Meeting

PCG 11 March 2021

Report from the Strategic Directors of Customer and Digital Services, and Regeneration and Environment

Levelling Up Fund Local Authority Categorisations

Wards Affected: All Key or Non-Key Decision: n/a Open or Part/Fully Exempt: (If exempt, please highlight relevant paragraph n/a of Part 1, Schedule 12A of 1972 Local Government Act) 1 – Lichfields map of UK wide categorisations No. of Appendices: 2 – List of London Boroughs Levelling Up Fund: Prospectus Background Papers:

Contact Officer(s): Alice Lester (Name, Title, Contact Details) Doug Palmer

1 Purpose of the Report

This report briefly sets out the headlines from the Levelling Up Fund Prospectus, (published on 03 March 2021), and the priority categorisation list.

An authority’s place on the categorisation list clearly impacts on the chances of receiving funding from the £4.8bn available.

The government’s methodology for how the categorisations were arrived at has not been published. However officers have pulled together some indices which indicate that Brent should have been in priority 1, set out in the report.

2 Recommendations for PCG

Use the information detailed to lobby government, either as Brent or with either West London authorities, or London Councils.

Consider submitting an FOI request to government asking for details of the methodology for the categorisations. Meeting 3 Detail

The Levelling Up Fund Prospectus provides guidance on how local authorities can submit competitive bids for infrastructure funding from a £4.8 billion pot up to 2024-25. The fund is focussed on capital investment in small scale projects, specifically local transport projects, town centre regeneration, and culture and heritage. The deadline for submissions for the first round of funding is 18 June 2021 (with decisions expected in autumn 2021). No dates have as yet been set for future rounds.

Each local authority has been put into one of three tiers of priority; level 1 being those in most need of investment. Brent has been placed in Tier 2. Only two London’s boroughs (Newham and Barking & Dagenham) are in the priority tier 1.

Preference for funding will be given to bids from the higher priority areas based on their need for

 Economic recovery and growth  Improved transport connectivity  Regeneration

The detail of how classification was undertaken has not been published and has led to calls for clarity, but is said to be based on a combination of metrics relevant to the above. However on the face of it there are some clear anomalies. For example, alongside Brent in tier 2 is Bath and NE Somerset, Shropshire, and Stratford-on-Avon. Tier 1 contains Richmondshire. Tier 3 contains Lambeth and Tower Hamlets.

A UK wide map of categorisations is attached at Appendix 1, and a list of London boroughs at Appendix 2.

If the the list stays as it is, the expectation not just from this prospectus, but from many other statements and indications from government, is that London will not see much benefit, certainly from the first bidding round. The bandings will form part of the criteria for assessing bids. Whilst preference will be given to bids from category 1, bids from places in 2 and 3 will still be considered for funding on their merits of deliverability, value for money and strategic fit. Tellingly, though, the document says that they ‘could still be successful if they are exceptionally high quality’.

Officers have, in the short time available, looked at some relevant information relating to the three categories the government said were used in setting the categorisation, to see if there is an obvious correlation between the various datasets and the tiers. So far, there is nothing clear about how the tiers have been derived.

Officers have looked at some indices to show Brent’s situation. In some cases this data is compared to other London Boroughs or an England picture.

Economic indicators Meeting Claimant count rate

Context: Brent has relatively high unemployment: around 23,160 Brent residents (10.6% of the working age population) were claiming unemployment-related benefits in December 2020 (the claimant count rate). Brent has the 6th highest claimant rate in Great Britain, and the 4th highest rate in London.

Brent has also seen one of the steepest rises in claimant unemployment over the last year: Brent’s claimant rate rose by 7 percentage points between March and December 2020 - the 3rd biggest increase in England, after Newham and Haringey (both +7.5 points).

Relationship between claimant count and priority groups

Claimant rates range from 2.9% up to 11.9% across the 314 local authority areas in England. On average, the claimant rate across priority group 1 areas is 7.0% compared with 4.7% across priority group 3 areas. While there is a correlation between rates and groups – it is fairly weak (-0.49). Of the ten areas in England with the highest claimant rates, three out of the ten are not included in priority group 1 and these are all London Boroughs– Brent, Haringey and Waltham Forest.

Furlough Rates

Context: A total of 32,500 jobs, belonging to Brent residents, were furloughed at the end of January 2021 – the 4th highest number in London, and 9th highest in England. This represents a take up rate of 21% of (eligible) jobs – Meeting the fifth highest rate in England (and 3rd highest in London).

Relationship between furlough rate and priority groups Across England, furlough rates vary from 9% (Boston – tier 1) up to 26% (South Lakeland – tier 3). There is no significant correlation between furlough rates and allocation to priority groups. The average furlough rate is, in fact, marginally lower in group 1 areas compared with group 3 (14.5% vs. 15.3%). Of the four London boroughs with furlough rates over 20%, only one was included priority group 1.

Meeting Employment and income deprivation

Context: Brent is ranked 38 out of 314 local authorities for average income deprivation in England, where 1 is the most deprived. Within the 40 most relatively deprived areas for income in England, 11 of these areas are London boroughs.

Relationship with priority groups: Although there is some relationship between deprivation and the priority groups, there is not a clear link. This is particularly apparent in London. Of the 11 London boroughs in the top 40 nationally, only two are in priority group 1 (Newham and Barking & Dagenham). Six boroughs are in priority group 2 (Brent, Enfield, Greenwich, Hackney, Haringey, and Lewisham) and three boroughs are in priority group 3 (Tower Hamlets, Islington, and Southwark). Of the remaining 29 areas in England outside of London that are within the 40 most relatively deprived areas for income deprivation, all are in priority group 1, with the exception of Salford which is in priority group 2.

Regeneration data

It is not clear what the Prospectus means by ‘regeneration’ and comparative data is quite hard to come by. However, the following show some indicators relating to community and public facilities and transport.

Transport

Transport investments including local road improvements and major structural maintenance are part of the levelling up fund. 2019 data on road conditions in London shows Wandsworth (priority 3) and Croydon (priority 2) have joint worst road condition in London with 43% of roads in need of repair. However, Havering with the Meeting best road conditions 16% is in category 2. Barking and Dagenham and Newham both in category 1 have better road conditions than Brent.

Comparable data across England to enable a correlation against priority tiers is not available.

% of roads which require repairs 2019 50 40 30 20 10 0

Note: The Road Condition Indicator (RCI) is an indication of the condition of the road surface. Chart above include roads which may need work sometime soon and red, further investigation is required to ascertain if work is needed immediately. Source: Department for Transport statistics 2019

Cultural

The GLA created the Cultural Infrastructure map to produce data on cultural infrastructure in London. The Levelling up fund will fund cultural investment creating new community-owned spaces to support the arts and serve as cultural spaces, thereby rejuvenating places with positive economic and social outcomes.

Artist Workspaces In 2019, Brent had 5 artist workspaces compared to 10 in Newham. All the London Boroughs with no artist space are categorised in either priority 2 or 3. Artist workspace 2018

50 40 30 20 10 0

Note: Artist workspaces are sites with buildings which provide workspace either solely for artists or a mixture of artists and other creative industries tenants. Source: GLA 2019 https://data.london.gov.uk/dataset/cultural-infrastructure-map

Community Centres

Meeting Camden has the most community centres in London with 110 and is in priority group 2. Brent has 19, a similar amount to Newham at 18 and lower than Barking and Dagenham at 29.

Community Centres 2019 120 100 80 60 40 20

0

Brent

Ealing

Bexley

Sutton

Barnet

Enfield

Harrow

Merton

Camden

Bromley

Croydon

Hackney

Islington

Lambeth

Havering Haringey

Newham

Lewisham

Hounslow

Hillingdon

Redbridge

Southwark

Greenwich

Westminster

Wandsworth

City of London City

Tower Hamlets Tower

Waltham Forest Waltham

Kingston upon Thames upon Kingston

Barking Dagenham and Barking

Kensington and Chelsea and Kensington Richmond upon Thames upon Richmond Hammersmith and and Fulham Hammersmith Note: Community centres defined as buildings which are owned by a housing association or local authority for the purpose of serving a community. Source: GLA 2019 https://data.london.gov.uk/dataset/cultural-infrastructure-map

Libraries

Hillingdon and Enfield have the highest number of libraries in London and are priority 2. Barking and Dagenham has the joint 2nd lowest with Harrow (priority 3) and Kensington and Chelsea (priority 2) with 6 libraries. Brent has 9 compared to 10 in Newham. Libraries 2019 20 15 10 5 0

Note: Buildings used for public and community libraries. This excludes libraries affiliated with higher education institutions. Source: GLA 2019 https://data.london.gov.uk/dataset/cultural-infrastructure-map

4 Alternative Options Considered

N/A Meeting 5 Financial Implications

.The indications are that authorities stand a much greater chance of successful bids if they are in priority tier 1.

6 Legal Implications

N/A

7 Equality Implications

If Brent submits any bids, an equalities impact assessment will be undertaken.

8 Any Other Implications (HR, Property, Environmental Sustainability - where necessary)

None.

9 Proposed Consultation with Ward Members and Stakeholders

Consultation will be carried out on any bid submissions. Demonstrating stakeholder support (including that of the relevant MP) is emphasised as important in the Prospectus.

Report sign off:

PETER GADSON/ALAN LUNT Strategic Directors