LEAP Programme Board

Date of meeting: 22 May 2018

Title of report: Skills for Londoners Capital Fund (SfLCF) Round 2

To be presented by: Tim Griggs, Senior Manager Capital Projects and Programmes, Anna Morell, Programme Manager LEAP Delivery Team - Regeneration

Cleared by: Debbie Jackson, Assistant Director, Regeneration

Classification: Public

1 Executive Summary

1.1 This paper seeks LEAP Programme Board endorsement for the approach to a second funding round of the Skills for Londoners Capital Fund (SfLCF), with an investment of up to £80 million capital to be launched in August 2018.

2 Recommendations

2.1 It is recommended that the LEAP Programme Board:

2.1.1 Endorse the second funding round of SfLCF, the drafting of a new Prospectus and programme plan; and 2.1.2 Note that it may be necessary to consider a third funding round to spend unused committed funds due to unexpected project de-scoping and withdrawals.

3 Introduction and Background

3.1 The Skills for Londoners Capital Fund (SfLCF) programme was presented to LEAP on 3 February 2017, launched in April 2017 and approved by the Mayor under MD2142 on 7 August 2017. Following endorsement from LEAP on 19 December 2017, and approval from the Executive Director of Development, Enterprise and Environment under DD2205 on 6 February 2018, a total of seven projects and an investment of £30.5 million capital was approved. Six projects that were awarded funding have now signed a Funding Agreement the remaining project is reported on in agenda item 7. These six projects were awarded a total investment of £20.4 million capital for the first round of the Skills for Londoners Capital Fund (SfLCF). A further 57 projects were awarded

£5.3 million capital under the Development Support Fund and the Small Projects and Equipment Fund.

Table 1 – Six projects approved for SfLCF investment

Applicant Project name and South East College (LSEC) London Aerospace and Technology College

Barking and Dagenham College (B&D College) Centre for Advanced Technologies (CAT)

The The Design and Digital Hub

Morley College Adult Learning Spaces

Capel Manor College Capel Manor College’s Crystal Palace Park

Harrow College High Needs Learners Base-room and LRC Remodelling

3.2 Following completion of the Funding Agreements, some preliminary work was undertaken to assess the content of the previous Prospectus and any changes that may be required to reflect the strategic context of London’s skills environment. This included contributions from the Sustainable Development, Energy and Diversity & Inclusion teams. As a result, several components of this Prospectus were identified that would benefit from an update.

3.3 This exercise was paused to integrate and align with the changes and priorities of the newly formed Skills team, including the new Skills Strategy, the Skills Framework and the launch of the Mayor’s Construction Academy scheme (MCA).

4 Issues for consideration

4.1 Currently, there is up to £80 million of available capital investment under the SfLCF. During the February 2017 LEAP Board, a second funding round and Prospectus were envisaged to be launched to allocate funds available over the final two years of the funding period (i.e. 2019/20 and 2020/21).

4.2 The second funding round and Prospectus were expected to be launched by Spring 2018, before the summer holidays. However, due to a number of changes and resource constraints within the LEAP Delivery team, as well as the implications of the newly formed Skills team, it is the LEAP Delivery team’s recommendation to launch this second round in August 2018. This would account for the Colleges’ return following the summer holidays and a realistic

programme plan leading to final approval of funding for projects by the end of March 2018.

4.3 Over the last five years of allocating LEAP funding, experience has demonstrated that some projects fall away or de-scope after the Expression of Interest stage. In the last round, despite over-programming during the first round of funding, there was a greater scale of drop-off at full application stage than expected. As such, a potential third funding round could be considered.

4.4 The new Skills Strategy is scheduled to launch on 6 June 2018 along with the MCA scheme. There is a direct link between the capital element of the MCA and the SfLCF as up to £8 million capital funding has been ring-fenced for the MCA from the total available through the Skills for Londoners Capital Fund. The new Prospectus would therefore include key information on the MCA scheme including its main objectives and links to its own Prospectus. This timeframe and the relationship between both funding schemes therefore allow for a more robust and integrated SfLCF Prospectus under the proposed programme plan.

4.5 Given the capital nature of the SfL projects and the lasting impact they bring through new facilities and infrastructure, the Environment and Diversity & Inclusion teams are optimistic about the possibility to better integrate some of their key policies and/or modify some of the understated components of the previous Prospectus. This would further support the Mayor’s strategic objectives and those outlined within the new Environment Strategy and his Equality, Diversity and Inclusion strategy.

4.6 There is a desire to increase support and influence the design of projects for the second funding round of the SfLCF. The new programme plan would then allow for a better evaluation of how to increase the role of Design review and integration with the Mayor’s Design Advocates. This is nevertheless highly dependent on resource availability.

4.7 Lastly, the LEAP Investment Committee held a general discussion about project partnerships, and it was felt that applicants of future rounds should be asked to demonstrate their relationship with employers in a tangible way, for example, through funding or by formalising apprenticeships and internship commitments in contracts with private sector partners. Neither private sector funding nor contracted offers of apprenticeships were a requirement of the previous Prospectus but the new Prospectus should seek to achieve greater assurance on the delivery of these elements as well as some of the components and strategic objectives brought forward by the Environment and Diversity & Inclusion teams.

5 Equality comments

5.1 The GLA Regeneration Team work with delivery partners to target investments in places with the greatest potential to secure inclusive jobs and growth opportunities, and ensure all investments promote equality and work to

deliver new and secure existing diverse and inclusive opportunities and services. The SfLCF application process invites bidders to demonstrate how they give due regard to the requirements of the Public-Sector Equality Duty Act, which is subsequently assessed and scored by GLA Diversity and Social Policy team. This duty is reinforced by the requirements set out in the funding agreement of any successful project and monitored by responsible project leads at regular project monitoring meetings. 5.2 In the event that the conduct of a partner is believed to constitute a breach of the Act, the GLA Regeneration Team reserve the right to terminate the funding agreement and, in the GLA’s discretion, claw back funding.

5.3 Post project completion, project partners are required to submit detailed monitoring and evaluation of outputs. Information returns include Independent Learner Record (ILR) data to ensure that outputs can be monitored to deliver outcomes for relevant protected characteristics, for example support for SEND learners.

6 Risks arising / mitigation

6.1 Prospective bidders were told that a new prospectus would be launched in May 2018. Subject to the Programme Board endorsing these recommendations, prospective bidders will be made aware of the new timescales.

6.2 There may not be £80 million worth of projects to support in round 2, if this is the case then a third round could be considered.

7 Financial Comments of the Executive Director Resources

7.1 Mayoral Decision MD2142 approved spend of £114 million of Skills for Londoners capital funding over the period 2017-18 to 2020-21. This funding from central government is comprised of £58 million of unallocated Growth Deal 1 and 2 funding, and a further funding receipt of £56 million of Growth Deal 3 funding from central government. The Growth Deal funding is specifically for investment in the estate and equipment of skills providers over the period.

7.2 MD2142 delegated approval of detailed allocations of this funding to the GLA’s Executive Director of Development, Enterprise and Environment, in consultation with LEAP.

7.3 As outlined above, Round 1 approved funding bids totalling £30.5 million. Sufficient funding is therefore available from the Skills for London capital fund to launch another round in August 2018 with scope to allocate up to £80 million to projects.

7.4 Before final decisions are made on the allocation of funding to individual projects there are several steps. As usual, bids received for this forthcoming round will be subject to a separate detailed appraisal process and, as part of the application process, applicants will be required to submit separate financial information. Subsequent grant agreements between the GLA and each successful applicant will set out the conditions for use of the grant.

8 Legal Comments

8.1 Not applicable

9 Next steps 9.1 The next steps following for the SfLCF are summarised below:

Activity Timeline Approval of approach to Round 2 of the SfLCF May 2018 Workshop for new Prospectus June 2018 Drafting of new Prospectus June 2018 Update and endorsement by LEAPIC July 2018 Launch of Round 2 of the SfLCF August 2018 Endorsement of shortlisted Expressions of Interest November 2018 Deadline for Full Applications January 2018 Endorsement of Full Applications March 2018 Round 2 enter into grant agreements April 2019 onwards

Nb. Timeline dates are currently draft for further development