
partner authorities.
Building on this success, the SCR City Deal was formally signed with Government in
September 2012. The SCR City Deal has been shaped by, and enables the delivery
of the city region’s economic priorities. It seeks to ensure that the growth of our key
sectors can be supported by access to a highly skilled workforce and through the
provision of a quality business infrastructure. Specifically the City Deal will:
• Create a ground-breaking business-led skills model which puts employers
and local partners in charge of getting the skills that the city region economy
needs to grow. SCR will lever over £44 million of local public and private
sector investment in return for almost £28 million of devolved funding
from Central Government over a three year period. The ‘Skills Made Easy
Programme’ aims to deliver 4,000 new apprenticeships and the up-skilling
of 2,000 existing employees by 2016.
• Establish a SCR Investment Fund which has an investment potential of up
to £700 million. This is a recyclable fund which will enable the City Region
to make strategic infrastructure investment against jobs and growth
outcomes utilising the new funding flexibilities available to local areas.
• Give SCR the power to create an efficient transport network which connects
people to jobs and helps to unlock key growth sites. This includes: a 10 year
allocation of devolved major scheme transport funding; local management
of the tram-train project between Sheffield and Rotherham; the introduction
of an TFL Oyster card-style ticketing system for the local bus network; and
devolution of the Northern Rail Franchise, to be jointly managed by
Greater Manchester, Leeds City Region and Sheffield City Region.
• Support the development of a national centre for procurement for the
future UK nuclear new build framework based on SCR’s Advanced
Manufacturing and Nuclear Research Centres.
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City Deals offer devolution of powers and funding, but this is dependent on city
regions being able to demonstrate strong accountable leadership. In this regard,
it was becoming apparent that SCR was beginning to outgrow its existing
governance structures, which have so far been based on informal voluntary
partnerships. Accordingly, the SCR Leaders Group and SCR LEP agreed to
undertake a Governance Review under the provisions of the Local Democracy
Economic Development and Construction Act 2009. The headline conclusion of
the Review was that the establishment of a SCR Combined Authority would
improve the delivery of economic development, regeneration and transport
functions and was the option most likely to deliver sustained economic and
social benefits to the SCR. Each of the nine local authorities in SCR are currently
in the process of seeking approval via Full Council decisions to become a member
of the SCR Combined Authority, with a view to it going live in April 2014.
Whilst the City Deal has very much been driven by Sheffield City Council, as
the ‘Core City’ authority, each of the partners has been consulted and/or
involved at all stages in the development of the bid prior to its submission.
District councils are currently fully engaged in the further development of specific
elements of the bid now that the City Deal has moved on to its implementation
phase. For example, Chesterfield Borough Council is working on the City Deal
Skills Technical Group to support the delivery of the Skills Made Easy
Programme. This programme represents one of the most significant agreements
made with Government in any of the First Wave of City Deals. It seeks to tailor
skills provision to the specific needs of small and medium sized businesses
who often struggle to access the mainstream support that is available.
Account managers will provide businesses with a single point of contact
throughout the recruitment and training of an apprentice or employee, and
training providers will be incentivised to deliver training in response to employer
demand. Feedback from engineering businesses in the borough highlights a
particular need for this type of bespoke provision.
As a partner authority, Chesterfield Borough Council is supporting the
development of the SCR Investment Fund. This fund will combine various funding
streams into a single pot to support the delivery of strategic infrastructure which
has the potential to deliver transformational change in terms of GVA and jobs
for the City Region. A computer model is currently undergoing testing that will
enable the GVA outcomes of different types of investment schemes to be
compared, and an Assurance Framework has recently been endorsed by each
of the SCR authorities.
At a Full Council meeting on 28 February 2013, Chesterfield Borough Council
members gave their unanimous support to the creation of a Combined Authority
for Sheffield City Region. This decision is a clear statement of the value that the
council sees in partnership working at the City Region scale. The demise of the
Regional Development Agencies (RDAs) and their replacement with LEPs has
significantly changed the operating environment within which economic
development activities are carried out. LEPs operate at a smaller geographic scale
than the regional focus of RDAs, and are ideally based on functional economic
areas, as is the case with the SCR LEP. This means that most of the gains from
job-creating investment in transport and economic infrastructure will directly
benefit the resident workforce of the area.
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The geographic scale of the SCR makes it strategic in nature, but not so large that
a district council such as Chesterfield cannot have a meaningful say on its strategic
direction and priorities. As a core city, Sheffield already has significant influence
within Government, and looking forward it is anticipated that the wider Sheffield
City Region will only strengthen as a key geography and key partnership. The
establishment of a SCR Combined Authority will put in place strong, stable and
accountable leadership, thus enabling the devolution of further powers and
funding from Government in the future.
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The Greater Birmingham Project andshire districts: A single pot of gold at the end of the City Deal rainbow?
Andy O’Brien, Chief Executive of East Staffordshire Borough Council,
discusses how his authority is helping the Greater Birmingham & Solihull
Local Enterprise Partnership progress the economic devolution agenda
started by the LEP’s City Deal. Building on the City Deal, East Staffordshire
helped position the role of districts in moving the Single Pot debate
forward, overcoming some of Lord Heseltine’s predilections for economic
geography and unitarisation. He argues that they have contributed to
governance arrangements which ensure districts remain or can become
leaders of LEPs, instilling confidence and innovative ways of working crucial
to Single Pot success.
Following publication of Lord Heseltine’s already seminal paper ‘No Stone
Unturned’ during October last year, the Greater Birmingham & Solihull Local
Enterprise Partnership (GBSLEP), of which East Staffordshire Borough Council
(ESBC) was a founding member, asked the Prime Minister if Lord Heseltine
could help it in a project. This was to explore the recommendations of his
report as they might relate to local economies, the project becoming known
as the Greater Birmingham Project (GBP).
With the Prime Minister's agreement, its nine constituent local authorities
(including seven district councils) and board members started work on the
project over an eight week period, commencing in January this year.
Almost simultaneously, the Chancellor of the Exchequer welcomed No Stone
Unturned and committed the Government to the devolution of a greater
proportion of growth-related spending to local areas from April 2015.
Therefore, with the main prize already won barring the detail, the stakes for
ESBC, GBSLEP and its district councils were incredibly high as they responded
to No Stone Unturned by shaping some of the issues for discussion associated
with the ‘Single Pot’.
ESBC, which since the LEP’s creation has enjoyed an ‘equality of vote’ at the
GBSLEP board table, stepped up to volunteer itself for two project roles.
Its Leader stepping forward as a member of GBSLEP board and politician
led ‘Project Steering Group’; and its CEO as a member of the Core Executive
Group, which had responsibility for day-to-delivery of GBP.
Importantly, some of the basic analysis relevant to the work was already in place,
particularly in the LEP’s ‘Strategy for Growth’ and the City Deal and Enterprise
Zone agreements from 2012. This work represented the next steps for such
an approach.
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So, through the GBP, how has East Staffordshire helped position the role of districts
in moving the Single Pot debate forward alongside its unitary (Birmingham and
Solihull) and district partners (Cannock Chase, Lichfield, Tamworth, Bromsgrove,
Redditch and Wyre Forest)? By helping overcome: some of Lord Heseltine’s
predilections for economic geography and unitarisation; proposing a form of
governance which ensures districts remain or can become leaders of LEPs;
instilling confidence and innovative ways of working crucial to Single Pot success.
LORD HESELTiNE’S PREDiLECTiONS fOR uNiTARiSATiON Of
ECONOMiC GEOGRAPHy
Well documented, it was clear from the outset that Lord Heseltine was interested
in challenging how such a diverse economic geography of that of GBSLEP had
come into being, what could be done to demonstrate efficacy and who exactly
was in charge.
The GBP team’s response was to consolidate its vision for the GBSLEP as being
shaped around an integrated set of spatial enterprise opportunities and needs,
with the Birmingham City Centre Enterprise Zone at the heart linked via the
M42 Economic Gateway to an Enterprise Belt that reaches out into Worcestershire
and Staffordshire. Spatial and economic growth plans are underpinned by a
quality of life offer, with a variety of high quality and affordable places to live, visit
and invest – many of which sit in the districts. This understanding, shared across
all of the local council members, demonstrates itself as what has now become
known as a “partnership of the willing”. This refreshing combination of local
councils is new to each other, as well as new to the private sector interests
sitting on the GBSLEP board. In the end, Lord Heseltine was comfortable with
this articulation of who was in charge (the councils, equally with each other, and
with private sector colleagues) and what the LEP was trying to achieve inside its
economic geography.
PROPOSiNG A fORM Of GOvERNANCE WHiCH ENSuRES DiSTRiCTS
REMAiN OR CAN BECOME JOiNT LEADERS Of LEPS
Notwithstanding we had convinced Lord Heseltine ‘who’ was in charge there was
need to explain ‘how’ we would be in charge of a Single Pot. The proposal was to
put forward a major enhancement of our governance arrangements as a response
to the devolution of a significant Single Pot by the Government.
From the outset GBSLEP has had a legal ‘personality’ through its establishment
as a company, run well as any other company or business would be run with
necessary discipline. However, the Project Group recognised the next stage of
GBSLEP’s journey involved transferring powers from Whitehall and therefore
required careful consideration.
Once the finer details of the Single Pot are announced GBSLEP will immediately
establish a Supervisory Board, comprised of the nine elected local authority
leaders. This will provide clear political accountability for the management of the
Single Pot. It will operate a cabinet style of accountability and will be a formal
governance structure. The Supervisory Board will empower the GBSLEP Board
through formal decision-making and a scheme of delegated authority and so will
further strengthen the partnership between business and civic leadership. The
GBSLEP Board will continue to be responsible for development and implementation
of the Local Growth Strategy.
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iNSTiLLiNG CONfiDENCE AND iNNOvATivE WAyS Of WORkiNG
CRuCiAL TO SiNGLE POT SuCCESS
For districts to be taken seriously within such new and dynamic arrangements,
there is a need to punch above their weight, if only to instil confidence and
promote innovative ways of working which will be crucial to Single Pot success.
In the case of ESBC, inside the Greater Birmingham project team this took
shape around proposing promises to Government in exchange for a defined
Single Pot approach. Specifically:
Maximising Public Assets – we proposed that the LEP should be committed to
mapping and valuing publically-held surplus and/or derelict land assets by the end
of July 2013, asking all public bodies to do the same. This work will be co-ordinated
by the Homes and Communities Agency. This will enable the identification of
opportunities for inter-public sector land assembly and/or joint ventures to help
bring forward land for housing or employment use more effectively.
Proactive Planning – proposing that the GBSLEP use its Planning Charter
and Local Development Orders to support growth and create a positive and
pro-sustainable planning process. East Staffordshire has also been piloting a
‘clear and unbiased’ public statement which measures the delays in the planning
process by statutory consultees, developers and the planning authority.
The GBSLEP is going to attempt to roll out this ‘statement’ approach and will
also expand it to cover why planning permissions are not then implemented.
We also recommended to Government that it considers adopting this
into its national performance management of the planning process.
TAkiNG THE SiNGLE POT fORWARD
GBSLEP is a partnership that covers nine local authorities, seven of them districts,
coming together in a partnership of the willing to work on shared economic
geography. The LEP came into being with no assets, money, or powers, but
progress continues. If a Single Pot is to be taken forward we recognise that a
new form of governance is necessary which ensures districts remain or can
become leaders inside LEPs, including confidently taking forward innovative
ways of working crucial to Single Pot success.
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A tale of two cities: Hinckley & Bosworth Borough Council
Steve Atkinson, Chief Executive of Hinckley & Bosworth Borough Council,
discusses his council’s experience of contributing to the development of two
Second Wave City Deal proposals. Acknowledging the challenges they face,
particularly in relation to local governance, Steve demonstrates that his
district is determined to use its good track record on overcoming
partnership challenges to grasp the potential economic rewards of the Deals
for the local community.
We thought we were unique; but not quite! There are other districts involved
in two City Deals, but Hinckley and Bosworth Borough Council straddles two
regions - East and West Midlands - and two Local Enterprise Partnerships –
Coventry/Warwickshire and Leicester/Leicestershire. This poses challenges we
haven't faced before; but the council, officers and members, have embraced and
addressed a number of challenges over the years - and emerged with credit and
success. We aren't about to change now; especially as the prize is the potential
regeneration of our local economy: for commercial, social and individual benefits.
The council is a partner to the Leicester and Leicestershire City Deal almost
as of right, being one of the seven districts in the county and having its Leader,
Cllr Stuart Bray, as one of the two district leader representatives on the LEP.
As a contrast, we are partners in the Coventry and Warwickshire City Deal by
invitation. And this also makes great sense. We share strategies, delivery, and
governance arrangements with our 'parent' county colleagues, by virtue of
geography, common interest and history (a previous Local Area Agreement
and a county Local Strategic Partnership).
We share a great deal in common with Coventry and Warwickshire. Historically,
many people in Hinckley used to work or had relatives and neighbours working
in and around Coventry during the heyday of the motor manufacturing industry.
Commuting is therefore common across the Hinckley, Coventry and Warwickshire
border. Local people now share the same problems and aspirations as their very
close neighbours across the A5 trunk road in Nuneaton, Bedworth and Atherstone;
and the centre of Rugby is only a little over twenty minutes' drive away.
Being at the geographic edge of two county boundaries paradoxically puts us at
the centre of a City Deal convergence. The issues we need to address overlap
to a large extent - a skills shortage and mismatch with what employers need,
now and into the future, in both LEP areas; the need for the infrastructure
appropriate to support the development of the economy; the need to acquire
and make available the land to facilitate this development; and the need to engage
and grow the private sector in specific industries.
It is the overall priority, the central economic challenge or ‘Flagship Policy’, as it
is now termed, and the means of securing that priority, which differs between
the two Deals. This is a real local challenge.
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The Leicester and Leicestershire 'Deal' is being worked up from the basis of
'Accelerating Prosperity', with the three key components of:
• A Strategic infrastructure Plan - long-term, to unlock development
opportunities supporting economic growth.
• A Local infrastructure Plan - a local fund being created (over £100m)
by pooling a variety of funding sources to invest in priorities set in the
Strategic Infrastructure Plan.
• Co-ordination of public sector land assets - to facilitate land assembly.
This must involve the widest possible definition of 'public sector'.
The Coventry and Warwickshire ‘Deal’ is based on the aim of ‘Re-engineering
Engineering’ and has the following key components, the innovative means of
delivery of which is now in development:
• Developing skills for advanced manufacturing and engineering growth -
including growing local apprenticeships and delivering skilled engineers
to meet current and future needs.
• Access to innovation - the co-ordination of innovative activities to increase
Advanced Engineering Research and Development Activity, and the
development of a local dedicated Innovation Fund.
• Delivering infrastructure for Advanced Manufacturing and Engineering
Growth - via an Infrastructure Fund to deliver development sites,
facilitate housing schemes and improve the transport network.
In the development of the two Expressions of Interest at the end of last year
and in January this year, the Leader and Deputy Leader of Hinckley, two senior
manager colleagues and I have maintained a clear flow of information internally,
so that we have been interchangeable at meetings which, because of the
speed with which things developed, were generally called at short notice.
We supported these meetings and made, I think, a positive contribution there
and in the detailed preparations in between.
The Leader and I have emphasised that the council is 'in it to win it', because
the opportunities are too good to miss. A commitment based on the ability to
borrow against HRA 'headroom' (the council still owns and operates its own
housing stock) and 'pooling’ of retained business rates, provides a sound
platform for getting the best from both Deals. The council is well positioned
with its District partners in North Warwickshire and Nuneaton and Bedworth
to facilitate links between both City Deals, as part of the West Leicestershire
and North Warwickshire Cross-Border Delivery Partnership, which the council
brokered two years ago.
Clearly, the recommendations in 'No Stone Unturned' of a £49bn national
funding pot for economic growth will give LEPs (and therefore City Deals) the
financial power to begin the changes necessary to deliver growth; in this case
across a swathe of the East and West Midlands. Hinckley and Bosworth
Borough Council is at the centre of that growth potential and intends to leave
'no stone unturned' in getting the best for its businesses and citizens.
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Through this process, we have discovered that one main challenge for Hinckley and
Bosworth Borough Council will be: How do we ensure that we are able to commit
the necessary resources (finance and people) between two major initiatives, and
make sure that we do this to maximum effect? Half-measures will not do!
We know already that one of the (if not the) major barriers to overcome will
be arrangements for governance. That, along with the allocation of resources and
responsibilities, will challenge our intellectual and organisational expertise to the
limit; but neither challenge is insuperable. Indeed, we are determined to ensure
that our businesses and communities get the best of both ‘Deals’ for the future.
The council has a history of dealing with partnership challenges and, over the
last six/seven years, has proved itself to be a valued, collaborative and dependable
partner in areas such as: shared services, in a regenerated office hub to
incorporate district, county council adult care and children’s services and Job
Centre Plus in one building; a joint Community Safety Partnership with Blaby
District Council; and a 'locality' (district) approach to Supporting Families
('Troubled Families'). It has also secured major investment and regeneration
opportunities, such as the MIRA Enterprise Zone and RGF funding for supporting
infrastructure; the Atkins Cultural Enterprise Centre and a state of the art Young
Persons Centre. We have also directly confronted the overall funding challenge
and feel confident that our sound financial management will stand us in good
stead in future years.
We have needed to be flexible and agile in moving resources to meet major
challenges and have been able to take speedy, but well informed decisions when
circumstances have demanded it. I see no reason why we can't continue this
flexible approach with partners in meeting the governance challenges of City Deals.
For this council it will be both ‘what we do… and the way that we do it’ which
will be the watchwords for the next five years and beyond.
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LEPs and district councils; the Leicester and Leicestershire Enterprise Partnership & City Deal
Andrew Bacon, Director, British Gas and Chairman of the Leicester and
Leicestershire Enterprise Partnership (LLEP), discusses the important role
district councils are playing in the LLEP City Deal. He suggests that the
‘bottom up’ approach of the LLEP is helping ensure active and full district
participation, and the foundations of successful local governance.
As twenty more LEPs negotiate the final details of the Second Wave City Deals
with Government, the challenges of structure and governance remain at the
centre stage for debate.
In Leicestershire, we have made excellent progress in drawing together public
and private sector leaders to create a solid governance structure that will drive
opportunities for growth in our area. This will be our strength moving forward,
if we are to capitalise on the opportunities presented to us in the City Deal.
The Leicester and Leicestershire Enterprise Partnership (LLEP) area is a two tier
sub-region combining nine authorities, including seven district councils, a city and
county council. It is a partnership which ensures authorities at all levels, can have
influence and leadership at every stage.
The LLEP Board consists of a mix of public and business members with a cross
section of sectors represented. Strengths are drawn from the varied experience
of private sector, married with top level public representatives.
With a single joint focus of economic growth at the heart of the LLEP-wide
agenda, our approach to governance, by sharing responsibilities, has already
boosted relationships and been vital to a smoother, joined-up delivery of our
City Deal submission.
The Government’s localism agenda and intention to devolve more funding and
powers to local authorities is something that is welcomed by the LLEP and this
is endorsed within our City Deal bid. Even within our own sub-region, each authority
faces differing challenges and opportunities. We endeavour to work very closely
with each of the councils within our LEP remit, to reach a collaborative
arrangement where opportunities for growth are captured within each district.
This ‘bottom-up’ approach means our district councils will continue to play a
pivotal role in the development of local economic growth plans. Likewise, business
knowledge and engagement gathered through avenues such as area-based
workshops and breakfast meetings and led by district councils’ chief executives
and leaders, has already been crucial in informing LLEP policy and strategy.
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The LLEP’s City Deal is focussed on infrastructure and other interventions to
foster employment opportunities to unlock the area’s unique growth potential.
The LLEP area boasts key employment sites such as the MIRA Technology Park
Enterprise Zone, the Roxhill development and Loughborough Science and
Enterprise Park. The alignment of all of our partners, particularly the involvement
of the district councils’ within the planning process, have been crucial in the
moving these strategic sites forward.
Our City Deal proposal outlines how the revised governance arrangements
and whole City Deal package (bespoke and core offer) will enable us to address
other fundamental issues required for sustainable economic growth:
• Housing growth (linked to the duty to co-operate, strategic site allocations);
• Strategic commissioning of funding to improve skills productivity in the
local market;
• Strategic transport to enable effective and efficient movement of the
local labour market.
Key decisions are crucial in each local area to earn the right for the levels of
devolution of decision making and funding that the Heseltine Review promises
us. It is impossible to know what a city deal is worth to an area, but my estimate
is that it could be worth an extra £50m per year to Leicester and Leicestershire
in monetary terms alone.
Government feedback has emphasised the need on a national scale for a
step-change in governance, for the arrangements to be able to make binding
decisions and for clarity on accountabilities. Having local control over investment
decisions with streamlining reporting arrangements and a single outcome
framework was an essential element of the LLEP’s bid.
We are hoping the Government continues to commit to its localism agenda as
we request for devolution of all national capital funding streams for infrastructure,
longer-term funding commitments (e.g. for local transport majors) devolution
of European Regional Development Funds 2014-2020, greater business rates
(perhaps in relation to growth on specific key sites) and transfer of Homes and
Community Agency assets.
We recognise this will be a test for many two-tier areas but the LLEP welcomes
the opportunity to show a united front across all authorities and the private
sector and evident co-ordination in matters of economic development.
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Working across the tiers & types oflocal government to deliver growth
Councillor Sybil Ralphs MBE, Leader of Staffordshire Moorlands District
Council explores the partnership work, both economic and social, across
the emerging City Deal of Stoke and Staffordshire. unique in its
collaborative work across the tiers and types of local government in the
area, Councillor Ralphs details the benefits that it has already brought and
the potential the partnership has to offer in the future.
District councils are pre-eminent in understanding and dealing with the needs of
our places. But the scale of our budgets and staff capacity means that strong and
capable partnerships between the tiers and different types of local government
are needed to make things happen. Job creation and investment need all levels
of Government and LEPs, to work seamlessly and in a focused way.
Staffordshire Moorlands District Council covers a largely rural area, which
includes parts of the Peak District and the suburban fringes of Stoke-on-Trent.
It has a population of 97,000 people spread between the towns of Leek, Biddulph
and Cheadle and a series of villages. Unemployment is low, educational attainment
is high, but wages tend to be lower than other parts of Staffordshire. There are
pockets of deprivation particularly in the ex-coal mining town of Biddulph but in
general the rates of poverty are substantially below those of the nearby city.
Despite the largely rural backdrop there a number of large employers in the
area including JCB, Alton Towers, Adams Foods (Kerrygold), Lafarge and
The Co-operative Bank. These are of importance to the wider North
Staffordshire economy.
Stoke-on-Trent and Staffordshire LEP started work on the City Deal to attract
new businesses and create new jobs for local people. Its central premise is to
make Stoke-on-Trent and Staffordshire the key European centre for research
and manufacturing of advanced materials, including ceramics, metals and polymers,
thriving alongside other businesses and growth sectors in the region. It will build
on and accelerate existing work to support job creation and growth across the
city and county.
The proposal was drawn up following close working with district councils who
were closely involved in the process. In particular, as local planning authorities
the district councils are vital partners in ensuring that employment sites are
identified and delivered.
Districts were engaged from the start and representatives involved in developing
the expression of interest and subsequently the detail of the bid, including the
identification of the sites.
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Following the success of the expression of interest in February the county and
districts have established the Staffordshire Economic Consortium, which I chair.
A shared economic strategy is being developed and considerable work is being
done to deliver a distinctive and effective bid. District councils, encouraged by
the county council, are playing a central role in developing the bid alongside
Stoke-on-Trent City Council and LEP. The Economic Consortium is meeting
every month to support the development of the City Deal bid.
Underpinning this strong partnership is a series of District Deals. These are
bilateral agreements between the county and individual districts. Each deal
has a mutual commitment to share the proceeds of growth through the City
Deal and other economic plans by pooling retained business rates. In turn the
county has committed to providing district council representation on the
Local Transport Board.
Each Deal also includes support for a series of local initiatives. In the case of
Staffordshire Moorlands this includes a commitment by the county council to
support, through staff, resources and policies:
• The delivery of town centre masterplans;
• The development and delivery of a tourism plan;
• Highways investment;
• Asset sharing;
• Support for employment and training initiatives.
The benefit of the District Deal, agreed in December 2012, is the identification
of shared priorities and a commitment to working together to deliver investment,
jobs and training. Our District Deal is helping to guide the local delivery of the
City Deal objectives and is already making a difference.
As a district council we have shaped our plans through extensive public consultation
underpinned by strong political commitment. The county has brought the ability to
commission highways investment to complement the programme and enabled links
to social care, education, which has added considerable value.
I chair a high-level group, which includes the county council leader and portfolio
holder for regeneration, to guide the District Deal. An executive board of senior
officers is responsible for managing and delivering the agreed programme.
The relationship has delivered significant benefits. Together we have secured
investment in Leek town centre. We have entered into a land deal, which has
attracted a national hotel chain, and we are in the process of concluding an
asset sharing deal, which will see the creation of a public sector hub in the town.
In parallel to the District Deal we have established a commissioning group –
the Moorlands Together Partnership - which includes the district and county
council, health commissioners, Police, Fire and the main social housing provider.
This group is focused on tackling a small number of partnership priorities such
as improved services for older people, tackling youth unemployment, and
addressing the problems of our most deprived neighbourhood.
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The partnership has helped to add value to a number of programmes.
For example, the district council has set up a joint venture with Your Housing
Group to build 425 affordable and market houses in the area, a total investment
of over £45m, which includes an £8m grant from the HCA. The county has also
committed to this programme. One result is that the housing programme
includes the first extra-care scheme in the district providing 88 homes for older
people, an apprentice programme, local recruitment for care staff, and improved
on-site services for the residents. In addition the programme is also developing
a number of homes for people with learning difficulties.
Underpinning both the economic and commissioning partnerships in Staffordshire
Moorlands is the trust between our district council and the county, with a clear
separation of roles; the district leading on place and county council using its new
commissioning arrangements to improve delivery. Strong governance is central
to this trust, freeing partners to use a shared and strong evidence base to inform
service delivery around a number of joint priorities and objectives.
Our City Deal story so far has demonstrated that economic and service delivery
partnerships can thrive in the diverse local authority landscape of Stoke and
Staffordshire. In difficult economic times, this collaborative multi-agency partnership
work will continue to be at the heart of our local approach to meeting the
economic and social challenges we all face over the coming years.
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Oxfordshire Chief Executives’ Group
Knowledge-led growth: delivering in partnership for Oxfordshire
Oxfordshire already offers a high quality of life for the many people who
live and work here. Oxford, with its world-renowned universities, has long
been synonymous with excellence - and Oxford is growing, one of the ten
fastest-growing cities in the uk. Local economic growth is a priority, and with
our assets in the knowledge economy, and position on key transport routes,
we know it can deliver much more - for local people, businesses, and in our
contribution to the national economy.
Our employment rate of 42.6% is appreciably higher than the national average of
38.6%, and 9.2% are already employed in the professional, scientific, and technical
sector, against 6.7% nationally. We can rightly claim to be the home of big science
in the UK, but we know we can achieve even more on job creation, and on raising
the quality of those jobs.
Our collective ambition is to do more to raise economic growth locally, and our
contribution to the UK recovery overall, and at the same time to bring about a
cycle of aspiration for our more deprived communities - of which there are
more in Oxfordshire than many national opinion-formers believe, achieving this
by providing more jobs, and better skills to ensure local people can get, and keep,
those jobs.
As well as presenting a great opportunity to deliver high quality growth,
Oxfordshire has a number of specific challenges to overcome. These include:
housing affordability - Oxford is the least affordable housing market relative to
wages in the UK; transport congestion - a great deal of investment is planned
in improved rail links and services, and reducing traffic congestion is high on
the agenda, particularly on strategic routes, in particular the A34 and M40.
We also need to ensure rapid transit from mainline rail stations to the science
areas in Oxford and Science Vale.
Oxfordshire County Council and Oxford City Council, and our Local Enterprise
Partnership, were therefore delighted when we were invited to bid for a
City Deal to unleash the growth potential of the Oxford economic area.
The Government's City Deal programme has provided a clear opportunity to
drive forward an ambitious economic vision for the area. Ministers have given
Oxfordshire the opportunity to strengthen partnerships across the public and
private sectors, and to innovate away barriers to growth.
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Following this invitation, two things became clear very quickly.
The first was that while we were asked to identify the ‘challenge’ our City Deal
would look to overcome, we wanted our focus instead to be on the opportunity
presented by the distinctive features of our area. From our discussions it was
apparent that we shared a vision of Oxfordshire as a hub for big science, aided
by our strategic location in the heart of the south, and our world-class academic
and research institutions, with the potential to deliver much more given the
right freedom and support.
The second was that a successful deal could only be delivered with all partners
round the table - and a Bid Team rapidly came together from local government,
the universities, and the private sector - with regular attendance from Cabinet
Office and BIS colleagues, and bringing in outside expertise when relevant.
Our district councils were able to bring distinctive strengths and experience to
those early discussions, as well as their local economic assets
While Oxford is a recognised global brand, many people are unaware of the
extent of our economic area - despite its areas of outstanding natural beauty
the rest of Oxfordshire is far from a 'sleepy shire'. Indeed our growth potential
extends well beyond the city itself, with three quarters of all new jobs and
homes planned in the county outside the city boundary. Each part of the county
brings distinctive strengths to our bid.
• Oxford itself has a global brand reputation, thriving local economy, and
business orbit well beyond its boundaries. The two universities generate
research which drives the knowledge economy (Oxford University has
the highest research income of any university), and pioneering biomedical
research takes place at the University Hospitals, with future plans to
develop this including the BioEscalator at the Churchill Hospital, and
£170m of investment recently announced for cancer research.
• The south of the county contains our enterprise zone, Science Vale, and
is home to high-tech research facilities of global significance, such as the
National Science and Innovation Campus (including the Diamond
Synchrotron and Rutherford Appleton Laboratory), and Culham Centre
for Fusion Energy, with clusters of businesses around both.
• The north of the county is due to see significant transport improvement,
with faster rail access to the east, and London. It also has the greatest
potential for delivery of construction on housing and employment land,
including a major site at Graven Hill, a former MoD site in Bicester.
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Banbury
Faringdon
Witney
Chipping Norton
Wantage
Wheatley
A40
To LondonA34 to M4
BICESTER
OXFORD
Didcot
SCIENCE VALE
Milton Park
Harwell
Culham
NOT TO SCALE
M40
M40
kNOWLEDGE SPiNE
The Oxfordshire Knowledge Spine runs across the heart of the county, with the
city of Oxford and universities at the centre, the major growth area of Bicester
in the north, and the home of Big Science, including the Diamond Synchrotron
and Rutherford Appleton Laboratory at Science Vale in the south.
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To make the most of these assets requires joined-up thinking and joined-up
working, taking a strategic view of how to deliver the best outcomes in each
area, and improve transport options between them. We already have access to
London and Birmingham in under an hour by train, and via the M40, as well as
access to the A34 and M4 corridors, but more can be done to increase the
frequency, convenience, and reliability of transport to, and within, the county.
This matters because so much of the area's growth involves improving the
connectivity across the travel to work area, with 46% of Oxford's workforce
commuting into the city, and one in five Oxford residents travelling outside
Oxford for work.
Fortunately, Oxfordshire partners have a strong track record of close working,
including an active and well-regarded LEP, and a Spatial Planning and Infrastruc-
ture Partnership bringing together district and county council leaders on a regu-
lar basis.
Such strong partnership working is no mean feat in a complex two-tier area with
clear differences of political and organisational viewpoint between different areas,
and a legacy of unsuccessful reorganisation proposals under the last government.
We were already looking at the opportunities presented by the Heseltine
Report before the City Deal invitation was issued, both in terms of what can be
delivered and how we use that process to drive improvements in partnership
working, and very much see our proposal as part of delivering on that agenda.
We will not always agree, but we are committed to working to ensure that our
disagreements are managed constructively and do not prevent us from making
progress on the many issues which do command a consensus.
Working to a tight timescale the partners crafted our initial proposal -
“Transformational Growth Through a World Class Knowledge Economy” - which
commands the endorsement of every council in Oxfordshire, the LEP,
universities, research centres, University Hospitals Trust, and key partners from
business and government agencies. We are looking for certainty in investment,
and the ability to deliver infrastructure that will support future growth, and for
flexibility in the local delivery of education, training, and housing investment, to
make sure we have the right workforce to take full advantage of that growth.
Our proposal recognises the 'science arc' stretching from Science Vale in the
south to Bicester in the north, capturing the benefits of a Big Science research
and entrepreneurship eco-system, and the need for stronger transport links both
between these locations, and from these locations to other parts of the country,
including the A34 corridor, Heathrow, and London. Future investment in rail is set
to place Oxfordshire, and in particular stations at Oxford, Bicester, and Didcot, at
the centre of national rail infrastructure with improved access for passengers and
freight, with more destinations and faster journey times to all points of the compass.
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In addition to direct involvement in building our network of science clusters,
the City Deal envisages stronger measures and devolution to deliver better and
more appropriate local housing for our growing population and for early career
researchers (with planning policy among the challenges to growth that our City
Deal will seek to overcome). It will also involve building the knowledge and skills
of our local population. We have the highest proportion in the country of
residents with higher qualifications, and are showing steady progress in school
attainment, but have greater ambitions, in particular around providing
apprenticeships and training tailored to the needs of employers, improving the
employment prospects of our residents.
Following the submission of this proposal, and positive feedback from Government,
the bid team have continued to meet on a weekly round-table basis, with
additional meetings between partners when necessary - and, crucially, regular and
active involvement from county and district leaders in taking this agenda forward.
We have recently worked through three 'thematic areas' with round tables
involving government and partners to look at how we take forward our ambition
in three key areas - innovation, skills, and infrastructure.
We plan to continue this open democratic model as the City Deal moves towards
delivery, with a Joint Statutory Committee taking the lead, made up of council
leaders and co-opted senior stakeholders, able to take binding decisions on matters
delegated to it, and operating with full public scrutiny. The county council will
act as the overall accountable body, with local projects devolved when this is the
most appropriate way to deliver them, including through districts. The committee
will be supported by an independent secretariat, hosted by the universities.
While we have to get the political processes right, ensuring a robust delivery
model which commands the confidence of local and national partners, it must be
one which is logical in the context of the practical projects the City Deal aims to
deliver. There is no shortage of these, particularly around transport improvements
to unlock development and enable business to flow more smoothly. We are
working closely with the LEP and colleagues within authorities to ensure that
this dovetails neatly with existing investment plans and priorities, and bids
through the Growing Places Fund.
Likewise, we are keen to ensure that the City Deal is not a 'castle in the air',
but moves forward on the basis of the best possible evidence and analysis,
including business surveys managed by the LEP, economic analysis of the city
and wider economic area, the Skills Needs Assessment, and the Strategic Housing
Market Assessment.
With robust understanding of our local economy and its potential, a realistic
but aspirational ambition for growth in Oxfordshire and a strong commitment
to, and track record of, partnership working, we are confident that our proposals
for knowledge-led growth will deliver for the local and national economy.
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Greater Norwich City Deal: Working in partnership
in this final contribution, Councillor Brenda Arthur, Leader, Norwich City
Council, discusses the Greater Norwich City Deal Partnership. The
partnership covers three district council areas (Broadland, South Norfolk and
Norwich) and is being developed in a partnership between these councils,
Norfolk County Council and New Anglia LEP. Brenda focuses on the ‘civic
leadership’ opportunities created by City Deals, and the importance of strong
governance and LEP engagement.
When the idea of City Deals was first mooted, this was the opportunity we have
been waiting for. Norwich City Council only covers part of the urban area and
shares suburbs with Broadland District Council, South Norfolk District Council
and, of course, Norfolk County Council. So five years ago we set up the Greater
Norwich Development Partnership to develop and agree a joint core strategy.
As we all know, you can’t just magic a successful partnership. It took years to
develop the strategy, technically working our way through significant pieces of
joint work. But in a way that was the easy bit. The greatest challenge was building
strong positive relationships based on trust and mutual respect. Ones founded in
an understanding of what the key issues were facing each council because of
course it is completely different for each one. That is setting aside the fact that
Norwich is Labour and the other three councils are all Conservative. Add into
this mixture the highly regarded New Anglian LEP and you have another dynamic
to the partnership.
As leader of the council, my watchword is ‘collaboration’. I am constantly trying
to look for the benefits for the whole city and that is exactly what drives the
other leaders in the partnership. Together, all of the partners have developed trust
and ways of relating to each other that work.
ABOuT NORWiCH
Norwich is the largest economy in the East of England, so a prime candidate
for City Deals. The city is on a journey from a historically low skill manufacturing
economy to one where knowledge intensive industries dominate. The alignment
of top life science research institutions and a leading UK university, together with
55 hectares of development and a science park on the edge of the city, is just
one example of the area’s potential to accelerate this journey and secure growth
in high level jobs of international significance. A City Deal is seen as a key part
of the ‘tool-kit’ that should be available to Greater Norwich to exploit our
development ambitions and overcome obstacles to growth.
However, like many other areas, the economy of Greater Norwich is at a tipping
point. Ambitious plans for growth in both homes and jobs have stalled and
significant sectors of the community are facing long-term unemployment, financial
exclusion and lack of opportunity. A City Deal will provide an added focus for
the local authorities, New Anglia LEP, other public bodies, local businesses and the
Government to work together in a different way to find long-term solutions to
delivering sustained growth and spreading the benefits to the whole community.
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OuR CiTy DEAL
A key driver of the City Deal for Greater Norwich is about capturing academic
and research excellence in life sciences and translating this into commercial
success .This will be done through new business opportunities alongside the
growth of the whole local economy. Our bespoke Deal is based around using
Norwich Research Park as a catalyst for economic growth in the city and beyond.
The aim is to use the City Deal promise of new freedoms, flexibilities and
hopefully additional funding to revitalise the Greater Norwich economy.
This will be achieved by reshaping and enhancing current nationally delivered
business support initiatives to a more coherent package with a clear focus on
the needs of local business enterprises. We will also seek to develop stronger links
between skills investment across the LEP area and the training needs
expressed by local employers. Lastly, as a collective body, we will work together
to accelerate investment in the infrastructure necessary to support growth.
The opportunity for district councils to promote and influence innovation and
enterprise, skills and infrastructure presents a new dimension to local civic
leadership. In meeting this challenge we recognise that we will need to establish
new ways of working. This will involve different relationships with a whole range of
public bodies and private organisations; the sharing of scarce resources (money,
property and staff); as well as adopting new approaches to managing risk. We will
also need to achieve stronger democratic involvement and locally determined
delivery through centrally controlled initiatives that are designed to encourage
economic growth. This will allow greater recognition of local priorities rather then
relying simply on pre-determined national solutions. The prize will be to establish
the ideal building block for Greater Norwich to play an active part in a post-
Heseltine era of devolved budgets to deliver Whitehall’s national growth targets.
THE GOvERNANCE QuESTiON
As part of a City Deal the government is asking local authorities and the LEP
to establish a robust governance structure that will be capable of taking hard
decisions and be the accountable body for significant sums of public money.
In a two-tier structure, where a City Deal covers part of a county council area
and part of a LEP area, this type of governance needs careful consideration.
In the case of Greater Norwich the four local authorities involved in the City
Deal have a long track record of working together. This experience has proven to
be invaluable in reassuring the Cabinet Office that different administrative bodies
with different political control can reach collective and consensual decision
making in a timely manner. This is not to say it is easy, but in Greater Norwich
we started from a strong base of joint working.
As local planning authorities all of the councils involved in the Greater Norwich
City Deal have worked together over a long period of time to prepare a joint
core strategy, secure and implement a growth point programme. Across the
country, it is clear that many areas have struggled to reach agreement on
delivering growth where city boundaries cross a number of authorities.
The way the government rolled out the new planning framework and the
implied relationship between housing growth and local determination has, in
some areas, made this sort of discussion even more politically problematic.
Therefore it is not surprising that in some locations the introduction of a City
Deal proposal for the area has raised, in a new context, the issue of cross
boundary integration of growth ambitions.
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For Greater Norwich, having been through the ordeal (positive and sometimes
traumatic) of preparing such a growth strategy, the adoption of similar arrangements
for joint working on a City Deal has to-date been a positive experience.
It has reignited the shared ambition for delivering sustainable growth, which all
authorities held at the start of the growth programme. In fact, the tradition of
strong officer and member relationships across the area has provided a level
of trust between partners to hold the robust discussions necessary to take
forward a growth agenda that seeks to balance local priorities with area wide
needs alongside the recognition that these have to sit within a wider county
and LEP area context.
THE iMPORTANCE Of THE LEP
The emerging role and importance of the LEP has been highlighted in the City
Deal process. In our case the New Anglia LEP has the unique challenge of
managing two deals in one LEP area. This provides an added dimension to our
City Deal’s work and as a consequence there is a growing working relationship
between the two City Deal delivery teams in Ipswich and Norwich. We are
working together to adopt a common approach on initiatives that will have an
impact across the LEP area. This is highlighted in our approach to the skills and
labour market interventions. It has also brought to the fore that close working
between a LEP and the constituent local authorities can achieve significant
added value for the local economy.
iN CONCLuSiON
It is clear that the government is on a fast path to devolve more economic
development responsibility and funding to a local level. City Deals are part of
this process and the Government’s acceptance to create a single funding pot
(for LEPs), as suggested by the Heseltine review, provides a new dimension
beyond the City Deal proposal. In this changing landscape it is clear that district
councils can, should they wish to do so, play an important and influential role
by helping to ensure local priorities, opportunities and barriers to growth are
reflected in future investment plans. Working with LEPs and county councils,
district councils can provide democratic accountability and local governance in
areas that currently they have little or no opportunity to do so. To do this will
require a new approach to partnership working at a local level. The experience
in Greater Norwich is that having agreed development and growth ambitions is
fundamental. However, of more significance is investing time and effort in developing
relationships based on trust and a common understanding of the needs and
requirements of all partners around the table.
District Councils’ Network
Local Government House,
Smith Square
London SW1P 3HZ
Telephone: 0207 6643048
Email: [email protected]
www.districtcouncils.infofollow us: @districtcouncil