10.30am, Friday 15 th February 2013 Council Chamber Nottinghamshire County Council
AGENDA
10.00am Political Group Meetings
10.30am Meeting of East Midlands Councils Page No
1. Apologies 2. Declarations of Interest 3. Minutes of Meeting held on 20 th July 2012 1
4. Presentation of Awards Councillor Development Charter Award - Boston Borough Council Community Leadership Award – Cllr Tony Greenwood, Blaby District Council
5. Investment to Support Local Economic Growth - Cllr Martin Hill OBE and Cllr Jim Harker OBE
(a) ‘Investing in Opportunity – A Prospectus for investment, infrastructure and growth’ 7 (b) Future EU Structural Funds 34
6. Local Action on Affordable Housing – Cllr Lewis Rose OBE 39
7. Presentations/Speakers
Nick Boles MP - Member of Parliament for Grantham and Stamford, Parliamentary Under Secretary of State for Planning Toby Perkins MP – Member of Parliament for Chesterfield, Shadow Small Business Minister
8. EMC Board Reports
Executive Board Report 51 EM Improvement and Efficiency Partnership Board Report 59 EM Strategic Migration Partnership Board Report 63 Regional Employers Board Report 68
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Minutes of the East Midlands Councils Meeting held on Friday 20th July 2012, Nottinghamshire County Council
Annual General Meeting
Dr Stuart Young chaired and welcomed everyone to the meeting
1. Apologies Cllr Ranjit Banwait, Cllr Tom Beattie, Cllr Paul Bell, Cllr Richard Blunt, Cllr Stuart Bradford; Cllr Chris Brewis, Cllr Marion Brighton OBE, Cllr John Burrows, Cllr Jon Collins, Cllr Kay Driver: Cllr Mary Malin, Cllr Ric Metcalfe, Cllr Chris Millar, Ms Deidre Newham JP, Cllr Blake Pain, Cllr Rory Palmer, Cllr Nick Rushton, Cllr Geoff Stevens, Cllr Martin Thacker, Cllr Jonathan West, Cllr Ernie White
Non Attendees Cllr Patricia Bradwell, Cllr Mary Clarke, Cllr Ian Duly, Mr Tony Favell, Cllr Ian Jelley, Cllr Burt Keimach, Cllr John Knight, Cllr Patrick Lally, Cllr John McGhee, Cllr David Mellen, Cllr Steven North, Cllr Eoin Watts, Cllr Anne Western,
2. Declarations of Interest None.
3. Minutes of EMC meeting held on 2nd February 2012 These were agreed as a true and accurate record.
4. Amendments to Constitution 4.1 Members of East Midlands Councils were invited to consider the proposed amendments to EMC constitution and governance arrangements that specifically related to:
a) The roles and responsibilities of EMC Management Group. b) The roles and responsibilities of EMC Executive Board. c) Wider changes that reflect the changed organizational environment.
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4.2 Support to these amendments was given by Cllr Fiona Martin, Cllr Martin Hill, Cllr Robert Parker, and Mayor Tony Egginton (EMC political group leaders, in office at the time of their development).
4.3 Members of East Midlands Councils agreed to the recommended changes and adopted the revised constitution and governance arrangements.
5. Appointments of Political Group Leaders The following were appointed as Group Leaders: Conservative Cllr Chris Millar Labour Cllr Robert Parker Liberal Democrat Cllr Fiona Martin Independent Cllr Tony Eggington
6. Appointment of Vice Chair(s) of East Midlands Councils Cllr Jon Collins (Nottingham City) was appointed as Vice Chair. Cllr Neil Clarke (Rushcliffe) was appointed as District Vice Chair.
7. Appointment of Chair of East Midlands Councils Cllr Martin Hill (Lincolnshire County) was appointed as Chair
Cllr Martin Hill took the chair
8. Presentation of Annual Report Members of East Midlands Councils considered and endorsed the Annual Report 2011/12, as presented by the Chairman of EMC Cllr Martin Hill who said it was an honour to be appointed to what he considered a very relevant organisation.
9. Executive Board Report Members are invited to note the report and inform priorities for East Midlands Councils over the coming year.
9.1 Questions/Comments None.
10. East Midlands Improvement and Efficiency Board Report Cllr Roger Begy presented this report.
10.1 Resolution Members noted the contents of this report.
11. Strategic Migration Partnership Board Report
2 Item 3
This report was introduced by Cllr Simon Galton who stated that the focus of the board for this forthcoming year was around the four key areas of:
. Welfare Reform . Compass contract/G4S . The increase in the number of Roma communities and the impact on service provision . Funding – funding beyond 2013 for the partnership from UKBA is very unclear and without that the valuable work of the partnership would not be undertaken.
11.1 Resolution Members noted the contents of this report.
12. Regional Employers’ Board Report This report was introduced by Cllr Ian Fleetwood who thanked Sam Maher and the team.
12.1 Resolution Members noted the contents of this report
13. Motion to East Midlands Councils (submitted by Cllr David Sprason, Leicestershire County Council)
a) That East Midlands Councils:
i) puts on record its deep disappointment at the decision of the Joint Committee of PCTs concerning the reconfiguration of Children’s Congenital Heart Services in England which will result in the closure of children’s heart surgical services at the Glenfield Hospital in Leicester;
ii) notes that the decision of the Joint Committee appears to be perverse in that the Independent Panel of Experts who were commissioned by the National Safe and Sustainable Team had given the highest score to the option which would have seen surgical services retained at the Glenfield Hospital;
iii) notes as a consequence and based on the impact analysis undertaken by the NHS itself, that the journey times for children with congenital heart disease and their carers will increase by between 60 to 90 minutes, with the longest journey times being experienced by those living in Lincolnshire;
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b) That East Midlands Council therefore lobbies for an urgent review of this decision and urges its constituent bodies to do likewise
Cllrs Robert Parker, John Boyce, David Bill, Tony Howard and Charmaine Morgan spoke in favour of the motion.
The motion was carried with no votes against and 5 abstentions.
A copy of the letter is attached as Appendix 3(a).
14 Questions to Chairman or nominee None.
15 Speakers
i. Rt Hon Stephen Dorrell, MP for Charnwood and Chairman of Health Select Committee spoke about implementing the Health reforms.
ii. Chris Leslie, MP for Nottingham East and Shadow Financial Secretary to the Treasury spoke about economic growth and opportunities for further collaborative work in the East Midlands.
iii. Cllr Paul Bayliss – introduced himself as the new Leader Derby City Council and spoke about the challenges facing Derby and the importance of developing high value engineering jobs
iv. Professor Colin Copus, Professor of Local Politics, Local Governance Research Unit, De Montfort University.
4 Item 3, Appendix (a)
5 Item 3, Appendix (a)
6 Item 5a
East Midlands Councils Meeting 15 th February 2013
Investing in Opportunity
A Prospectus for Investment, Infrastructure and Growth in the East Midlands
Summary
This report sets out the background to ‘Investing in Opportunity: A prospectus for investment, infrastructure and growth in the East Midlands’.
Recommendation
Members of EMC are invited to:
Welcome the ‘Investing in Opportunity’ prospectus as a basis for further work and lobbying aimed at increasing investment into the East Midlands.
7 Item 5a
1. Background
1.1 Investment, infrastructure and growth are common concerns for councils across the East Midlands. Often these objectives can be achieved best by local action, either directly or by working through Local Enterprise Partnerships (LEPs).
1.2 Reflecting upon our comparative advantage in manufacturing, logistics, construction and food and drink industries, and the strengths offered by our urban communities and rural diversity, we should ensure that the opportunities for securing greater levels of investment in local infrastructure and growth are not lost to us. Councils and LEPs are key to achieving this.
1.3 However, there are some ‘larger than local’ issues where a wider collaborative approach can help deliver results. In this we can point to past successes. The campaigns to dual the A46, secure better broadband and most recently to upgrade and electrify the Midland Main Line have all demonstrated the power of well evidenced collective action to deliver major investment. Despite this, independent research by the Smith Institute has highlighted that the substantial growth potential that exists across the East Midlands has yet to be fully recognised in national investment decisions.
1.4 As result, the EMC Executive Board asked Cllr Jim Harker OBE to lead a small ‘task and finish group’ to develop a short prospectus demonstrating the economic benefits to UK plc of increasing the share of national investment in the East Midlands, and highlighting a limited number of strategic investment priorities.
2. Investing in Opportunity Prospectus
2.1 The ‘Investing in Opportunity’ prospectus is split into 3 main sections.
Section 1: Key Economic Growth Opportunities : This highlights the predominance of the East Midlands in manufacturing, and key sectors where local businesses have a competitive advantage relative to the UK and significant growth potential.
Section 2: Key Housing Growth Opportunities: This demonstrates the continued commitment of councils across the East Midlands to provide housing for local communities, and the importance of infrastructure investment in unlocking delivery.
Section 3: Strategic Infrastructure Priorities : This identifies investment in 5 strategic transport corridors and in broadband, flood defences and energy
8 Item 5a
infrastructure as crucial to both national and local competitiveness. It also highlights 6 locally supported and well developed infrastructure projects where there is an immediate opportunity to support collective action by councils and LEPs.
3. Next Steps
3.1 This prospectus is just the start. It sets out the summary case for greater investment and is intended to support the efforts of individual councils and LEPs to promote and deliver growth. However, more work will be required to develop and justify individual strategic projects, and to develop a ‘sub-national infrastructure pipeline’ which will help local business to secure construction contracts. EMC will provide all necessary support to local partners in this regard.
4. Recommendation
Members of the Executive Board are invited to:
4.1 Welcome the ‘Investing in Opportunity’ prospectus as a basis for further work and lobbying aimed at increasing investment into the East Midlands.
Cllr Martin Hill OBE Chair of East Midlands Councils
Cllr Jim Harker OBE Chair, EMC Infrastructure Group
9 Item 5(a)
INVESTING IN OPPORTUNITY
A prospectus for investment, infrastructure and growth in the East Midlands
Summary Case: February 102013 Item 5(a)
A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
Foreword & Synopsis Page 2
Executive Summary Page 5
1. Key Economic Growth Opportunities Page 7
Transport Equipment Manufacturing
Food & Drink Manufacturing
Construction
Other Related Sectors
2. Key Housing Growth Opportunities Page 12
Eastern Diamond
3 Cities
Northamptonshire Arc
Other Local Growth Opportunities
3. Strategic Infrastructure Priorities Page 15
Humber Ports to West Midlands
Haven Ports to West Midlands
South East to West Midlands
South East to South Yorkshire
South East to West Yorkshire
Exploiting Broadband
Flood Resilience
Energy Resilience
Strategic Infrastructure Opportunities
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A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
Foreword
Investment, infrastructure and growth are common concerns for councils across the East Midlands. Often these objectives can be achieved best by local action, either directly or by working through Local Enterprise Partnerships (LEPs).
However, there are some ‘larger than local’ issues where a more strategic approach is required. EMCs successful campaign to upgrade and electrify the Midland Main Line demonstrated the power of well evidenced collective action to deliver major investment that will boost economic growth.
This prospectus takes that approach a step further. It demonstrates the economic benefits to UK plc of increasing the share of national investment in the East Midlands, and highlights a limited number of strategic infrastructure projects that will unlock economic growth and private sector investment.
The diverse communities that make up the East Midlands are a great place to live and work and already make a huge contribution to the nation’s wealth. We want to work together with LEPs, business and Government to make them even better.
This prospectus is just the start.
Cllr Martin Hill Cllr Jon Collins Chair, East Midlands Councils Vice Chair, East Midlands Councils
Cllr Neil Clarke Cllr Jim Harker Vice Chair, East Midlands Councils Chair, EMC Infrastructure Group
2 12 Item 5(a)
A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
Hull West E Yorkshire Key 8 DĂũŽƌ'ƌŽǁƚŚKƉƉŽƌƚƵŶŝƟĞƐ South Grimsby/Immingham Greater Yorkshire E Enterprize Zone Manchester 8 Lincolnshire ŝƌƉŽƌƚ Wolds 8 8 Peak District Lincolnshire Port EĂƟŽŶĂůWĂƌŬ Worksop Holiday E Gainsborough Coast ŚĞƐƚĞƌĮĞůĚ Investment Corridor
Lincoln Newark DĂŶƐĮĞůĚͬƐŚĮĞůĚ Boston Derby Grantham E
EŽƫŶŐŚĂŵ Spalding 8 Lincolnshire E Melton Food Hub Food Hub Leicester
Hinkley/Nuneaton Peterborough Market Harborough Coventry Corby Rugby <ĞƩĞƌŝŶŐ Wellingborough Cambridge West Daventry Midlands Northampton Haven Coast Ports
8 Milton Keynes E
South East 8 Luton
South East
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A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
The East Midlands: An Excellent Investment Opportunity
Local economies across the East Midlands have huge potential for export-led growth, with the highest proportion of manufacturing employment in England and competitive advantage in key sectors targeted by the Government’s emerging industrial strategy. Local councils across the East Midlands have plans to deliver 400,000 homes over the next 20 years.
Given this growth potential, there is a strong case for councils, LEPs and business across the East Midlands to receive a higher share of national investment than is currently the case, including resources for economic growth, housing, transport, flood defence and broadband infrastructure. Increasing the share of public investment across the East Midlands will unlock a higher proportion of private sector investment and job creation. Opportunities for greater devolution of these funds (for example through existing and further ‘city deals’), should also be taken.
There are a small number of ‘larger than local’ infrastructure projects where there is an immediate opportunity for Government to support collective action by councils and LEPs that will unlock economic growth and investment. EMC will support local partners and Government to implement these projects, and work with the Institution of Civil Engineers to keep up to date a wider sub-national infrastructure pipeline to maximise business opportunities for local companies.
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A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
Executive Summary
In economic terms, the East Midlands has the highest • Eastern Diamond: Lincoln, Grantham, Gainsborough, proportion of manufacturing employment in England & Newark (47,000 new homes); (16%) with huge potential for export-led growth (already • 3 Cities: Derby, Leicester & Nottingham (120,000 new 20% of GVA is exported). Analysis by the Nottingham homes); and Business School has confirmed that the local economies of the East Midlands are well represented in many of • Northamptonshire Arc: Northampton & surrounding the key sectors targeted by the Government’s emerging towns (75,000 new homes). industrial strategy, with a competitive advantage relative to England in: In addition, there are plans for significant local growth at other places including Mansfield/Ashfield and • Transport equipment manufacturing (26,000 jobs, Chesterfield. In total, councils are planning for 400,000 £2.4 billion GVA); new homes across the East Midlands over the next 20 years to support the needs of current and future local • Food and drink manufacturing (57,000 jobs, £3.6 communities. billion GVA); and
• Construction (60,000 jobs, £5.9 billion GVA). And yet LEPs in the East Midlands have only received around 8% of the national allocation of Growing Places Fund (GPF). Increasing the proportion of GPF and other In addition, there is significant growth potential in similar investment funds in the East Midlands will power generating machinery, life sciences, logistics make a better contribution to meeting the country’s and low carbon goods and services. The East Midlands housing and employment needs. also has a strong academic network, with a number of high performing universities and colleges, making Greater investment in the infrastructure and economic it well placed to develop a thriving knowledge based strengths of the East Midlands is key to securing economy. It is also home to a number of national centres sustainable economic growth. This prospectus sets out of excellence, including the British Geological Survey a number of investment corridors themes that provide a at Keyworth near Nottingham, the Health & Safety strategic framework for growth, and 6 ‘larger than local’ Laboratory at Buxton and the Energy Technologies infrastructure projects where there is an opportunity for Institute at Loughborough. the Government to support collective action by councils
and LEPs that will unlock growth. And yet the LEPs and businesses in the East Midlands have only received around 5% of the national allocation Key Investment corridors: of Regional Growth Fund (RGF). Increasing the proportion of RGF and other investment funds spent • Humber Ports to West Midlands (A46/A38/M42/ in the East Midlands will make a better contribution Grimsby-Birmingham Rail Corridor); to ‘rebalancing’ the economy away from south-east based financial services. • Haven Ports to West Midlands (A14/Felixtowe- Nuneaton rail corridor); Over the past 10 years, the East Midlands has contributed • South East to West Midlands (A5/WCML/HS2 a higher than proportionate share of the national Phase 1); housing supply. The East Midlands has an attractive mix of urban and rural environments not dominated by • South East to South Yorkshire (M25/M1/MML/HS2 a single conurbation. Key locally led housing growth Phase 2); and opportunities include: • South East to West Yorkshire (M25/M11/A14/A1/ ECML/HS2 Phase 2).
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A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
The East Midlands is the cross-roads of England, vital Strategic Infrastructure Opportunities: to the functioning of the UK economy. There is clear evidence for the economic benefits of increasing • A5 Corridor (Staffordshire to Northamptonshire); connectivity between employment and population • Castle Line (Lincoln-Newark-Nottingham Rail centres and transport hubs, including surrounding Corridor); ports and airports (such as Manchester and Robin Hood airports). East Midlands Airport is the largest freight • Lincolnshire Coastal Flood Defences; airport outside of London. • A14 Corridor (Haven Ports to M1);
Yet transport public spending per head in the East • A43/A45 Corridors (Northampton); and Midlands has been well below the national average and is • Northern Regeneration Opportunities (Derbyshire currently the second lowest in England. Increasing the & Nottinghamshire). proportion of national transport investment spent in the East Midlands will make a better contribution to Early work is also progressing on a number of other cross the Government’s objectives for sustainable economic boundary schemes, including the A38 corridor between growth. Derby and the West Midlands.
Key Investment Themes: Investment in the local economies that make up the East Midlands offers a greater economic return • Exploiting Broadband: boosting GVA by up to £2.4 than others parts of the country. By increasing the billion by extending the speed and reach of super-fast proportion of national infrastructure spending in broadband; the East Midlands, the Government will have a better • Flood Resilience: a commitment to protecting 50% of chance of unlocking the private sector investment England’s Grade 1 agricultural land; and needed to revive and re-balance the UK economy.
• Energy Resilience: providing a clear national framework for the private investment that will ensure energy security and stimulate local supply chains.
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A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
1 Key Economic Growth Opportunities
Summary The East Midlands has the highest proportion of manufacturing employment and output in England, with huge potential for export-led growth.
Analysis by the Nottingham Business School has confirmed that the local economies of the East Midlands are well represented in many of the key sectors targeted by Government with a competitive advantage in transport equipment manufacturing, food and drink and construction, and significant growth potential in power generating machinery, life sciences, logistics and low carbon goods and services. Boosting investment in these sectors could have a significant impact on economic growth across both the local economies of the East Midlands and the country as a whole.
Increasing the proportion of Regional Growth Fund (RGF) and other similar investment funds spent in the East Midlands will make a better contribution to ‘rebalancing’ the economy away from south-east based financial services.
1.1 National Context
The Government remains committed to deficit reduction, • advanced manufacturing, including aerospace, but also to reviving and rebalancing the UK economy automotive and life sciences; away from south-east based financial services and public sector dependency. There has been a renewed focus • knowledge-intensive services including higher on manufacturing and other activities that can deliver education, creative industries and professional export-led growth – in particular through trading with business services; and the emerging ‘BRIC’ economies. • enabling sectors, including the information Analysis by BIS1 has highlighted a number of key economy, construction, energy, including green economic sectors of importance to the future of the UK energy and digital and creative industries. economy on which the Government intends to focus:
“These specific areas offer significant growth opportunities for the UK economy, benefiting from the long term trends like globalisation”
Vince Cable, Secretary of State for Business, 11 September 2012.
7 1 Industrial Strategy: UK Sector Analysis, BIS Economics Paper No 18, September17 2012 Item 5(a)
A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
1.2 Economic Growth Opportunities in the East Midlands
The local economies of the East Midlands are exceptionally well placed to deliver the Government’s emerging industrial strategy.
The East Midlands already has the highest proportion of manufacturing employment in England.
Manufacturing gross value added (GVA) in the East Midlands is £13.2 billion2 – 16% of output, a higher proportion than in any other region in England.
In addition, several sectors are significantly more productive compared to the national average, giving the East Midlands a competitive advantage: transport equipment manufacturing, food and drink The local economies of the East Midlands are already manufacturing, and construction3. a strong contributor to the UK balance of payments exporting around 20% of GVA, with power generating There is also significant growth potential in areas such machinery and automotive equipment accounting for the as power generating machinery, life sciences, logistics, largest exports over the period 2007-114. The proportion and low carbon goods and services. These strengths are of exports to Asia and Oceania is the highest in England, consistent with the Government’s emerging industrial and the East Midlands is less reliant on the EU as an strategy and are critical to its delivery. export destination than most other regions.
Figure 1: Manufacturing as a proportion of employment (2010) Source: ONS Crown Copyright, 2010 ‘Business Register and Employment Survey’. From NOMIS, 3rd May, 2012
2 Regional, Sub-Regional and Local Gross Value Added, ONS, December 2012 8 3 Making the most of housing and growth in the East Midlands, Smith Institute,18 September 2012 4 Regional Trade Statistics (RTS) datasets: www.uktradeinfo.com/Pages/Home.aspx Item 5(a)
A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
Transport Equipment Food & Drink Manufacturing Manufacturing This sector is closely related to the East Midlands This sector includes aerospace, automotive and agricultural strengths and is around 5% more rail, and is 40% more productive in the East productive in the East Midlands than for the Midlands than for the UK as a whole. The sector country as a whole. It employs over 57,000 people employs over 26,000 people and generates around and generates around £3.6 billion of GVA per year. £2.4 billion of GVA per year. South Lincolnshire is home to Bakkavor Food There is a world class motorsport and high Ltd, part of nationally significant agri-business performing engineering cluster based in sector worth £1 billion pa, serving the major Northamptonshire, including internationally supermarket chains both in the UK and abroad, recognised engine builders Cosworth and F1 closely related to the abundance of highly constructors Mercedes GP Petronas and Force India, productive Grade 1 agricultural land. Elsewhere, with further growth potential at the Northampton Melton Mowbray is renowned for Stilton cheese Waterside Enterprise Zone. The area in and around and the pork pie, Carlsberg and Weetabix are Derby is home to globally signifi cant companies based in Northamptonshire, Newark is the such as Rolls Royce, Toyota, JCB Power Systems national location for sugar refining and High Peak and Bombardier - which is also part of a nationally is home to Buxton Water. There is also a growing signifi cant rail engineering cluster. In Leicestershire market for high value niche products across the the automotive research centre at MIRA is now rural East Midlands, closely related to the visitor part of an Enterprise Zone and Caterpillar UK Ltd economy and ‘food tourism’ in places such as the is based in Leicester. The University of Leicester Peak District National Park. The National Centre for houses one of the foremost academic space science Food Manufacturing is based at Lincoln University. and instrumentation centres in Europe with links to a number of local high tech companies.
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A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
Construction Other Related Strengths
Construction is a key enabling sector for the • Power generating machinery: Lincoln is economy, and is around 10% more productive in home to a division of the world-class gas the East Midlands than for England as a whole. turbine manufacturers, Siemens and a new The sector employs over 60,000 people and School of Engineering recently opened at the generates around £5.9 billion GVA per year. University of Lincoln.
Construction is well represented across Derbyshire • Life sciences: Alliance Boots plc has its head and parts of North Nottinghamshire and quarters just outside Nottingham as part of Lincolnshire. Key companies include Bowmer an Enterprise Zone. Bio-City also hosts over 70 and Kirkland, Langley Holdings, North Midland, companies. 3M Healthcare Limited is based in Bloor Homes Ltd and a large number of more Loughborough. Peakdale Molecular is based in specialist smaller companies with strong linkages Chapel-en-le-Frith. to local planning and design consultancies. The sector has key education strengths with Derby, • Logistics: Leicestershire and Nottingham, Nottingham Trent, De Montfort Northamptonshire together with parts of and Lincoln Universities all having schools of Warwickshire form the ‘Golden Triangle’ – the Architecture and Design. There is a growing hub of the UK logistics industry. Key facilities emphasis on sustainable construction and design, include the Daventry International Freight with strong links to the Energy Technologies Terminal, Corby Eurohub, Magna Park near Institute based at Loughborough University, and Market Harborough and East Midlands Airport Lincoln is a centre for building conservation skills. – the largest freight hub outside Heathrow.
• Low carbon goods & services: Northamptonshire is a centre of excellence for specialised low carbon technologies. Derby based Rolls Royce is active in research to reduce aviation emissions and in the civil nuclear industry, E.ON’s global R&D facility is based at Radcliffe-on-Soar in Nottinghamshire.
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A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
1.3 Regional Growth Fund: A Strong Investment Case
The Government has created the Regional Growth Fund Councils and LEPs across the East Midlands are keen to to stimulate export-led growth and the re-balancing of work with Ministers to maximize the potential of the RGF the UK economy. to stimulate export led growth that will benefit the nation and local economies across the East Midlands. To date, LEPs and businesses in the East Midlands have only been able to attract a 5% national share of the Increasing the proportion of RGF and other similar Regional Growth Fund (RGF)5. investment funds spent in the East Midlands will make a better contribution to ‘rebalancing’ the economy away from south-east based financial services.
“I am really willing to work with the East Midlands… to make sure that they get the money and funding that they deserve”
George Osborne, Chancellor of the Exchequer, 2 November 2012.
11 5 Making the most of housing and growth in the East Midlands, Smith Institute,21 September 2012 Item 5(a)
A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
2 Key Housing Growth Opportunities 1.2 Economic Growth Opportunities in The East Midlands is already a strong contributor to the East Midlands the UK balance of payments exporting around 20% of GVA, with power generating machinery and automotive Summary equipment accounting for the largest exports over the The local economies of the East Midlands are period 2007-114 The proportion of exports to Asia and exceptionally well placed to deliver the Government’s Councils across the East Midlands have delivered housingOceania is growth the highest above in England, the national and the East average Midlands emerging industrial strategy. for many years. Councils remain committed to the isdelivery less reliant of on substantial the EU as an export amounts destination of new than housing to meet local needs and future economic prospects.most other regions. Key locally led housing growth The East Midlands already has the highest proportion of manufacturingopportunities employment include: in England. Transport Equipment • Eastern Diamond: Lincoln/Newark/Gainsborough/Grantham (47,000 new homes); Manufacturing gross value added (GVA) in the East Manufacturing Midlands• is 3 £13.2 Cities: billion2 Derby/Leicester/Nottingham – 16% of output, a higher (120,000 newThis sector homes); includes and aerospace, automotive and proportion than in any other region in England. rail, and is 40% more productive in the East • Northamptonshire Arc: Northampton & surroundingMidlands towns than for(75,000 the UK asnew a whole. homes). The sector In addition, several sectors are significantly more employs over 26,000 people and generates around productiveIn addition, compared there to are the plansnational for average, significant local growth at£2.4 places billion includingof GVA per year. Mansfield/Ashfield (8,000giving the new East homes)Midlands aand competitive Chesterfield advantage: (7,000 new homes). transport equipment manufacturing, food and drink There is a world class motorsport and high manufacturing,Together, councils and construction3. have plans to deliver 400,000 new homesperforming over engineeringthe next 20 cluster years based across in the East Midlands. As well as investment in strategic infrastructure,Northamptonshire, improvements including internationally to local infrastructureThere is also significant will growthbe required potential to in unlockareas such individual developmentrecognised enginesites. builders Cosworth and F1 as power generating machinery, life sciences, logistics, constructors Mercedes GP Petronas and Force Increasingand low carbon the goods proportion and services. of These Growing strengths Places are Fund (GPF) India,and withother further similar growth investment potential at thefunds inconsistent the East with Midlands the Government’s will make emerging a better industrial contribution to meetingNorthampton the Waterside country’s Enterprise housing Zone. and The employmentstrategy and are criticalneeds. to its delivery. area in and around Derby is home to globally significant companies such as Rolls Royce,
2.1 National Context
Housing completions in England have dropped to their In addition, the Government has established the Growth lowest level since the First World War as a result of the Places Fund to address local infrastructure constraints economic downturn and market restrictions on the and unlock individual development sites, allowing places supply of mortgages. to realise development values which can then be recycled to support further investment. The Government’s Housing Strategy: ‘Laying the Foundations’ (2011) states that:
“A thriving, active but stable housing market that offers choice, flexibility and affordable housing is critical to our economic and social wellbeing”.
The strategy sets out a range of initiatives to stimulate the housing market and increase housing delivery including the ‘Firstbuy’ mortgage guarantee scheme and the ‘Get Britain Building’ investment for developers.
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A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
2.2 Key Housing Growth Opportunities in the East Midlands
Over the past 10 years, the East Midlands has contributed 3 Cities (Derby/Leicester/Nottingham) a higher than proportionate share of the national housing supply – delivering consistently more homes than the Derby, Leicester and Nottingham are the three West Midlands for example6. largest urban areas in the East Midlands and together comprise around half of its economic The decline in land values has made the local output. The cities are major centres for work, infrastructure required for development to take place shopping, education, health care, leisure and more difficult to deliver. The impact of new development sport. The adopted core strategy for Leicester on local roads and services is often a key concern of local provides for 25,000 new homes, with additional communities. adjacent development proposed by neighbouring districts. The emerging aligned core strategies in Despite difficult economic circumstances, there are signs and around Nottingham are planning for around that private sector housing delivery is starting to recover 47,000 new homes. The emerging aligned core in the East Midlands7. strategies in and around Derby are planning for 36,000 new homes. Councils remain committed to the delivery of substantial amounts of housing growth to meet local needs and Northamptonshire Arc (Northampton & future economic prospects. However, improvements surrounding towns) in local infrastructure will often be required to allow development to proceed and to meet the legitimate The Northamptonshire Arc encompasses the concerns of local people. towns of Corby, Kettering, Wellingborough and Daventry, as well as the University town The East Midlands has an attractive mix of urban and rural of Northampton itself. Northamptonshire’s environments not dominated by a single conurbation. projected to be one of the fastest growing places Key housing growth opportunities include: in England. The emerging West Northamptonshire Joint Core Strategy is proposing 34,000 new Eastern Diamond (Lincoln/Newark/ homes. The emerging revised Joint Core Strategy Gainsborough/Grantham) for North Northamptonshire is proposing over 40,000 new homes. Lincoln is an historic city with a strong industrial heritage, which has been boosted by the recent Other Local Growth Opportunities development of the Lincoln University based around the historic Brayford Pool area. There are Councils elsewhere across the East Midlands currently plans to deliver over 40,000 new homes also have ambitious plans for growth. through the emerging Central Lincolnshire Joint Examples include: Mansfield/Ashfield in north Core Strategy, including 19,000 for Lincoln and Nottinghamshire (around 8,000 homes) and 10,000 for Gainsborough (plus 4,500 in Sleaford). Chesterfield in north Derbyshire (around 7,000 The towns of Newark and Grantham are both homes). located on the A1 and the East Coast Main Line and have significant potential for economic and Councils have plans to deliver 400,000 new homes housing growth. Adopted local plans propose over the next 20 years across the East Midlands, but 11,000 new homes for Newark, and 7,500 for this will require investment to address strategic and local Grantham. infrastructure constraints.
13 6 Making the most of housing and growth in the East Midlands, Smith Institute, September 2012 7 DCLG Live Housing Tables: www.gov.uk/government/statistical-data-sets/live-tables-on-house-building23 Item 5(a)
A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
2.3 Growing Places Fund: A Strong Investment Case
East Midlands Councils and a number of leading housing For instance, the Leicester and Leicestershire LEP had an associations have already made a compelling economic allocation of £13 million from the GPF, but enough viable case for increasing the share of national affordable bids to loan up to £60 million. The first 5 schemes alone housing investment in the East Midlands8. (costing less than 5 million) will help to secure almost 1,300 new homes, creating 2,000 jobs and safeguarding a The formula used to determine allocations to the Growing further 500. Places Fund is based on existing levels of population and employed earnings9, and does not reflect the scale of Increasing the proportion of GPF and other similar future growth potential. As a result, LEPs across the East investment funds in the East Midlands will make a Midlands have received a relatively small share of national better contribution to meeting the country’s housing funding (around 8%) – well below the share of housing and employment needs. growth in recent years (over 10%).
8 Investing in Opportunity: a prospectus for new affordable housing in the East Midlands’, EMC, December 2012, available at: 14 www.emcouncils.gov.uk/write/Documents/Invest_in_Opportunity_Prospectus.pdf24 9 Growing Places Prospectus, DCLG & Department for Transport, November 2011 Item 5(a)
A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
3 Strategic Infrastructure Priorities
Summary Infrastructure led development is key to securing sustainable growth, linking manufactured goods and food to ports and airports, producers to markets and suppliers, and ensuring that businesses have access to broadband, energy and flood protection.
Consistent with the Treasury’s National Infrastructure Plan, 5 key investment corridors and 3 key investment themes for the East Midland have been identified:
• Key investment corridors: Humber Ports to West Midlands; Haven Ports to West Midlands; South East to West Midlands; South East to South Yorkshire; South East to West Yorkshire;
• Key investment themes: Exploiting Broadband; Flood Resilience; and Energy Resilience.
There is also clear evidence of the agglomeration benefits of improving connectivity between centres of economic activity both within the East Midlands and to surrounding areas. Yet transport public spending per head in the East Midlands has been below average and currently the second lowest in England.
Higher rates of economic growth will be achieved if the Government focuses a greater proportion of national investment on these corridors and themes in the East Midlands.
There are a small number of ‘larger than local’ infrastructure projects where there is an immediate opportunity for Government to support collective action by councils and LEPs that will unlock economic growth and investment.
Many local businesses are well placed to directly deliver infrastructure investment across the East Midlands and beyond. To enable local companies to plan their workloads and maximise potential business opportunities, EMC and the Institution of Civil Engineers will work together to produce and keep up to date a sub-national infrastructure pipeline.
3.1 National Context
The Government recognises that investment in In order to ensure a more strategic approach to the delivery strategic infrastructure is a signifi cant determinant of of infrastructure that maximises economic benefi ts, the economic success. In addition to promoting long term Treasury (through Infrastructure UK) has produced two competitiveness, research indicates that every £1 spent on iterations of a National Infrastructure Plan (NIP). construction generates £2.84 of direct economic activity10
“Infrastructure networks form the backbone of a modern economy and are a major determinant of growth and productivity.” National Infrastructure Plan (2011).
15 25 Item 5(a)
A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
3.2 Key Investment Corridors and Themes
Consistent with the Treasury’s National Infrastructure South East to West Midlands (A5/WCML/HS2 Plan, 5 key corridors and 3 key themes can be highlighted Phase 1) which have the potential to give a significant return on investment for UK plc through linking local economic The corridor links a number of key growth strengths to external markets. opportunities along the A5 (including the MIRA Enterprise Zone) and the Northamptonshire Arc Investment Corridors with the major population centres of the South East and West Midlands. Humber Ports to West Midlands (A46/A38/M42/ Grimsby-Birmingham rail corridor) South East to South Yorkshire (M25/M1/MML/ HS2 Phase 2) This corridor links major economic and housing growth opportunities in 3 Cities and the Eastern The corridor links the Northamptonshire Arc, the 3 Triangle with the Humber Ports and the major Cities and East Midlands Airport with the Sheffield population centres of the West Midlands. Access City Region and the population centres of London to East Midlands Airport, the largest freight and south east. The corridor forms part of a Trans- hub airport outside of London, is also hugely European Network (TEN) and is a major gateway important for local businesses. to Europe.
Haven Ports to West Midlands (A14/Felixstowe- South East to West Yorkshire (M25/M11/A14/ Nuneaton rail corridor) A1/EMCL/HS2 Phase 2)
The corridor links the major economic This corridor links the Eastern Diamond with and housing growth opportunities of the Leeds City Region and Robin Hood Airport near Northamptonshire Arc with the ports of Felixstowe Doncaster to the north, and the major population and Harwich and the major population centres of centres of the East and South East. The corridor the West Midlands. The corridor forms part of a forms part of a Trans-European Network (TEN) and Trans-European Network (TEN), and is the major is a major gateway to Europe. gateway to Europe and the Far East for freight movements.
16 10 UK Construction Group, 2009 26 Item 5(a)
A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
Maximising the Benefits of HS2
On the 28 January 2013 the Secretary of State for • ensure that capacity released from the classic Transport, Rt Hon Patrick McLoughlin MP, announced network by HS2 is used to improve services to proposals for Phase 2 of HS2, including a line of route existing stations across the East Midlands; between Birmingham to Leeds and a new ‘Hub’ station • ensure that local rail and construction at Toton near Nottingham. companies are in the best position to secure Council Leaders and LEPs will work with the Secretary contracts to build and maintain HS2; and of State and HS2 Ltd to: • ensure that that investment in existing rail • maximise the economic benefits and mitigate lines is maintained. the environmental impacts of HS2 in the East Midlands;
17 27 Item 5(a)
A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
Balfour Beatty Civil Engineering, the A46 Saxondale interchange.
Transport Investment: A Strong Business Case
East Midlands is at the heart of country’s strategic Yet in 2010/11 public spending on transport in the transport network – literally the crossroads of England. East Midlands was the second lowest of any region in Good transport links are required for the movement of the UK at £236 per head; the national average is £344 food, goods and services, efficient labour markets and and the figure for London is £77414. In addition, the to support local visitor economies in places such as the proposed level funding to Local Transport Bodies in the Peak District National Park, the Lincolnshire holiday coast, East Midlands may not be sufficient to maintain a viable Sherwood Forest and international sporting venues at programme of major transport schemes required to Silverstone and Trent Bridge Cricket Ground. deliver planned housing growth.
Research undertaken by the University of Lincoln has Despite delivery of a number of important schemes in highlighted the importance of connectivity to economic recent years, the economic and housing growth potential performance in the East Midlands11. This has been in the East Midlands and its role in facilitating growth supported by analysis of the economic benefits of the elsewhere in England has been under-represented in upgrade and electrification of the Midland Main Line by transport spending decisions for a number of years. Arup12. Atkins has estimated that the economic cost of congestion to the East Midlands is close to £1 billion per Higher rates of economic growth will be achieved year13. if the Government focuses a greater proportion of national transport investment on infrastructure priorities in the East Midlands.
11 A Atherton & A Johnston, Mapping the Structure of Regional Economies, University of Lincoln, 2006 12 The Case for Upgrading and Electrifying the Midland Main Line, Arup, 2011 18 13 Economic Costs of Congestion in the East Midlands, Atkins, 2007 28 14 Public Expenditure Statistical Analysis, 2012, HM Treasury, Table 9.16 Item 5(a)
A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
Investment Themes
Exploiting Broadband Fast reliable broadband is a fundamental priority. Without it, the East Midlands will ICT is linked to improved business systems, lose out on future economic growth and e-commerce and design and innovation, and be a less attractive place to live. There is a is a key aspect of the Government’s emerging strong business case for extending super-fast industrial strategy. broadband to at least Nottingham, Leicester, Lincoln and Northampton, and for increasing UK and international studies have confirmed the speed and reach of broadband across the that increased broadband penetration can have East Midlands as a whole. a significant (and quick) GVA uplift through increasing business efficiencies and enhancing Flood Resilience trading opportunities. Based on this analysis, maximising broadband across the East Midlands Around 17% of the land area of the East Midlands could boost GVA by up to 3.8% or £2.4 billion15. falls within identified flood risk zones. Flood risk There is also potential for reduced travel demand is a major issue for the East Midlands, in particular through increased home working, which would be along the Lincolnshire coast, but also in parts of particularly beneficial for rural areas such as the the area’s most dynamic urban economies. Further Peak District National Park. investment in flood defences is therefore an overriding issue for many local communities and Improving broadband infrastructure is a crucial businesses. first step. Support for transformational activities within businesses to make more effective use of Councils, businesses and the Environment Agency digital technologies must follow. are working together to try and find innovative solutions to managing flood risk in an increasingly The Government has made available funding uncertain climate. A strategic approach to through BDUK to ensure that all areas have promoting flood alleviation and economic growth access to basic broadband provision of around along the River Derwent in Derby ( ‘Our City Our 2 megabytes per second, including £34 million River’ ) has been jointly developed by the City across the East Midlands. Although this will be an Council and the Environment Agency and has improvement, it will still leave broadband speeds already enabled significant investment to take well below emerging international standards. place although more will be required to fully Councils have been attempting to add value realise the benefits. to BDUKs investment by matching it against European Regional Development Fund, but have Coastal flooding is a significant risk to the so far been frustrated by the terms of the EM important town and port of Boston and the Operational Programme, which will have to be seaside resorts of Skegness and Mablethorpe as amended as a result. well as prime agricultural land around the wash. Lincolnshire’s sea defences also provide wider The Government has also made available benefit by protecting large areas of the east of £164 million to deliver super-fast fibre optic England, in total encompassing 50% of England’s broadband to 22 cities across the UK. Under this Grade 1 agricultural land. Despite the importance scheme, homes and businesses will benefit from of this resource to the nation’s food security, broadband speeds of up to 100 megabytes per Defra’s funding formula fails to adequately second. However, at present the only place in the consider this in investment decisions. East Midlands to benefit from this investment is Derby.
19 15 Data aggregated from ‘Social Study 2012, The Economic Impact of BT in the29 United Kingdom and the East Midlands (2012)’, Regeneris Consulting, 2012 Item 5(a)
A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
The Government is also committed to securing Continuing uncertainty over flood insurance is a greater proportion of third party funding also starting to undermine investor confidence for flood defence works. Given current fiscal in flood risk areas. A business that cannot get constraints, this is understandable. However, the insurance is not viable. The current national scale of ongoing investment required along parts agreement is due to expire in mid 2013 and of the Lincolnshire Coast relative to the scale there are an increasing number of policies now of the local population puts farmers and small up for renewal. It is vital that the Government business owners at a significant disadvantage moves quickly to secure an agreement with compared to more populous areas – despite the the insurance industry to prevent economic national importance of the natural assets that are blight spreading across large parts of the East protected as a result. Midlands.
The long term future of the Lincolnshire Coast Energy Resilience is a national, not just a local issue. Government must work with councils and local partners in The East Midlands is a net exporter of electricity taking a more strategic approach to the whole and power generation sector and its supply chain of the coast south of the Humber consistent contributes significantly to a number of local with the national interest but also respecting economies. This strength was founded on the particular local circumstances. establishment of large coal fired power stations in
20 30 Item 5(a)
A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
the Trent Valley during the post war period. Easy Given the strengths of the East Midlands in access to the grid and cooling water also attracted power generation there is considerable scope for investment in large gas fired power stations when local supply chain development resulting from natural gas supplies came on line, and there is investment in this sector. Potential for innovation significant potential for offshore wind generation is further boosted by the Energy Technologies and local scale biomass, solar and hydropower Institute (ETI) based at Loughborough University. generation. A new 38MW Biomass power station The ETI is a public-private partnership between is nearing completion in Sleaford. However, there global industries (BP, Caterpillar, EDF, E.ON, Rolls- are parts of Lincolnshire, East Northamptonshire Royce and Shell) and the UK Government. The and northern Derbyshire where insufficient energy ETI’s mission is to accelerate the development and infrastructure (gas and electricity) is restricting commercial roll-out of energy technologies, which economic growth and development. will increase energy and business efficiencies and help achieve energy and climate change goals. There are good examples of locally led energy generating initiatives in parts of the East Refurbishment, replacement and restructuring Midlands, such as energy from waste schemes, and the energy distribution systems will need one successfully operating in Nottingham, and to be a significant part of regional investment one being developed in Lincoln. Most recently, over the coming years, and could also boost Derby City Council has completed construction of local supply chains across the East Midlands. a 230kw hydropower scheme at Longbridge weir However, a lack of clarity from Government on on the River Derwent. Climate East Midlands has energy policy is inhibiting the private sector published technical advice to help such projects from providing the infrastructure needed, and secure the necessary planning and environmental this must be addressed. permissions, available at: www.climate-em.org. uk/resources/item/planning-for-hydropower- planning-advice2/
21 31 Item 5(a)
A prospectus for investment, infrastructure and growth in the East Midlands - Summary Case
3.3 Strategic Infrastructure Opportunities
Councils and LEPs across the East Midlands are keen to A14 Corridor (Haven Ports to M1) work with Government to agree strategic growth plans to deliver the jobs and homes that the country needs. In Implementation of schemes at Kettering and the the meantime, there are a number of ‘larger than local’ Catthorpe Interchange and Government funding infrastructure projects where there is an immediate for proposed improvements between Ellington opportunity for Government to support collective action and Fen Ditton in Cambridgeshire, complemented by councils and LEPs that will unlock growth. by a strategic investment plan for the route as a whole to properly co-ordinate development with A5 Corridor (Staffordshire to Northamptonshire) investment.
Implementation of £11.4 million scheme to enable A43/A45 Corridors (Northamptonshire) 1.5 million sq ft of employment space at the MIRA Enterprise Zone, and development of a longer Implementation of existing proposed schemes, term investment strategy, based on the work supplemented by the development of longer of the A5 Transport Partnership, to deliver over term investment strategies to enable growth 45,000 new homes with associated employment and development across the Northamptonshire opportunities. Arc, including 75,000 new homes and associated employment opportunities over the next 20 years. Castle Line (Lincoln-Newark-Nottingham Rail Corridor) Northern Regeneration Opportunities (Derbyshire & Nottinghamshire) A five stage investment programme (total estimated cost up to £20 million) which will A package of investments required to enable long reduce journey times by 40% (to speeds not term growth and regeneration in and around achieved since 1912!) and double service Chesterfield, Mansfield/Ashfield and Worksop frequency, improving access to new employment helping to deliver over 17,500 new homes with opportunities, including 150 ha of employment related employment opportunities. land within Newark, and delivering wider economic benefits along the whole corridor through increasing business connectivity, improving local commuter networks and better access to tourism opportunities.
Lincolnshire Coastal Flood Defences
Fully funding the existing coastal flood defence programme (costing £16 million pa) protecting 2,414 km2 of land, an agri-food business sector worth £1 billion pa, a local tourism industry worth over £400 million pa, and investment to support sustainable economic development in Boston.
22 32 Item 5(a)
East Midlands Councils This document is available in Braille, large print format and T: 01664 502 620 tape format on request. East Midlands Councils publications F: 01664 502 659 are also available in a range of languages if required. For more information please call 01664 502 620 or E: [email protected] e-mail: [email protected] W: www.emcouncils.gov.uk This document has been printed on recycled paper. East Midlands Councils, Phoenix House, Nottingham Road, Melton Mowbray, Leicestershire LE13 0UL Published February 2013.
33 Item 5b
East Midlands Councils Meeting 15 th February 2013
Future EU Structural Funds
Summary
There is an immediate opportunity to influence the shape of future EU Structural Funds (2014-2020). The attached response highlights 3 principles necessary for any future programme to effectively support local economic growth.
Recommendation
Members of EMC are invited to:
Endorse the submission that calls for Government to establish 3 pillars that underpin future Structural Funds; certainty of funding, flexibility of approach and local decision-making.
34 Item 5b
1. Introduction
1.1 In the current era of tight public finances, future Structural Funds (in particular ERDF and ESF) will be increasingly central to local and national efforts in driving economic growth and supporting people to benefit from it.
1.2 For the 2014-20 period; the European Regional Development Fund (ERDF), the European Social Fund (ESF), the European Agricultural Fund for Rural Development (EAFRD), and the European Maritime and Fisheries Funds (EMFF) will fall under the umbrella of the Common Strategic Framework (CSF).
1.3 This alignment presents an opportunity to implement more locally-led, strategically focused programmes. The Government has stated its intention of ensuring these Funds are more effective in their impact on growth, responsive to local needs and national priorities, more efficiently delivered and more accessible to potential beneficiaries.
2. Summary of Proposals for Common Strategic Framework (CSF) Funds 2014 - 2020
2.1 The proposals include many positives, not least that EU funds should be integrated and devolved to local partnerships, such as LEPs, as a wider package for local growth. Of particular interest may be:
An ‘EU Growth Programme’, principally financed by ERDF and ESF. This combined programme would cover innovation including research and development, SME competitiveness, skills, low carbon and employment as top priorities. A single ‘EU Growth Programme Board’ incorporating a joint Programme Managing Committee for ESF and ERDF. LEPs to be the fundamental building blocks receiving a 7 year notional allocation subject to periodic performance reviews. LEPs to identify their preferred EU investment strategy as part of their wider strategy for agreement by the Growth Board. LEPs to select projects and oversee delivery against their strategy. Government departmental teams to work as ‘CSF Area Growth Teams’ to support LEPs in the development and delivery of projects and oversee management of the funds. National co-financing initiatives to take account of local needs.
3. Other Factors
3.1 Members are advised that there are a number of additional factors that may well impact on the future shape of any agreed CSF Funds. Many of these are outside the control of councils, e.g. the Eurozone crisis; downward pressure on EU budget; ministerial change and elections. However, there remain a
35 Item 5b
number of other issues, e.g. the pressure to drive high impact growth; localism; city deals and CSR, where councils can directly bring influence.
4. Timings and Process
4.1 The Government has started a consultation process seeking the views of partners on its proposed delivery model for the Common Strategic Framework 2014-2020. The current consultation process intends to ‘road-test’ the approach with a formal model being formally consulted upon from March/April 2013.
4.2 There is an immediate opportunity to influence the thinking of Government to ensure that the agreed model delivers upon the priorities of local councils, LEPs and partners. There will be less opportunity to influence the model once it is formally consulted upon in March/April 2013. Therefore, the Executive Board directed that a clear, succinct response be submitted to Government before March 2013.
4.3 The response has been developed in consultation with local government colleagues and attached as Appendix 5b (a) to this report.
5. Recommendations
5.1 Members are invited to endorse the submission that calls for Government to establish 3 pillars that underpin future Structural Funds; certainty of funding, flexibility of approach and local of decision-making.
Cllr Martin Hill OBE Chairman East Midlands Councils
36 Item 5b, Appendix (a)
The Response of East Midlands Councils to Government Consultation on the Future of EU Structural Funds - Common Strategic Framework (CSF) Funds 2014-2020
1.1 In the current era of tight public finances, future Structural Funds will be increasingly central to local and national efforts in driving economic growth and supporting people to benefit from it.
1.2 This region has a number of strengths, from its manufacturing and high-value engineering industries to the nationally important food and drink sectors. Through channelling future investment streams, including CSF funds, this region could make a proportionately greater contribution to rebalancing the national economy and delivering economic growth and jobs.
1.3 Local Councils in the East Midlands have a long history of using European funding in supporting local economic development. However, recent experience shows that the ability of local councils to effectively direct EU investments upon supporting local economic growth have been hampered by the centralisation and inflexibility of funding models.
1.4 For the 2014-20 period; it is proposed that the European Regional Development Fund (ERDF), the European Social Fund (ESF), the European Agricultural Fund for Rural Development (EAFRD), and the European Maritime and Fisheries Funds (EMFF) will fall under the umbrella of the Common Strategic Framework (CSF).
1.5 This alignment presents an opportunity to implement more locally-led, strategically focused programmes. This response represents our offer to Government. Local partners are keen to take this opportunity to shape the scope of future European funding and ensure that it supports the economic growth much needed by our communities.
2. Summary of Proposals
2.1 Government should establish 3 pillars to underpin future Structural Funds; certainty of funding, flexibility of approach and local decision-making. Ensuring these are in place will be a key factor in effectively channelling investment to support much needed economic growth:
a) Certainty 7-year notional allocations should offer clear and stable local funding commitments. Government (in consultation with local partners) should develop a formula approach for the allocation of CSF funding over the whole programme period.
b) Flexibility Devolution of funding to LEPs or clear alignment of national programmes with local priorities/LEP growth plans. The Government should avoid excessive ‘top-slicing’ of CSF to support national programmes.
37 Item 5b, Appendix (a)
National programmes should be co-commissioned with local partners and/or national funding allocated to LEPs, to provide for a ‘single pot’ approach and accessible match funding. Programmes should be directed through LEPs and fully integrate ERDF and ESF – and ensure that EAFRD and EMFF are strategically aligned with local priorities. There should be a more innovative use of CSF, for example, through the use of loans to create a lasting legacy for EU supported growth programmes.
c) Localism To avoid rebuilding the previous barriers of rigid and arbitrary geographical boundaries, local partners need to decide, depending on the issue, who to work with and on what basis. A formula approach will provide the certainty for LEPs to plan activity over the whole programme period. Decision-making at the national and local level should ensure a leading role for local authorities, businesses, universities and the voluntary/community sector. The CSF 2014-2020 Programmes must be based on LEP boundaries, with the opportunity for some flexibility to allow for cross border working. Local partners, through LEPs, should be responsible for directing funding and providing performance oversight of project management and delivery.
2.2 Certainty, flexibility and localism will support local partners in establishing ‘local pot’ funding programmes. These can avoid the complexities of current investment programmes through combining future funding and providing a source of ‘match’ that can then be focused upon local economic challenges.
2.3 It’s crucial that the Government and local partners gets this right. In the absence of other sources of investment, communities and local economies are likely to be increasingly reliant upon EU funding in securing economic growth – likely to be worth up to £600m to either bid for, or directly influence how it is spent. If the implemented model is not right, then the local economies could be locked into a 7 year disadvantage in accessing EU growth funding.
38 Item 6
East Midlands Councils Meeting 15 th February 2013
Local Action on Affordable Housing
Summary
This report updates members on housing delivery and seeks endorsement for the work of the Affordable Housing Task Group chaired by Cllr Lewis Rose.
Recommendation
Members of EMC are invited to:
Welcome the actions launched by the Affordable Housing Task Group set out in section 2 of this report. Encourage individual councils to follow the example of Derbyshire Dales District Council and others in signing the East Midlands Declaration on Affordable Housing.
39 Item 6
1. Housing Delivery in the East Midlands
1.1 The Government’s Housing Strategy and recent statement by Ministers have continued to highlight the importance of housing delivery to the economy in terms of the direct construction jobs, supporting local firms and labour market flexibility. Councils across the East Midlands have ambitious plans to deliver 400,000 new homes over the next 20 years and continue to grant over 83% of major residential planning applications. However, delivery has been restricted by a lack of mortgage finance and infrastructure constraints.
1.2 Figures released by DCLG in August 2012 showed that total housing completions across the East Midlands fell for the fifth year in succession to 9,930 dwellings in 2011-12. Total housing starts also decreased following slight increases in the previous two years. Further data on affordable housing completions and ‘net additions to housing stock’ was published in November 2012. The aggregated figures indicate that a small increase in market housing in the East Midlands was off-set by a larger decrease in affordable housing, which led to the overall decline in delivery.
Housing Supply in the East Midlands 2000-1 to 2011-12
25,000
20,000
15,000
10,000 Dwellings
5,000
0
1 3 4 6 8 -9 1 0- 2- 3- 4-5 5- 7- 8 1 0 00 00 10- 2 2001-2 2 200 20 200 2006-7 200 200 009-10 0 011-12 2 2 2
Total Housing Starts Total Housing Completions All Affordable Housing Total Net Additions
Source: DCLG Notes: i) ‘Total Net Additions’ also includes the impact of conversions, changes of use and demolitions on the total housing stock. ii) ‘All Affordable Housing’ includes both new build and acquisitions for social rent, intermediate affordable housing, intermediate rent and low-cost home ownership iii) Figures for ‘Total Net Additions’ and ‘All Affordable Housing’ for 2011/12 was produced by aggregating DCLG district data.
40 Item 6
2. EMC Affordable Housing Task & Finish Group
2.1 The EMC Affordable Housing Task and Finish Group was established following concern by the Executive Board about the impact of the significant reduction in HCA funding for the East Midlands for 2011-14 – in terms of both scale and proportion of the national pot – to around 25% of previous levels. Chaired by Cllr Lewis Rose, (full membership is set out in Appendix 6(a)), the group's work is a time-limited exercise linked to the delivery of this year's EMC business plan and in particular the following KPI:
"Secure an increase in the planned delivery of affordable housing in the East Midlands, over and above the levels that can be achieved through HCA funded contracts as of 31st March 2012."
2.2 In order to improve investor confidence in the East Midlands within Government, housing associations and the private sector, the group has developed three focused initiatives:
A ‘Prospectus’ setting out the economic and social benefits of investing in affordable housing the East Midlands, based on analysis undertaken by the Smith Institute (appendix 6(b));
A ‘Best Practice’ module on the EMC web-site (jointly branded with the Chartered Institute of Housing), showcasing innovative examples of where councils have been able to facilitate the delivery of affordable housing with little or no HCA funding (available here ); and
An ‘Affordable Housing Declaration’, demonstrating high level political commitment by councils to a limited set of key actions aimed at increasing the delivery of affordable housing (appendix 6(c)).
2.3 All three initiatives were officially launched by Cllr Lewis Rose at an ‘East Midlands Housing Investment Summit’ organised by the National Housing Federation on the 3 rd December 2012 at the Nottingham Conference Centre. A press release has been widely disseminated (appendix 6(d)), including to the East Midlands MPs group.
2.4 Derbyshire Dales District Council became the first authority to sign the ‘East Midlands Affordable Housing Declaration’. A further 9 councils have followed and 10 more are in the process of securing the necessary approvals.
41 Item 6
2.5 EMC is also supporting efforts by the National Housing Federation to establish a strategic grouping of housing associations active in the East Midlands, similar to the G15 (London) and the M6 (West Midlands) which have been very successful at lobbying for resources over a number of years.
3. Recommendation
Members of the Executive Board are invited to:
3.1 Welcome the actions launched by the Affordable Housing Task Group set out in section 2 of this report.
3.2 Encourage individual councils to follow the example of Derbyshire Dales District Council and others and sign the East Midlands Declaration on Affordable Housing.
Cllr Lewis Rose OBE Chair of Affordable Housing Task & Finish Group
42 Item 6, Appendix (a)
Membership of the Affordable Housing Task & Finish Group
Cllr Lewis Rose (Derbyshire Dales DC), Conservative, Chair Cllr Micheal Gordon (NE Derbyshire DC), Labour Cllr John Boyce (Oadby & Wigston BC), Lib Dem Steve Atkinson (Chief Executive, Hinckley & Bosworth BC) Ruth Hyde (Chief Executive, Broxtowe BC) Grant Lockett (Head of Strategic Growth, West Lindsey DC) Rob Coggings (Head of Housing, Derbyshire Dales DC) Sharon Wiggins (Policy Manager, Leicestershire CC) Steve Butterworth (Northamptonshire Strategic Housing Coordinator)
External Advisors Sandy Ward (Homes & Communities Agency) Lindsey Williams (National Housing Federation)
Secretariat Andrew Pritchard (East Midlands Councils) Cathy Jones (East Midlands Councils)
43 Item 6, Appendix (b) Investing in Opportunity A prospectus for new affordable housing in the East Midlands
Councils and housing associations across the East Midlands have the potential to make a significant contribution to the nation’s affordable housing needs – and at an affordable price. With an excellent delivery track record, strong political commitment and some of the cheapest housing land in England, the East Midlands surely represents an investment opportunity for Government too good to miss! ______
An opportunity too good to miss? The East Midlands Offer The new Affordable Homes Programme (2011-15) allocated just Excellent track record of affordable 4.1% of total investment to the East housing delivery, consistently out- Midlands – half the share received in performing other parts of England 2008-11. This represents a huge missed opportunity, not just for the Low building costs, including some of East Midlands, but for England as a the cheapest housing land with planning whole. permission in England
The East Midlands has the potential to Competitive construction sector able to make a significant contribution to the rise to the challenge nation’s affordable housing needs – and at an affordable price. The country Political commitment for addressing cannot afford to miss out. As the affordable housing needs through the Government looks at further measures ‘East Midlands Declaration on Affordable to stimulate the economy and prepares Housing’ for the next CSR, the case for investment in the East Midlands Major potential for growth and ‘re- remains compelling. balancing’ of the economy
Excellent Track Record The East Midlands has made a major contribution to improving housing in England over many years. Although the total stock of housing association dwellings in the East Midlands was well below the national average in 2010-11, the area accounted for 8.4% of the social housing completions in England over that period. The private sector also delivered above its current national proportion, with 10.2% of private house completions nationally. When times are tough, the ability to deliver is a crucial asset.
Low Building Costs Analysis by the HCA has confirmed that average building costs in the East Midlands during 2008-11 were just 86% of the national average. In 2010, the average valuation of building land for housing with planning permission was the lowest of any region including the North East - less than a fifth of the valuation of land in London and only 45% of the national average. When resources are tight and every penny of investment counts, getting the best value for money becomes even more important.
For more information contact: [email protected] Analysis based on independent research by the Smith Institute
44 Item 6, Appendix (b)
Competitive Construction Sector The East Midlands has a competitive advantage in the construction sector, with productivity per construction job higher than the national average. The area also has a strong history of developing and maintaining construction skills. Not only can the East Midlands build efficiently, construction investment will deliver more local economic benefits than in many other parts of the country, helping the economy to build its way out of recession.
Political Commitment The delivery of new affordable housing has always been a key issue for local politicians, councils and for East Midlands Councils (EMC). That is why EMC has led the way in developing the East Midlands Affordable Housing Declaration, spelling out the clear commitment of council leaders to tackle local affordable housing needs through investment and innovation.
Major Potential The cities, towns and villages of the East Midlands offer an attractive mix of living environments, not dominated by a single conurbation. A strong and productive manufacturing sector means the East Midlands is well placed to benefit from the Government’s efforts to ‘rebalance the economy’ away from financial services and the south east.
The East Midlands has major potential for long term growth. Investing in much needed affordable housing will help to release that potential – and give a significant boost to the national economy
For more information contact: [email protected] Analysis based on independent research by the Smith Institute
45 Item 6, Appendix (c)
The East Midlands Declaration on Affordable Housing
We acknowledge that:
A lack of affordable housing can have an adverse impact on local people, communities and businesses. The construction of new affordable housing will support local jobs, benefit the wider local economy and promote social mobility. Central Government grant to support the development of new affordable housing is likely to be constrained for the foreseeable future. New and innovative approaches to delivering affordable housing will need to be deployed if local needs are to be met.
We commit our Council from this date to work constructively with developers, housing associations and the HCA to maximise opportunities and resources to deliver well designed new affordable housing on suitable sites, through:
ensuring robust research is undertaken to identify the scale and nature of affordable housing need; seeking to make best use of council and publicly owned land, capital resources and community assets in ways that encourage economic growth and the delivery of affordable housing; using planning powers creatively and pragmatically; working constructively with local communities to make the case for development and challenging local opposition with evidence where necessary; working collaboratively with relevant partners to identify joint opportunities for development; monitoring the delivery of new affordable housing against the level of established need and publishing the results on an annual basis; and freely sharing learning by providing EMC with relevant case studies
Leader Chief Executive Cllr Martin Hill Council Council Chair EMC
Date:
Supported by:
46 Item 6, Appendix (d)
NEWS Release from East Midlands Councils Release Date: Embargoed until 00.01am, 3rd December 2012
COUNCILS UNITE TO ATTRACT AFFORDABLE HOUSING INVESTMENT
East Midlands Councils (EMC) today launched three high profile initiatives aimed at attracting investment in affordable housing at a ‘Summit’ in Nottingham
Recent research by the Smith Institute has highlighted that the East Midlands is missing out on public funding for affordable housing compared with other parts of England.
In response, East Midlands Councils has today launched three new initiatives aimed at improving investor confidence in both the public and private sectors:
. A joint ‘Prospectus’ with a number of housing associations setting out the economic and social benefits of investing in affordable housing in the East Midlands;
. A ‘Best Practice’ module on the EMC web-site (jointly branded with the Chartered Institute of Housing), showcasing innovative examples of where councils have been able to facilitate the delivery of affordable housing; and
. An ‘Affordable Housing Declaration’, demonstrating a high level political commitment by councils to a limited set of key actions aimed at increasing the delivery of affordable housing. Derbyshire Dales District Council became the first authority to sign the declaration at a meeting of its full council on the 22 November 2012 – and many others are expected to follow shortly.
Further details on all three initiatives will be available here from Friday 30th November 2012
Speaking at today’s Housing Investment Summit in Nottingham, organised by the National Housing Federation, Cllr Lewis Rose, Chair of EMCs Affordable Housing Task & Finish Group said:
“Councils and housing associations across the East Midlands have the potential to make a significant contribution to the nation’s affordable housing needs – and at an affordable price. The three initiatives we are launching today together demonstrate that the East Midlands has a great affordable housing offer, and that with the right support we can make a real difference to people’s lives”
Cllr Rose added:
“I hope that MPs, housing associations and others with an interest in affordable housing in the East Midlands will use what we have produced to help make the case for investment.”
47 Item 6, Appendix (d)
End of text Notes to Editor
East Midlands Councils is the consultative forum for local authorities in the region. It provides support to Councils to improve their services and is a strong voice for the East Midlands. www.emcouncils.gov.uk Independent research by the Smith Institute (‘Making the most of housing and growth in the East Midlands’, September 2012) highlighted that the East Midlands received only 4.1% of the national pot for affordable housing for the period 2011-15 in the recent national competition - half the proportion received in the previous spending period. This is on top a 50% reduction in the size of the national pot. As a result, the EM is faced with a 75% reduction in funding for the affordable housing for the period up to 2015.
Contacts
For further information please contact:
Andrew Pritchard Director of Policy & Infrastructure East Midlands Councils Tel: 01664 502421 Mobile 07795 060943 E-mail: [email protected]
ENDS.
All news releases from East Midlands Councils are emailed to relevant media organisations throughout the East Midlands and beyond. Please keep us up-to-date with your contact details and inform us of any changes.
All news releases can be viewed on our website at http://www.emcouncils.gov.uk/Press-releases
East Midlands Councils, Phoenix House, Nottingham Road, Melton Mowbray, Leicestershire, LE13 0UL T: 01664 502 620 F: 01664 502 659 48 W: www.emcouncils.gov.uk Item 7(a)
Nick Boles MP
Parliamentary Under Secretary of State for Planning
Biography
Nick Boles was appointed Parliamentary Under Secretary of State for Planning in September 2012. He was elected as the Conservative MP for Grantham and Stamford in May 2010.
Education
Nick went to school at Winchester College before going on to study politics, philosophy and economics at Magdalen College, Oxford. He went on to do a Masters in public policy at Harvard University in the US after winning a Kennedy Scholarship.
Political career
Nick was elected to Westminster Council in 1998 and became Chairman of Housing. He was chairman of the Housing Committee from 1999 to 2001, before stepping down in 2002. In 2007, Nick was appointed as Head of David Cameron’s Implementation Team, which drew up the Conservative Party’s detailed plans for government.
In November 2010, he was appointed Parliamentary Private Secretary to Nick Gibb MP, the Minister of State for Schools. Nick is also a political fellow at the Institute for Government and is the founder, and a former director, of Policy Exchange, a centre right policy research institute.
Career outside politics
Nick spent the first 10 years of his career in business. He worked as a merchant banker for a few years in Germany, Russia and Eastern Europe, helping state owned industries prepare for private ownership. He and a friend later formed a small group of companies supplying the DIY industry.
Personal life
Nick lives with his partner Shay Meshulam.
49 Item 7(b)
Toby Perkins MP
Shadow Small Business Minister
Toby Perkins MP was elected Member of Parliament for Chesterfield in 2010, overturning a Liberal Democrat majority of 3,000 by 549 votes.
He served on Chesterfield Borough Council from 2003 until his election to Parliament.
After leaving Silverdale Comprehensive School in Sheffield in 1987, Perkins worked as a Sales Representative, Recruitment Manager and Care Manager before setting up the Rugby product business Club Rugby.
He was promoted by Labour Leader Ed Miliband to Shadow Children and Families Minister in his first ministerial ream, before becoming Shadow Small Business Minister in 2011. Toby leads the Labour Party’s agenda on SME issues including access to finance and apprenticeships.
He is married, has two children and is a keen sportsman.
50 Item 8 (a)
East Midlands Councils Meeting 15 th February 2013
Executive Board Report
Summary
The following report provides Members of East Midlands Councils with an update on the issues considered by the Executive Board since July 2012.
Recommendation
Members of East Midlands Councils are invited to note the report and inform priorities for East Midlands Councils over the coming year.
51 Item 8 (a)
1. Background
1.1 The Executive Board primary role is to provide leadership on issues of collective importance to the region’s local authorities.
1.2 The following report provides Members of East Midlands Councils with a summary of issues considered by the Board, where the Executive Board has supported councils to respond to changes in Government policy and any formal responses or actions taken as a result.
2. Infrastructure and Investment Issues
2.1 Infrastructure and wider private and public investment is an important determinant for economic growth. The Executive Board directed that work is undertaken in support of pushing ‘our case’ for greater investment in our manufacturing, logistics, construction and food and drink sectors.
2.2 Local economic growth is key to rebalancing the national economy, and any private/public investment in the East Midlands will give a greater level of return than elsewhere. This work, in part, is reflected by the infrastructure and housing work presented to this EMC meeting but also by lobbying on planning (see Appendix (a) and (b)) and transport matters (e.g. upgrade and electrification of Midland Mainline).
3. LEP Chairs and Councils Leaders
3.1 East Midlands Councils and BIS have facilitated 2 meetings between council leaders and LEP Chairs.
3.2 Discussions have focused on how to unlock local economic growth, infrastructure and investment. There is agreement by LEP Chairs and Councils Leaders that there is a basis for working collaboratively. LEPs will be given greater roles, responsibilities and funding. The opportunities for collaborative work in delivering upon local ambitions for economic growth are recognised but the basis for this work should be clear and not obstruct the development of local approaches.
3.3 At the most recent meeting on 7 th February 2013, council leaders and LEPs chairs were able to discuss these issues with Michael Fallon, Minister for Business and Enterprise (BIS).
4. Affordable Housing
4.1 The EMC Affordable Housing Task and Finish Group was established following concern by the Executive Board about the impact of the significant reduction in HCA funding for the East Midlands for 2011-14 – in terms of both scale and proportion of the national pot – to around 25% of previous levels. Chaired by
52 Item 8 (a)
Cllr Lewis Rose, the group's work is a time-limited exercise linked to the delivery of this year's EMC business plan with the following objective:
"Secure an increase in the planned delivery of affordable housing in the East Midlands, over and above the levels that can be achieved through HCA funded contracts as of 31st March 2012."
4.2 The Executive Board will continue to support local councils in working with Government, the private sector and housing associations to increase the delivery of affordable housing.
5. Broadband and ERDF
5.1 This region was the only region not to include Broadband in its plan for ERDF funding support. EMC, working with member councils, has led the work to change this and to free-up £10m investment from ERDF into our local economies for supporting broadband.
5.2 Through its membership of the ERDF Local Management Committee, local councils are working to ensure that we use all remaining programme funds to effectively support economic growth and have been instrumental in establishing a £50m challenge fund that local councils should bid into in order to unlock stalled investment and business growth opportunities.
6. Adult and Social Care Funding
6.1 In order to reach a position on adult social care funding and make representation to government, the Executive Board directed that EMC, through working with member councils, should outline the impact of care funding on local government in the region and the consequences of not addressing the funding issue.
6.2 It was agreed that this is undertaken with a view to submitting proposals to the government on funding solutions for consideration in the next Comprehensive Spending Review. A ‘task and finish group’ has been set up to provide a regional perspective on the challenges of adult social care funding with a view of presenting innovative options/solutions to Government and inform future reforms as part of the next Comprehensive Spending Review. In particular:
The review should reach a position on adult social care funding. The review should outline the impact of care funding on local government in the region and the consequences of not addressing the funding issue. The review should provide the basis for member-led representation to the government, specifically on potential options and funding solutions for consideration in the next Comprehensive Spending Review.
53 Item 8 (a)
6.3 The review is member-led and undertaken with support from Directors of Adult Social Care and Directors of Finance in conjunction with Adult Social Care Sector-led Improvement and NHS Transition Team. The Kings Fund have been commissioned to provide independent and specialist support.
6.4 Support for this work of the task and finish group will be provided by EMC.
7. Health and Well-Being Boards
7.1 East Midlands Councils continues to work with the Department for Health and the LGA in supporting a network of chairs of local health and well-being boards. With the objective of improving capacity, knowledge and leadership, the chairs and wider board member networks (chaired by Cllr Martin Suthers) has focused on areas of common priority and/or concern in order to support their formal establishment and role from April 2013.
8. Welfare Reform
8.1 The Board has considered this issue on a number of occasions and directed that EMC host a number of events and meetings to support sector awareness and identification of collaborative work and further lobbying.
8.2 A Steering Group to lead this work has been established, chaired by Allen Graham, Chief Executive of Rushcliffe Borough Council. The Steering Group have led on the collection and analysis of data on the introduction of council tax reform and its implications for councils and local people. This information is shared with the LGA who are in dialogue with DCLG and DWP.
9. Recommendation
9.1 Members of East Midlands Councils are invited to note the report and inform priorities for East Midlands Councils over the coming year.
Cllr Martin Hill OBE Chairman East Midlands Councils
54 Item 8(a), Appendix (a)
11th January 2013
Nick Boles MP House of Commons London SW1A 0AA
Dear Mr Boles
GROWTH & INFRASTRUCTURE BILL AND ASSOCIATED CONSULTATIONS
The EMC Executive met on the 7th December 2012 and discussions focused on measures to accelerate the delivery of local economic growth through infrastructure investment, including consideration of an early draft of the ‘Growth Prospectus’ which we hope to present to you at the next full EMC meeting on the 15th February 2013.
Members also discussed the Growth & Infrastructure Bill. Whilst EMC is very keen to work with the Government to deliver much needed economic and housing growth, there was disappointment that the Bill appears to do little to address the practical barriers that councils are facing in the East Midlands. In addition, there was widespread concern from Members across the political spectrum about the thrust and focus of a number of the Bill’s provisions. In particular:
Powers to designate ‘failing’ planning authorities and determine major applications centrally Whilst EMC has no wish to defend poorly performing councils, this measure appears disproportionate to the scale of the issue and contrary to the principles of localism, amounting to a new centrally imposed performance management framework without any prior discussion with the sector. The proposed criteria for designating failing authorities are unsophisticated and take no account of the reasons why a particular council may be in difficulty. Local decision making is key. Determining applications centrally will undermine local confidence in the planning system and reduce the resources available to councils to address any performance issues. It is also far from clear that the Planning Inspectorate will have either the skills or resources to take on the role of a local planning authority, or that applications will be determined quicker or more effectively as a result.
Extension of Major Infrastructure Planning regime to industrial and commercial development EMC is not aware of any evidence in the East Midlands that appropriate industrial or commercial development is being thwarted by the local planning system, and again this provision would seem to represent an unwarranted centralisation of decision making at the expense of local democratic oversight, which could also have significant financial implications for councils in terms of lost fees. The Bill also gives powers to the Secretary of State further extend the range of applications that could be determined centrally without recourse to primary legislation. The Major Infrastructure Planning system was established as a more efficient process for permitting major infrastructure projects which previously had been subject to a number of different nationally administered consent regimes. It was not designed to deal with local planning issues and is ill-suited to this purpose. Again, it is not clear that the Planning Inspectorate will have the skills or expertise to take on this role, or that applications will be determined quicker or more effectively as a result.
55 Item 8(a), Appendix (a)
Extending Permitted Development Rights This measure is not directly related to the Bill but is part of the same planning reform package, and will allow home owner and businesses to make much larger extensions without planning permission. The vast majority of such applications are already approved (with appropriate conditions), and those that are refused are done so for good reasons. EMC is concerned that taking larger extensions completely out of planning control will have a detrimental impact on local amenity and contribute to neighbour disputes, whilst having little positive impact on the local construction sector.
In addition, 17% of the land area of the East Midlands falls within identified flood risk zones – not just along the Lincolnshire Coast but in parts of many cities, towns and villages across the East Midlands. A contributing factor to recent episodes of surface water flooding across the country has been the impact of hard surfacing of former garden areas. Further unregulated incremental development in flood risk areas could have serious unforeseen consequences for local communities during extreme weather conditions. Whilst building regulations can ensure certain aspects of build quality, they cannot be used to control the principle or scale of development in a given location.
We very much hope that you will able to address these concerns in the final legislation and associated regulations. EMC remains committed to promoting sustainable economic and housing growth across the East Midlands, and we look forward to setting out our ‘Growth Prospectus’ to you in February.
Yours sincerely
Cllr Martin Hill Cllr Neil Clarke
Chair Vice Chair
cc Mark Carroll, DCLG
56 Item 8(a), Appendix (b)
57 Item 8(a), Appendix (b)
58 Item 8(b)
East Midlands Councils Meeting 15 th February 2013
Report of the East Midlands Improvement and Efficiency Partnership Board
Summary
This report provides Members with an update on the work of the EM IEP Board and initial proposals on how the Board may provide strategic support to sector-led improvement and transformation in the future.
Recommendation
Members are invited to note the report and inform priorities over the coming year.
59 Item 8(b)
1. Background
1.1 Over the past 6 months, the Board has overseen the completion of the RIEP sub-regional and regional legacy projects, ensuring tangible benefits are delivered to member councils and partners.
1.2 At the same time, the Board has considered options on how it may best provide strategic support to sector-led improvement and transformation in the future. These options will be considered and agreed by the next Board meeting in March 2013 but emerging proposals are detailed in this report.
2. Our Success to Date
2.1 The RIEP programme is the East Midlands has delivered a number of benefits to member councils. Through the use of RIEP ‘legacy funding’, the Board has supported 9 sub-regional projects with grant of £811,000. Many of these projects continue but have already achieved £775,000 of savings with a further £8m expected during the life of the projects.
2.2 Alongside this, 15 regional projects were commissioned, allocating just over £2m of funding. This funding has already delivered £4m of savings with a further £9m expected by the time these projects are completed.
2.3 The Board also commissioned a number of projects and programmes including: Supporting the Welfare Reform steering group and its work on the impact on councils, and learning from the pathfinders. Developing a network for Troubled Families leads across the region. Establishing a Performance Management Benchmarking network with over 30 members from authorities across the region. Member development, including accreditation, leadership and succession planning, sub-regional programmes, master-classes and supporting networks of lead members. Leadership development for officers, including succession planning, mentoring and coaching. Developing innovative and current training programmes to support the improvement agenda including service transformation, and project and programme management.
3. Proposals for Board Activity, Post-March 2013. a) A Refocused Approach
3.1 By end-March 2013, the RIEP programme will have ended. The Board have agreed that a new approach to regional activity on improvement and transformation is needed. It may be a good time for the ‘RIEP’ brand to be stood down’ from March 2013 as the future focus and overall programme of
60 Item 8(b)
the Board is markedly different from the time when RIEPs were originally established 1.
3.2 Part of the proposed change of approach will be a move away from programme management (previously necessitated by the funding commitments) to a more strategic influencing approach, and to reflect the close working relationship with the LGA there is an opportunity to focus upon four main issues; Innovation, Transparency, Improvement and Productivity.
3.3 This will help provide a framework for the future work programme and a renewed approach to strategic Board oversight with terms of reference based upon the following role:
To oversee the development of new arrangements for sector self- regulation. To advise the EMC Executive Board and wider membership on sector-led improvement, transformation and efficiency agendas. To provide political leadership; influence the EMC Business Plan by ensuring the priorities of the sector are appropriately reflected; and overseeing a programme of work to deliver the strategic priorities set by EMC Executive Board. To provide collaborative support and oversight to the development of sector performance information and intelligence. To maximise the opportunities for sector-led improvement and transformation activity across councils in the East Midlands, with particular focus upon adult and children’s services, public health/Health and Wellbeing Boards. To build and maintain effective relationships with key stakeholders and, in particular, undertake all work in conjunction with member councils and/or the LGA. To commission sector-led leadership/councillor development programmes and wider workforce development as part of the ‘improvement offer’.
3.4 As part of a proposed revised approach, the regional improvement work should seek to better involve councillors in supporting the delivery of the programme. In part, this may be achieved through establishing ‘member champion’ roles on key issues – potentially to reflect the 4 priority issues highlighted in paragraph 3.2. b) The Development of an EMC and LGA Offer for Member Councils
3.5 The LGA has made good progress in its development and roll-out of sector- led improvement and innovation work. Any work undertaken within the region should complement and not duplicate any work undertaken by the
1 Established following December 2007 National Improvement and Efficiency Strategy , Regional Improvement and Efficiency Partnerships were created in April 2008 with a three-year funding package of £185 million from the Department of Communities and Local Government.
61 Item 8(b)
LGA. In addition, regional activity should demonstrate to our member councils where the LGA and EMC effectively work in partnership.
3.6 The development of a revised regional approach to improvement, transformation and efficiency provides an ideal opportunity for EMC and the LGA to offer an additional sector-led improvement offer to member councils. Initial proposals centre upon supporting councils manage the very challenging and complex current (and future) environment through the development of a bi-annual corporate review available for all councils in membership of both the LGA and EMC. Specifically, any review should focus upon priorities identified by a member council, e.g. a ‘ focus on the rigour of councils’ future vision and corporate plans, including its Medium Term Financial Strategy.
3.7 While proposals are still under development, a likely process could be as follows:
Primarily undertaken with the council leader and chief executive but with the inclusion of other councillors and senior management at the discretion of each council. The review team would be led by a council leader and chief executive (from councils within the East Midlands), supported by LGA Principal Advisor and EMC Executive Director. The review would last between half a day to a day, with preparatory work undertaken by LGA Principal Advisor and EMC Executive Director. Financial support would be available to provide for council leader involvement. There would be no additional cost for this service (part of the membership offer of both the LGA and EMC) and the review will be confidential in nature.
4. Recommendation
4.1 Members are invited to note the report and inform priorities over the coming year.
Cllr Roger Begy, OBE Chairman EM IEP Board
62 Item 8(c)
East Midlands Councils Meeting 15 th February 2013
East Midlands Strategic Migration Partnership Board Report
Summary
This report updates Members on the work of East Midlands Strategic Migration Partnership Board for the period July 2012 to January 2013.
Recommendation
Members are invited to note this report.
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Item 8(c)
1. Introduction
1.1 The East Midlands Strategic Migration Partnership provides a regional advisory, development and consultation function for member organisations from the statutory, voluntary, community and private sectors - for the co-ordination and provision of advice, support and services for migrants.
1.2 East Midlands Strategic Migration Partnership is funded by the United Kingdom Border Agency (UKBA) Enabling Grant. The East Midlands Strategic Migration Partnership is one of ten UK partnerships.
1.3 This report updates members on the progress and work to date of the Board.
2. Background
2.1 The East Midlands Strategic Migration Partnership has been in existence since 2007. In April 2010 it became a Board of East Midlands Councils.
2.2 The Board is comprised of 4 members:
Councillor Paul Kenny Boston Borough Council (Chair) Councillor Geoff Stevens Derbyshire Dales (Vice Chair) Councillor Simon Galton Leicestershire County Council Councillor Peter Robinson Lincolnshire County Council
2.3 Our key partners at the moment represented on the EMSMP Board and standing sub-groups are:
Local Authorities Public Health Police EMC Jobcentre Plus ACAS Priority Properties One East Midlands Refugee Support TUC Refugee Action NIACE
2.4 Others, including service users, attend our general stakeholder forum, ad-hoc and occasional sub-groups and workshops.
3. Headline Figures
3.1 We believe there are in the region, currently:
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1042 asylum seekers supported under Section 95 who are receiving support and accommodation while asylum application is considered (Dec 2012). 298 people supported under Section 4 arrangements which apply to failed asylum seekers receiving support whilst appeals are considered. (Dec 2012). 93 people receiving subsistence only (no accommodation) support from UKBA (Dec 2012). This represents a 7.7% increase in asylum numbers in the East Midlands since March 2012. 30,250 National Insurance Number (NINo) registrations in the East Midlands March 2011-March 2012 (latest available annual figures). This represents a drop of 13% in registrations since 2010/11.
4. East Midlands Strategic Migration Partnership Board
4.1 The Board last met on 25 th November. The main items for discussion were:
An update on the provision of English as a Second Language (ESOL) in the East Midlands. An overview of the transition to the G4S COMPASS accommodation contract for asylum seekers. An update from Cllr Kenny on the social impact of migration in Boston. An overview of continued issues with predominantly Slovakian Roma families in Derby. The future funding of the strategic migration partnership. A progress report on the EMSMP project looking at the impact on local authorities, UKBA and the voluntary sector of supporting people who have No Recourse to Public Funds. (NRPF).
4.2 In respect of ESOL the Board heard that waiting lists for ESOL courses remain across the East Midlands. Fee increases and changes to eligibility criteria which have previously been reported to the Executive Board have led to a reduction in people seeking places on courses which is of concern as language skills are critical to integration and employment. The Board has asked that further research is conducted into ESOL provision and eligibility criteria across the East Midlands.
4.3 Cllr Kenny provided an update regarding the work that has been conducted recently in Boston on the social impact of migration in the town which has seen a huge rise in European Migration particularly since the accession of eight Eastern European nations in 2004. A series of public meetings were held throughout 2012, at which a cross section of agencies were invited to give evidence. A full report has been produced and a number of recommendations are being taken
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Item 8(c)
forward. The report has recently been presented at the All Party Parliamentary Group on Migration.
4.4 The Board also discussed ongoing issues in respect of the Roma community in Derby. The Board heard at their meeting in September about the impact on both the statutory and voluntary sector in supporting the Roma community. It was agreed to continue to lobby the LGA and the National Migration Group to address issues of common concern.
4.5 The Board received an update on the progress of the transition from the previous accommodation contracts for asylum seekers which have transferred to G4S in the East Midlands. Transition is now complete. However concerns remain about how G4S and their sub-contractors have communicated with local authorities, other statutory agencies and the voluntary sector as part of the transition process. Difficulties in procuring suitable properties in Nottingham have had an adverse impact on numbers of asylum seekers housed in Derby and Leicester.
4.6 G4S have given assurances that numbers will be rebalanced as the contract moves into business as usual. However the increases will put additional strain on housing advice and voluntary sector services. The Board heard that numbers of asylum seekers have increased by roughly 15% over recent months. It was noted that numbers are within the limits set by UKBA, however resources to support asylum seekers across the region have been reduced over the last two years which will compound pressure on support services. The EMSMP Board has asked UKBA to provide scrutiny for the G4S contract. A reply is awaited.
4.7 The Board expressed its concern that G4S and its sub contractors have not followed agreed protocols in the three cities, to check properties against environmental, cohesion, fire safety and other factors. G4S has given assurances to the Board that these property checks will be conducted imminently and that roadshows will take place in each dispersal area across the East Midlands in the Spring.
4.8 In respect of the future of the enabling grant which funds the activity of the Strategic Migration Partnership, UKBA have announced that they will conduct a review during February 2013 which will focus on the outputs and outcomes of the Strategic Migration Partnership. UKBA have also expressed that their wish is to enter into a longer funding arrangement as has been the case in the past to alleviate annual uncertainty regarding funding. The East Midlands Strategic Migration Partnership welcomes this approach and looks forward to working with UKBA on the review once terms of reference are made known.
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Item 8(c)
4.9 The project to gather information on the support given by local authorities to migrants with No Recourse to Public Funds is underway. Interim findings indicate that there are significant costs to local authorities in supporting families who have no recourse to public funds. The early indications suggest that direct costs for the East Midlands are in the region of £1,000,000 with substantial indirect costs also being borne by local authorities. The research is also highlighting the different approaches to supporting those who have No Recourse to Public Funds adopted by different local authorities.
4.10 One of the objectives of the project is to work with UKBA on any cases where there is an outstanding immigration claim in order to bring the case to a speedy conclusion to reduce the costs to the local authority and the need for support from the voluntary sector. The EMSMP is also working with local authorities to develop shared protocols and to encourage them to take part in the NRPF Connect project which will allow councils to share information across the sector and with UKBA on cases that are being supported to reduce the opportunity for fraud and to concentrate on cases of genuine need. A training programme for officers is currently under development.
4.11 The project has the potential to improve service provision for this vulnerable client group and to generate cost savings across the sector.
5. Work Programme and Key Priorities for 2012/13
5.1 As discussed above a priority for the Board is to work with partners to determine the future role of the migration partnership beyond March 2013. The EMSMP board will work with UKBA, local authorities, health, police and the voluntary sector to determine future priorities and how best these should be met. Business planning for 2013/14 will commence when the future of the EMSMP is known. The issues highlighted in this report demonstrate the importance of maintaining an effective migration partnership as the impact of migration continues to be a significant issue for the East Midlands.
6. Recommendation
6.1 Members of the East Midlands Councils are invited to note the contents of the report.
Councillor Paul Kenny Chair of East Midlands SMP Board
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Item 8(d)
East Midlands Councils Meeting 15 th February 2013
Regional Employers’ Board Report
Summary
This paper updates Members on the work of East Midlands Councils’ Regional Employers’ Board.
Recommendations
Members of East Midlands Councils are invited to note this report.
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1. Introduction
1.1 The Regional Employers’ Board leads the development of employment issues and on Councillor development; it forms the Employer’s side of the Regional Joint Council. This report updates members on the progress and work of the Board to date.
2. Background
2.1 The Terms of Reference for the Employers’ Board were agreed in February 2010. East Midlands Councils endorsed the continuation of the Employers’ Board at its AGM in July 2010.
2.2 At East Midlands Councils’ AGM 2012, Cllr Ian Fleetwood from Lincolnshire County Council was elected as Chair of the Employers’ Board with Cllr Ken Savidge from North East Derbyshire District Council as Vice-Chair.
2.3 The Board is comprised of 15 members: Cllr Ian Fleetwood - Lincolnshire County Council (Chair) Cllr Ken Savidge - North East Derbyshire DC (Vice Chair) Cllr David Slater - Charnwood BC Cllr John Clarke - Gedling BC Cllr Robert Parkinson - Erewash BC Cllr Mary Malin - Kettering BC Cllr Tony Roberts MBE - Newark and Sherwood DC Cllr Terry King - Rutland CC Cllr David Bill MBE - Hinckley & Bosworth BC Cllr Jeffrey Kaufman - Oadby & Wigston BC Cllr David Mellen - Nottingham City Cllr Ric Metcalfe - Lincoln City Cllr Christopher Darcel - West Lindsey DC Cllr Tom Beattie - Corby BC Cllr Annette Simpson - Bassetlaw DC
3. Employers’ Board Meetings
3.1 Since the last meeting of East Midlands Councils, the Regional Employers’ Board met twice, on 3 rd September and 5 th November 2012. At the meetings, the Board received reports from the Director of HR & Councillor Development giving key information on developments at European and national level in employment legislation and conditions of service.
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3.2 The Board has provided views on Government consultation on proposals to amend employment legislation including: The reduction of the timescale for consulting on large-scale collective redundancies. The framework for ending the employment relationship (proposals to encourage the use of settlement agreements and a review of the cap on unfair dismissal compensation) Responses from the Board have been fed back to Government through the LGA.
3.3 The Board has also been provided with an overview of the workforce implications of the transfer of public health responsibilities to local government and how EMC is supporting those councils who are directly affected. Key issues concern the protection of terms and conditions and the timescales for providing information on which staff would transfer.
4. Regional Joint Council
4.1 The Joint Council is formed by the Employers’ Board and Joint Trade Unions. The Regional Joint Council met on 5 th November and the main focus of the meeting was on pay in local government. A DVD produced by Unison was shown at the meeting which presented the case from the employee-side perspective.
5. National Association of Regional Employers
5.1 The Chair and Vice-Chair of the Regional Employers’ Board attend the meetings of the National Association of Regional Employers (NARE). The meetings enable regional employers’ organisations from across the country to share practice, information and resources and to discuss developments on employment matters, including pay, at national and European level with relevant negotiating officers.
5.2 NARE meetings have taken place on on 18 th October 2012 and 31 st January 2013, attended by Cllr Fleetwood, Cllr Savidge and Sam Maher. At the meeting, Cllr Thomas of the Welsh Local Government Association took over the role as Chair for the forthcoming year. In his report to the meeting, the outgoing Chair, Cllr Jim Ranger from the East of England LGA, highlighted the value of NARE to local authorities, drawing particular attention to:- NARE’s contribution to the work and debate on the reform of the Local Government Pension Scheme Its involvement in supporting local authorities with the workforce implications of the transfer of public health responsibilities Sharing of ideas and resources amongst regional employers to assist councils.
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5.3 Items discussed at both meetings include: national developments in pay negotiations, the living wage, public health workforce transfer, universal credit (DWP’s interim position that neither TUPE nor the Code of Practice on Staff Transfers will apply), and pensions. The Community Right to Challenge and on progress with E Paycheck (a pay benchmarking tool developed by and for the sector).
6. European Level Employment Developments
6.1 CEEP UK AGM - CEEP UK represents the interests of UK public sector employers on the development and negotiation of European level legislation and initiatives. CEEP UK’s AGM took place on 19 th October 2012, attended by Cllr Fleetwood, Cllr Savidge and Sam Maher. Cllr Dave Allan was re-appointed President and Cllr Andrew Leadbetter was appointed as Vice-President. Cllr Ian Fleetwood, former Vice-President, was formally thanked for all his support. Presentations were given on: current European developments which will impact on employers the importance of engaging proactively in the Social Dialogue and the influence this brings in a speech by Francois Zeigler from the European Commission the vision of CEEP and the importance of the UK contribution
6.2 Negotiations between the social partners have been taking place on revisions to the Working Time Directive, which has implications for councils relating to resourcing, particularly where 24/7 services are delivered. Councils’ interests are represented through CEEP UK as one of the negotiating partners. The negotiations failed to achieve agreement and the issue has now been referred back to the EC, which potentially could put forward its own revision.
7. Pay and Terms and Conditions in Local Government
7.1 A significant activity for EMC has been to support the LGA in consulting with local authorities in the region for their views regarding any potential pay award for local government employees for 2013. Pay in local government has been a particularly complex issue, given the financial constraints faced by councils, the lack of a pay offer nationally for the last 3 years, the increasingly small gap between the national minimum wage and local government’s lowest pay point, and increasing interest and adoption of the living wage by some authorities across the country.
7.2 EMC’s activity to facilitate consultation on behalf of the LGA ensures that the views of the region’s councils inform national negotiations. The outcome of these is likely to be announced on 21 st February 2013.
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8. Public Health Transition
8.1 EMC has established a new network for authorities who are taking on public health responsibilities in order to manage the implications of the transfer of public health workers. The group meet on a monthly basis and are able to share information and practice in how the preparations for the transfer are developing. The network also provides a forum for concerns and issues to be raised and taken up by EMC to national level. One concern shared by authorities in the region is the apparent reluctance of PCTs to release due diligence information in relation to the staff transfer, and the impact this could have on commissioning and the smooth transfer of service delivery.
9. Support for Authorities in the Region with Employment & Councillor Development
9.1 During the first 6 months of the municipal year, local authorities have received significant support from EMC on employment and development issues:- 21 employment queries resolved. 49 research assignments completed. 16 meetings of network across a range of professions, attended by 160 participants who share good practice and receive input from key speakers and providers. 18 separate assignments to support individual councils at not-for-profit consultancy rates. Low-cost continuous professional development (CPD) events for environmental health officers and planners, attracting on average 160 delegates per event. EMC’s training programme now provides over half of the CPD hours registered by the Chartered Institute of Environmental Health in the region. A range of training events for officers and councillors to provide high quality learning opportunities within the region, thereby reducing costs to councils. Of particular note is the successful launch of a programme of development on topical issues for councillors, which has attracted high attendance levels and very positive feedback, with councillors reporting a significant improvement in their understanding of key issues facing local government as a result of the programme’s events.
10. Recommendations
10.1 Members of East Midlands Councils are invited to note the contents of the report.
Cllr Ian Fleetwood Chair of the Regional Employers’ Board
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