ANNEX 2 ANNEX 2 A Mayoral Devolution Deal for York and North Yorkshire July 2020 ANNEX 2 Contents Executive Summary ......................................................................................................................................... 1 1 Introduction and context for our proposals ............................................................................................ 2 2 Devolved Place-Based Funding ................................................................................................................ 7 3 Transport ............................................................................................................................................... 11 4 Digital ..................................................................................................................................................... 25 5 Towns and Cities .................................................................................................................................... 40 6 Housing .................................................................................................................................................. 48 7 Skills ....................................................................................................................................................... 59 8 Business and Innovation ........................................................................................................................ 68 9 BioYorkshire ........................................................................................................................................... 76 10 Energy .................................................................................................................................................... 92 11 Natural Capital ..................................................................................................................................... 111 Appendix 1. Transport challenges and proposed solutions/indicative pipeline of interventions ........... 127 Appendix 2. Indicative pipeline of Mayoral Towns Fund projects .......................................................... 129 Appendix 3. Housing Proposals – case study sites which illustrate our viability challenges ................... 133 Appendix 4. Phased delivery of Low Carbon Skills Programme .............................................................. 136 Appendix 5. BioYorkshire 10-year programme ....................................................................................... 138 ANNEX 2 Executive Summary The scale of our ambition Our vision: For York and North Yorkshire (YNY) to become England’s first carbon negative economy, where people with the skills and aspiration to reach their full potential, earn higher wages and live healthy lives in thriving communities. With two National Parks, the Yorkshire Coast and City of York, our world renowned historic and cultural assets shape our urban spaces, whilst the scenic beauty of our vast rural landscape and northern coastline define York and North Yorkshire as one of world’s most recognised regions. This is a place where the city, land and seascapes have shaped the people who live, work, research and create here. City of York, pioneering with purpose – as a global knowledge leader, York will drive a regional productivity transformation. One of Uk’s most connected cities York provides the science and innovation to unlock the true value of our precious natural resources. Rural Powerhouse – brings together market towns alongside world class agriculture and landscapes. It will experience a significant shift in the coming years as we leave the Common Agricultural Policy and rise to the climate change challenge. We will grasp the opportunity to make best use of our natural assets to generate new income streams and revitalise our 21st century market towns. This will redefine and rebalance the relationship between urban and rural economies and bring significant benefit to rural businesses and communities. Opportunity Coast - Industry led investment in Scarborough including, a new university campus, investments in further education, community led development and housing and road networks, combine to create opportunity for all on our stunning North Yorkshire coast. By investing in places and enabling business inspired growth we have helped to ignite powerful social change that will address longstanding coastal deprivation. Growth Connectors – the growth potential of our economy lies in a number of places that have a significant role to play in the economic future of the North. Harrogate, Selby, Skipton and Northallerton are our Growth Connectors. They have extensive infrastructure capacity, opportunities for employment and settlement growth and good connections beyond York and North Yorkshire. Their position and connectivity within the Northern Powerhouse brings out the strength of York and North Yorkshire in joining up scaled growth across the North. Benefits of Devolution At the moment, the Government in London makes the majority of decisions about what happens here in Yorkshire. Some decisions, such as about foreign policy and defence, need to be made by central Government alone. This proposition reflects that many others, including running and investing in our public transport, education and skills and providing support for our businesses, would deliver better outcomes, increased returns to government and would involve local people more - if they were made here in our own county. ANNEX 2 Devolution will give us the powers and resources to become England’s first carbon negative economy, to better connect the capability within and around our distinctive places. We will shape a better destiny and make a bigger contribution to the UK economy by: 1. Delivering 100% digital connectivity for everyone everywhere vital for the long-term prosperity of our region. This means both addressing the last 5% whilst ensuring our towns and cities are as connected as core cities delivering a connected, smart region. 2. Innovating in our unique capabilities in bio-economy and low carbon technologies, underpin our ambition to become England’s first carbon negative region creating new industry opportunities in higher productivity sectors. 3. Leveraging our skills base - our greatest asset is our highly skilled workforce. Capitalising on this and retaining our young talent by creating high value jobs will drive our growth. 4. Investing in good businesses with great leadership that prosper from our distinct assets and contribute to a carbon negative region 5. Developing healthy, thriving places that are resilient to climate change and provide energy efficient, affordable housing for our residents. Our proposals across each of policy area have put forward on the basis they pass five ‘tests’ – they must: i. Accelerate recovery from COVID-19; ii. Support the levelling up of our national economy and economic prosperity for all; iii. Deliver on national and local climate change commitments; iv. Support the priorities and principles of the YNY Local Industrial Strategy (LIS); and v. Enable delivery that is more efficient and effective through a place-based, locally tailored approach. These devolution proposals have been developed with, and are supported by, all Local Authorities within York and North Yorkshire and by the York and North Yorkshire Local Enterprise Partnership (LEP). A Mayoral Combined Authority (MCA) We are committed to securing the strongest possible devolution deal for York and North Yorkshire and propose a MCA with all YNY Local Authorities as constituent members. We will ensure governance arrangements enable strategic leadership at a Mayoral level alongside robust democratic accountability. YNY has a history of strong partnership and through the YNY LEP, where we are successfully delivering our Growth Deal which is leveraging £8 for every £1 invested. Our devolution proposals will empower the YNY region by equipping us with funding and decision-making powers which will allow us to better shape our destiny and make a bigger contribution to the UK economy by: Ensuring that the decisions which affect YNY are made by local stakeholders; Rapidly directing investment which makes the biggest difference to our economy, people and places; and Supporting an economic recovery from COVID-19 by accelerating positive economic, social and environmental change. ANNEX 2 Our Devolution Deal proposals Our deal is structured to deliver the short-term stimulus needed to maximise our economic recovery from COVID-19 alongside long term strategic investment to ensure future growth is sustainable (see Figure 1). Devolution Deal Summary ANNEX 2 ANNEX 2 1 Introduction and context for our proposals The York and North Yorkshire economy Our region has a highly resilient and diverse economy with a GVA in of over £19bn and a driving ambition for transformation. It covers 8,300 sq. km with a population of 825,000 and covers one quarter of the Northern Powerhouse. COVID-19 has had a major impact on economies across the world with no place untouched. Ensuring our recovery is fast, sustainable and creates increased resilience in our communities and for our planet is at the heart of our proposals. YNY’s economy is underpinned by its places, landscapes and natural assets. With two National Parks, the Yorkshire Coast and City of York, our world renowned historic and cultural assets shape our urban spaces, whilst the scenic beauty of our vast rural landscape and northern