MEETING OF THE LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Members of the Liverpool City Region Combined Authority
Dear Member,
You are requested to attend a meeting of the Liverpool City Region Combined Authority to be held on Friday, 23rd July, 2021 at 1.00 pm at the Authority Chamber, No. 1 Mann Island, Liverpool.
Members of the public are encouraged to view the meeting via the webcast but for anyone who would like to attend in person, please contact Democratic Services on 07803 630124 or email democratic.services@liverpoolcityregion- ca.gov.uk, in advance of the meeting. Please note that there is limited capacity in the Chamber and seating will be allocated on a first come, first served basis.
All those attending will be asked to wear a face covering (unless exempt) and are encouraged to take a Lateral Flow Test before attending. You should not attend if you have tested positive for Coronavirus or if you have any symptoms of Coronavirus
If you have any queries regarding this meeting, please contact Trudy Bedford on telephone number (0151) 330 1330.
Yours faithfully
Chief Executive WEBCASTING NOTICE This meeting will be filmed by the Combined Authority for live and/or subsequent broadcast on the Combined Authority’s website. The whole of the meeting will be filmed, except where there are confidential or exempt items.
If you do not wish to have your image captured or if you have any queries regarding the webcasting of the meeting please contact the Democratic Services Officer on the above number or email [email protected]. A Fair Processing Notice is available on the Combined Authority’s website at https://www.liverpoolcityregion-ca.gov.uk/wp-content/uploads/Fair-Processing- Notice-CA-Meeting-Video-Recording.pdf.
(Established pursuant to section 103 of the Local Democracy, Economic Development and Construction Act 2009 as the Halton, Knowsley, Liverpool, St Helens, Sefton and Wirral Combined Authority)
LIVERPOOL CITY REGION COMBINED AUTHORITY
AGENDA
1. APOLOGIES FOR ABSENCE
2. DECLARATIONS OF INTEREST
3. MINUTES OF THE MEETING OF THE LCR COMBINED AUTHORITY HELD ON 4 JUNE 2021 (Pages 1 - 16) 4. LIVERPOOL CITY REGION METRO MAYOR ANNOUNCEMENTS AND UPDATES To receive updates from the Liverpool City Region Metro Mayor.
5. LIVERPOOL CITY REGION COMBINED AUTHORITY CORPORATE PLAN 2021-2024 To consider the report of the Executive Director of Corporate Development and Delivery. (Pages 17 - 54) 6. COMBINED AUTHORITY REVENUE AND CAPITAL OUTTURN REPORT 2020/21 To consider the report of the Executive Director of Corporate Services. (Pages 55 - 82) 7. RESPONSE TO THE REPORT OF THE LIVERPOOL CITY REGION TOWN CENTRES COMMISSION To consider the report of the Executive Director of Policy, Strategy and Government Relations and Portfolio Holder: Inclusive Economy and Third Sector. (Pages 83 - 102) 8. AEB COMMISSIONING PLAN 2022-27 To consider the report of the Interim Executive Director of Strategic Commissioning and Delivery and Portfolio Holder for Education, Skills, Equality and Diversity. (Pages 103 - 136)
9. ACTIVE TRAVEL FUND: LOCAL AUTHORITY CAPITAL FUNDING 2021/22 To consider the report of the Interim Director of Integrated Transport and the Portfolio Holder: Transport and Air Quality. (Pages 137 - 156)
10. STRATEGIC INVESTMENT FUND - RACE EQUALITY HUB To consider the report of the Interim Executive Director of Strategic Commissioning and Delivery Portfolio Holder: Education, Skills, Equality and Diversity. (Pages 157 - 210)
11. STRATEGIC INVESTMENT FUND - DESTINATION MARKETING To consider the report of the Interim Executive Director of Strategic Commissioning and Delivery and the Portfolio Holder: Culture, Tourism and the Visitor Economy. (Pages 211 - 254)
12. DEVELOPMENT FUNDING FOR THE TRANSPORT PIPELINE To consider the report of the Interim Executive Director of Strategic Commissioning and Delivery and the Portfolio Holder: Transport and Air Quality. (Pages 255 - 264) 13. REQUESTIONS CHANGES TO PREVIOUSLY AGREED SIF PROJECTS To consider the report of the Interim Executive Director of Strategic Commissioning and Delivery. (Pages 265 - 272) 14. STRATEGIC INVESTMENT FUND - LIVERPOOL CITY REGION VENTURES INCUBATOR To consider the report of the Interim Director of Strategic Commissioning and Delivery and the Portfolio Holder: Inclusive Economy and the Third Sector. (Pages 273 - 296) 15. REQUEST FOR DELEGATION OF DECISION MAKING POWERS TO THE LIVERPOOL CITY REGION (LCR) ONE PUBLIC ESTATE PARTNERSHIP BOARD To consider the report of the Interim Executive Director of Strategic Commissioning and Delivery and Portfolio Holder: Housing and Spatial Planning. (Pages 297 - 304)
16. ACCEPTANCE OF ADDITIONAL EUROPEAN SOCIAL FUND AND YOUTH EMPLOYMENT INITIATIVE GRANTS AND EXTENSION OF THE EXISTING LIVERPOOL CITY REGION WAYS TO WORK PROJECT To consider the report of the Executive Director of Corporate Services and Portfolio Holder: Education, Skills, Equality and Diversity. (Pages 305 - 310) 17. GOVERNANCE UPDATE AND VARIOUS APPOINTMENTS To consider the report of the Monitoring Officer. (Pages 311 - 314) 18. PUBLIC QUESTION TIME Members of the public will be given the opportunity to ask questions which have been submitted in accordance with Meetings Standing Orders No. 11. A period of 30 minutes will be allocated for this item. Copies of valid questions will be circulated at the meeting.
Members of the public who wish to submit questions are asked to contact Democratic Services either by:
Email: [email protected] Telephone: 0151 330 1330 In writing: Democratic Services, LCR Combined Authority, PO Box 1976, No. 1 Mann Island, Liverpool, L3 1BP.
A proforma will be supplied for the submission of public questions which for this meeting must be returned by 5.00pm on Monday 19 July 2021.
19. PETITIONS AND STATEMENTS Members of the public who wish to submit a single position or statement in accordance with Meetings Standing Orders No. 11 are asked to contact Democratic Services either by:
Email: [email protected] Telephone: 0151 330 1330 In writing: Democratic Services, LCR Combined Authority, PO Box 1976, No. 1 Mann Island, Liverpool, L3 1BP.
The single petition or statement for this meeting must be returned by 5.00pm on Monday 19 July 2021.
PART II Under Section 100A(4) of the Local Government Act 1972, and having satisfied the requirements of paragraph 10, the public may be excluded from the meeting for the following item of business on the grounds that it involves the likely disclosure of exempt information as defined in paragraph 3 of Part 1 of Schedule 12A to the Act.
Exempt Under Para(s) 3
20. STRATEGIC INVESTMENT FUND - LIVERPOOL CITY REGION FILM PRODUCTION FUND RECAPITALISATION To consider the report of the Interim Executive Director of Strategic Commissioning and Delivery and the Portfolio Holder: Culture, Tourism and the Visitor Economy.
(Pages 315 - 332)
This page is intentionally left blank Agenda Item 3
LIVERPOOL CITY REGION COMBINED AUTHORITY
PUBLICATION: 4 JUNE 2021
DEADLINE FOR CALL-IN: 11 JUNE 2021
FOLLOWING THE CALL-IN PERIOD, DECISIONS INCLUDED IN THESE MINUTES MAY THEN BE IMPLEMENTED WHERE THEY HAVE NOT BEEN SUBJECT TO A CALL-IN.
* DENOTES KEY DECISION
At a meeting of the Liverpool City Region Combined Authority held in the Authority Chamber - No.1 Mann Island, Liverpool, L3 1BP on Friday, 4th June, 2021 the following Members were
P r e s e n t:
Metro Mayor S Rotheram Chairperson of the Combined Authority (in the Chair)
Members of the LCR Combined Authority Mayor J Anderson, Portfolio Holder: Education, Skills, Equality and Diversity Councillor D Baines, Portfolio Holder: Climate Emergency and Renewable Energy Mr A Hamid MBE, Portfolio Holder: Business Support Councillor Janette Williamson, Portfolio Holder: Inclusive Economy and Third Sector Councillor J Fairclough substitute for Councillor I Maher, Portfolio Holder: Digital Connectivity and Inclusion Councillor G Morgan, Portfolio Holder: Housing and Spatial Framework Councillor I Wharton, Portfolio Holder: Culture, Tourism and the Visitor Economy
By Invitation Councillor L Robinson, Portfolio Holder: Transport and Air Quality Councillor C Thomas, Deputy Portfolio Holder: Policy, Reform and Resources L Collins, Chair of Fairness and Social Justice Advisory Board (FASJAB)
1. APOLOGIES FOR ABSENCE
Apologies for absence were received on behalf of:
Members of the LCR Combined Authority Councillor I Maher, Portfolio Holder: Digital Connectivity and Inclusion
2. DECLARATIONS OF INTEREST
No declarations of interest were
Page 1 3. CONSTITUTION UPDATE AND GOVERNANCE MATTERS
The LCR Combined Authority considered a report from the Monitoring Officer which proposed a number of constitutional amendments, which included the removal of The Local Authority, Police and Crime Panels (Flexibility of the Local Authority and Police and Crime Panel Meetings (England and Wales) Regulations 2030/392, an extension to the powers granted to officers during the pandemic and the incorporation of a new Member Code of Conduct.
RESOLVED: That
(i) the removal of the constitutional references to The Local Authority, Police and Crime Panels (Flexibility of the Local Authority and Police and Crime Panel Meetings (England and Wales) Regulations 2020/392;
(ii) the extension of the executive powers as set out in paragraph 3.5 be approved;
(iii) the decisions made by the Chief Executive utilising the emergency powers be noted;
(iv) the revised Member Code of Conduct as set out in Appendix 1 be agreed;
(v) the amendments to the functions of the Appointments and Disciplinary Committee as set out in paragraph 3.9 be agreed;
(vi) the staffing structure as set out in Appendix 2 be noted; and
(vii) the revised Constitution be unanimously agreed.
4. COMBINED AUTHORITY NOMINATIONS 2021-2022
The LCR Combined Authority considered a report of the Chief Executive which presented the nominations received from the constituent Local Authorities following their Annual Meetings.
A supplementary agenda was also circulated setting out the nominations that had been made since the agenda had been published and also included nominations to the appointment of Portfolio and Deputy Portfolio Holders. Taking the circulated document into account, the nominations were as follows:
Combined Authority
Appointment Substitute appointment Halton BC Councillor Mike Wharton Councillor Dave Thompson Knowsley MBC Councillor Graham Morgan Councillor Louise Harbour Liverpool CC Mayor Joanne Anderson Councillor Jane Corbett Sefton MBC Councillor Ian Maher Councillor John Fairclough St Helens MBC Councillor David Baines Councillor Gomez Aspron Wirral MBC Councillor Janette Councillor Yvonne Nolan Williamson
Page 2 LCR Local Enterprise Partnership
Appointment Substitute appointment Mr Asif Hamid MBE Mr Paul Corcoran
Associate Members
Appointment Substitute appointment Warrington BC Councillor Russ Councillor Cathy Mitchell Bowden West Lancashire BC Councillor Ian Moran Councillor Yvonne Gagen
Non-Voting Members
Chair of the Transport Committee To be confirmed by the Transport Committee Merseyside Police and Crime Emily Spurrell Commissioner
Portfolio Holders
Portfolio Nomination Policy, Reform and Resources Metro Mayor Steve Rotheram Education, Skills and Equality & Diversity Mayor Joanne Anderson Digital Connectivity and Inclusion Councillor Ian Maher Housing and Spatial Framework Councillor Graham Morgan Climate Emergency and Renewable Energy Councillor David Baines Culture, Tourism and the Visitor Economy Councillor Mike Wharton Inclusive Economy and Third Sector Councillor Janette Williamson Business Support Mr Asif Hamid MBE * Transport and Air Quality Chair of the Transport Committee *Criminal Justice Emily Spurrell, Merseyside Police and Crime Commissioner *Indicates non-voting co-opted member
Deputy Portfolio Holders
Deputy Portfolio Nomination Policy, Reform and Resources Councillor Carla Thomas Education, Skills and Equality and Diversity Councillor Louise Whitley Digital Connectivity and Inclusion Councillor Laura Robertson-Collins Housing and Spatial Framework Councillor Trish Hardy Climate Emergency and Renewable Energy Councillor Gill Wood Culture, Tourism and The Visitor Economy Councillor Shelley Powell Inclusive Economy and Third Sector Councillor Kate Groucutt Business Support To be confirmed Transport and Air Quality To be appointed by the Transport Committee Criminal Justice To be confirmed
Page 3
Appointment of Officers
Subject Area Lead Officer Work Deputy Officer (where appropriate) Head of Paid Service Frank Rogers Chief Executive until midnight 27 June 2021. After which he will return to his substantive post of Director General of Merseytravel up to the 30 September 2021. Katherine Fairclough, Chief Executive with effect from 12.01am on 28 June 2021. Treasurer (S73 Officer) John Fogarty Sarah Johnston Executive Director of Assistant Director of Corporate Services Finance Monitoring Officer, Jill Coule Louise Outram, Proper Officer and SIRO Chief Legal Officer Head of Legal, Democratic Services and Procurement Statutory Scrutiny Officer Trudy Bedford Lisa Backstrom Democratic Services Manager Senior Democratic Services Officer
RESOLVED – That:
(i) the appointments from Constituent Councils and the Local Enterprise Partnership to the Combined Authority be noted;
(ii) Councillor Janette Williamson be appointed as the Deputy Mayor for 2021/22;
(iii) the appointments from Associate Members to the Combined Authority as set out in Section 4 be noted;
(iv) the appointment of the non-voting Members as set out in Section 5 be approved;
(v) the appointment of the Portfolio and Deputy Portfolio Holders as set out in Sections 6 and 7 be approved; and
(vi) the appointment of Statutory Officers as set out in Section 8 be noted.
5. APPOINTMENTS TO COMMITTEES 2021-2022
The LCR Combined Authority considered a report of the Chief Executive which set out the appointments to Committees following the Annual Meetings of each of the constituent Local Authorities.
Page 4 A supplementary agenda was also circulated setting out the appointments which had been received since the agenda had been published. Taking the circulated document into account, the nominations were as follows:
Overview and Scrutiny Committee
Constituent Local Authority Members Halton Council Councillor John Abbott (Labour) Councillor Eddie Dourley (Labour) Councillor Angela Teeling (Labour) Knowsley MBC Councillor Mrs Edna Finneran (Labour) Councillor John Morgan (Labour) Councillor Kia Taylor (Green) Liverpool CC Councillor Anna Rothery (Labour) Councillor Pam Thomas (Labour) Councillor Steve Radford (Liberal and Independent Group) Sefton MBC Councillor Christine Howard (Labour) Councillor James Hansen (Labour) Councillor Carron Waterfield (Labour St Helens MBC Councillor Mancia Uddin (Labour) Councillor Michael Haw (Liberal Democrat) Councillor Dennis McDonnell (Labour) Wirral MBC Councillor Julie McManus (Labour) Councillor Adrian Jones (Labour) Councillor David Burgess-Joyce (Conservative) LCR Conservative Group Councillor Sir Ron Watson OBE (Sefton MBC) nomination LCR Liberal Democrat Group Councillor Moloney (Liverpool CC) nomination
Transport Committee
Constituent Local Authority Members Halton BC Councillor John Stockton (Labour) Councillor Harry Howard (Labour) Councillor Ged Philbin (Labour) Councillor Gareth Stockton (Liberal Democrat) Knowsley MBC Councillor Ken McGlashan (Labour) Councillor John Donnelley (Labour) Councillor T Rowe (Labour) Councillor Joanne Burke (Green) Liverpool CC Councillor Liam Robinson (Labour) Councillor Nathalie Nicholas (Labour) Councillor Anthony Lavelle (Labour) Councillor Lindsay Melia (Labour) Sefton MBC Councillor Tony Brough (Conservative) Councillor Gordon Friel (Labour) Councillor Sean Halsall (Labour) Councillor Nina Killen (Labour) St Helens MBC Councillor Jeanette Banks (Labour) Councillor Damien O’Connor (Labour) Councillor Joe Pearson (Labour) Councillor Allan Jones (Conservative)
Page 5 Wirral MBC Councillor Steve Foulkes (Labour) Councillor Jerry Williams (Labour) Councillor Paul Hayes (Conservative) Councillor Chris Cooke (Green)
Audit and Governance Committee
Members Substitute Members Combined Authority Councillor G Morgan Councillor I Maher Councillor M Wharton Councillor D Baines Overview and 2 Labour Councillors 2 Labour Councillors Scrutiny Committee 1 Liberal Democrat 1 Liberal Democrat Councillor Councillor 1 Conservative Councillor 1 Conservative Councillor (To be appointed from the (To be appointed from the membership of the membership of the Overview and Scrutiny Overview and Scrutiny Committee at its first Committee at its first meeting) meeting) Independent Person Martin McDonagh Not applicable
Appointments and Disciplinary Committee
Metro Mayor Steve Rotheram Mayor Joanne Anderson Councillor David Baines Councillor Ian Maher Councillor Graham Morgan Councillor Mike Wharton Councillor Jeanette Williamson
RESOLVED – That:
(i) the appointments made to the Committee’s as set out in Section 3 of the report be approved;
(ii) delegated authority be granted to the Monitoring Officer to confirm appointments to the Overview and Scrutiny Committee, Transport Committee and Audit and Governance Committee.
6. APPOINTMENTS TO EXTERNAL ORGANISATIONS 2021-2022
The LCR Combined Authority considered the report of the Chief Executive which proposed appointments of both Elected Members and Officers to serve on external bodies.
RESOLVED – That the following appointments be approved:
LCR Local Enterprise Partnership Board
Position Name Metro Mayor of the LCR Combined Authority Steve Rotheram
Inclusive Economy and Third Sector Portfolio Councillor J Williamson Holder Education, Skills and Equality and Diversity Joanne Anderson Portfolio Holder
Page 6
LCR Local Enterprise Holding Company
Position Name Metro Mayor of the LCR Combined Authority Steve Rotheram Inclusive Economy and Third Sector Portfolio Councillor J Williamson Holder
LCR Local Enterprise Delivery Company
Position Name Non-Executive Director Mark Bousfield, Executive Director of Commercial Development and Investment Non-Executive Director Kirsty McLean, Executive Director of Policy and Strategic Commissioning
Chrysalis Fund
Position Name
Inclusive Economy and Third Sector Portfolio Councillor J Williamson Holder - Board Director Inclusive Economy and Third Sector Deputy Councillor K Groucutt Portfolio Holder – Substitute LCR Combined Authority Officer Raphael Miller Representative LCR Combined Authority Officer Georgina Singleton Representative – Substitute
Chrysalis Advisory Committee
Name Organisation Santiago Issa LCR Combined Authority Wes Rourke Halton Borough Council Alan Evans Wirral Metropolitan Borough Council
Transport for the North
Organisation Representative Transport for the North (TfN) Metro Mayor Steve Rotheram Partnership Board Portfolio Holder for Transport and Air Quality (Substitute Member)
Mersey Dee Alliance
Name Representing Councillor A Whittingham, Wirral MBC LCR Combined Authority
European Structural and Investment Fund Committee
Name Representing Councillor J Williamson Inclusive Economy and Third Sector
Page 7 Portfolio Holder (Co-Chair) Mayor Joanne Anderson Education, Skills and Equality and Diversity Portfolio Holder Councillor E Jones Representative from the Employment and Skills Board Transport and Air Quality Portfolio Holder
North West Regional Leaders Board
Name Representing Metro Mayor S Rotheram LCR Combined Authority Councillor D Baines Leader of St Helens MBC Councillor G Morgan Leader of Knowsley MBC
North West Employers Organisation
Name Representing Councillor C Thomas Deputy Portfolio Holder, Policy, Reform and Resources, LCR Combined Authority
Workforce Engagement Board
Name Representing Metro Mayor S Rotheram LCR Combined Authority Councillor D Baines St Helens MBC Councillor G Morgan Knowsley MBC
7. FAIRNESS AND SOCIAL JUSTICE ADVISORY BOARD ANNUAL REVIEW 2020/21
The LCR Combined Authority considered a report of the Executive Director of Policy, Strategy and Government Relations which presented the 2020/21 Annual Review of the Fairness and Social Justice Advisory Board.
Councillor Carla Thomas, Deputy Portfolio Holder: Policy, Reform and Resources and Lynn Collins, Chair of the Fairness and Social Justice Advisory Board (FASJAB), presented the Annual Review to the Combined Authority.
Members welcomed the Annual Review from FASJAB and paid tribute to the work it had achieved and the valuable contribution it had made to the Combined Authority and the wider City Region.
RESOLVED – That:
(i) the Chair and Members of the Advisory Board be thanked for their work in supporting the Combined Authority’s fairness and social justice agenda during what had been a particularly challenging period for the City Region due to the COVID-19 pandemic; and
(ii) the Chair and Members of the Advisory Board be encouraged to continue providing invaluable feedback as the Combined Authority focuses on re- opening, recovery and renewal during the year ahead.
Page 8 8. LIVERPOOL CITY REGION COMBINED AUTHORITY END OF YEAR REVIEW 2020-2021
The LCR Combined Authority considered the report of the Chief Executive which highlighted key achievements of the LCR Combined Authority during the 2020-21 municipal year.
Members welcomed the report and the opportunity it provided to reflect and promote the work of the Combined Authority. Members noted that the report demonstrated the great strength across the City Region when working in partnership.
RESOLVED – That:
(i) the End of Year Review 2020-21 be agreed; and
(ii) any amendments/insertions be made in consultation with the Metro Mayor and Chief Executive.
9. MINUTES OF THE MEETING OF THE LCR COMBINED AUTHORITY HELD ON 19 MARCH 2021
RESOLVED – That the minutes of the meeting held on 19 March 2021 be agreed.
10. LIVERPOOL CITY REGION METRO MAYOR ANNOUNCEMENTS AND UPDATES
The Metro Mayor provided an update to the LCR Combined Authority on his recent activities. As this was the first meeting of the new municipal year he welcomed Joanne Anderson, the new Mayor of Liverpool and Councillor Mike Wharton, the new Leader of Halton Council. He also welcomed Councillor Janette Williamson, who was the first Deputy Metro Mayor of the Liverpool City Region Combined Authority.
The Metro Mayor recognised the quality and vision of the Portfolio Holders and welcomed the opportunity to work with them over the next few years.
The Metro Mayor placed on record his thanks to the 200,000 people who had voted for him in May and explained that between 85% to 90% of voters had either supported him as their first or second choice candidate.
He explained how incredibly proud he was to represent the City Region and that during the election campaign people were starting to understand the difference a Metro Mayor can have for the region.
The Metro Mayor set out a number of tangible benefits which had been achieved over the last four years as consequence of being able to take decisions locally.
The Metro Mayor went on to pay tribute to Frank Rogers, the Chief Executive whom he had built the Combined Authority from scratch with and then went on to ramp up delivery as it took shape. The Metro Mayor explained that this would be Frank’s last meeting as Chief Executive before Katherine Fairclough took over.
On behalf of himself and Leaders past and present he placed on record his thanks to Frank for all his support over the last 4 years. He explained that through Frank’s dedication, diligence, and skill they had laid the foundations of something to be truly proud of.
Page 9
The Metro Mayor referred to the £150m COVID Recovery Fund, which was to be considered elsewhere on the agenda and explained that this was a major manifesto commitment to be delivered at the first Combined Authority meeting of his new term of office. He recognised the challenge facing the City Region, however, with the funding package available it would help to jump start the recovery.
In conclusion, the Metro Mayor explained that the end of his first term, also brought about the end of the term for his team of Mayoral Advisers who provided him and the organisation with invaluable support, insight, and guidance over the past few years.
The Metro Mayor placed on record how grateful he was to all those who had served as Mayoral Advisers over the course of his first term and he hoped they would continue to support our city region.
11. DEVELOPING THE LIVERPOOL CITY REGION COMBINED AUTHORITY CORPORATE PLAN 2021-24
The LCR Combined Authority considered the report of the Executive Director of Corporate Development and Delivery which set out the approach to develop a three year corporate plan for the Combined Authority, following the re-election of the Metro Mayor.
Members were advised that the Corporate Plan included five interlined priority areas, which were:
People and Inclusion Business Growth and Innovation Transport and Infrastructure. Environment and Energy; and Placemaking.
It was reported that each priority area would contain a set of strategic objectives and outcome measures which would feed into a 12-month delivery plan. Members were advised that the development of the Corporate Plan had been undertaken in collaboration with Local Authorities, to ensure alignment with their plans.
RESOLVED – That:
(i) the development of a Corporate Plan which embeds the delivery of the devolved responsibilities of the Combined Authority with delivery of the successful candidates manifesto pledges and activities be agreed;
(ii) the approach to develop the Liverpool City Region’s Corporate Plan for 2021- 24 including its vision and priority areas be noted;
(iii) further work will be progressed to develop a medium-term financial plan which aligns resources to the corporate plan priorities for its duration; and
(iv) the draft Corporate Plan be presented to a future meeting of the Combined Authority for consideration and approval.
Page 10 12. HOUSING DELIVERY
The LCR Combined Authority considered a report of the Interim Executive Director of Strategic Delivery and Commissioning and the Portfolio Holder: Housing and Spatial Framework which sought approval of the strategy for the remaining Brownfield Land Fund and the expenditure of the Green Homes Grant Local Authority Delivery 2 housing retrofit funds.
Metro Mayor S Rotheram paid tribute to Councillor G Morgan, Portfolio Holder: Housing and Spatial Framework for the excellent work of his portfolio and the Housing and Spatial Planning Advisory Board.
RESOLVED – That:
(i) the approach set out in the report for the allocation and expenditure of the remaining Brownfield Land Fund and that, apart from pre-development expenditure funding allocations to specific projects will be subject to future Combined Authority approval be noted;
(ii) the allocation of Local Authority Delivery 2 funds between the Liverpool City Region Local Authority areas as set out in paragraph 3.6 of this report be approved;
(iii) delegated authority be granted to the Interim Director of Strategic Delivery and Commissioning in consultation with the Chief Legal Officer and Treasurer to put in place appropriate legal agreements for the distribution and use of the Local Authority Delivery 2 funds for the improvement of energy performance in homes;
(iv) the establishment of a ‘Housing Pre-Development’ Thematic Fund of £1m to cover pre-development expenditure on housing pipeline projects in line with the Combined Authority approved 2021/22 Budget be approved;
(v) in relation to recommendation (iv) Officers will therefore be authorised to make expenditure decisions in excess of the key decision threshold of £150,000. When such decision occurs, it will be in consultation with the Portfolio Holder: Housing and Spatial Planning and be the subject of a published officer decision; and
(vi) the progress on the development of projects identified within the housing pipeline is reported quarterly to the Housing and Spatial Planning Advisory Board.
13. TRANSPORT BID - LEVELLING UP FUND
The LCR Combined Authority considered a report of the Executive Director of Strategic Delivery and Commissioning and Portfolio Holder: Transport and Air Quality which set out a proposed application for funding to be submitted to the Levelling Up Fund.
Councillor L Robinson, Portfolio Holder: Transport and Air Quality, reported that, subject to approval, four schemes would be submitted to the Fund which sought a total of £37.542m from a national fund of £4.8 billion.
Page 11 RESOLVED – That:
(i) The following proposed approach to bid for the Levelling Up Fund be approved: Birkenhead Central Gateway - £21.823m St Georges Gateway - £13.424m Maritime Corridor - £2.277m; Local contribution - £3.752m
(ii) delegated authority be granted to the Director of Strategic Delivery and Commissioning to bid and finalise negotiations of detailed terms of the funding and associated agreements in consultation with the Combined Authority Monitoring Officer and the Combined Authority Treasurer and make changes to the bid before the 18 June submission deadline.
14. LCR HYBUS TRIAL - ZERO EMISSION BUS REGIONAL AREA OPPORTUNITY
The LCR Combined Authority considered a report of the Interim Executive Director for Integrated Transport and Portfolio Holder for Transport and Air Quality which introduced proposed revisions to the Hybus business case in order to support a bid into the fast-track process of the Government’s Zero Emission Bus Regional Area (ZEBRA) scheme 2021-22.
Councillor L Robinson, Portfolio Holder: Transport and Air Quality, reported that if successful the bid would see an additional 23 Hybus in the City Region, bringing the total to 43.
RESOLVED – That:
(i) the Expression of Interest to apply for ZEBRA funding has been submitted to the Department of Transport (DfT), following approval by Merseytravel;
(ii) the proposed amendments to LCR hybus Trial Project as the basis of the LCRCA’s bid to the Government’s Zero Emission Bus Regional Area (ZEBRA) scheme 2021-22 be approved;
(iii) if the bid were to be successful then the project would be extended from 20 up to 43 buses, utilising approved TCF funding as the match for the proposed central government contribution;
(iv) delegated authority be granted to Merseytravel to approve a finalised amended business case ahead of the July 2021 ZEBRA submission deadline, in line with the principles already agreed for this project; and
(v) following the outcome of the bid and regardless of its success, the Bus Team is likely to seek approval to commence a further business case for a full depot conversion so as to be ready for further funding rounds for zero emission buses.
Page 12 15. APPOINTMENT OF CONTRACTOR TO DELIVER WINTER BUREAU AND WEATHER SERVICES
The LCR Combined Authority considered a report of the Interim Executive Director of Integrated Transport and Portfolio Holder: Transport and Air Quality which sought approval for the appointment of Vaisala to provide Winter Bureau and Weather Services for the constituent Councils.
RESOLVED – That:
(i) the provision by the Combined Authority of a framework agreement for a period of 4 years commencing on 31 July 2021, with an upper limit on the contract value of £650,000 to provide Winter Bureau and Weather Services for the constituent Councils;
(ii) the Combined Authority’s constituent Councils will individually enter into contractual arrangements with the successful bidder Vaisala; and
(iii) Warrington Borough Council will also be utilising the arrangements made under the framework.
16. GROWTH HUB FUNDING
The LCR Combined Authority considered the report of the Executive Director of Corporate Services which reported that notification had been received from the Department for Business, Energy and Industrial Strategy (BEIS) of an expected funding award of £780,000 for the financial year 2021/22. This funding would continue to support the Liverpool City Region Growth Company delivering the ‘Growth Hub’ programme.
RESOLVED – That:
(i) the expected award of up to £780,000 to the Liverpool City Region Growth Company, via the Liverpool City Region as its accountable body, to support the ‘Growth Hub’ programme across the Liverpool City Region; and
(ii) the funding be transferred to the Liverpool City Region Growth Company to enable it to deliver the measures set out within the offer letter.
17. STRATEGIC INVESTMENT FUND - END OF YEAR POSITION AND AN UPDATE ON THE USE OF GAINSHARE TRANCHE II WITHIN BROADER RECOVERY FUNDING CONTEXT
The LCR Combined Authority considered the report of the Executive Director of Commercial Development and Investment which provided a quarterly update on the Strategic Investment Fund (SIF) at the end of the 2020/21 financial year. The report also set out proposals on the use of Gainshare Tranche II funds and a number of change control requests from previously agreed SIF projects.
RESOLVED – That:
(i) the positive disbursement performance for Local Growth Funds at Q4 2020/21 be noted;
Page 13 (ii) the CA’s prior agreement to City Region wide recovery plans and Leaders and Mayors agreement on the application of Gainshare Trance II fund these plans redoubled by the mandate contained in the Metro Mayors recent manifesto;
(iii) the increasingly complex landscape for economic development funding and LCR’s consequent need to consider new approaches and greater collaboration across organisations be noted;
(iv) Gainshare Tranche II is recognised as one of many funding streams and that projects considered in this report represent only a portion of LCR’s and each Local authority’s ambitious recovery plans;
(v) the proposed indicate sector and theme allocation for Gainshare Tranche II, the proposed categorisation of projects and common development terms (as set out in Appendix 2), and the role of LCR’s Growth Directors in administering the process be approved;
(vi) an additional £500,000 from SIF to the Shakespeare North Playhouse as set out in section 5.2 of the report, noting that it remains subject to satisfactory negotiation of terms be agreed;
(vii) changes to previously agreed SIF projects as set out in Section 5 of the report be agreed;
(viii) delegated authority be granted to the Executive Director of Commercial Development and Investment, in consultation with the Chief Financial Officer and Chief Legal Officer, to finalise negotiations of detailed terms of the funding and associated agreements in relation to (vi) and (vii) above; and
(ix) the changes approved under delegated powers as set out in Section 6 with detail in Appendix 3 be noted.
18. PUBLIC QUESTION TIME
Metro Mayor S Rotheram reported that no public questions had been received.
19. PETITIONS AND STATEMENTS
Metro Mayor S Rotheram reported that no petitions or statements had been received.
20. LOCAL GOVERNMENT (ACCESS TO INFORMATION) ACT 1985
RESOLVED – That under Section 100A (4) of the Local Government Act 1985, the public be excluded from the meeting for the following item of business on the grounds that it involves the disclosure of exempt information as defined in paragraph 3 of part 1 of Schedule 12A to the Act.
21. PROCUREMENT OF THE LIVERPOOL CITY REGION TRANSPORT MONITORING AND MODELLING CONTRACT
The LCR Combined Authority considered a report of the Director of Policy and Strategic Commissioning which sought approval for expenditure and to enter into a contract with Mott MacDonald for the provision of services for Transport Monitoring and Modelling Services.
Page 14 RESOLVED – That:
(i) the contents of the report be noted;
(ii) the expenditure of up to £649,529 over a 4-year contract period starting 1 July 2021 with possible a 12 months extension subject to satisfactory performance of the contractor be approved; and
(iii) approval be given to enter into a contract for the provision of Transport Monitoring and Modelling Services with Mott MacDonald Limited at a cost of up to £649,529.
22. FORMER LITTLEWOODS BUILDING
The LCR Combined Authority considered a report of the Head of Investment and Portfolio Holder for Inclusive Economy and the Third Sector which sought approval to allocate funds for the restoration and redevelopment of the former Littlewoods Building, Edge Lane for film studios, education and commercial space.
RESOLVED – That:
(i) note the progress of this project as set out in this report;
(ii) the arrangements regarding Phase 1 set out in paragraph 5 of the report regarding design and remediation works be agreed;
(iii) the possible financial implications as set out in the report (paragraph 6) to carry out the main development (Phase 2), and that this will be subject to future Combined Authority approval once detailed design, planning and enabling works have been completed be noted;
(iv) in principle to support the provision of financing as a commercial investment subject to the principles set out in paragraph 6.7 and Appendix 4 be agreed; and
(v) note that officers will produce a future report outlining the approach to wider funding commercial investments.
23. LOAN TO LIVERPOOL JOHN LENNON AIRPORT
The LCR Combined Authority considered a report of the Executive Director of Commercial Development and Investment and Portfolio Holder for Inclusive Economy and Third Sector which provided an update on the outstanding loan to Liverpool Airport (Intermediate) No. 3 Ltd.
Page 15 RESOLVED – That:
(i) the update be noted; and
(ii) a further update be presented to the September meeting of the Combined Authority or earlier should the financial position of the Airport materially change.
Minutes 1 to 23 be received as a correct record on the 23rd day of July 2021.
Chairperson of the Combined Authority
(The meeting closed at 2.55pm)
Page 16 Agenda Item 5
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 23 July 2021
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: No
KEY DECISION Yes
REPORT OF THE EXECUTIVE DIRECTOR OF CORPORATE DEVELOPMENT AND DELIVERY
LIVERPOOL CITY REGION COMBINED AUTHORITY CORPORATE PLAN 2021-24
1. PURPOSE OF REPORT
1.1 This report presents a three-year corporate plan for the Liverpool City Region Combined Authority. The plan links our vision for the city region with five priority areas. For each of these priority areas, the plan identifies a set of strategic objectives and the activity to be delivered to make a meaningful difference and progress towards the overarching vision.
1.2 The Corporate Plan will support decision making and determine the best use of resources to deliver outcomes for the City Region, in the most effective and efficient way. Performance will be regularly reviewed against this plan and together with underpinning directorate plans and associated strategies it will be used to drive delivery of our objectives.
2. RECOMMENDATIONS
2.1 It is recommended that the Liverpool City Region Combined Authority:
(a) Approves the Liverpool City Region’s Corporate Plan for 2021-24 including its vision, priorities, strategic objectives and key deliverables;
(b) Notes the further work which will be progressed to develop a medium-term financial plan which aligns resources to the corporate plan priorities for its duration; and
(c) Notes that a quarterly review of progress on the delivery of the Corporate Plan will be presented to the Combined Authority for consideration.
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3. BACKGROUND
3.1 In 2018, the Combined Authority agreed a two-year corporate plan to set out the strategic priorities and key deliverables to be achieved by June 2020. The delay in Mayoral elections in 2020 due to the coronavirus pandemic resulted in a 12-month Combined Authority business plan being developed. The business plan runs until June 2021 and will be replaced by the new three-year corporate plan.
3.2 The corporate plan will build on the current business planning process and ensure the Combined Authority has a deliverable three-year plan to meet the key priorities for the Liverpool City Region Combined Authority, in collaboration with constituent local authorities and partner organisations.
4. PURPOSE AND VISION
4.1 The plan sets out the purpose of the Combined Authority and vision for the City region. This builds on previous consultation and engagement as part of both the Local Industrial Strategy and Economic Recovery plan and aligns it with the Metro Mayor’s manifesto.
The priority areas for the next three years align with this longer-term vision for the City Region and complement the priorities of our six local authorities.
5. PRIORITIES
5.1 The five priority areas have strong interdependencies between them. It is only through working collaboratively that we will be able to deliver the actions in this plan and improve outcomes across each of these areas. Under each area we identify the new activity the Combined Authority will lead on over the next three years, and the ongoing activity we will continue to deliver.
Page 18 5.2 The five areas are: A fairer city region; A stronger city region; A cleaner city region; A connected city region; and A vibrant city region. 5.3 Alongside these areas, the three most pressing challenges we face are recovering from the pandemic, tackling the stark inequalities that the pandemic has not only exposed, but in many cases widened, and addressing the climate emergency. These issues are also at the heart of the plans of each of our local authorities, and it will take all of our co-ordinated efforts to address them. They run through our Corporate Plan as three cross-cutting themes; recovery, equality and sustainability.
5.4 The tables below set out the objectives, and new activity for each area. Further detail is in the plan, appended to this report.
A Fairer City Region Portfolios Education & Skills and Equality & Inclusive Economy and The Third Sector Diversity Objectives New activity Improve access and pathways A Young Person’s Guarantee to employment for those at A homelessness framework greatest risk of long-term A food poverty reduction strategy worklessness; New funding opportunities for Increase the range of support Voluntary, Community Faith, and available to people Social enterprise organisations experiencing poverty, A Race Equality programme exclusion and inequality; Digital inclusion programme Improve equality of outcomes A new Equality Scheme across all protected A City Region approach to mental characteristics; health Promote and support positive An ambitious employment and skills health and wellbeing. pipeline
A Stronger City Region Portfolios Inclusive economy and the third sector Business Support Objectives New activity Strengthen and develop the £150m COVID Recovery fund business support offer and Embed a City Region wide ensure all businesses can adapt, approach to Community Wealth recover and grow in post-COVID, building including plans for a post-Brexit world Community Bank. Further embed Community Roll out the Fair Employment Wealth Building approaches and Charter increase the amount of social Develop and embed a Social Page 19 value local businesses deliver Value Framework Improve the attractiveness of the Deliver the Good Business City Region as a place to do Festival's main event and business ongoing programmes Attract investment in research Fund development of 260k sqft of and development to drive new business space innovation and global Develop a well-networked competitiveness business ecosystem and fund six new integrated business support and finance programmes for high growth businesses Develop the pipeline of innovation projects, including the Liverpool City Region Ventures programme
A Cleaner City Region Portfolios Climate Emergency & Renewable Transport & Air Quality Energy Objectives New activity Accelerate plans for a net-zero An evidence-based plan to meet the Carbon economy by 2040 city region’s Net Zero Carbon target Develop the City Region’s A Liverpool City Region housing renewable energy offer retrofit programme Improve energy efficiency of A city region wide public buildings buildings and houses decarbonisation pipeline and bid for Improve sustainability of public funding to deliver. transport New heat networks retrofitted into existing neighbourhoods and major new development sites The Green Bus Routes programme to improve bus journeys on key corridors The hydrogen bus project deploying the first fleet of 20 hydrogen buses The Full Business Case for the Mersey Tidal Project Explore the potential for the Combined Authority to establish a municipal energy company A pipeline of strategic, and community focussed green infrastructure projects A plan to increase the number of electric vehicle charging points in the city region Options for a local vehicle Page 20 scrappage scheme aligned to our air quality action plan The business case for the city region’s production, storage and utilisation of hydrogen New interventions to create more green jobs
A Connected City Region Portfolios Digital Connectivity & Inclusion Transport & Air Quality Objectives New activity Improve digital and Install a 212km full-fibre, gigabit-capable physical connectivity network infrastructure. between all people and Publish a London Style Transport Plan places that integrates our walking, cycling, Enhance the role of buses, trains and ferries network. transport and Upgrade our Smart Ticketing System and infrastructure as strategic implement the transition to tap-in, tap out, enablers to meet the city contactless ticketing with a daily cap. region’s ambitions Progress the programme for Bus reform, Transition towards further publishing a Bus Service Improvement devolution of transport Plan and identifying the preferred option and increased public for bus. ownership A Merseryrail for all programme, to begin the extension of the Merseyrail network to every local authority area. A Local Transport Plan to set out how transport planning will deliver the vision for the city region, and address long term strategic transport challenges
A Vibrant City Region Portfolios Housing & Spatial Framework Culture, Tourism & The Visitor Economy Objectives New activity Ensure people have Maximise investment of Brownfield Land access to quality, Fund monies to support a brownfield first affordable homes approach to new development Support plans for a Provide direct investment and strategic vibrant place-offer support for delivery of Town Centre Place- across the city region Making and Development Programmes Enhance our cultural Implement the CA response to the Town offer and the city Centres Commission and deliver three pilot region’s attractiveness projects
Page 21 as a visitor destination Further develop visitor attractions in our ownership, and support Local Authority plans to recover the visitor economy Implement the Cultural Compact plan Implement the Visitor Economy Recovery strategy including Destination Marketing plans Publish the Spatial Development Strategy Implement the LCR brand strategy Develop a pipeline of public land assets used to maximise the positive impact for local people through the work of the Land Commission
6. DELIVERY
6.1 The Corporate Plan will be supported by a 12-month delivery plan which will describe the actions, milestones, lead responsibilities and timescales which will be delivered over the forthcoming year. The delivery plan will be refreshed annually to reflect changes which may impact on delivery and to ensure it remains fit for purpose. The plan will provide clarity to the organisation and focus resources on delivery.
6.2 The corporate plan will be underpinned by directorate and team plans and individual performance plans to provide an important cascade function within the workforce and with partners. It will also ensure Combined Authority employees understand how their work contributes to the organisation vision and priorities.
6.3 The plan will be reported regularly to the Combined Authority to demonstrate progress on a quarterly basis. These reports will be aligned to resources and corporate risks.
7. RESOURCE IMPLICATIONS
7.1 Financial
The development of the Corporate Plan will align with the Combined Authority’s agreed budget for 2021-22. A medium-term financial plan will be developed to mirror the term of the Corporate Plan and presented to the Combined Authority for approval as part of the budget setting process for 2022/23.
7.2 Human Resources
Page 22 There are no human resources issues arising directly from this report. The Combined Authority’s business planning process will be aligned to the new corporate plan to ensure directorate, service, team and individual performance plans enable the delivery of corporate plan priorities. A people strategy will be developed to facilitate the delivery of the corporate plan through a range of workforce initiatives.
7.3 Physical Assets
There are no physical assets issues arising directly from this report.
7.4 Information Technology
There are no information technology issues arising directly from this report. The Combined Authority’s business planning process will be aligned to the new corporate plan and any emerging information technology issues will be identified through the service planning process.
8. LEGAL IMPLICATIONS
8.1 There are no legal implications arising directly from this report. Any legal implications arising from activities set out within the corporate plan with be considered and addressed through project planning and delivery arrangements.
9. RISKS AND MITIGATION
9.1 The LCR Combined Authority’s corporate risk register will be reviewed and refreshed to align to the new corporate plan with mitigating action identified.
10. EQUALITY AND DIVERSITY IMPLICATIONS
10.1 Equality and diversity forms a core theme of the LCR Combined Authority’s corporate plan and the activity set out within the plan is intended to have a positive impact across all communities. Individual equality impact assessments will be required for projects and activities set out within the plan.
11. PRIVACY IMPLICATIONS
11.1 There are no privacy implications arising from this report.
Page 23 12. COMMUNICATION ISSUES
12.1 The final version of the Corporate Plan will be published on the Combined Authority’s website and shared directly with key partners. A communications plan will be developed to ensure activities within the corporate plan are communicated to residents, partners and stakeholders.
13. CONCLUSION
13.1 This report outlines the framework of the Combined Authority’s three-year corporate plan to deliver its vision, strategic objectives and key deliverables. The plan provides the framework to guide resources and will be underpinned by appropriate delivery arrangements. The full Plan is attached at Appendix 1.
LIZ DEAN Executive Director for Corporate Development and Delivery
Contact Officer(s):
Lucy Barrow, Assistant Director: Corporate Development, Tel 0151 330 1589 Email: [email protected]
Katie Dean, Economic Analyst, Tel 07826 873372 Email: [email protected]
Ben O’Brien, Head of Communications, Marketing and Engagement, Tel 07966 674053 Email: [email protected]
Appendices:
Appendix One – Liverpool City Region Combined Authority Corporate Plan 2021-24
Background Documents:
None
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Corporate Plan
A MESSAGE FROM OUR METRO MAYOR
I am enormously proud to have been re-elected as Metro Mayor for the best place in the world, the Liverpool City Region. After a tumultuous year, we have an enormous task ahead of us, arguably the biggest since post-war reconstruction, in rebuilding and reshaping our economy. Working alongside the leaders of our local authorities, we have a once-in-a-lifetime opportunity to be the authors of the next chapter in our region’s long and storied history. It is an honour that very few people get and we are determined that the Combined Authority will do it justice. We have made enormous progress since I was first elected, investing more than £400m in every part of our region, creating more than 9,000 jobs, 5,500 apprenticeships and more than 15,000 homes. We have taken power away from Westminster and funding out of Whitehall – and used them to chart our own course, with local people taking decisions in the best interests of our communities. The Liverpool City Region’s 1.6m people have seen the transformative impact of devolution and May’s elections were a massive vote of confidence in that. Instead of asking what a Metro Mayor was, people were excited about what we would do next and my vision for that was overwhelmingly endorsed by people in every part of our city region. If the first term was about laying the foundations of devolution, then this next one must be about rapidly accelerating the pace and scale of delivery. This Corporate Plan provides the focus for our work over the coming years. Based on five manifesto pledges – COVID recovery; London-style transport; Green Industrial Revolution; Young Person’s Guarantee and a digitally connected city region – embody the best of our past and reflect the scale of our future ambitions. Throughout its history, our region has so often been a trailblazer. From pioneering public health innovations like the country’s first medical officer, to our position as a gateway to the first industrial revolution. Where the Liverpool City Region leads, others often follow. I want this plan to serve as a model that others seek to replicate. A roadmap to building a region that is fairer, stronger, and cleaner - with no one left behind.
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A MESSAGE FROM OUR LEADERS
As elected leaders and mayor of the Liverpool City Region Combined Authority, we know there is a lot to do over the next three years to deliver even more for our residents. We are all very proud of the places we lead, and the extraordinary efforts we have all made responding to such unprecedented times. People here have seen that devolution can really deliver and improve people’s lives, and so we must continue to work at the regional level to do just that. This Corporate Plan sets out what we can achieve by continuing to work together, and the difference it can make to the people who live here. I want us to continue to work with and listen to our communities and empower them to play an important role in its delivery. The cross-cutting themes are especially important. Recovering from the pandemic, tackling inequality and dealing with the climate emergency are important to all of us. As a team, we will work together to address these issues and deliver the vision for a fairer, stronger, cleaner City Region, where no one is left behind. Cllr Janette Williamson, Leader of Wirral Council and Deputy Metro Mayor on behalf of the Leaders and Mayors of the Liverpool City Region.
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A MESSAGE FROM OUR CHIEF EXECUTIVE
Combined Authorities have an important role to play in enabling change in places and the Liverpool City Region is truly unique, with so much to build on. Our culture, arts and contribution to music and sport are second to none. The energy and determination of our people, their passion, character and creativity is known internationally. The leading innovations in industry, digital, health and life sciences, and a vibrant social economy all provide strong foundations. It has been inspiring to hear how, despite the many challenges of the last year, the city region has come together to respond to the pandemic and has provided much needed support to our businesses and communities. The strong emphasis on working with communities and businesses to deliver inclusive growth was one of the many things that attracted me to this role. I know we can build on the successes and lessons of the past to secure a strong and resilient future for our region. Among all of the uncertainty that will surround the next few years, one thing I am certain of is that we will not achieve success alone. Now, more than ever, we must build on our strong partnerships and work as one city region to realise the full potential of this brilliant place. This document sets out what we plan to do over the next three years, against the five priority areas which enable our long term aims. My personal commitment is to lead collaboratively alongside our local authority partners to deliver on the ambitions of the Metro Mayor, Leaders and Mayor to secure real and meaningful change. I hope you will all join me. We each have our part to play in achieving success and, by working together, I am confident that we can achieve our vision to be a fairer, stronger, cleaner city region where no one is left behind.
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1 INTRODUCTION
This plan is set in the context of new beginnings. The re-election of Steve Rotheram as the city region’s Metro Mayor commences a new Mayoral term with a clear mandate, and an ambitious Manifesto to deliver on. We also welcome a new Chief Executive who will build on the achievements of the last four years to deliver the step change we now need to deliver in an increasingly challenging external environment. Together, we are all adapting - in some way - to the changes brought about by a global pandemic. As an organisation, we must embrace the challenge and opportunity that change will bring as we continue to deliver for the 1.6m people who we serve.
WHO WE ARE The Combined Authority was established in 2014. In 2015 we agreed a Devolution Deal with National Government and, in 2017, the first Metro Mayor was elected. We are a politically led organisation, led by the Liverpool City Region Metro Mayor, the local authority Leaders of Halton, Knowsley, Sefton, St Helens and Wirral councils, the elected Mayor of Liverpool City Council. The Combined Authority was formed on the basis of strong partnership working across our city region and its six local authorities, and our political leadership continues to guide this approach. Through working collaboratively, we can continue to deliver on the responsibilities devolved to us from national government and effectively invest devolved funds to make a real difference for the people who live
The purpose of the Combined Authority is to work in partnership to make a difference through devolution to improve the lives of the 1.6m people we serve. here.
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OUR CITY REGION Liverpool City Region is made up of six local authorities and is home to 1.6 million residents. We are a diverse and welcoming region, proud of our cultural vibrancy, internationally recognised brand and the significant economic progress of the previous decade. The city region has emerged as an internationally popular visitor destination and developed unique strengths in ground-breaking areas of material science, infectious disease control, and high-performance computing. Long-standing roots in social innovation have flourished into a thriving social economy with a persistent focus on improving society. The city region is positioning itself at the forefront of clean growth with ambitious plans for a net-zero Carbon economy. We must nurture these strengths as they will be so important to moving us towards our vision for the city region. Building on the successes of the previous decade, in ten years we want to be a city region that is: Fairer: we will be recognised as a leader in social innovation and one of the most inclusive economies in the world. We will have taken proactive steps to tackle inequality, remove barriers, and provide more opportunities for all of our residents. Stronger: we will be recognised on the international stage as a hub of good business and innovation. We will have attracted investment to continue to develop our unique specialisms and be known for our expertise in science and innovation. There will be significantly more businesses providing good quality jobs for our residents. Cleaner: we will be a net-zero Carbon city region, recognised as a pioneer in sustainable approaches to living, travel and doing business. With a relentless focus on addressing the climate emergency we will place ourselves at the forefront of the Green Industrial Revolution. We will become a UK leader in clean energy production, generating power from tidal, offshore wind, and hydrogen. Connected: we will connect all our communities to opportunity, physically and digitally. Our public transport system will be reformed, fully integrated, and provide a genuine alternative to the car. We will be the most digitally connected city region in the UK. Vibrant: We will be a great place to live, visit and work. We will continue to invest in our international image and developing a world-leading cultural offer. Our city and town centres will be creatively reimagined, alongside the communities who use them, providing opportunities for businesses and
Our Vision is for a fairer, stronger, cleaner city region where nobody is left behind.
supporting the wellbeing of all communities
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We recognise that we cannot achieve this vision alone. By continuing to work collaboratively, listening to people, businesses and communities we serve, and convening the strength of our partners, we can deliver on our shared ambitions. This will remain fundamental to our success as a Combined Authority.
PRINCIPLES FOR A BETTER FUTURE The pandemic is having a significant impact on our residents, businesses and partners. Despite the challenges it brings, it also provides a chance for real, progressive change. Our economic recovery plan committed us to six principles for recovery and renewal, co-developed with our constituent local authorities. These principles are: 1. A truly inclusive economy - measured not by GDP but by people’s health, happiness and wellbeing 2. Social value – going further to promote social value and embedding a city region wide approach to Community Wealth Building 3. Environmental sustainability – a relentless focus on how everything we do contributes to carbon neutrality be 2040 4. Health, wellbeing and equality – embed the improvements of health, wellbeing and equality in all our policies 5. Meaningful engagement with communities - we will embed co-design and active engagement in our ways of working and include engagement and participatory approaches to all policy making 6. A city region that can project itself internationally - We will use our unique strength of brand and ability to shape places to create a compelling narrative for investment which will support a post COVID-19, post Brexit UK on the international stage.
DELIVERING THE PLAN The Combined Authority is committed to creating a better future for the 1.6m people who live here. This Corporate Plan sets how we will deliver on this commitment over the next three years, across five priority areas. We will use this plan to align directorate, service area plans and operational activity with the strategic objectives in our priority areas. It will support decision making and determine how we use the resource we have to deliver the best outcomes, in the most effective and efficient way. We will monitor and closely manage our performance against this plan, use it to drive delivery of our objectives and ensure we take action, where required, to mitigate against any underperformance.
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2 THE YEAR IN REVIEW
2020 was a year none of us could have imagined, but we can all be proud of our response and achievements. During the last year, we focused on responding to the pandemic, facilitating and providing support to organisations across the city region in close partnership with our local authorities and Growth Platform. When lockdown was announced, the Metro Mayor responded immediately, launching the LCRCares charitable fund, in partnership with Community Foundation Merseyside. The fund raised £2m and benefitted almost 400,000 people when they most needed support. The Metro Mayor established the Economic Recovery panel, bringing together stakeholders from across the region. We worked together to plan our response and with support of this panel, we submitted a city region wide recovery plan to government outlining £8.8bn worth of ambitious projects that can be delivered to create 122,000 jobs. We quickly repurposed funds to support businesses through the acute phase of the crisis: Working with Growth Platform, we developed the £3m Future Innovation Fund, to provide grants to businesses able to continue to innovate, as a result of, or despite the pandemic. The fund provided grants to 36 organisations to complete innovation projects, from a Robotic Scientist that featured on the cover of nature magazine, to an Urban Farm. We provided three new business support programmes, Gather, Mettle and Sustain which supported 480 businesses to stabilise and plan for future growth. More than 400 jobs have already been safeguarded or created by these programmes The LCR Music Board repurposed £150,000 to create The LCR Music Support Fund in response to the struggles facing many music businesses. This supported 52 organisations across this important sector for the city region. Working with Kindred we unlocked £65,000 to support socially trading organisations through the pandemic. 110 organisations received support and more than 60% of the organisations Kindred supported have developed new services or products, two thirds have formed a new collaboration or supply chain partner. Working hand-in-hand with our constituent local authorities, we established an emergency aid package specifically targeted towards the hospitality and leisure sector. Thousands of businesses have received grants thanks to additional support provided by the Women’s Organisation and local Chambers of Commerce. Programme delivery teams made significant adjustments to continue to support residents. The Skills and Apprenticeship Hub had to transition to virtual training and develop digital resources to be able to continue to support employers and learners. During the year, through the skills for growth project 3,000 employees across 270
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businesses were supported to improve their skills, while a further 625 employees across 90 business were supported to access higher level digital training as part of the Digital Bootcamp pilot. The Housing First team had to adapt their approach to ensure they were able to prioritise the most vulnerable service users keeping them, and support workers safe at all times. They continue to support the health and wellbeing of service users, in what felt like an unsafe world. Households into work were able to maintain support for over 700 people during the last year. Many of these had faced some of the most adverse consequences of the pandemic and national lockdown. Despite the challenges, a further 470 people started on the programme and are now receiving tailored support to help move them closer to employment. The Adult Education Budget team continued to fund provision for learners in the Liverpool City Region during a difficult period. They introduced new measures to support providers, including financial relief arrangements and grants to support additional costs of COVID-19 testing and learner welfare. The transport delivery teams, who work across Mersey Tunnels and Ferries, bus stations in our Contact Centre and concessionary travel service have been available throughout the pandemic, responding to the varying demand during the different stages of lockdown and focusing on maintaining services for key workers. As restrictions eased, they have welcomed passengers back, prioritising and ensuring their safety. Our constituent local authorities continue to support their local communities through the pandemic and dealing with the economic and social consequences of it. Officers have been at the forefront of the response and just a small example of their work includes: supporting the logistical delivery of food to those who were shielding; disbursing economic support to businesses and individuals; providing support to those who were most vulnerable; and establishing testing centres. The Growth Platform has played a pivotal role in supporting business through these uncertain and challenging times, providing invaluable advice and guidance, and delivering increased levels of support. And during the height of the pandemic, which was already taking a greater toll on minority communities, on the 25th May, news spread of the murder of George Floyd in Minneapolis, USA. Again, we reacted with the urgency required, publishing a declaration of intent on Race Equality, and engaging with Black, Asian And Minority Ethnic communities to co-create ways of improving accessibility to employment, skills and business support. We now have a £3.3m co-designed Race Equality programme ready to deliver. Alongside this considerable response effort, we have continued to invest in and support our city region’s future. We progressed our plans to be the most digitally
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connected city region by concluding a successful procurement exercise appointing a consortium of delivery partners. We allocated the first £9m of our £45m Brownfield Land Fund which means that seven brownfield sites in Halton, Liverpool, St Helens, Sefton and Wirral can now be used to deliver 886 new quality homes, including a mix of affordable housing. We are supporting the transformation of towns and high streets across the City region, including in, Birkenhead, Huyton, Runcorn and St Helens. Significant funding is supporting the ongoing redevelopment of Kirkby Town Centre and the development of the Shakespeare North Theatre in Prescot. In Sefton we supported Bootle’s masterplan and are investing alongside the council and in transformational plans for Southport. Through the Mayoral Towns Fund we have worked on a range of initiatives such as health hubs, cultural initiatives, and pop up shops to create a real vibrant sense of place across the City Region while supporting wellbeing. We are delivering major transport improvements, including Liverpool Central Station, rail improvements linked to the Shakespeare North Theatre development, and the Seacombe landing stage. We approved an additional £120m of projects to improve transport infrastructure across the City Region, fully committing all of our £172.5m Transforming Cities Fund which will modernise and improve the way we travel in and around the city region. We are progressing with our plans for bus reform, while putting considerable effort into decarbonising the whole transport system. We continued to support sector development, approving funding for the Port Accelerator, and LCR Film Fund. This is already making an impact. From a three- part prison drama; Time to a family adventure series The Snow Spider filmed in the Wirral, we are seeing more of the city region, and its talent on our screens. Importantly, we continued our commitment to support good business: Working closely with Culture Liverpool and partners we delivered the first Act of The Good Business Festival to 3,000 digital participants, then the 'Changing Business for Good' event for 300 in-person participants, as part of the Government's Events Research Programme pilot scheme. This was the first major business event to be staged in the UK since the pandemic began, and a historic moment for the city and city region; With Kindred and Power to Change, we launched an investment vehicle for socially trading organisations (STOs). Co-designed by more than 150 STOs, this innovative model will support the growth of our social economy which plays such an important role in creating a fairer, more inclusive city region; We funded the Peepl network to deliver a city region wide pilot to support the viability of local, independent retailers in the hospitality sector by providing affordable alternatives to big-tech solutions and partnering with Peloton to provide low-carbon logistics; and We launched our Fair Employment Charter which sets out good quality employment practices such as fair, healthy, inclusive and just, including support for learning and development, health and safety, recognition of trades unions and contractual terms.
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We are planning for the future and developed an Air Quality Action plan, Climate Action Plan, a digital strategy and cultural compact action plan. These plans will now move into implementation and delivery. Everyone has played their part during an exceptional year of considerable activity. Corporate Services teams have ensured that we have been able to make quicker decisions to respond to the crisis, while retaining the highest standards of good governance and consistently acting in the public interest. They have provided increased level of grant payments to businesses and project sponsors compliantly and managed our risk in extraordinary circumstances. The IT department has ensured that hundreds of staff have the ability to work at home, safely, while continuing to improve our digital capabilities. Our People and Organisation Development function has provided invaluable support to our staff, welcomed new recruits into the organisation, and supported ongoing development. We have continued to tell our story to residents and partners, and have improved our communications with each other, including the launch of Connect Live our online communications hub, a lively mix of corporate news and major projects as well as personal stories and achievements. It has amassed over 36,000 site visits in just six months since it was launched. This level of collaboration and responsiveness stands us in good stead to deliver our collective ambitions for the next three years and beyond. THANK YOU.
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3 THE CONTEXT FOR THE NEXT THREE YEARS
This Corporate Plan covers a three-year period from 2021 to 2024. We are optimistic that this will be a period of recovery and growth while also recognising the uncertainty we face. We still do not know what shape the recovery will take, how people will choose to travel, work, access services and socialise following the easing of restrictions. Businesses are still adapting to the changes imposed by the pandemic, and for some, Brexit has added further challenges. COVID-19 is having a huge impact for many of our residents, some have lost their livelihoods, others have lost loved ones, and the longer-term physical and mental health impacts are still unknown. The roadmap for the easing of restrictions, the extensive vaccine rollout and green shoots of recovery provide optimism that the worst of the pandemic could soon be behind us, but we are under no illusion as to the scale of the challenge ahead. National funding is becoming increasingly competitive and fragmented and there remains a need to ensure a genuinely fair distribution of Government funding to local areas. Local authorities across the Liverpool City Region continue to respond to the challenges of COVID-19 and the recovery effort while facing significant funding gaps. Despite these challenges, our leaders are united in their optimism for our region. Our people and places have significant potential, and collectively we have ambitious plans to transform the city region. We understand the next three years will not be easy, but they will be extremely important as we emerge even more determined for our region’s success and the difference we can make for our residents.
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4 PRIORITY AREAS
The five priority areas that will move us towards our long-term vision and ambition have strong interdependencies between them. It is only through working collaboratively that we will be able to deliver the actions in this plan and improve outcomes across each of these areas. Under each area we identify the new activity the Combined Authority will lead on over the next three years, and the ongoing activity we will continue to deliver. The five areas are: A fairer city region A stronger city region; A cleaner city region; A connected city region; and A vibrant city region. Alongside these areas, the three most pressing challenges we face are recovering from the pandemic, tackling the stark inequalities that the pandemic has not only exposed, but in many cases widened, and addressing the climate emergency. These issues are also at the heart of the plans of each of our constituent Local Authorities, and it will take all of our co-ordinated efforts to address them. They run through our Corporate Plan as three cross-cutting themes; recovery, equality and sustainability. Across all five priorities, we will continue to lobby national government for further devolution, and develop compelling funding bids to secure more funding for the city region. This will be supported by a new Plan for Prosperity which will provide a long- term economic and place-based vision for the city region over the next decade and beyond.
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A FAIRER CITY REGION
Portfolio Holders Education & Skills and Equality & Inclusive Economy and The Third Diversity Sector
We will be recognised as a leader in social innovation and one of the most inclusive economies in the world. We will have taken proactive action to tackle inequality, remove barriers and provide opportunities for all of our residents.
Manifesto Pledge : Young Person’s Guarantee
The city region’s greatest asset is its people, and we can only succeed when every person has the support and opportunity to thrive. A fairer city region is one that unlocks the full potential of all people and places. For the next three years, our focus will be on those who face the greatest barriers. This is reflected in our strategic objectives to: Improve access and pathways to employment for those at greatest risk of long-term worklessness; Increase the range of support available to people experiencing poverty, exclusion and inequality; Improve equality of outcomes across all protected characteristics; Promote and support positive health and wellbeing. To achieve these objectives, the new activity we will deliver by 2024 is: 1- A Young Person’s Guarantee: We will work with local authorities and other partners to support young people out of work for more than six months into a job, training or an apprenticeship opportunity. We will start with a focus on all school leavers, with the ambition of rolling this out to everyone under 25. 2- A homelessness framework: Working with Local Authority partners who lead in this area, we will develop a framework that identifies how the Combined Authority will complement and enhance the range of solutions for people who are homeless or at risk of homelessness. 3- A food poverty reduction strategy: Working with a wide range of partners, we will take a convening role to develop sustainable approaches to addressing food insecurity across the city region. 4- New funding opportunities for Voluntary, Community Faith, and Social enterprise organisations (VCFSE): We will provide more than £1m of funding to support 100 grassroots organisations across every local authority area, including development of a new mayoral charitable fund. 5- A Race Equality programme: We will deliver a £3.6m programme of 16 complementary initiatives to tackle systemic injustice and inequality and drive forward positive change for our Black, Asian and Minority Ethnic employees and residents.
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6- Digital inclusion: We will work with local authority and other public and third sector partners, to support programmes that address digital exclusion. 7- A new Equality Scheme: We will develop a scheme which ensures we promote equality and diversity across the Liverpool City Region and play a leading role as an employer and commissioner of services. 8- A city region approach to mental health: Working with local authority partners who lead in this area, and others, we will continue to support a consistent focus on ensuring that everyone is able to access the mental health support they need. 9- A pipeline of ambitious employment and skills projects: We will develop and deliver a demand-led portfolio of projects, informed by sector boards, to support delivery of our strategic objectives for a fairer city region. As a result of devolution, the Combined Authority is delivering a range of programmes that are already developing a fairer city region. We will continue to work alongside local authorities and other partners to deliver these programmes and maximise the impact they have across the entire city region. These are: 1. Households into work (HiW): We will provide support to over 1,200 of Liverpool City Region’s most economically or socially disadvantaged residents unable to seek or sustain employment by 2024, through our innovative, locally tailored, households model. 2. Skills and apprenticeship hub: We will continue to build on our Be More offer to train 10,000 individuals, and engage with 1,500 employers by 2024. 3. Housing First: To play our part in reducing homelessness, we will provide support to more than 228 individuals who will benefit from the Housing First model, housing 228 by 2024. 4. Adult Education Budget: Commission a minimum of £48m annually (with additional funding available for growth and to respond to in year demand) to meet the learning needs of adults aged 19+ living in the Liverpool City Region.
What will success look like? By 2024 delivery of these activities has: Secured housing for 228 people experiencing homelessness Achieved a 90% rate of tenancy sustainment for Housing First clients Provided more than £1m of additional funding to voluntary, community faith social enterprise sector and supported 100 grassroots organisations Delivered support to 1,250 individuals from ethnic minority backgrounds through the race equality programme Delivered business support to 625 ethnic minority led businesses Delivered support to 500 businesses to improve diversity Trained 10,000 individuals through Be More Engaged 1,500 employers through Be More Provided bespoke employability support to 1,200 individuals Supported 260 individuals enrolled on HiW to move into employment Supported 925 individuals enrolled on HiW to actively seek employment 14 Page 38
Supported 700 individuals enrolled on HiW to move into training or education Commissioned a minimum of £48m of the Adult Education Budget each year so that residents can further their learning, gain qualifications, and enhance their chances of gaining sustainable employment. Our work, and that of our partners, will contribute to creating a city region that has: More young people accessing education or training More young people in employment More people with access to housing who have experienced homelessness or rough sleeping Increased household incomes Improved levels of health and wellbeing Higher levels of employment and earnings for people with protected characteristics More people able to seek and sustain employment More people with qualifications More people taking up apprenticeships
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A STRONGER CITY REGION
Portfolio Holders Inclusive Economy and The Third Business Support Sector
We will be recognised on the international stage as a hub of good business and innovation. We will have attracted investment to continue to develop our unique specialisms and be known for our expertise in science and innovation. There will be significantly more businesses providing good quality jobs for our residents.
Manifesto Pledge: COVID Recovery Fund
Our businesses are the lifeblood of our economy, and for our city region to thrive we need more businesses in the city region that are creating good quality jobs for people in every community. We need a whole ecosystem approach, with strong public-private partnerships to support survival and growth of our current business base, and to attract a diverse mix of businesses, from community organisations to large scale employers to invest in the city region. This is essential for local people to secure good quality jobs as we rebuild and recover. We want a fairer, more inclusive economy. As we continue to respond, we will further embed Community Wealth building as an approach and increase our focus on empowering local communities to enhance the economic resilience of local places. We will maximise the social value we deliver with a focus on supporting good quality employment opportunities, and standing up against bad practice, such as fire and rehire. This is reflected in our strategic objectives to: Strengthen and develop the business support offer and ensure all businesses can adapt, recover and grow in post-COVID, post-Brexit world Further embed Community Wealth Building approaches and increase the amount of social value local businesses deliver Improve the attractiveness of the city region as a place to do business Attract investment in research and development to drive innovation and global competitiveness To achieve these objectives, the new activity we will deliver by 2024 is: 1. Develop and deliver a £150m COVID Recovery fund to create new jobs vitally needed in our region 2. Collaborate with local authorities and other partners to build on existing work to embed a city region wide approach to Community Wealth building which includes plans for a Community Bank. 3. Roll out the Fair Employment Charter, and sign up a minimum of 75 businesses
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4. Develop and embed a Social Value Framework that improves the social, financial and environmental impact of our funding – with an annual report on progress. 5. Deliver the Good Business Festival's main event in 2022, continuing to position the city region at the centre of the global conversation about ethical business. This will be supported with ongoing programmes to ensure that the Festival's impact is lasting and widespread. 6. Fund development of 260k sqft of commercial office, research and laboratory space across the city region 7. Develop a well-networked business ecosystem, ensuring all businesses can access the support they need, and fund six new integrated business support and finance programmes for high growth businesses 8. Develop the pipeline of innovation projects, including the Liverpool City Region Ventures programme and develop the innovation investment plan. We also need to continue to make it easy for businesses to access support and investment, especially during the transition away from European funding streams. We will do this in close partnership with Growth Platform. Working with Growth Platform and sector boards we will continue to: 1. Develop the business case for the LCR Freeport, aligned to our inclusive economy, and net-zero ambitions, and work with partners to provide the necessary support required for its early stages of operations. 2. Develop our inward investment offer to attract more businesses to the city region. 3. Strengthen and develop the existing business support ecosystem and growth hub network to ensure the whole economy is supported. .
What will success look like? By 2024 delivery of these activities has… Supported businesses to adapt, recover and grow Funded 120k sqft of new office space Funded 70k sqft of new R&D space Funded 260k sqft of new commercial space Signed more than 75 businesses up to the Fair Employment Charter Established a Liverpool City Region Community Bank Contributed to increasing the Liverpool City Region’s share of UK FDI projects from 1.5% to 2% Supported Growth Platform’s targeted inward investment marketing activity to generate 400 leads per annum Engaged with 120 businesses who are potential investment prospects in the city region Secured 15 new investment projects per annum led by the Growth Platform in collaboration with the CA Secured funding to operationalise the Freeport
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Our work, and that of our partners, will contribute to creating a city region that has: A larger, more diverse business base More new businesses being created More businesses surviving A greater proportion of high growth firms More good jobs created by our businesses More jobs paying the Real Living Wage A growing social economy Anchor institutions spending more money locally Public and Private sector organisations spending more money on research and development Projected itself on an international stage as the most values-led economy Contribute to increasing the Liverpool City Region’s share of UK FDI projects from 1.5% to 2% Increased the share of R&D investment towards the target of 5% of GVA by 2027
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A CLEANER CITY REGION Portfolio Holders Climate Emergency & Renewable Transport & Air Quality Energy
We will be a net-zero carbon city region, recognised as a pioneer in sustainable approaches to living, travel and doing business. With a relentless focus on addressing the climate emergency we will place ourselves at the forefront of the Green Industrial Revolution. We will become a UK leader in clean energy production, generating power from tidal, offshore wind, and hydrogen.
Manifesto Pledge: Green Industrial Revolution
The climate emergency remains one of the biggest long-term challenges facing the world today. We are determined to do our bit to help tackle it and become an environmentally responsible city region. We will position the city region at the forefront of the Green Industrial Revolution enhancing our competitiveness, creating thousands of green jobs in new industries while having a direct impact on our resident’s health and wellbeing. This will require transformational change across every part of society in how we live, work, and travel and will require innovative solutions to environmental challenges. We recognise the national policy and regulatory context is changing rapidly and we will need to respond to these changes flexibly to address emerging challenges and embrace new opportunities. Ensuring the Liverpool City Region is greener, cleaner, and healthier for all communities is critical. This is reflected in our strategic objectives too: Accelerate plans for a net-zero Carbon economy by 2040 Develop the city region’s renewable energy offer Improve energy efficiency of buildings and houses Improve sustainability of public transport To achieve these objectives, the new activity we will deliver by 2024 is 1. An evidence-based plan to meet the city region’s Net Zero Carbon target 2. A Liverpool City Region housing retrofit programme 3. A city region wide public buildings decarbonisation pipeline and bid for funding to deliver. 4. More heat networks, to provide energy efficient heat and hot water to retrofit into existing neighbourhoods and major new development sites 5. The Green Bus Routes programme to improve bus journeys on key corridors 6. The hydrogen bus project deploying the first fleet of 20 hydrogen buses 7. The full business case for the Mersey Tidal Project, to secure further development funding, and as part of its legacy, develop plans so that people of the city region can have an ownership stake
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8. Explore the potential for the Combined Authority to establish a municipal energy company to retail power from Mersey Tidal Power and other renewable energy sources 9. A pipeline of strategic, and community focussed green infrastructure projects across all local authorities, with funding identified for delivery 10. A plan to increase the number of electric vehicle charging points in the city region 11. Options for a local vehicle scrappage scheme aligned to our air quality action plan 12. The business case for the city region’s production, storage and utilisation of hydrogen 13. New interventions to create more green jobs - working with the Built Environment and Clean Growth sector boards. There are additional plans in place that we must continue to implement in order become a more environmentally responsible city region. These are: 1. The Air Quality Action Plan 2. The LCR Local Cycling and Walking Infrastructure Plan
What will success look like? By 2024 delivery of these activities has… Improved the energy efficiency of at least 1,200 homes across the city region Reduced Carbon emissions across all transport modes Delivered a fleet of a minimum of 20 hydrogen buses Delivered a network of six carbon refuelling stations - hydrogen and electric charging - across the city region Created new heat networks Improved energy efficiency of our public buildings Influenced housing partners to deliver highly efficient new homes to meet the 2025 Future Homes Standard Together, as a result of our work, and that of our partners, the city region has… Increased the number of green jobs by 15% Attracted a further £500m investment in zero carbon infrastructure Reduced Carbon emissions by 35% in line with the Net Zero 2040 Plan Increased levels of regular cycling Increased levels of regular walking Increased the number of accessible cycling and walking routes Improved the efficiency of public buildings by 25% Improved air quality
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A CONNECTED CITY REGION
Portfolio Holders Digital Connectivity & Inclusion Transport & Air Quality
We will connect all our communities to opportunity, physically and digitally. Our public transport system will be reformed, fully integrated, and provide a genuine alternative to the car. We will be the most digitally connected city region in the UK.
Manifesto Pledge: London Style Transport System, Digitally Connected City Region A well-connected city region will ensure opportunities can be felt in every community. Connectivity between people, business and place helps people access education, training employment and other services, helps businesses access customers and move goods around. The pandemic is changing how we live, work, travel, visit and do business. It has severely disrupted the transport system while placing greater emphasis on the need for homes and businesses to have strong digital connectivity, which is accessible to all. The long-term impact on transport demand and travel patterns is still unclear and we need to continue to understand and reflect these changes in our long-term transport plans and ensure we continue to deliver a commercially viable transport system while supporting sustainable forms of travel. This is reflected in our strategic objectives to: Improve digital and physical connectivity between all people and places Enhance the role of transport and infrastructure as strategic enablers to meet the city region’s ambitions Transition towards further devolution of transport and increased public ownership To achieve these objectives, the new activity we will deliver by 2024 is: 1. Install a 212km full-fibre, gigabit-capable network infrastructure giving access to the fastest and most reliable broadband speed across all six areas of our city region, aligned to our digital inclusion ambitions 2. Publish a London Style Transport Plan that integrates our walking, cycling, buses, trains and ferries network. 3. An upgrade to our Smart Ticketing System and implement the transition to tap-in, tap out, contactless ticketing with a daily cap. 4. Progress the programme for Bus reform, publishing a Bus Service Improvement Plan and identifying the preferred option for bus. 5. A Merseryrail for all programme, with completion of a minimum of one new station development
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6. A Local Transport Plan to set out how transport planning will deliver the vision for the city region, and address long term strategic transport challenges 7. Options to transition towards further devolution of transport infrastructure working with Department for Transport, Merseyrail and Network Rail, including commissioning a full review of options for the future operation of the network post-2028. The Combined Authority has responsibility for delivering a multi-modal transport system. We must continue to manage and improve operational transport assets and services and continue to develop and deliver projects and programmes that enhance the transport system. We will do this by: 1. Implementing the Liverpool City Region Digital Strategy & Action Plan with an emphasis on digital inclusion 2. Delivering the Rolling Stock programme to replace the ageing fleet of trains on the Merseyrail Electrics network 3. Distributing all of the committed £172.5m Transforming Cities Fund on projects that improve the transport system 4. Developing a pipeline of £350m of capital transport pipeline schemes capable of securing further funding to invest in our transport system. 5. Digitalising our concessionary travel offer and continuing to provide residents with access to affordable, concessionary travel. 6. Continuing to deliver major interventions to support the longer-term Mersey Ferry Strategy, so that future generations are able to enjoy ferries. 7. Delivering the long-term tunnel strategy to enhance connectivity across the city region
What will success look like? By 2024 delivery of these activities has … Delivered a 212km full-fibre, gigabit-capable digital network Delivered a fleet of 53new trains Developed at least one new station ready for delivery Approved funding for seven new transport projects Commenced delivery of five new transport projects Secured funding for an additional 20 transport projects Our work, and that of our partners, will contribute to creating a city region that has: Increased the number of premises with access to gigabit-capable broadband Improved business density and productivity Increased patronage on public transport to pre-COVID levels Improved satisfaction with public transport Improved affordability of public transport Improved punctuality and reliability of public transport More people with access to faster and more reliable digital connectivity
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A VIBRANT CITY REGION Portfolio Holders Housing & Spatial Framework Culture, Tourism & The Visitor Economy
We will be a great place to live, visit and work. We will continue to invest in our international image brand positioning and developing a world-leading cultural offer. Our city and town centres will be creatively reimagined, alongside the communities who use them, providing opportunities for businesses and supporting the wellbeing of all communities.
Liverpool City Region is a place of diversity and vibrancy. Culture is at the very heart of what makes our city region unique. Our strong cultural offer and vibrant visitor economy has played a truly transformational role as a catalyst for economic development, as a source of well-being, and as a way to strengthen the national and international profile of the city region. Despite this the city region faces place- based challenges which impact on the quality of life for many of our residents. Our Local Authority partners are leading the way in revitalising places, with ambitious plans in every borough. Each has its own, unique sense of identity that contributes to the overall strength and diversity of the city region. We will support these plans, and ensure our own planning, funding and transport system supports our constituent local authorities to achieve their ambitions and create vibrant places across the city region. This is reflected in our strategic objectives to: Ensure people have access to quality, affordable homes Support plans for a vibrant place-offer across the city region Enhance our cultural offer and the city region’s attractiveness as a visitor destination. To achieve these objectives, the new activity we will deliver by 2024 is: 1. Maximise investment of Brownfield Land Fund monies to support a brownfield first approach to new development 2. Provide direct investment and strategic support for delivery of town centre place-making and development programmes 3. Implement the CA response to the Town Centres Commission and deliver three pilot projects
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4. Further develop visitor attractions in our ownership, and support local authority plans to recover the visitor economy 5. Implement the Cultural Compact plan 6. Implement the visitor economy recovery strategy including Destination Marketing plans 7. Publish the Spatial Development Strategy 8. Implement the LCR brand strategy to strengthen the region’s profile nationally and internationally. 9. Develop a pipeline of public land assets used to maximise the positive impact for local people through the work of the Land Commission.
What will success look like? By 2024 delivery of these activities has… Allocated £36m of Brownfield Land funding Enabled delivery of 2,400 new homes Returned visitor numbers on CA owned visitor assets to pre-COVID levels Invested a minimum of £20m in support of Town Centre regeneration Funded new projects to enhance the city region’s cultural offer Our work, and that of our partners, will contribute to creating a city region that has: Increased the number of new, affordable, quality housing Improved the quality and choice of homes Improved access to natural assets Reduced the proportion of LCR’s communities in the 10% most deprived nationally Reduced vacancy rates in our City and town centres Returned to Pre-COVID levels of visitor numbers across the city region Returned to Pre-COVID levels of visitor spend
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5 OUR PARTNERS, PEOPLE AND WAYS OF WORKING
Liverpool City Region Combined Authority is committed to being a high performing organisation, attracting and growing the very best talent and working collaboratively to deliver the best outcomes for all who live and work here. We work in a complex environment and have an important role in working to work with our partners to co-develop shared approaches to transformation and improving outcomes. By working as a whole system, with co-ordinated, collaborative approaches we will maximise the benefits of all of our efforts.
OUR PARTNERS The city region has many opportunities and challenges. To realise our vision, we must continue to work closely with partners, understanding our respective roles in achieving a shared purpose. In everything we do, our success depends on our partners succeeding, and their successes depend on us. The Combined Authority will continue to provide collegiate and collaborative civic leadership building on the strong partnerships with all stakeholders locally, nationally and globally to provide a strong and influential voice for the region’s residents and businesses. We will continue to seek external advice and challenge in all that we do through our relationships with stakeholders, external advisory panels and the Fairness and Social Justice Advisory Board (FASJAB)
Our Local Authorities The Combined Authority formalises joint working and decision-making between our six local authorities to improve economic prosperity. It provides the structure through which we can unlock devolved powers and resources from national government and have greater freedoms and flexibilities at a local level to improve outcomes for our residents. Devolution is most successful when we work together across our six local authorities. Building on longstanding foundations and close partnership working, relationships across all six areas have continued to strengthen over the last 18 months as we have worked together to respond to the pandemic. We have developed a shared training programme and established ways of working and enhanced forums to collaborate effectively. We must continue to work collectively to deliver our shared priorities and objectives, recognising the unique contributions of each local authority and our combined strength as one city region.
Local Enterprise Partnership The Local Enterprise Partnership is a non-voting member of the Combined Authority. As the agreed delivery vehicle for business engagement, growth and investment for the Combined Authority and the LEP, Growth Platform reflects the strategic priorities for the city region and will be commissioned by the CA where appropriate to deliver
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these priorities and, will use its other funded programmes, to support these priorities wherever possible.
Criminal Justice Partners The Police and Crime Commissioner leads the Combined Authority’s portfolio for Criminal Justice. It is anticipated that the priorities in their Police and Crime Plan will support our vision for a fairer, more inclusive economy. We will continue to work in partnership with the Police and Crime Commissioner and support the development of plans to create a safer city region and ensure that future LCRCA policy decisions take account of these priorities.
OUR PEOPLE We cannot deliver this plan without our people. Who we are, how we demonstrate our behaviours and how we work together will determine the successful delivery of this Corporate Plan and the difference we will make across the city region. To make this difference, we need diverse, motivated, high-performing teams that always put the city region first and is representative of the people we serve. We want all our staff to be engaged in our purpose and vision, understand the contribution they can make, and be committed to delivering for our residents. We understand that to do this we need to be clear on our expectations of each other, listen and understand the different views of all who work here, develop the potential of our employees and support their wellbeing. Our organisation’s behaviours will be at the heart of all we do and will shape our future, putting the Liverpool City Region first, acting with respect and being action focused. We will take this opportunity to consider how we can develop as an organisation and redesign how we work, remembering that what we do will set an example for our partners and other businesses in our region.
OUR WAYS OF WORKING The pandemic is forcing many of us to work differently, and while there have been challenges as we have learned to adapt to these changes, there are also many positive learnings we have taken as an organisation We will embed these positives as we develop new ways of working to become a more modern, flexible and agile workplace.
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DEVELOPING OUR ORGANISATION All of this will be enhanced and supported by our ‘Developing our Organisation’ programme. Set up to ensure we realise our vision for the Liverpool City Region and have the optimal arrangements in place to deliver on our vision and corporate plan priorities. The programme will ensure the organisation has the right people, processes and communication and engagement in place, to deliver our ambitions for the 1.6 million residents in the Liverpool City Region.
The programme includes the following workstreams: Leadership & Management Development New Ways of Working Our People Employee Engagement Stakeholder Engagement Managing Performance & Delivery
Leadership & Management
Managing New Ways of Performance Working & Delivery
Developing Our Organisation
Stakeholder Our People Engagement
Employee Engagement
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Over the next three years we will: Embed a whole systems approach, with a focus on our role working with local authorities and other partners to co-develop a shared approach to transformation and improving outcomes for residents. Enhance our approach to stakeholder engagement using the strength of our partners to deliver on shared objectives Develop and implement a new People Strategy to ensure we have the right people, skills and processes in place across the organisation. Deliver a New Ways of Working programme Deliver a Leadership Development programme for the organisation and explore opportunities for wider LCR leadership approaches Implement a revised approach to performance and programme delivery Implement an internal and external communications strategy
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6 ENABLING DELIVERY
OUR FUNDING Our budget for the financial year 2020/21 has been set. To deliver this plan we will agree and implement a medium term financial plan aligned to our priorities and deliverables. Where our Money Comes from
Where our Money goes
OUR DELIVERY ARRANGEMENTS We will deliver this corporate plan in partnership with our constituent local authorities and partner organisations, including the LCR Local Enterprise Partnership and Growth Platform.
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The plan will be underpinned by a detailed implementation plan to set out resources and timescales for delivery. The implementation plan will be fully aligned to a new medium-term financial plan which will be presented to the Combined Authority in the Autumn for approval to ensure our resources align to our corporate plan priorities. We will establish thematic delivery boards to drive delivery of the Corporate Plan. Each board will have a senior accountable lead, responsible for meeting the deliverables set out in this plan. They will report on progress regularly against a new performance management framework.
OUR GOVERNANCE The Combined Authority is a politically led organisation, controlled by the Liverpool City Region Metro Mayor, the local authority Leaders and Mayor who each hold portfolios outlined at the start of this plan. The Liverpool City Region’s Police and Crime Commissioner is a co-opted member of the Combined Authority and leads the Criminal Justice Portfolio. The Chair of the Transport Committee is also a co-opted member and leads the Transport and Air Quality Portfolio for the Liverpool City Region. The Transport Committee undertakes transport and travel policy functions on behalf of the Combined Authority and oversees the work of the Merseytravel Executive. Good governance will continue to be key to the delivery of our objectives. We have robust governance arrangements in place to ensure effective delivery, risk management, and to ensure public money is used effectively and appropriately and is properly accounted for. These arrangements are detailed in our constitution and our published Assurance Frameworks. Assurance Frameworks are the documents we agree with Government about how we use money they have provided to us. Scrutiny, challenge and oversight are provided by the Overview & Scrutiny Committee and the Audit and Governance Committee. These Committees have important roles in reviewing and scrutinising our plans, priorities, governance arrangements and finances. The Committees will also have a role in overseeing delivery of this plan. We will deliver openly and transparently with regular reports to the Combined Authority and Overview and Scrutiny Committee to outline progress. The Combined Authority recognises the importance of effective risk management as a key element of its performance and governance framework. The Corporate Risk Register will contain key risks and opportunities related to achieving the Corporate Plan priorities and will be subject to regular review. During the life of this Corporate Plan new Portfolio meetings are to be established. These meetings will be led by each of the Portfolio Holders nominated by the Metro Mayor and confirmed by the Combined Authority. Such meetings will also ensure that there is wider member engagement from our constituent councils in the work of the Portfolio.
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LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 23 July 2021
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: No
KEY DECISION Yes
REPORT OF THE DIRECTOR OF CORPORATE SERVICES
COMBINED AUTHORITY REVENUE AND CAPITAL OUTTURN REPORT 2020/21
1. PURPOSE OF THE REPORT
1.1 The purpose of this report is to provide members of the Liverpool City Region Combined Authority with the unaudited financial position at the end of 2020/21 in respect of revenue and capital activity.
2. RECOMMENDATIONS
2.1 Liverpool City Region Combined Authority is recommended to:-
(a) note the contents of the Combined Authority Financial Outturn Report; (b) approve the revenue and capital outturn position for the financial year 2020/21; (c) approve the earmarking of underspends as detailed at 4.1.6 for inclusion in a revised 2021/22 revenue budget; (d) approve the revised revenue budget as detailed at 4.1.8; (e) approve the revised capital programme as detailed at 4.2.7; (f) approve the Treasury Management Outturn report appended at Appendix Two; and (g) note that the financial information presented in this report remains unaudited pending the outcome of the 2020/21 Statement of Accounts audit.
3. BACKGROUND
3.1 The Combined Authority established its budget for 2020/21 at its meeting of 24 January 2020. The budget for 2020/21 incorporated the Mayoral Precept which was introduced to cover the costs of the Mayoral Combined Authority in accordance with the Combined Authorities (Finance) Order 2017.
Page 55 3.2 The financial performance of the Combined Authority is shown in Section 4 of this report.
3.3 The Combined Authority has delegated detailed financial and performance monitoring with respect to transport activities to the Transport Committee, however all strategic financial decisions remain with the Combined Authority.
3.4 The Transport Committee will receive detailed financial monitoring information regarding transport activities and Merseytravel budget performance and a summary of this in provided in this report.
4. FINANCIAL REPFORMANCE
4.1 Revenue Performance
4.1.1 The table below provides a summary of the outturn performance for the Combined Authority against its revenue budget for 2020/21.
Table 1 – Liverpool City Region Combined Authority Financial Outturn 2020/21
Revised Outturn Variance to Budget 2020/21 Budget 2020/21 £’000 £’000 £’000 Merseytravel grant 94,034 94,034 0 Tunnels operations grant 21,080 19,887 1,193 CA running costs 16,967 13,064 3,903 Net debt management cost 20,388 17,419 2,969 Halton Differential Levy 3,200 3,200 0 Other Grants to Merseytravel 11,483 6,023 5,460 SIF Revenue Funded Schemes 13,139 9,995 3,144 Total Expenditure 180,291 163,622 16,669 Funded by: Levy (97,404) (97,404) 0 Tunnels tolls (27,640) (26,591) (1,049) Mayoral Capacity Grant (1,000) (1,000) 0 Mayoral Precept (7,839) (7,849) 10 Halton Differential Levy (3,200) (3,200) 0 Application of Specific Grants & (18,387) (17,334) (1,053) Other Income Transfer to/ (from) reserves (24,821) (10,244) (14,577) Total Income (180,291) (163,622) (16,669) Net Budget 0 0 0
Page 56 4.1.2 The table below provides a high level overview of the key areas of underspend.
Table 2 - Major Variances
Area Variance Explanation £’000 CA Running Costs 3,903 £1,357k underspend on Mayoral Priorities (see 4.1.7 for more detail) £720k additional income in Commercial Development from loan fees and secondment income £427k underspend on intragroup recharges £341k additional skills grant Mersey Tunnels Grant 1,193 £617k underspend on capital works and maintenance £312k additional ancillary income £363k reduced recharge for support costs Other Grants to Merseytravel 5,460 Underspend due to capital spend and thus requirement for grant from the CA being lower than envisaged Treasury Management Cost 2,969 £1,500k underspend on interest payable. Favourable cashflow has allowed the organisation to defer new borrowing. £1,365k additional income from better than anticipated returns due to higher cash holdings and additional income from loans SIF Revenue Scheme 3,144 Activity has been impacted by the Covid 19 pandemic and consequently spend profiles on key programmes has slipped.
4.1.3 As a consequence of the underspends on revenue activity, the requirement for application of specific grants and application of reserves has been reduced. As an element of this spend relates to funding for multi-year programmes, there will be a need to recast the 2021/22 budget to take account of this expenditure and associated use of grant and reserves in subsequent financial years.
4.1.4 The table above provides an overall view of the financial performance for the Authority for both its transport and non-transport related activities. The tables below provides a more detailed analysis of the Authority‟s non-transport related services performance against budget.
Table 3 – CA Non Transport Services Financial Outturn 2020/21
Budget Outturn Under/ (Over) Spend £’000 £’000 £’000 Corporate Management 802 788 14 Mayoral Priorities Fund 3,732 2,531 1,201 Page 57 Commercial Development and 1,803 1,054 749 Investment Policy and Strategic Commissioning 4,699 3,634 1,065 Corporate Development and Delivery 158 253 (95) Corporate Services 2,869 2,309 560 Communications and Stakeholder 2,119 1,777 342 Management Mayoral Programme Delivery 785 717 68 Total Expenditure 16,967 13,064 3,903
4.1.5 A significant proportion of the Authority‟s non-transport services are funded through the Mayoral Precept to cover the costs associated with dispensing with the Mayor‟s powers under the Combined Authority Finance Order (2017). Under this order there is a requirement for the establishment of a Mayoral budget and the table below details the Mayoral budget and outturn for the service funded by the precept.
Table 4 – Mayoral Budget and Outturn Spend
Budget Outturn Under/ (Over) Spend £’000 £’000 £’000 Mayoral Office and Political Support 802 802 0 Tidal 1,527 716 811 Digital 670 694 (24) Environmental Action Fund 500 174 326 Transport Priorities 630 363 267 Borough of Culture 398 292 106 Policy and Future Devolution 779 779 0 Employment and Skills 533 426 107 Housing and Spatial Planning 439 309 130 Commercial Development and 684 684 0 Investment Chief Executive‟s Office 134 134 0 Mayoral Programme Delivery 684 717 (33) Corporate Services 683 683 0 Communications and Stakeholder 600 600 0 Engagement Total Expenditure 9,063 7,373 1,690
4.1.6 As detailed in the table above, there is an underspend of £1,690k against agreed budget for 2020/21. Certain elements of the underspend relate to slippage on expenditure profile against key mayoral priority areas; tidal power (£811k), culture (£90k) and the environmental action fund (£326k) and Housing and Spatial Planning (£130k). To support the delivery of mayoral ambitions through into 2022/23, it is proposed that £1,243k is transferred to reserves and earmarked for inclusion in a revised 2022/23 budget.
4.1.7 The Authority‟s transport activities operated by Merseytravel as the delivery body have been managed within the funding provided to them. Detailed outturn on transport spend is reported through the Transport Committee, to whom the
Page 58 Combined Authority has delegated responsibility for monitoring financial performance.
4.1.8 The table below provides a high level revised budget for 2021/22.
Table 5 Revised Revenue Budget 2021/22
Allowed Revised Variance to Budget Budget Allowed 2021/22 2021/22 Budget £’000 £’000 £’000 Merseytravel grants 96,040 96,040 0 Tunnels operations grant 23,080 23,080 0 CA running costs 20,626 27,694 (7,068) Net debt management cost 13,348 13,348 0 Halton Differential Levy 3,200 3,200 0 SIF Revenue Funded Schemes 10,033 10,033 0 Total Expenditure 166,327 173,395 (7,068) Funded by: Levy (97,404) (97,404) 0 Tunnels tolls (35,000) (35,000) 0 Mayoral Capacity Grant (1,000) (1,000) 0 Mayoral Precept (7,630) (7,630) 0 Halton Differential Levy (3,200) (3,200) 0 Application of Specific Grants & (14,053) (19,653) 5,600 Other Income Transfer to/ (from) reserves (8,040) (9,508) 1,468 Total Income (166,327) (173,395) 7,068 Net Budget 0 0 0
4.1.9 The main changes included within the budget above relate to the following:
An increase in the Tidal budget of £811k to take account of the underspend in 2020/21; An increase in the Culture budget of £90k to take account of the underspend in 2020/21; An increase to the Mayoral Priorities budget of £326k to take account of the underspend on the Environmental Action fund in 2020/21; An increase in the Housing and Spatial Planning budget of £130k to take account of the underspend; An increase of £111k to the Strategic Delivery directorate budget to take account of the costs associated with the addition of two equalities posts to support the mayoral commitment to tackle inequality; An increase of £5,600k expenditure in the Strategic Delivery directorate to support pre development activity in respect of the transport pipeline work, and specifically in support of the development for schemes to be funded through the forthcoming Intra Cities Fund; and
Page 59 An increase of £5,600k specific grant income received from the DfT to support readiness for the Intra Cities Fund. These funds were notified after the 2021/22 budget setting process so are included in a revised budget for completeness.
4.2 Liverpool City Region Combined Authority Capital Investment Programme
4.2.1 The table below details the budgeted spend and outturn for the financial year 2020/21 in respect of the Authority‟s capital investment programme. Appendix One provides a detailed analysis of spend against project budget for the year 2020/21 at an individual project level.
Table 6 Capital Outturn and Funding
Revised Outturn Variance Budget £’000 £’000 £’000 LGF schemes 67,733 68,774 (1,041) Gain Share schemes 52,458 9,847 42,611 TCF schemes 30,439 17,411 13,028 Brownfield Housing 0 9,267 (9,267) GBF schemes 0 2,593 (2,593) Transport single capital pot 26,500 41,500 (15,000) Merseytravel capital expenditure* 112,779 71,677 41,102 Active Travel 0 5,957 0 Total 289,909 227,036 62,873 Funded by: Grants and Contributions (173,956) (185,459) 11,503 Borrowing (98,748) (30,846) (67,902) Revenue Contribution (6,205) (5,788) (417) Use of Reserves (11,000) (4,943) (6,057) Total (289,909) (227,036) (62,873) *Merseytravel capital spend has been adjusted to exclude spend counted as LGF, TCF and Single Capital Pot schemes
4.2.2 A detailed analysis of capital spend against budget for all SIF schemes is appended to this report at Appendix One.
4.2.3 A significant proportion of the on Merseytravel capital relates to slippage on the Rolling Stock programme which, as a consequence of the Covid 19 pandemic has been significantly disrupted with production and testing being delayed due to lockdowns across the UK and Europe. An exercise is currently underway to revise the capital spend profile for 2021/22.
4.2.4 The underspend against Gain Share has occurred as a consequence of the application of a single pot approach whereby certain schemes with more advanced disbursement have been rebadged as LGF to help ensure that the full allocation of this funding was achieved in line with the hard deadline of 31 March 2021.
4.2.5 The underspend against the TCF budget relates to slippage on key schemes including Seacombe landing stages, smart ticketing and Headbolt Lane which will be re profiled into a revised capital spend profile for 2021/22.
Page 60
4.2.6 Where practicable, utilisation of grants to fund capital spend in year has been maximised. The advantage of this approach is that it allows the Authority to defer the need to borrow and thus avoid incurring debt servicing costs.
4.2.7 The table below provides a high level revised capital programme for 2021/22.
Table 7 Revised Capital programme 2021/22 and Funding
Allowed Revised Variance Budget Budget £’000 £’000 £’000 Gain Share projects 55,805 68,212 (12,407) Transforming Cities projects 80,830 46,936 33,894 Brownfield projects 15,330 23,000 (7,670) Get Building Fund projects 22,352 23,407 (1,055) Transport capital pot projects 26,500 28,766 (2,266) Transport Scheme Development 9,731 0 9,731 Transport Pipeline Development 4,515 8,605 (4,090) Infrastructure Fund 15,000 15,000 0 Merseytravel capital expenditure* 111,265 120,333 (9,068) Active Travel 0 2,285 (2,285) Green Homes Grants 0 52,550 (52,550) Total 331,596 389,094 (57,498) Funded by: Grant Funding (182,903) (238,607) 55,704 Borrowing (134,074) (132,016) (2,058) Revenue Contribution (7,480) (7,480) 0 Use of Reserves (7,140) (10,992) 3,852 Total (331,596) (389,094) 57,498
4.2.8 Transport scheme development lines have been amended to reflect the projected spend on schemes sponsored by the Combined Authority and that which will be delivered by Merseytravel. The latter has been incorporated into the Merseytravel capital programme.
4.2.9 The increase in use of reserves of £3.85m relates to the adjustments to the Merseytravel capital programme which is being funded from Merseytravel reserves.
Page 61 4.3 Financial Risks and Reserves
4.3.1 Taking account of the outturn position on capital and revenue, the reserves position for the Combined Authority as at 31 March 2021 is detailed below.
Table 8 Reserves as at 31 March 2021
Balance as at Utilisation in Balance at 31 1 April 2020 Year March 2021 £’000 £’000 £’000 Capital Reserves 5,745 3,689 9,434 Earmarked Reserves 165,646 (10,223) 155,423 General Fund/ Revenue Balances 4,020 0 4,020 Total 175,411 (6,534) 168,877
4.3.2 The increase in capital reserves relates to receipts generated by the repayment of a loan made to a third party through the SIF. In accordance with proper accounting practice, these receipts must be treated as capital receipts. These receipts will be set aside to fund future capital investment.
4.3.2 Whilst the quantum of reserves looks significant, much of these are earmarked for specific purposes; 24% of the balance relates to reserves held for the Rolling Stock project, 21% is ring fenced for Chrysalis and 6% set aside as capital receipts. Of the remaining balance 37% relates to reserves for transport capital financing, including tunnels and rolling stock.
4.3.3 Of the total reserves held by the Combined Authority general revenue balances, including the General Fund amount to 2% of total reserves held, which means that the Authority‟s ability to address pressures that do not relate directly to an area of specific provision, is severely constrained. Whilst sound processes and strong financial management will help mitigate the risk in this area, the Authority‟s ability to accommodate additional financial shocks and burdens is limited.
4.3.4 Taking account of the revised revenue and capital budgets for 2021/22, the table below details the projected reserves position as at 31 March 2022.
Table 8 Reserves as at 31 March 2022
Balance as at Utilisation in Balance at 31 1 April 2021 Year March 2022 £’000 £’000 £’000 Capital Reserves 9,434 0 9,434 Earmarked Reserves 155,419 (16,648) 138,771 General Fund/ Revenue Balances 4,020 0 4,020 Total 168,873 (16,648) 152,225
Page 62
4.3.5 There is a significant reliance on the application of reserves to balance the revenue and capital budgets for the next financial year, primarily as a result of transport related capital and pre development spend and in support of the bus business case. Whilst the quantum of transport backed reserves permits this level of investment, reduced tolls income means that these reserves are currently not being replenished. As this represents an unsustainable position, over the medium term a different strategy will need to be adopted to ensure a sustainable approach to investment is identified.
4.3.6 Notwithstanding the proposed application of reserves over the next financial year, the Combined Authority faces some significant financial risks over the medium term, primarily as a consequence of its transport activities. Whilst it is currently forecast that Merseytravel will be able to meet is service and financial obligations from within the resources approved at budget setting, due to the uncertainty around tunnel tolls, any further reduction to tunnels income level will directly impact on the Authority‟s ability to balance its budget. Given the reduction to patronage through the tunnel there is a risk that the currently anticipated levels of income from tunnel tolls will not be achieved. To the extent that this this occurs, further savings will need to be identified to balance the budget or further utilisation of reserves will need to be identified.
5. RESOURCE IMPLICATIONS
5.1 Financial
The financial implications of the report are detailed above.
5.2 Human Resources
None as a direct result of this report.
5.3 Physical Assets
None as a direct result of this report.
5.4 Information Technology
None as a direct result of this report.
6. RISKS AND MITIGATION
None as a direct result of this report.
7. EQUALITY AND DIVERSITY IMPLICATIONS
None as a direct result of this report.
Page 63 8. COMMUNICATION ISSUES
None as a direct result of this report.
9. CONCLUSION
9.1 The Liverpool City Region Combined Authority has performed within its revised budget allocation for 2020/21. As previously reported, there has been an underspend on certain elements of Combined Authority budget, specifically in respect of debt servicing and certain programme costs.
9.2 Slippage on the capital programme primarily relates to the Rolling Stock and SIF schemes. As much of this is true slippage these have been factored into a revised capital programme. Given the scale and nature of the task required to reprofile Rolling Stock spend, this will be re profiled into a revised capital programme which will be submitted to the Combined Authority for consideration as part of quarter one monitoring.
JOHN FOGARTY Execurtive Director of Corporate Services
Contact Officers:- Sarah Johnston, Assistant Director of Finance, (0151 330 1015) Jo Sawyer, Corporate Communications Manager, (0151 330 1129)
Appendices:- Appendix One – Detailed Capital Outturn Appendix Two – Treasury Management Outturn Report
Page 64
APPENDIX TWO
COMBINED AUTHORITY TREASURY MANAGEMENT OUTTURN REPORT: 2020/21
1. PURPOSE OF THE REPORT
1.1 The purpose of this report is to report to members of the Combined Authority on the treasury management outturn position for financial year 2020/21 and its performance against its agreed Treasury Management Strategy.
2. RECOMMENDATIONS
2.1 Liverpool City Region Combined Authority is recommended to:-
a) note the contents of this report; b) approve the Treasury Management Outturn Report for 2020/21; and c) approve the Treasury Management Limits and Prudential Indicators.
3. BACKGROUND
3.1 The Combined Authority is required by regulation issued under the Local Government Act 2003 to produce an annual review of treasury management activity during the year together with information on the outturn prudential and treasury indicators for the financial year. This report meets the requirements of the CIPFA Code of Practice on Treasury Management (the Code) and the Prudential Code for Capital Finance in Local Authorities.
3.2 During 2020/21 the Combined Authority has reported on treasury management activity as follows:-
An annual treasury management strategy statement approved by the Combined Authority in January 2020 as part of the budget setting report which was subsequently revised in July 2020 to take account of the impact of COVID19: A mid-year treasury management report which was reported to the Combined Authority in December 2020; and The treasury management outturn report (this report).
3.3 Members have responsibility for the review and scrutiny of the Combined Authority‟s treasury management policies and activities. In this respect this report is important as it provides detail of the treasury management outturn activity and highlights compliance with the policies previously approved by Members.
4. TREASURY MANAGEMENT OUTTURN
4.1 This report looks back over the Combined Authority‟s treasury management activity in light of its approved strategy for 2020/21 and covers the following areas: Page 65
Capital activity during the year; Impact of this activity on the Combined Authority‟s underlying indebtedness, (the Capital Financing Requirement); The actual prudential and treasury indicators; Overall treasury position identifying how the Combined Authority has borrowed in relation to this indebtedness, and the impact on investment balances; Summary of interest rate movements in the year; Detailed debt activity; and Detailed investment activity.
Capital Expenditure and Financing
4.2 The Combined Authority undertakes capital expenditure on long-term assets. These activities may either be: Financed immediately through the application of capital or revenue resources (capital receipts, capital grants, revenue contributions etc.), which has no resultant impact on the Combined Authority‟s borrowing need; or If insufficient financing is available, or a decision is taken not to apply resources, the capital expenditure will give rise to a borrowing need.
4.3 The actual capital expenditure forms one of the required prudential indicators. The table below shows the actual capital expenditure and how this was financed.
2019/20 2020/21 2020/21 Actual Budget Actual £‟m £‟m £‟m Capital expenditure 231.092 375.970 231.060 Financed in year 86.859 180.480 194.715 Unfinanced capital expenditure 144.233 195.490 36.345
The Combined Authority’s Overall Borrowing Need
4.4 The Combined Authority‟s underlying need to borrow for capital expenditure is termed the Capital Financing Requirement (CFR). This figure is a gauge of the Combined Authority‟s indebtedness. The CFR results from the capital activity of the Combined Authority and resources used to pay for the capital spend. It represents the 2020/21 unfinanced capital expenditure (see above table), and prior years‟ net or unfinanced capital expenditure which has not yet been paid for by revenue or other resources.
4.5 Part of the Combined Authority‟s treasury activities is to address the funding requirements for this borrowing need. Depending on the capital expenditure programme, the treasury service organises the Combined Authority‟s cash position to ensure that sufficient cash is available to meet the capital plans and cash flow requirements. This may be sourced through borrowing from external bodies, (such
Page 66 as the Government, through the Public Works Loan Board [PWLB], or the money markets), or utilising temporary cash resources within the Combined Authority.
4.6 The Combined Authority‟s underlying borrowing need (CFR) is not allowed to rise indefinitely. Statutory controls are in place to ensure that capital assets are broadly charged to revenue over the life of the asset. The Combined Authority is required to make an annual revenue charge, called the Minimum Revenue Provision – MRP, to reduce the CFR. This is effectively a repayment of the borrowing need. This differs from the treasury management arrangements which ensure that cash is available to meet capital commitments. External debt can also be borrowed or repaid at any time, but this does not change the CFR. The total CFR can also be reduced by:
the application of additional capital financing resources, (such as unapplied capital receipts); or charging more than the statutory revenue charge (MRP) each year through a Voluntary Revenue Provision (VRP).
4.7 The Combined Authority‟s 2020/21 MRP Policy, (as required by MHCLG Guidance), was approved as part of the Treasury Management Strategy Report for 2020/21 on 24 January 2020.
4.8 The Combined Authority‟s CFR for the year is shown below and represents a key prudential indicator.
31 March 31 March 31 March 2020 2021 2021 CFR Actual Budget Actual £‟m £‟m £‟m Opening balance 288.938 424.98 425.157 Add unfinanced capital 144.233 195.49 36,345 expenditure (as above) Less MRP/VRP* (8.014) (7.568) (7.568) Less PFI & finance lease - - - repayments Closing balance 425.157 612.902 453.934
4.9 Borrowing activity is constrained by prudential indicators for gross borrowing and the CFR, and by the authorised limit.
4.10 In order to ensure that borrowing levels are prudent over the medium term and only for a capital purpose, the Combined Authority should ensure that its gross external borrowing does not, except in the short term, exceed the total of the capital financing requirement in the preceding year (2020/21) plus the estimates of any additional capital financing requirement for the current (2021/22) and next two financial years. This essentially means that the Combined Authority is not borrowing to support revenue expenditure. This indicator allowed the Combined Authority some flexibility to borrow in advance of its immediate capital needs in 2020/21. The table below highlights the Combined Authority‟s gross borrowing Page 67 position against the CFR. The Combined Authority has complied with this prudential indicator.
31 March 31 March 31 March 2020 2021 2021 Actual Budget Actual £‟m £‟m £‟m Gross borrowing position 357.474 432.296 340.577 CFR 425.157 612.902 453.934 (Under) / over funding of 67.683 180.607 113.357 CFR
The authorised limit - the authorised limit is the “affordable borrowing limit” required by s3 of the Local Government Act 2003. Once this has been set, the Combined Authority does not have the power to borrow above this level. The table below demonstrates that during 2020/21 the Combined Authority has maintained gross borrowing within its authorised limit.
The operational boundary – the operational boundary is the expected borrowing position of the Combined Authority during the year. Periods where the actual position is either below or over the boundary are acceptable subject to the authorised limit not being breached.
Actual financing costs as a proportion of net revenue stream - this indicator identifies the trend in the cost of capital, (borrowing and other long term obligation costs net of investment income), against the net revenue stream.
2020/21
£‟m Authorised limit 453.93 Operational boundary 419.93 Financing costs as a proportion of net revenue 16.2% stream
Treasury Position as at 31 March 2021
4.11 The Combined Authority‟s treasury management debt and investment position is organised by the treasury management service in order to ensure adequate liquidity for revenue and capital activities, security for investments and to manage risks within all treasury management activities. Procedures and controls to achieve these objectives are well established both through member reporting detailed in the summary, and through officer activity detailed in the Combined Authority‟s Treasury Management Practices. At the end of 2020/21 the Combined Authority„s treasury, position was as follows:
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Principal Rate/ Average Principal Average As at Return Life/ As at Rate/ Life/ 31/03/20 Years 31/03/21 Return Years £‟m £‟m PWLB debt 156.872 5.48 148.480 5.40 EIB debt 186.872 1.521 29.71 180.656 1.521 28.71 Transferred debt 13.730 4.780 6.00 11.442 5.02 5.00 Total debt 357.474 340.577 CFR 425.157 453.934 Under/ (Over) Borrowing 67.683 113.357 Total Investments 274.963 333.253 Net Debt 82.511 7.324
The maturity structure of the debt portfolio was as follows:
31 March 31 March 2020 2021 Actual Actual £‟m £‟m Under 12 months 16.907 16.965 12 months and within 24 months 16.962 15.739 24 months and within 5 years 46.699 45.991 5 years and within 10 years 59.212 52.085 10 years and over 217.720 209.797
Actual Actual Actual Actual 31.3.20 31.3.20 31.3.21 31.3.21 INVESTMENT PORTFOLIO £000 % £000 %
Treasury investments Banks 158,062 57.9% 188,030 56.5% Building Societies – rated 10,000 3.6% - - Building Societies – unrated - - - - Local authorities 85,000 31.2% 115,000 34.5% DMADF (H M Treasury) - - - - CD‟s 20,005 7.3% 30,004 9% TOTAL TREASURY 100% 100% 273,067 333,034 INVESTMENTS
Actual Actual Actual Actual 31.3.20 31.3.20 31.3.21 31.3.21 INVESTMENT PORTFOLIO £000 % £000 %
Non Treasury investments Third Party Loans 7,130 72.17% 36,385 93.4%
Page 69 Subsidiaries 2,750 27.83% 2,569 6.6% Companies - - - - Property - - - - TOTAL NON TREASURY 100% 100% 9,880 38,954 INVESTMENTS
4.12 The maturity structure of the investment portfolio was as follows.
Actual Actual 31.3.20 31.3.21 INVESTMENT MATURITY PROFILE £000 £000
Instant Access 32,869 73,030
Maturing within 1 month 19,000 10,000 Maturing within 3 months 95,003 70,001 Maturing within 6 months 76,003 135,003
Maturing within 12 months 50,000 45,000 TOTAL 273,067 333,034
The Strategy for 2020/21
4.13 The 2020/21 Treasury Management Strategy was predicated on investment returns remaining subdued during the year. Investment returns which had been low during 2019/20, plunged during 2020/21 to near zero or even into negative territory. Most local authority lending managed to avoid negative rates and one feature of the year was the growth of inter local authority lending.
4.14 The expectation for interest rates within the treasury management strategy for 2020/21 was that Bank Rate would continue at the start of the year at 0.75 % before rising to end 2022/23 at 1.25%. This forecast was invalidated by the Covid-19 pandemic bursting onto the scene in March 2020 which caused the Monetary Policy Committee to cut Bank Rate in March, first to 0.25% and then to 0.10%, in order to counter the hugely negative impact of the national lockdown on large swathes of the economy. The Bank of England and the Government also introduced new programmes of supplying the banking system and the economy with massive amounts of cheap credit so that banks could help cash-starved businesses to survive the lockdown. The Government also supplied huge amounts of finance to local authorities to pass on to businesses. This meant that for most of the year there was much more liquidity in financial markets than there was demand to borrow, with the consequent effect that investment earnings rates plummeted.
Borrowing Strategy and Control of Interest Rates
4.15 During 2020/21, the Combined Authority maintained an under-borrowed position. This meant that the capital borrowing need, (the Capital Financing Requirement), was not fully funded with loan debt, as cash supporting the Combined Authority‟s reserves, balances and cash flow was used as an interim measure. This strategy Page 70 was prudent as investment returns were low and minimising counterparty risk on placing investments also needed to be considered.
4.16 The policy of avoiding new borrowing by running down spare cash balances, has served well over the last few years. However, this was kept under review to avoid incurring higher borrowing costs in the future when this authority may not be able to avoid new borrowing to finance capital expenditure and/or the refinancing of maturing debt.
4.17 PWLB rates are based on, and are determined by, gilt (UK Government bonds) yields through H.M.Treasury determining a specified margin to add to gilt yields. The main influences on gilt yields are Bank Rate, inflation expectations and movements in US treasury yields. Inflation targeting by the major central banks has been successful over the last 30 years in lowering inflation and the real equilibrium rate for central rates has fallen considerably due to the high level of borrowing by consumers: this means that central banks do not need to raise rates as much now to have a major impact on consumer spending, inflation, etc. This has pulled down the overall level of interest rates and bond yields in financial markets over the last 30 years 4.18 We have seen over the last two years, many bond yields up to 10 years in the Eurozone turn negative on expectations that the EU would struggle to get growth rates and inflation up from low levels. In addition, there has, at times, been an inversion of bond yields in the US whereby 10 year yields have fallen below shorter term yields. In the past, this has been a precursor of a recession. 4.19 Gilt yields fell sharply from the start of 2020 and then spiked up during a financial markets melt down in March caused by the pandemic hitting western countries; this was rapidly countered by central banks flooding the markets with liquidity. While US treasury yields do exert influence on UK gilt yields so that the two often move in tandem, they have diverged during the first three quarters of 2020/21 but then converged in the final quarter. Expectations of economic recovery started earlier in the US than the UK but once the UK vaccination programme started making rapid progress in the new year of 2021, gilt yields and gilt yields and PWLB rates started rising sharply as confidence in economic recovery rebounded. 4.20 HM Treasury imposed two changes of margins over gilt yields for PWLB rates in 2019/20 without any prior warning. The first took place on 9th October 2019, adding an additional 1% margin over gilts to all PWLB period rates. That increase was then, at least partially, reversed for some forms of borrowing on 11th March 2020, but not for mainstream non-HRA capital schemes. A consultation was then held with local authorities and on 25th November 2020, the Chancellor announced the conclusion to the review of margins over gilt yields for PWLB rates; the standard and certainty margins were reduced by 1% but a prohibition was introduced to deny access to borrowing from the PWLB for any local authority which had purchase of assets for yield in its three year capital programme. The new margins over gilt yields are as follows: -.
PWLB Standard Rate is gilt plus 100 basis points (G+100bps)
PWLB Certainty Rate is gilt plus 80 basis points (G+80bps)
Local Infrastructure Rate is gilt plus 60bps (G+60bps)
Page 71 4.21 There is likely to be only a gentle rise in gilt yields and PWLB rates over the next three years as Bank Rate is not forecast to rise from 0.10% by March 2024 as the Bank of England has clearly stated that it will not raise rates until inflation is sustainably above its target of 2%; this sets a high bar for Bank Rate to start rising. Borrowing Outturn
4.22 Due to the level of capital investment in the Rolling Stock project during the year, the Combined Authority was expected to have a need to borrow during 2020/21. Having secured access to EIB funding, it was envisaged that the borrowing requirement would be fulfilled through utilising EIB and PWLB borrowing over a period of 4 years as the capital investment progressed. As a consequence of favourable cashflow during the year the Combined Authority was successfully able to defer its need to borrow in 2020/21.
4.23 The Combined Authority has adopted a very prudent approach to borrowing and not borrowed in advance of need. Due to the differential between new borrowing and repayment rates, there was no rescheduling of existing PWLB debt during the year.
Investment Outturn
4.24 The Combined Authority‟s investment policy is governed by MHCLG investment guidance, which has been implemented in the annual investment strategy approved by the Combined Authority on 28 July 2020. This policy sets out the approach for choosing investment counterparties. The investment activity during the year conformed to the approved strategy, and the Combined Authority had no liquidity difficulties.
4.25 As detailed in the Annual Investment Strategy, the Combined Authority‟s main objective for the management of surplus funds is security of capital and liquidity. The Combined Authority‟s investment dealings during the year have been made in accordance with this. The practical impact of adherence with this policy has been that the Combined Authority‟s investments have been limited to a number of high quality counterparties.
4.26 During the financial year 2020/21 the Combined Authority‟s weekly investments have ranged between £267.3m and £417.28m with an average balance being held of £356.26m. The average balances have been significantly higher than they were in 2019/20 as a result of slippage on significant capital plans such as the rolling stock replacement programme, grant receipts in advance received during the year increased by £116.5m and the EIB borrowing of £190m in December 2019 significantly increased cash levels. At the 31 March 2021, the Combined Authority had investments (including accrued interest) totalling £333.25m.
4.27 The Combined Authority earned interest on surplus cash balances of £1.5m for the year. This compared with a budget assumption of £1m interest being earned on cash balances. The outperformance of budget is a consequence of the Combined Authority having more favourable cash balances throughout the year than forecast at budget setting and from successfully securing better rates of return from high quality counterparties throughout the year.
4.28 The Combined Authority‟s benchmark for performance measurement for investments is for returns to exceed the Bank of England Base Rate. Whilst Page 72 achieving this return on all investments is not practical, when looked at as a composite weighted average rate of return, the Combined Authority has exceeded this target. The table details the monthly portfolio weighted average rate of return.
Weighted average Month rate of return
April 0.70 May 0.55 June 0.52 July 0.50 August 0.53 September 0.47 October 0.43 November 0.43 December 0.38 January 0.31 February 0.26 March 0.16
Compliance with Treasury Limits and Prudential Indicators
4.29 During 2020/21 the Combined Authority complied with its legislative and regulatory requirements. The outturn Treasury Limits and Prudential Indicators are included at Appendix A.
5. RESOURCE IMPLICATIONS
5.1 Financial
As detailed in section three.
5.2 Human Resources
None as a direct result of this report.
5.3 Physical Assets
None as a direct result of this report.
5.4 Information Technology
None as a direct result of this report.
6. RISKS AND MITIGATION
None as a direct result of this report.
Page 73 7. EQUALITY AND DIVERSITY IMPLICATIONS
None as a direct result of this report.
8. COMMUNICATION ISSUES
None as a direct result of this report.
9. CONCLUSION
9.1 Over the financial year 2020/21, the Combined Authority operated in accordance with the Treasury Management strategy approved in July 2020 and complied with its legislative and regulatory requirements. The cost of operating the Combined Authority‟s treasury management activities did not exceed the budget set for the year: the costs of managing the Combined Authority‟s debt portfolio were lower than anticipated due to the ability to defer borrowing in the year.
JOHN FOGARTY Executive Director of Corporate Services
Contact Officers:- Jess Whitley, (0151 330 1030) Joanna Sawyer, (0151 330 1127)
Appendices:- Appendix A – Prudential Indicators and Treasury Limits
Page 74 APPENDIX A
PRUDENTIAL INDICATORS AND TREASURY LIMITS
21/22 Forward 22/23 Forward 23/24 Forward Indicator Description 20/21 Actual Estimate Estimate Estimate
Proposed capital spend to which the Authority plans to Capital Spend (£m) commit 231.06 331.60 78.66 22.50 Additional borrowing requirement for capital In year Requirement expenditure 36.35 134.07 20.00 15.00 This is the aggregation of historic and cumulative capital expenditure which has yet to be paid for through Capital Financing either capital or revenue Requirement (£m) resources 453.93 585.72 603.40 615.00 Identified the impact and Ratio Financing trend of revenue costs of Cost to Income capital financing decisions on Stream the revenue budget 16.20% 12.51% 13.08% 13.78% Represents the net investments or borrowing Net Borrowing requirement based on the Requirement (£m) debt and investments held 105.35 223.61 207.87 192.57 Represents the absolute limit of borrowing that could be raised and afforded in the short term however this is Authorised Limit for likely to be unsustainable in Borrowing (£m) the long term 453.93 585.72 603.40 615.00 Represents the level beyond Operational Limit for which debt is not normally Borrowing (£m) expected to exceed 419.93 507.09 514.74 518.27 Upper Limit for Fixed Interest Rate These limits seek to ensure that the Authority does not Exposure 100.00% 100.00% 100.00% 100.00% expose itself to an Upper Limit for inappropriate level of interest Variable Interest rate risk Rate Exposure 30.00% 30.00% 30.00% 30.00% This indicator can highlight where an authority may be Gross Debt and the borrowing in advance of CFR (£m) need 113.36 262.11 295.53 322.43
Page 75 This page is intentionally left blank APPENDIX ONE LCRCA DETAILED CAPITAL SPEND
Revised Budget Spend to date Under/(Over)spend £'000 £'000 £'000 LGF 1 Schemes Transport STEP 9,004 9,320 (316) A570 Linkway 74 74 0 Silver Jubilee Bridge ( Phase 1) 776 34 742 City Centre Strand Corridor 23,663 21,204 2,459 Transport Over Allocation -12,082 0 (12,082) Total LGF 1 Transport 21,435 30,632 (9,197)
Skills Enterprising Futures 2 ( Womens Tech) 106 107 (1) Liverpool South Work & Wellbeing (STEC) 122 122 (0) Everton Learning & Skills Centre ( LCC) (GRANBY) 611 611 0 Strand 1 - Southport College 1,188 1,243 (55) Strand 1 - COLC 868 868 0 Strand 1 - Sefton MBC 687 687 0 Strand 1 - Riverside 1,200 1,200 0 Strand 5 - SK College 167 167 0 Strand 2 - HM Prison 500 500 0 Strand 2 - Rotunda 500 590 (90) Strand 2 - Wirral Met 930 933 (3) Strand 5 - COLC 0 244 (244) Strand 5 - Hugh Baird 0 -1 1 Strand 5 - Southport College 0 -55 55 Skills Under Allocation 407 0 407 Total LGF 1 Skills 7,286 7,214 72
Total LGF 1 Schemes 28,721 37,846 (9,125)
LGF 2 Schemes Business Capital Alstom 914 150 764 Chancerygate ( Merseyreach) 3,738 3,139 599 Magazine Point 747 717 30 Gerrards Park 1,040 959 81 Image Business Park 861 861 0 MTC Project in a box 795 0 795 Strand Shopping Centre 44 44 (0) Light Industrial Fund Contingency 267 0 267 Business Capital Over Allocation -5,473 0 (5,473) Total LGF 2 Business Capital 2,933 5,870 (2,937)
Business Growth Pall Mall 489 489 0 Tower Road 1,250 1,250 0 Kirkby Town Centre (split funds) 2,750 0 2,750 Strand Shopping Centre (spilt funds) 108 108 0 Flexible Growth Fund 455 -1,952 2,407 Createch Scale Up 336 0 336 Light Industrial Fund Contingency (split Funds) 109 0 109 Business Growth Under Allocation 2,197 0 2,197 Total LGF 2 Business Growth 7,694 -106 7,800 Page 77 Low Carbon Strand 2 Wirral Met 179 179 (0) Total LGF 2 Low Carbon 179 179 (0)
Total LGF 2 Schemes 10,806 5,943 4,863
Page 78 Revised Budget Under/(Over)spend £'000 £'000 LGF 3 Schemes Transport Key Route Network 5,402 4,303 1,099 Shakespeare Rail 5,724 5,719 5 Halsnead Garden Village 4,002 3,891 111 City Centre Strand Corridor phase 2 0 178 (178) Transport Over Allocation -555 0 (555) Total LGF 3 Transport 14,573 14,091 482
Business Capital Digital Innovation 2,263 2,263 0 Sandon Global 1,250 1,250 0 Kirkby Town Centre (split fund) 2,250 0 2,250 Vynoma 3,000 3,000 0 Business Capital Under Allocation 700 0 700 Total LGF 3 Business capital 9,463 6,513 2,950
Skills Strand 4 - Hugh Baird 202 203 (1) Strand 4 -Wirral Met 245 245 0 Strand 4 - Riverside 243 243 0 Strand 4 - SK College 380 380 (0) Strand 4 - COLC 451 451 0 Strand 2 AVCT 228 253 (25) Strand 2 NWCS 260 0 260 Strand 2 Engineering College 158 158 1 Strand 2 Myerscough 195 195 0 Strand 2 Halton MBC 222 235 (13) Strand 2 LJMU 147 147 (0) Strand 2 Merseyside Youth Association 230 232 (2) Strand 2 Greenbank 242 242 0 Strand 3 - Engineering College 67 67 (0) Strand 3 -St Helens Chamber 50 50 0 Strand 3 - NWCS 52 37 15 Strand 3 - Wirral Met 279 279 0 Strand 3 - Myerscough 61 61 (0) Strand 3 - Halton BC 256 167 89 Strand 3 - NWTC 215 215 0 Strand 3 - Merseyside Youth Association 166 162 4 Strand 3 - Riverside 359 359 0 Skills Over Allocation -538 0 (538) Total LGF 3 Skills 4,170 4,381 (211)
Total LGF 3 Schemes 28,206 24,985 3,221
Gainshare Capital City Centre Connectivity ( Phase 2) 10,055 2,829 7,226 Liverpool Film 1,374 1,242 132 Shakespeare Playhouse 6,550 0 6,550 South Whiston (Halsnead Garden Village) 7,542 0 7,542 Cruise Liner 10,000 0 10,000 Parkside Road 6,900 0 6,900 Town Centres Fund 3,615 249 3,366 Inward Investment Fund 1,500 0 1,500 Strand Shopping Centre (split funds) 629 874 (245) Page 79 Civic Data Trust 1,304 0 1,304 Digital Connect Phase 1 889 100 789 Brexit Fund/Covid Recovery Fund 0 600 (600) Kindred 0 977 (977) Music Fund 0 85 (85) Crosby Lake Adventure Centre 2,100 308 1,792 Festival Gardens 0 352 (352) Flexible Growth Fund 0 2,110 (2,110) Liverpool Film (DEVELOPMENT CAPITAL) 0 121 (121) Total Gainshare Capital 52,458 9,847 42,611
Page 80 0 0
Transforming Cities
Bus Corridors 12 12 0 Cycle Corridor 93 93 0 Runcorn Station Quarter 3,931 7,046 (3,115) Smart Ticketing = Phase 1 174 307 (133) Ferries - Pontoons & Bridges 21,400 2,983 18,417 Cycling & Walking 3,712 244 3,468 Connecting Wirral Waters 1,117 0 1,117 Headbolt Lane Gateway 0 4,635 (4,635) Birkenhead Central Gateway 0 88 (88) Access for All 0 1,831 (1,831) St Helens Southern Gateway - MT 0 174 (174) Total Transforming Cities 30,439 17,411 13,028
Brownfield Fund
Moss Nook 0 1,433 (1,433) Buckley Hill 0 1,050 (1,050) Denford Road 0 280 (280) Foundry Lane 0 410 (410) Halton Court - Magenta 0 1,065 (1,065) Halton Court - Onward 0 720 (720) House of Fraser 0 2,110 (2,110) Paddington Village Tranche 1 0 2,200 (2,200) Total Brownfield Capital 0 9,267 (9,267)
Getting Building Fund
LSTM (Capacity Development Lab) 0 0 0 Littlewoods Film Studios 0 2,144 (2,144) Littlewoods Main Building 0 0 0 Halsnead Garden Village 0 0 0 Glass Futures 0 448 (448) Total Getting Building Fund 0 2,593 (2,593)
TOTAL SIF EXPENDITURE 150,630 107,892 42,738
Transport Single Pot 26,500 40,510 (14,010) Active Travel 0 5,957 (5,957) Pothole Action 0 1,000 (1,000)
Adjusted Merseytravel Capital Programme 112,779 71,677 0 TOTAL 289,909 227,036 21,771
Page 81 This page is intentionally left blank Agenda Item 7
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Liverpool City Region Combined Authority
Meeting: 23 July 2021
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: No
Key Decision Yes
REPORT OF THE EXECUTIVE DIRECTOR OF POLICY, STRATEGY AND GOVERNMENT RELATIONS AND PORTFOLIO HOLDER: INCLUSIVE ECONOMY AND THIRD SECTOR
RESPONSE TO THE REPORT OF THE LIVERPOOL CITY REGION TOWN CENTRES COMMISSION
1. PURPOSE OF REPORT
1.1 The report seeks Combined Authority approval for responses to the recommendations of the Liverpool City Region Town Centres Commission contained in their report, published in February 2021.
2. RECOMMENDATIONS
2.1 It is recommended that the Liverpool City Region Combined Authority:
(a) Welcome the publication of the Liverpool City Region Town Centres Commission report; (b) Approve the responses to the recommendations of the Town Centres Commission report as set out in Appendix 1; and (c) Note the examples of good practice being undertaken by Local Authorities in the Liverpool City Region designed to promote and support the sustainability of their town centres, summarised in Appendix 2.
3. BACKGROUND
3.1 In January 2020, the Metro Mayor launched the Liverpool City Region Town Centres Commission, the membership of which reflected a wide range of stakeholders from across the City Region and beyond. The remit of the Commission was to create a new vision for town centres in the City Region, identifying ways to secure their long-term prosperity and stability and achieve transformative change.
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3.2 The onset of the global Covid19 pandemic in February 2020, followed by the national lockdown from March, necessitated a reorientation of the Commission’s original brief with their work refocused to look at post-lockdown recovery. The Commission met to consider the following questions:
How town centres support a sense of place and belonging; How policy decisions on the environment, planning, and infrastructure can best support town centres; How town centres can operate as hubs for business and civil society; How town centres can respond to Covid-19 during the crisis (and how they’re already doing so); and How town centres can prepare for the recovery from Covid-19.
3.3 The Commission issued an interim report in summer 2020 which provided a snapshot of the economic and social impact of Covid19 on the City Region and on town centres nationally. It contained some mid-term recommendations for planning the post pandemic recovery supported by IPPR North’s analysis of the social and economic context of the 17 town centres in the City Region, including a “Town Centre Vitality Index”, which provided a useful tool for establishing a “baseline” of the vitality of town centres and for evaluating outcomes of interventions and projects.
3.4 The Commission published its final report in February 2021 titled Anchor, Belong, Connect: The Future of Town Centres (it is available on the IPPR North website). The report set out 23 recommendations grouped around its three themes of “Anchor”, “Belong” and “Connect”. The final report was also informed by specific research and interviews with stakeholders in five case studies in Birkenhead, Huyton, Runcorn, St Helens and Southport town centres.
3.5 The publication of the Commission’s report is welcomed. It confirms and supports many of the City Region partners’ aspirations for their town centres and sets out some helpful recommendations in this regard. Summaries of these recommendations, and the proposed response to them, is set out in Appendix 1 of this report. Most of the recommendations are supported although there are a small number that are not within the gift of the CA or partners to implement, often because they require national legislation. These recommendations could, however, inform future lobbying discussions with government.
3.6 In responding to the Town Centres Commission report, however, the City Region’s Local Authorities are already delivering, or are planning to deliver, initiatives designed to support and promote their town centres, or are planning to. Some examples of these initiatives have been provided by the local authorities and are included in Annexe 2 of this report.
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4. TOWN CENTRES COMMISSION REPORT – KEY FINDINGS AND RECOMMENDATIONS
4.1 The Commission’s findings were set not just within the context of the Covid19 pandemic and lockdown, but also the longer-term structural changes in shopping and leisure patterns that have been affecting town centres for several years, most notably the rise in on-line shopping. The pandemic accelerated trends that were already occurring, and the impacts of the lockdown have been severe and are likely to be felt for some time.
4.2 The Commission found, however, that the pandemic crisis has spurred a willingness to innovate and explore new ideas about the function of town centres and how they operate. The Commission were clear though, that responses to the pandemic must help build a better civic model of town centres which are diverse, vibrant, environmentally sustainable and resilient. This would be best delivered through true partnership working between the public sector, private sector and civil society to mitigate the worst impacts and collaborate to drive change in town centres.
4.3 The Commission identified three key roles that town centres play (and their recommendations are grouped accordingly):
1. They anchor social, cultural and economic value; 2. They belong to communities, providing a local focus in the City Region; and 3. They connect people and places within and beyond our City Region.
Anchor
4.4 The Commission found that town centres are important economic and social anchors for their local communities. They support jobs, provide retail and leisure facilities, and spaces for socialising. Very often, traditional metrics do not take full account of this wider anchor function, but this role requires support through public investment. Some of this investment is small in nature, for example, improved maintenance and cleanliness of the public realm which makes a considerable impact for those using town centres. The Commission identified the lack of revenue funding as being a key issue in this regard.
4.5 The recommendations around the “Anchor” role of town centres are set out in detail in Appendix 1 to this report but can be summarised as follows:
Increase revenue spending on town centres; Use community wealth building principles to regenerate; Support & encourage pop-up uses; Seek devolved planning powers; Provide micro-finance; Make the case to replace land value uplift in economic appraisals; Increase capacity in data gathering & analysis; and Invest in skills & employment growth linked to capital projects.
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4.6 In response to these recommendations, it is clear that town centres in the City Region do play a key role in anchoring activity across a range of uses. With regards to the specific recommendations, details are set out in Appendix 1 but many of them are supported where appropriate, for example, exploring the role of community wealth building, increasing the use of data to analyse the health of town centres, and increasing skills and training. Replacing land value uplift in economic analysis is strongly supported and reflects the recent changes to Treasury Green Book appraisal process.
4.7 Other recommendations, such as increasing revenue spending in town centres are hugely difficult for local authorities who have seen significant budget cuts over the last decade. National town centre funding programmes are often capital intensive with little revenue. The CA will look to support lobbying to increase revenue funding.
Belong
4.8 The Commission identified town centres as “touchstones” for community morale and identity, representing a rich network of people and places across the City Region. This local diversity contributes to the collective identity of the City Region, creating a sense of belonging.
4.9 Belonging, however, must reflect diversity within communities supported, for example, through inclusive design and the management of civic space. A sense of belonging also depends on active participation in the process of change ensuring that local people, community organisations, businesses and the public sector work together.
4.10 Details of the Commission’s recommendations relating to Belong are set out in Appendix 1, but the key ones can be summarised as:
Best practice principles for inclusive design; Showcase joint CA/LA pilot projects designed to improve town centres; Look to “reclaim” spaces for people (e.g. parking spaces); “democratise” land use planning (including through the use of a land commission); and Improve high street digital performance and inclusivity.
4.11 In response to this tranche of recommendations, many residents in the City Region extensively use their local town centres, not just for shopping but for socialising and accessing community services. The Commission is right, therefore, to identify town centres as belonging to their local community. Some of the more detailed recommendations are strongly supported – including the use of high-quality design in developments and improving digital connectivity. The Commission is right to underline the need to showcase high quality projects in our town centres and this report seeks to do that via the inclusion of such examples in Appendix 2.
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4.12 The Commission’s recommendation regarding “democratising” planning is noted but it has to be emphasised that Planning Committees in the local planning authorities consist of democratically elected councillors. Moreover, the determination of many planning applications and the preparation of local plans involve considerable public consultation. In addition, the consultation involved in the preparation of the LCR Spatial Development Strategy is award winning, particularly in how it has engaged with groups that have been traditionally hard to engage with.
Connect
4.13 The Commission identified that town centres are traditionally spaces where people come together; to shop, socialise, or visit attractions. The Covid19 pandemic has seriously affected this with town centre attractions shut and people fearful about mixing which has affected footfall – crucial to the sustainability of any town centre. Restoring confidence will be key.
4.14 The Commission considered that town centres have the potential to connect people in new ways by locating key services in them and could also have a role as local hubs of connectivity to information and support. Other key Commission recommendations around Connect include:
Explore role of events, markets & other activities to promote footfall; Explore how town centres and planning policies can promote good health outcomes; Develop town centre hubs; Promote temporary uses; Financial support to promote outdoor uses; Improved engagement with Landlords to facilitate reuse of vacant space; and Use housing to repopulate towns, in a way that reflects local needs & aspirations
4.15 Historically, town centres have tended to locate and grow due to their accessibility and so the Commission is correct to highlight their role in connectivity. Some of the Commission’s recommendations are supported, notably the role town centres can play in promoting good health outcomes and exploring the role of events and other activities to promote footfall. The Commission’s recommendation that town centres are good locations for new housing is consistent with the LCR’s Housing Investment Strategy published in November.
4.16 Town centres are accessible by a range of non-car modes of transport, including active travel. In this regard, they are not only important in providing services to those who do not have access to a car, they are also play an important role in the City Region’s net zero carbon objectives by providing services in sustainable locations.
4.16 Detailed responses to the Commission’s recommendations are set out in Appendix 1 of this report. The majority are supported but there are some, particularly those which are planning related, which would be difficult to deliver without national legislation.
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5. NEXT STEPS
5.1 The next steps will be to use the relevant recommendations of the Town Centre Commission report in policy formulation, project development in town centres, supporting funding applications and lobbying government.
6. RESOURCE IMPLICATIONS
6.1 Financial
There are no direct financial implications arising from this report. Future investment in town centres, however, will be resourced from the relevant funding streams (both local and national) and this will be reported at the appropriate time. The CA and the Local Authorities will work jointly to bid for all available funding to develop and support more successful and sustainable town centres across the City Region.
6.2 Human Resources
There are no direct implications for human resources arising from this report.
6.3 Physical Assets
There are no direct implications arising from this report on physical assets.
6.4 Information Technology
There are no implications for IT arising from this report.
7. LEGAL IMPLICATIONS
7.1 There are no legal implications arising out of this report.
8. RISKS AND MITIGATION
8.1 There are no direct risks arising from this report as it sets out proposed responses to recommendations included in an independent report. Accordingly, there is no identified need for mitigation measures at this stage.
9. EQUALITY AND DIVERSITY IMPLICATIONS
9.1 The Town Centres Commission report confirms that the City Region’s town centres are important in providing jobs, services and community facilities to all residents. Moreover, the Commission was clear that town centres should be made as inclusive as possible, for example, via design. Town centres are in accessible locations for those who do not have access to a car. Ensuring the continued health and sustainability of the City Region’s town centres will enable the important services Page 88 they provide to be available and accessible to all City Region residents.
10. PRIVACY IMPLICATIONS
10.1 There are no privacy implications arising from this report.
11. COMMUNICATION ISSUES
11.1 There are no communication issues arising from this report. The Town Centres Commission report is publicly available and has been published on the IPPR North website.
12. CONCLUSION
12.1 The Town Centres Commission report is a valuable piece of independent research and commentary on the role and function of the City Region’s town centres. Its key message stressing the importance of these town centres and a series of recommendations designed to ensure their recovery and long-term sustainability, is even more pertinent given the impact of the pandemic lockdown on town centre uses. Some of the report’s recommendations are already being implemented by the Local Authorities, or are being looked at, and this report provides some good examples of where this is happening.
12.2 It should be noted, however, that some of the report’s recommendations are not within the gift of the Combined Authority or the Local Authorities to deliver, as they would require national legislation to enact. Where possible, however, the CA will use its lobbying powers to make the case for change to government.
KIRSTY MCLEAN Executive Director of Policy, Strategy and Government Relations
CLLR. JANETTE WILLIAMSON Portfolio Holder: Inclusive Economy and Third Sector
Contact Officer(s):
Tim Jago – Lead Officer Housing Strategy and Policy (tel. 07880 480104) Email: [email protected]
Sophie Bevan – Investment Manager (tel. 07765 614048) Email [email protected]
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Appendices:
Appendix One – CA Response to the LCR Town Centres Commission Recommendations
Appendix Two – Examples of good practice by LCR Local Authorities supported by the LCR Mayoral Town Fund
Background Documents:
Anchor, Belong, Connect – The Future of Town Centres: The Final Report of the Liverpool City Region Town Centres Commission; IPPR North; February 2021 https://www.ippr.org/research/publications/anchor-belong-connect-the-future-of-town- centres
Page 90 Appendix 1 – CA Response to LCR Town Centres Commission Recommendations
Combined Authority Response Town Centres Commission Recommendations
“Anchor” 1 National funding for town centre improvements, Recommendation supported. for example, the Towns Fund, should include revenue as well as capital funding to help The CA acknowledges the requirement for more revenue maximise the potential outcomes of town centre funding. Recent funding efforts have also accepted that a lack investment schemes. of revenue funding is an issue, examples of local and national funds that have tried to address this are Future High Street Fund, Towns Fund and Mayoral Towns Fund. The Towns Fund allows project costs to include up to 10%. Our Local Authorities have been highlighting the need for revenue funding nationally too.
An important first step for the CA will be to understand the scale of the issues and then seek to explore the mechanisms to increase revenue funding. The CA will explore the revenue implications of place-making projects both in the development of the project and maintenance of capital projects. The CA will also continue to lobby central government on this important issue though it is noted that the Community Renewal Fund is revenue funding and future funding rounds such as Shared Prosperity may also combine revenue and capital schemes.
2 When capital development schemes are being Recommendation supported. proposed, project partners (including the CA and LAs) should consider investing in people (skills, The CA’s Social Value Framework will be applied to all projects employment support, entrepreneurship) and in to ensure maximum benefit arising, both during the strengthening social capital and community procurement process and also in relation to the ongoing capacity. operating period.
3 CA should work with partners to improve Recommendation supported. evaluative methodologies to help capture benefits of revenue interventions CRCA is committed to providing robust and objective evaluation evidence which demonstrates the impact of activities, providing wider insights and lessons about what has worked, how and why. Monitoring and evaluation activity will encompass: • Impact: a robust impact evidence base will be developed which captures the difference being made to businesses, people and places in the Liverpool City Region. The measures will be meaningful and truly reflective of the breadth of activities. The impact evaluation work will capture net additional impact on a range of economic, social, environmental, health and wellbeing measures.
Page 91 Appendix 1 – CA Response to LCR Town Centres Commission Recommendations
Process: process focused evaluation will explore how effectively the City Region is using the freedoms and powers that devolution has provided. The aim of process evaluation is to highlight the things which are working well and the areas where there could be scope for improvement. The Combined Authority will periodically review the effectiveness of governance, management and delivery processes to explore how well these are working to deliver our aims and objectives and supporting successful devolution. Importantly, the process evaluation will also consider the strength of external links and partnerships with the full range of local stakeholders. These two work streams will be used to identify evidence- based lessons that can be used to strengthen the way LCR is working and to maximise the impact of activities. There will be honest and open reflections on these lessons and they will be embedded into strategy and operations to ensure that the City Region works as effectively as possible to make the most of the important opportunity that devolution offers. Progress and lessons learned will also be disseminated across other combined authority and LEP areas, together with government, as part of a transparent approach to knowledge sharing.
4 The CA should develop the case and argue to Recommendation supported. government for the replacement of land value uplift in economic appraisals and evaluations The changes to the HMT Green Book appraisal methodology issued in December 2020 now include a greater weighting for wider strategic case-making and identifying the place-based impacts of investment decisions. These will increasingly share the same prominence as Benefit Cost Ratios in influencing government decision-making – therefore an up to date set of well understood strategic economic priorities with clear rationale is key. The CA will continue to lobby for further changes to funding programmes to ensure that the City Region has a better chance to secure funding.
5 The CA and LAs should develop greater capacity Recommendation supported. and expertise to improve data gathering, which helps highlight the health of a town centre and The CA is committed to evidence-based policymaking and in evaluate over time supporting the City Region’s LAs. and agree that it will be crucial to gather more, high quality data about the health of our town centres to support this going forward. Data analysts from the Combined Authority have recently launched a Liverpool City Region COVID-19 Recovery Monitor to track the
Page 92 Appendix 1 – CA Response to LCR Town Centres Commission Recommendations
most up-to-date data on local economic performance, and we are already working to gather new data on the health of LCR’s town centres in order to enhance this monitor further. For example, we are currently working with the Local Data Company to capture reliable footfall data across several sites in the city region. Learning from the Town Centre Vitality Index set out in the report, we will continue to develop our data gathering and analysis further to inform our strategic vision for town centres, our understanding of local economies more broadly, and our evaluations of any policy interventions we choose to take.
6 CA (and central government) should investigate Recommendation noted. the potential for local devolution of planning powers to help support town centres, e.g. The Planning Bill was announced in the Queens Speech in May regulate problematic uses, plus pursuing a more 2021. This clarifies the government’s intentions around local strategic co-produced vision and objectives planning control. At present, government are introducing more permitted development powers as well as simplifying the Use Classes Order, therefore moving away from local control and the Planning Bill will not change this direction of travel.
7 CA and LAs should extend community wealth Recommendation noted. building approaches to support the regeneration of town centres, especially in the procurement The CA is committed to the concept of community wealth cycle building and social value and will work with local authority and other partners in developing a cohesive and joined up approach that accounts for the growing range of activities in this space across the City Region.
8 CA should develop a town centre microfinance Recommendation noted. scheme which offers small scale grants and loans for entrepreneurs, especially for businesses that Some Local Authorities and Growth Hubs already offer deliver creative outcomes, social and grant/loan schemes to small businesses; the CA’s Business environmental value and community cohesion Ecosystem projects aim to target “gaps” in provision of finance. The role of community banking is also relevant in this arena, especially with reference to North West Mutual Community Bank (which Wirral, Liverpool and other regional LAs are working to establish).
Page 93 Appendix 1 – CA Response to LCR Town Centres Commission Recommendations
9 CA and LAs should support and encourage a Recommendation noted. range of "pop-up" spaces for entrepreneurial local businesses, community activities, learning, In principle, this recommendation has much to commend it health creation and other uses that support local and there are examples in the LCR where “pop up” uses have economic and social wellbeing been introduced. Whilst it will be landowners who allow such uses on their sites, there are ways that the LAs and CA can support, including flexible LA management of regulations on street markets and use of public space; better awareness of availability of publicly owned space for pop up use; using landlord forums to improve awareness of pop-up opportunities.
“Belong” 10 CA, working with LAs and other stakeholders, Recommendation supported. should develop and implement a set of "best practice principles" for inclusive design in town The CA and LAs are committed to high quality design across all centres and in transport infrastructure, as well as built environment policy areas and have included this promoting better inclusion in the development of requirement in the Housing Investment Strategy and in the and process of formal planning applications emerging Spatial Development Strategy. The CA has had a Design Champion since 2019 which underlines the importance of high-quality design to the CA.
With regards to the LAs, Bootle has been awarded one of the national Design Code Pilots which underlines the importance of high-quality design to the City Region and provides a good opportunity to further develop approaches to deliver on this.
11 CA and LAs should showcase pilot projects from Recommendation supported. within the city region which demonstrate how
collaborative approaches led by civic partners There are already some good examples from across the City can help to generate positive and new outcomes Region which demonstrate this collaborative approach for town centre vitality and promote these including Kindred, Environmental Fund and Homebaked. nationally and regionally to obtain further Some further details are included in Appendix 2 of this report. investments and share best practice. This could
include piloting the development of
representative and inclusive citizens’ juries
focused on town centres in particular need of
support post covid-19. 12 CA should continue to support initiatives such as Recommendation noted. "sParkit Liverpool" which reimagine parking spaces in seeking to reclaim streets for people. Public engagement and supporting local initiatives are of To encourage wider community engagement in major importance to the CA and the LAs. Underlining this is planning the future of town centres and trialling the national award for the LCR SDS has for its community new things, e.g. Transition Towns and Incredible engagement which demonstrated how spatial planning can Edible. Incorporate local consultation and idea best engage the local community. Many of these sharing engagements were based in town centres such as Huyton, Runcorn, Birkenhead and St. Helens. The Community Environment Fund demonstrates the way the CA can support local small-scale projects, such as urban gardens and
Page 94 Appendix 1 – CA Response to LCR Town Centres Commission Recommendations
community activities.
13 CA should examine (through Land Commission?) Recommendation noted but it is important to stress that a how the process of land use planning in LCR can Land Commission has no planning powers. The concept be democratised further, particularly in helping “Democratisation” of town planning has to acknowledge that to rethink and reimagine future town centres the planning process has democratic safeguards built in including statutory consultation on both planning applications and development plan preparation, and the fact that planning decisions are made by Planning Committees consisting of democratically elected councillors.
As indicated above, the CA’s SDS engagement has been recognised as an exemplar for democratising planning by engaging with those who do not usually engage in the plan making process – winning the National Planning Award 2020
14 CA and LAs should examine how procurement, Recommendation noted. planning conditions, and by working with partners in further and higher education, new By their very nature, town centre regeneration schemes town centre regeneration schemes can help should generate positive outcomes and the CA will work with generate positive outcomes including partners to ensure this. Excellence is being showcased in employment and skills development. Showcase Appendix 2 of this report and will continue to be done so. excellence.
15 CA and LAs should explore how town centres are Recommendation supported. performing digitally and provide support to improving digital activity among stakeholders. The CA has a clear ambition that the LCR should be the UK’s Align with LCR digital strategy - centring digital most digitally connected & inclusive City Region, that inclusivity, digital towns, enabling small maximises the benefits of technology and data for all its businesses and link to improving population businesses, residents & communities. To this end, the CA health. Could grants help businesses improve adopted a Digital Strategy and Action Plan in February 2021 to their online accessibility or presence? - also drive this ambition including benchmarking how town centres reduce the proliferation of different digital are performing across a range of digital metrics and looking at platforms and apps, e.g. smart parking measures to increase digital businesses in town centres.
Some of the City Region’s town centres are already looking to improve the role of digital services in their town centres, for example, St Helens town centre pilot for Digital Town Centre with O2.
“Connect” 16 CA and LAs should explore the role of events, Recommendation supported. markets and other activities that could draw people back into the town centres when safe to The impact on retail of recent structural trends, accelerated do so by the pandemic, means that town centres should seek to
Page 95 Appendix 1 – CA Response to LCR Town Centres Commission Recommendations
provide an experience-led and individual offer to attract visitors. Learning lessons from the pandemic also highlights the importance of people having access to vital services locally. In order to be more resilient to future crises, we may want to ensure that more people have access to necessary goods, services, and experiences within a short walk or cycle from their home.
17 Town centres can plan an important role in Recommendation supported. helping connect people to better health outcomes - involving activities, events and Health is not just about health care or the absence of disease, support provided in situ, e.g. use of vacant units but about how the ways we live, work, get around, etc. impact to deliver preventative as well as responsive our physical and mental wellbeing. Town centres have a key primary care services role in this regard. There will be broader discussions about how the design and use of our town centres encourages healthier, more active, and more happy lifestyles.
18 CA and LAs should support the development of Recommendation supported. town centre-based hubs which offer new opportunities for employment support, skills Town centres are accessible locations for the provision of development and retraining - with specific focus services, including employment advice and support. Some on LCR growth/LIS sectors town centres in the City Region are already providing this hub- based service, for example, in St Helens, Huyton and in County Road, Liverpool.
19 CA should seek to play a co-ordinating role to aid Recommendation noted. in the strategic, temporary use of different potential uses from healthcare to spaces for In principle, this is a sound recommendation and some start-ups and entrepreneurs to grow ideas. initiatives are already in active planning, e.g. health provision in Halton Lea (see Appendix 2 of this report). There could be planning considerations to take into account as well as the wishes of landlords and owners. The CA and the LAs will, however, look at the potential to implement this recommendation more widely across LCR.
20 LAs should consider health and wellbeing Recommendation supported. explicitly in their core policies and how town centres (and spatial planning) contribute The SDS, currently being prepared by the CA, is actively looking at including policies designed to improve health and wellbeing. This will ensure that health is explicitly part of the statutory development plan for the City Region.
Page 96 Appendix 1 – CA Response to LCR Town Centres Commission Recommendations
21 CA and LAs should co-ordinate in the delivery of a Recommendation noted. programme of opportunities and potential small grants or loans for local businesses to implement CA and LA’s have engaged with ERDF Welcome Back and re- or improve outdoor seating/dining arrangements opening funding schemes to provide funding for such e.g. Liverpool without walls opportunities. Improved outdoor seating and public realm are important elements of town centre attractiveness during Covid recovery and onwards.
22 LAs should consider the role of housing and the Recommendation supported. process for developing housing policies within town centres to ensure that housing is developed The LCR Housing Investment Strategy, approved by the CA in in a strategic way, inclusive of the aspirations of November 2020, confirms that sites in or adjacent to town the local community centres will be suitable for investment from national and / or local housing funding programmes. These sites can provide opportunities for well-designed homes in accessible locations, near to shops and services.
23 LAs should seek to create and enforce planning Recommendation noted. conditions which guarantee that vacant land hosts “meanwhile uses” that contribute Presently, however, national planning policy does not support positively to the town centre, as far as national this approach without an appropriate planning application planning policy allows and where policy does not and Local Plan policies. Creating meanwhile uses on sites allow the CA to negotiate such uses with the would be best facilitated by co-operative work with landowner. landowners, and as the LAs and other partners have some landownership within their respective town centres working with them on appropriate sites for appropriate meanwhile uses may be an approach.
Page 97 This page is intentionally left blank CA 23.7.21 Town Centres Commission – Appendix 2
Examples of good practice by Local Authorities supported by the LCR Mayoral Town Centre Fund
Appendix 2 - Examples of good practice by Local Authorities supported by the LCR Mayoral Town Centre Fund
Liverpool City Council – County Road District Centre Community Police Team
Liverpool City Council allocated their Mayoral TC funding to support County Road District Centre, including the implementation of County District Community Police Team. County was ranked second most deprived ward in the City and has the highest gun crime and domestic violence rate in the City. The Local Community Inspector from Merseyside Police suggested working with the Council and the community to combat this issue.
Following feedback, it was clear that a solution was needed which included a higher visibility of police officers, active engagement with community partners, local business community and the general public to build a network of vigilance and to support local businesses and residents in being proactive in their security and safety.
Council Officers liaised with Merseyside Police and were supported by a local housing association, Riverside Housing and a local housing organisation, Onward Homes to create a new designated police team, using both traditional and new modern methods of policing to embed them into the community. Along with a decrease in occurrence of crime, anticipated outcomes included the kickstart of wider physical regeneration of district centre, wider leverage of public and private sector investment into the district centre and increased community activity, providing better outcomes for both residents and businesses.
Since the team was formed in April 2020 they have disrupted serious organised crime within the area and helped criminally exploited individuals move away from a life of crime. They have carried out numerous action days within the area focusing on drug use, traffic management and fly tipping.
Due to the success of the team in February 2021, Merseyside Police further invested in the area by growing the team from 6no. Officers to 11no. Officers. The pilot has now seen community police teams set up in Kirkby and Wirral and will look to the County district team as a blueprint. The team regularly receive correspondence from residents praising them for their work and increased visibility along the District Centre.
Halton Borough Council - The provision of hospital services in Runcorn Shopping City
Halton BC allocated their Mayoral TC funding to support Halton Lea. This included the refit of retail space in Runcorn Shopping City, a 1970‟s shopping centre, and working with the NHS to create space in traditional retail environment for access to hospital outpatient services. This programme is a pilot and when the services open later this year, it is anticipated that this will be the first hospital in the country to provide services in a shopping centre.
The funding secured additional funding from Warrington and Halton Teaching Hospitals NHSFT, enabling the refurbishment of a sizeable unit in Runcorn Shopping City to provide services such as ophthalmology, audiology and dietetics services in a retail environment.
Page 99 CA 23.7.21 Town Centres Commission – Appendix 2
Examples of good practice by Local Authorities supported by the LCR Mayoral Town Centre Fund
The plans will provide over 3000 additional appointments per year (essential in the context of increased waits due to COVID-19) and importantly support wider economic regeneration and will help to delivery against Halton Lea Healthy New Towns Masterplan.
The regeneration of this community asset as a new venue for the delivery of NHS healthcare services will attract people back to town centres, increase diversity of town centre use, increases footfall and has leveraged public sector investment into the town centre to support the long-term vision.
Wirral Council – New Ferry Community Land Trust (CLT)
Wirral Council allocated its funding to support the town centres of New Ferry and Liscard. With the Town Centre Fund prospectus placing emphasis on bringing underutilised assets back into community use, WMBC allocated funding to support New Ferry Community Land Trust.
The majority of grant supported the acquisition of premises that could be brought back into economic use, to generate revenues which could be „recycled‟ for the greater good of the town centre. A suitable property was acquired at auction and once refurbished will provide a mix of uses, including residential at first and second floor level, complemented by commercial or retail uses at ground floor level.
The funding enabled the CLT to be able to “stand on its own two feet” and deliver the project independently and, as a result of the funding, a revenue budget supported the appointment of a P/T Project Co-ordinator and Administrator to manage the scheme and to initiate an events programme. Dedicated resources have also been made available to build the capacity of the CLT, strengthening its governance, developing a funding strategy and for the training and development of Board Members.
The pandemic has caused challenges to the project‟s delivery. For example, it has restricted the CLT in expanding its membership and from hosting community events. However, with the gradual easing of lockdown restrictions the CLT are hoping to have the opportunity to host public meetings, expand its membership base and look at carrying out events later in the year.
As a fledgling CLT, they have been ably supported in this programme by Breaking Ground (LCR Housing Hub), drawing on their extensive experience of working with other established CLT‟s in Liverpool and by Community Action Wirral, responsible for promoting and supporting the Third Sector in Wirral.
St Helens Borough Council – Introduction of Quality Registration Schemes & A Night-Time Economy Forum
St Helens Borough Council allocated its funding to support St Helens town centre. With a desire to support the night-time economy in St Helens, funding was allocated towards harnessing best practices in the industry and utilising positive expertise to drive up standards across the sector.
The programme included the following three phases: Phase 1 - Introduction of the COVID Secure Accreditation Scheme and launch of a newly created Night-Time Economy Forum.
Page 100 CA 23.7.21 Town Centres Commission – Appendix 2
Examples of good practice by Local Authorities supported by the LCR Mayoral Town Centre Fund
Phase 2 – Introduction of Best Bar None. Phase 3 – Initial submission for Purple Flag status.
Involvement from the hospitality and Night-Time Economy sector has been widely promoted, with the opportunity for 50 premises to be selected to go through the first two phases. Phases 1 and 2 are established evidence themes that will support the Purple Flag application and the Night-Time Economy Forum which will bring together business, stakeholders and the Council to shape the future of this key sector.
The intended outcome from this project is to raise standards, improve visitor experience and to increase demand and growth in the sector. Interest from businesses to date has been promising with promotion recently carried out through newly established online business forums, which have served as excellent conduits to begin rollout of these features and the other town centre projects and initiatives.
With demonstrable interest being shown, and subject to additional funding sources being identified, St Helens think there may be the opportunity to expand the programme further, to deliver a hospitality and Night-Time Economy sector that is safer, welcoming, family friendly, modern, vibrant and which will complement the overall regeneration of St Helens.
Knowsley Metropolitan Borough Council – Town Centre Business Support Programme
Knowsley Council allocated its TC funding to support Huyton and Prescot town centres. Given the significant challenges posed by the Covid-19 pandemic, Knowsley Council allocated funding towards a Town Centre Business Support Programme. The programme aims to ensure that the town centre businesses had the available resources, skills and knowledge to respond and grow in a post Covid-19 world.
Knowsley Council appointed Save The High Street to deliver a specialised and tailored support programme to town centre businesses. The commission focussed on three phases of work; 1. A Covid-19 Recovery and Resilience programme focussed on responding to the challenges presented by the Covid-19 outbreak (12-week programme). 2. Tailored business support focussed on the individual needs of businesses with access to a dedicated Success Manager (9-month programme). 3. Assistance to create and establish a Huyton Village Traders Association (12-month programme running concurrently to Phase 1 and 2).
Following a significant communications campaign, Phase 1 launched in 2020 with 64 businesses participating and, following this, the 64 participating businesses entered Phase 2 of the programme in 2021. Running concurrently was the development of a Traders Association in Huyton Village, developed and supported also by Save The High Street. With no formal business reputation and with significant regeneration projects in progress, the Council recognised the need to have a consultative group of businesses who could help to shape and form future development plans.
The programme has received positive feedback, with the newer and more inexperienced business owners particularly benefitting from the programme. The digital training delivered under the programme has been particularly well received. Knowsley believe a clear communications strategy to promote the programme was key to the roll out of the programme.
Page 101 CA 23.7.21 Town Centres Commission – Appendix 2
Examples of good practice by Local Authorities supported by the LCR Mayoral Town Centre Fund
Sefton Borough Council – Redevelopment of Southport Market Hall
Sefton Borough Council allocated its funding to support Southport and Bootle town centres. In Southport, the funding was allocated towards the comprehensive refurbishment and refit of a traditional market hall into a new food and drink offer with a flexible events space capable of holding events and temporary markets.
Southport Town centre investment strategy identified the need to broaden out the traditional local visitor economy and encourage diversification and enterprise development. In particular, it identified a number of key opportunities including areas of public sector ownership which could be utilised to help address the connectivity and visitor movement, as well as business enterprise and development.
The market hall was identified as a key opportunity for changing the town centre offer to attract new visitors, generate footfall and help draw people into new areas of the town centre. Refurbishment and repurposing of this key facility was seen as a way of optimising the building‟s unique architectural form and presence in the town centre whilst at the same time signalling change, creating a sense of place and encouraging diversity.
Consultation on the proposed changes to the Market towards a more seaside visitor themed food, drink and local events space was undertaken in 2020 and concluded there was local support for the revitalisation of the existing market hall. Following consultation, plans were developed for a comprehensive refurbishment of the facility, which included creating 11 new food and drink concessions and a flexible events space. Match funding has been provided through the Government‟s Towns Fund.
Utilising an existing public owned asset enabled control and delivery within a short timescale and following consultation the project was tendered, let and on site by December 2020 and is due for re-opening in June 2021, with considerable interest from potential business operators. The facility will safeguard existing and generate new jobs in the facility, as well as generating greater footfall and animation through the market quarter of the town centre, assisting economic recovery.
Page 102 Agenda Item 8
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 23 July 2021
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: No
Key Decision: Yes
REPORT OF THE INTERIM EXECUTIVE DIRECTOR OF STRATEGIC COMMISSIONING AND DELIVERY AND PORTFOLIO HOLDER FOR EDUCATION, SKILLS, EQUALITY AND DIVERSITY
ADULT EDUCATION BUDGET COMMISSIONING PLAN 2022-27
1. PURPOSE OF REPORT
1.1 This report seeks Combined Authority approval for the devolved Adult Education Budget updated Commissioning Plan for Liverpool City Region for the second Commissioning Cycle from 2022/23 onwards. The Commissioning Plan has been refreshed to inform the Combined Authority’s adult skills investment activities for five academic years from 2022/23 until 2026/27 building on experiences of the first cycle of delivery.
2. RECOMMENDATIONS
2.1 It is recommended that the Combined Authority:
a) Agree the Liverpool City Region Combined Authority Adult Education Budget Commissioning Plan 2022-27 attached at Appendix One; b) Enter into a negotiated grant commissioning process for 2022/23 with the Liverpool City Region based Colleges and Local Authority providers currently grant funded by the Combined Authority, as detailed in Appendix Two; c) Enter into a negotiated grant commissioning process with other grant funded organisations (as allowed by their status), for those external to the LCR, with revised payment methodology and recruitment activities based on known learner demand, as detailed in Appendix Three; d) Agree the continued 2% top-slice of overall budget to support the management functions relating to the programme included in Section 4.13;
Page 103 e) Support the opportunities devolution continues to provide based on experience to date and building on flexibilities implemented in the first commissioning cycle, whilst providing the opportunity to implement innovation and greater local flexibility in provision, as detailed in Section 6 of the report; f) Note the high level procurement timescale included in Section 8 of the report; and g) Receive updates associated with allocations and procurement outcomes in due course to approve academic year contract allocations for all providers from 2022/23 onwards.
3. BACKGROUND
3.1 AEB is entering the third year of delivery on 1 August 2021, the final year in the current commissioning cycle. It is therefore necessary to review and agree an updated commissioning approach for the academic year 2022/23 onwards which will include commissioning of grant funded providers and open procurement in line with Public Contract Regulations 2015.
3.2 The majority of AEB is currently grant funded to the LCR based Colleges and Local Authorities. This commissioning approach will continue to ensure those grant funded colleges and Local Authorities support locally based infrastructure to deliver adult skills across the LCR. Annual allocations are agreed subject to budget availability, continued performance, and subsequent approval of the Combined Authority.
3.3 The grant funded commissioning approach for 2022-27 is being revised from the earlier approach to enable grant negotiations with neighbouring General and Specialist FE Colleges, thus ensuring LCR residents can access their most appropriate Further Education institution where learner demand is evident and taking into account travel to learn areas.
3.4 A procurement exercise is necessary to appoint a range of Contract for Service providers for year 4 onwards. Final decisions on the award of contracts will require the approval of the Combined Authority following the conclusion of the exercise in the Spring 2022.
3.5 The devolution of AEB continues to include a statutory duty to fund learner entitlements for English and maths, digital skills and a first full Level 2 qualification and Level 3 for those aged 19 to 23 years.
3.6 The Commissioning of AEB will continue to focus on meeting the requirements of the LCR, including those identified in the current Skills Strategy 2018-23. This is currently subject to review and any update or subsequent iteration of this document will be incorporated into the procurement process.
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4. AEB COMMISSIONING APPROACH
4.1 The Adult Education Budget Commissioning Plan 2022-27 has been drafted to outline the Combined Authority’s intended investment activities for a five year period. The Plan supports the strategic ambition for the AEB in the Liverpool City Region Skills Strategy 2018-2023 and subsequent updates to this strategy. It builds on the experience from the first commissioning cycle, incorporating a number of the same successful approaches which were consulted on prior to the implementation of devolved AEB.
4.2 The Commissioning Plan is underpinned by a clear set of principles that provide the framework for how the Combined Authority will commission AEB provision. The following principles have been developed to convey clarity, transparency and quality and provide the basis on which healthy dialogue and challenge can exist between LCRCA as the commissioner and colleges and providers. Our commissioning priorities will:
be aligned to current Skills Strategy outcomes and any subsequent updates to this strategy; align with national policy on funding eligibilities, rates and entitlements where appropriate, and will seek to improve or enhance these where local priorities add value; safeguard the provision of community learning; allow sub-contracting where this adds value to the mix and balance of provision locally; and allocate funding to grant funded colleges and local authorities and procure provision from other organisations, which will be openly published to ensure transparency of the commissioning process.
4.3 The current commissioned grant funded providers include 13 colleges and Local Authorities based in the City Region who between them receive around £33m per academic year. The current openly procured contract for services providers include: 19 independent training providers who between them receive around £15m per academic year.
4.4 It is the intention to continue to require a minimum contract value of £0.100m to ensure best use of relationship management resources, as reducing this value may disproportionally increase administration costs of the devolved funding. £0.100m is a well-recognised minimum contract value benchmark and was successfully adopted by the LCRCA in the current commissioning cycle. Annual contracts will also be initially capped at £1m for Contract for Service providers to ensure a mix and balance of provision and choice of openly procured providers for LCR learners. In year performance management may subsequently change the final contract value each year in accordance with the published Funding and Performance Management Rules and AEB Assurance Framework.
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4.5 In the first commissioning cycle, legal advice offered to Combined Authorities from the Department for Education confirmed that College and Local Authority negotiated grant funding commissioning could be continued. This split approach reduces risks of delays to the procurement process causing a hiatus in learning availability for LCR residents. For those providers deemed a ‘Further Education Institution’ (FEI) under the relevant statutes, it is the intention to explore additional arrangements with neighbouring FEIs to LCR for the second commissioning cycle. This approach will offer additional choice for LCR residents to access provision from their most appropriate FE College taking account of travel to learn areas or availability of specialist provision. This inclusion of FE Institutions peripheral to LCR within our negotiated commissioning approach may be subject to additional rules to ensure travel to learn areas remain indicative to current levels of LCR resident learner demand. It is proposed to fund these neighbouring FE Institutions in arrears based on actual learner activity, which differs from the paid on profile approach taken with indigenous LCR based Colleges and Local Authorities.
4.6 The Combined Authority is therefore recommended to continue to enter into a negotiated grant commissioning process for 2022/23 with the indigenous Liverpool City Region Colleges and Local Authorities who will continue to make up the largest proportion of activity funded through the devolved AEB. An additional negotiated grant commissioning process is recommended for other FE institutions as outlined in 4.5.
4.7 Continuation of our reciprocal cross border service level agreement with Greater Manchester Combined Authority will mean that LCR learners that choose a GMCA provider will be funded on a reciprocal basis i.e. LCR residents can access GM funded provision and vice versa. Historically the funding to support this arrangement is comparable for both GMCA and LCRCA.
4.8 Of the £53m illustrative budget confirmed annually, circa £15m will be available to competitively tender for the next round of AEB contracts using the Public Contracts Regulations 2015 ‘Light Touch Regime’ (for education and training services). This may result in changes to the current Contract for Service provider base.
4.9 The procurement of contracts for services will include an Invitation to Tender (ITT) process which will be led by internal Procurement. The Combined Authority will only assess invitation to tender (ITTs) responses from organisations which have successfully passed a number of gateway questions. Successful tenderers will be offered a contracts for services agreement which will be annually reviewed for a period of up to 5 years subject to satisfactory performance and quality and budget availability and subject to Combined Authority approval.
4.10 The commissioning of contracts for services will consider provider’s capacity and capability to deliver across 15 areas of learning such as preparation for life and work, construction, digital and health and social care. Providers will be
Page 106 allowed flexibility to use some of their allocation towards developing innovative test and learn approaches to delivery, capped at 5% of any contract value awarded.
4.11 The commissioning approach will also consider providers that may want to deliver the National Skills Fund Level 3 Adult Offer in line with any funding delegated to the Combined Authority. This will be subject to confirmation from the Government of continuation of this delegated budget for the 2022/23 academic year, and following national rules on eligibility for adults aged 24 or over.
4.12 The Combined Authority has a published social value framework and this will be incorporated into the procurement and commissioning approach for the next cycle of activity. Social value will therefore be considered during the AEB procurement process and through the negotiations with grant funded providers.
4.13 The Combined Authority has previously agreed to administration costs of the devolved AEB being limited to 2% of the overall budget. There is no additional administration costs available for management of the delegated National Skills Fund Level 3 Offer budget. The administrative AEB funding supports a range of functions including data management, finance related, audit and compliance and performance management of the AEB contracts required as part of the devolution readiness conditions set out by DfE. It is recommended to continue administration costs at a maximum of 2% for the commissioning cycle 2022-27.
5. MARKET ENGAGEMENT
5.1 A significant market testing exercise was undertaken prior to the implementation of the current contracting process, which positively supported the approach regarding minimum and maximum contract values, and a cap on the value of sub-contracting fees. Adopting these principles has worked well in the current commissioning cycle with the support of national bodies such as AELP. It is recommended that these continue to feature in the new commissioning round.
5.2 Regular dialogue takes place with both the College and Local Authority community learning providers, through existing AEB contractual relationships. There is a track record of working collaboratively to respond to learner and stakeholder needs, with local Colleges presenting our innovative test and learn approach to the Association of Colleges, alongside the development and implementation of new local learning opportunities for LCR residents. It is proposed that this approach to innovation will continue into the next cycle of delivery.
5.3 The Colleges represent an important sector in the delivery of AEB. Their experiences in delivering to learners, investing in local infrastructure and taking a longer term strategic approach to curriculum planning within the City
Page 107 Region is recognised. There is on-going engagement with the sector, including through the Merseyside Colleges Association Principals Group, as well as individual discussions included in 5.2.
5.4 The constituent Local Authorities play a key role in the delivery of Community Learning and regular dialogue with them as providers will continue into the next commissioning cycle. Their experience in delivering Community Learning in line with local authority individual needs remains important. Our commissioning approach includes discussion with, and reporting to, Portfolio Leads and the Employment and Skills Lead Officers of the Local Authority and reflects a close working relationship with Local Authorities as strategic bodies as well as grant funded delivery partners.
5.5 The Greater Merseyside Learning Provider Federation represents a number of independent training providers (as well as colleges and local authorities), and we engage regularly to understand the sector’s priorities and challenges on a regular basis.
5.6 Regular meetings are also held with the other Mayoral Combined Authorities/Greater London Authority to discuss experiences of devolved AEB and share policy changes and flexibilities implemented. This provides a useful forum to share good practice and evaluation of the devolved activities undertaken to date, including planned changes for future years. The ESFA as the other key AEB funding agency also have regular dialogue with all MCAs/GLA, this allows the review of activities in context of national policy and helps to ensure that any policy decision relating to AEB does not disadvantage any provider delivering devolved AEB compared to the national programme.
6. INNOVATION AND LOCAL FLEXIBILITY
6.1 Devolution has provided the opportunity to implement certain changes to AEB and the way it was previously commissioned and paid for on a national basis. There will continue to be elements that will remain, such as funding and eligibility rules, and statutory entitlements for learners, however, there are a number of flexibilities that were introduced in the current commissioning cycle that will remain including:
Enhancing the current low wage pilot to include learners earning under the Real Living Wage threshold (and updated annually) Testing the use of outcome payments for certain job outcomes to incentivise progression Fully funding all level 2 provision regardless of prior attainment levels or status – specifically to support those looking to retrain Continuing the test and learn process, widening this out to Contract for Service providers with flexibility to use up to 5% of their contract value to test news ways of working and delivery Creation of new skills programmes and learning aims to meet the needs of employers
Page 108 Continuing to capacity build the provider base with a programme of Continuing Professional Development activities to support staff in responding to employer and learner needs, providing support in developing quality within the curriculum offer, and adapting to delivery post pandemic. Maintaining the Facilitation Fund to respond to in year learner demand, economic shock or other external factors which proved so important whilst responding to covid Ongoing adaptation to performance management and application of tolerance levels to ensure AEB is deployed in the most effective way to meet the priorities of the LCR
6.2 There is a commitment to continue to adapt and develop local policy approaches that avoid duplication with nationally funded initiatives, dovetail with our local provision and offer greatest impact in terms of achievements and progression of LCR learners.
7. SUB-CONTRACTING ARRANGEMENTS
7.1 Sub-contracting has an important role to play in the delivery of the AEB. Subcontractors can help widen participation amongst niche groups that would otherwise be hard to reach. Subcontracting also provides an entry point to funding for smaller voluntary and community sector (VCS) and niche providers, where they may not otherwise be able to meet the minimum contract values.
7.2 The fees charged by lead providers to those they sub-contract with should be transparent. Fees should be proportionate to the services offered by the lead provider, recognising there may be a sliding scale for varying levels of support for managing the sub-contract relationship and associated risks, data processing, access to internal audit support, quality assurance and improvement, classroom observations and accreditation support. These will continue to be capped at 20%.
7.3 All sub-contracts must be agreed with the Combined Authority prior to any learning commencing as part of lead provider due diligence arrangements. This enables the Combined Authority to understand the learning it funds and better ensure the level of funding spent on sub-contract support infrastructure is proportionate to costs.
8. COMMISSIONING TIMELINE
8.1 Resources are currently being planned to ensure adherence to the required timelines in accordance with the Public Contract Regulations 2015 ‘Light Touch Regime’. Formal procurement will be launched in the Autumn of 2021 following due process. It is anticipated that the tender process will be concluded by March 2022 and subsequent recommendations for allocations
Page 109 for grant funded providers and procured Contract for Service providers reported to the Combined Authority in April 2022.
8.2 The commissioning cycle is being expanded to 5 years due to the time and resource involved in procurement of this scale. It allows a real partnership approach to delivery of the AEB to LCR learners and give providers additional financial stability, particularly given the disruption to learning experienced by the sector and unprecedented pre-Covid.
9. RESOURCE IMPLICATIONS
9.1 Financial
AEB funding is confirmed annually by the DfE in advance of the beginning of each academic year, therefore annual allocations are based on budget availability. The 2% administration budget covers all associated management costs. There are no additional direct Financial implications arising from the implementation of the recommendations in this report The AEB procurement approach, as part of the assessment stage, will include a robust due diligence process to ensure potential delivery partners are financially stable to handle the proposed grant / contract award and that there are no apparent eligibility issues from the onset of the process.
9.2 Human Resources
There are no Human Resources implications arising from the implementation of the recommendations in this report – the existing AEB staff team structure is established. We are working across the Combined Authority to ensure the procurement exercise can be managed within available resources.
9.3 Physical Assets
There are no direct Physical Assets implications arising from the implementation of the recommendations in this report.
9.4 Information Technology
There are no direct Information Technology implications arising from the implementation of the recommendations in this report. Procurement will use current procurement IT systems used by Merseytravel and the Combined Authority constituent Councils – The Chest: North West Procurement Portal.
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10. RISKS AND MITIGATION
10.1 Risks and mitigation of identified risks include:
Risk Mitigation The Combined Authority does not The Combined Authority adopts a agree a commissioning approach for procurement approach that mirrors the AEB or agrees an approach that the current commissioning cycle. could be open to legal challenge. This has been based on the legal advice offered by the Department for Education and within the constraints of the devolved funding and is similar to that approach used by many other Mayoral Combined Authorities The final devolved AEB allocation will The Combined Authority will work to only be confirmed by the Department figures included in the annual budget for Education, as late as February agreed to date by the Department 2022. This means that the final budget and issue indicative allocations to available for AEB procured provision Colleges, Local Authorities and cannot be confirmed until then. providers until the devolved amount is confirmed. This is set at 3.99% of the total Adult Skills Budget. Risks may arise from a particularly The AEB team has experience of the tight timescale to implement the AEB first round of commissioning and will procurement process. There are a build on much of this work. Early significant number of AEB procurement meetings have already been held documents to be finalised by the with Procurement and Legal Autumn. internally to plan for this activity.
The volume of tenders for AEB Adapting the grant funded approach contracts may be substantial. There is for external FEI should reduce the a risk that there is insufficient number of bidders. It is not Combined Authority resource to score anticipated that bids will exceed the tenders within the current timetable to volume experience in the first round award contracts. due to changes in the provider base since then. Tender questions can be adapted to reduce the scoring volumes. The number of actual tenders and The mitigation for this is that grant eventual contract awards can also only funded College and Local Authority be estimated. This may result in a provision will be agreed outside of need to secure additional resources the procurement process as outlined before, during or after procurement, in our commissioning approach. Capping contract values at £1m helps to estimate the likely number of successful tenders and therefore volume of contracts to be managed.
Page 111 The anticipated large number of bids The selection of staff with a and consequent calls on a wider group background in employment and skills of Combined Authority staff to be policy and practice and ensuring involved in appraisals of tenders will consistent appraiser training and increase the risks of inconsistent guidance materials is provided to all and/or poor quality tender evaluations. those involved. This is the second time this process will have been undertaken within the CA and therefore more experience now exists.
11. EQUALITY AND DIVERSITY IMPLICATIONS
11.1 The AEB aims to improve opportunities for people who are in need of new skills. Many potential AEB learners also have protected characteristics. The AEB Commissioning Plan and provision will support a range of under- represented groups, particularly the most disadvantaged residents, including those without basic skills, the unemployed, over 50s, single parents, Black, Asian and Minority Ethnic groups and disabled people. The number of flexibilities outlined in this report also seek to support residents in low paid/low skilled jobs.
11.2 Colleges, Local Authorities and providers delivering devolved AEB funded provision will be expected to report on Equality and Diversity Impact Measures (EDIMs). These will focus on narrowing gaps in skills participation and achievement for Black, Asian and Minority Ethnic groups, under- represented genders in particular sector subject areas, and for learners with learning difficulties and disabilities. The Combined Authority will also ensure participation, retention and achievement for underrepresented learners is proportional to local area demographics.
11.3 The Commissioning Plan has been subject to an Equality Impact Assessment. A copy can be provided on request.
12. COMMUNICATION ISSUES
12.1 Regular communications take place with the existing provider base, including 7 Colleges, 6 Local Authorities and 19 Contract for Service (CfS) providers. This includes weekly communications for all providers, monthly meetings with Relationship Managers, Provider Roadshows twice a year to inform the provider base of in year changes, or planned future developments. CfS providers are fully aware that year 3 commencing 1 August 2021 will be the final year of delivery under existing contract arrangements. Recruitment of learners will be carefully managed over the final year of delivery, and all test and learn delivery has to complete by March 2022.
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12.2 We will make all our existing CfS providers of the PIN that we intend to issue in advance of procurement, and this will be published to ensure this is communicated to the open market in line with Public Contract Regulations 2015 Light Touch Regime. We recommend all providers that have approached us previously for funding sign up to The Chest to receive notifications in advance of launched procurement.
13. PRIVACY IMPLICATIONS
13.1 There are no privacy impact implications associated with this report, the Commissioning Plan contains no personal data or storage of this or sensitive data. Subsequent tenders invited as part of this will be subject to procurement rules and stored accordingly.
14. CONCLUSION
14.1 This report outlines Liverpool City Region Combined Authority’s approach to implementing the devolved Adult Education Budget for year four onwards. It recommends approval of a refreshed Commissioning Plan for 2022-27 and updated approach to guide the Combined Authority’s adult skills investments in 2022/23 onwards. It also continues to embed devolution flexibilities implemented within the first commissioning cycle, whilst retaining the opportunities for innovation and greater local flexibility.
DR AILEEN JONES Interim Executive Director of Strategic Commissioning and Delivery
Contact Officers:- Alison Gallagher (07715 602718)
Appendices:-
Appendix One: Liverpool City Region Adult Education Budget Commissioning Plan
Appendix Two: Indigenous Liverpool City Region Colleges and Local Authority Grant Funded providers Appendix Three: External Grant funded providers
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Liverpool City Region Adult Education Budget Commissioning Plan
2022 - 2027
Page 115 DRAFT Liverpool City Region Combined Authority Adult Education Budget Commissioning Plan 2022-2027
CONTENTS
1. FOREWORD ...... 3
2. LIVERPOOL CITY REGION ECONOMIC CONTEXT ...... 5
3. SKILLS STRATEGY 2018-2023 ...... 6
4. THE LCR DEVOLVED ADULT EDUCATION BUDGET ...... 8
5. PURPOSE OF THE COMMISSIONING PLAN...... 9
5.1 Purpose ...... 9
5.2 Principles of this Commissioning Plan ...... 9
5.3 Market Testing ...... 10
6. HOW DEVOLVED AEB WILL BE COMMISSIONED ...... 11
6.1 Grant Funding Agreements commissioning ...... 11
6.2 Widening the grant funded offer to other Further Education Institutes (FEI) 12
6.3 Procuring contracts for services ...... 12
6.4 Devolved Sub-contracting arrangements ...... 13
6.5 Cross border working with GMCA ...... 14
6.6 National Skills Fund Level 3 Adult Offer ...... 14
7. DEVOLVED AEB FLEXIBILITIES ...... 14
7.1 Innovation and Local Flexibility ...... 14
8. SOCIAL VALUE AND NARROWING THE GAPS - EQUALITY AND DIVERSITY MONITORING ...... 17
9. CONTACT AND FURTHER INFORMATION ...... 17
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1. FOREWORD
Devolution of the Adult Education Budget (AEB) was agreed in Liverpool City Region’s Devolution Agreement of November 2015. From academic year 2019/20, the Combined Authority have been responsible for commissioning devolved AEB funded provision for Liverpool City Region residents including the freedoms to set local priorities and funding rates to support local needs. Our Local Skills Plan 2020 (as required by DfE) includes actions related to the re- skilling of residents post pandemic reflecting both the need to address the long- standing issues and also meet more immediate skills and employment needs and opportunities created by the pandemic. Devolved AEB will continue to be a cornerstone for re-skilling adult residents as part of our economic recovery. The impact of COVID-19 continues to be felt on learners, businesses and residents and has tested the business continuity plans of organisations across the LCR in unprecedented ways. It is timely therefore that progress against this strategy is currently under review, the outcomes and recommendations from this exercise will inform the commissioning discussions with grant funded providers, and inform the planned procurement for 2022/23 onwards. Extensive market engagement took place prior to our first cycle of commissioning with a number of principles developed as a result of feedback, including minimum and maximum contract values, rules on sub-contracting arrangements and associated fees that continue to be relevant and will feature in the renewed commissioning approach. Ongoing liaison with key stakeholders and partners has informed the implementation and use of policy levers, funding changes and flexibilities required to support learners and test new ways of working which inform the The Combined Authority has already used devolved AEB to implement a range of local flexibilities, and test news ways of working. Local devolution of AEB continues to help to ensure providers’ skills offers meet local employer and learner needs including through the development of new skills programmes. Our 2018-2023 Skills Strategy sets out our vision and desired outcomes.
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These important outcomes will provide a driver to achieve greater labour market equality and work to eradicate pockets of concentrated poverty, narrowing attainment gaps in our communities.
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2. LIVERPOOL CITY REGION ECONOMIC CONTEXT
The Liverpool City Region covers the Local Authority Districts of Liverpool, Halton, Knowsley, Sefton, St. Helens and Wirral. The region has an estimated resident population of almost 1.6 million1 which has grown by around 5% over the last 10 years (slightly below national levels c. 6%). The Local Authority District of Liverpool is younger than the national average with those aged 16-49 higher than levels across England. Conversely, Sefton and Wirral have an ageing population with the number of residents aged 50, above than the national average. The region is recognised as a functional economic geography, with close to 85% of all travel-to-work flows self-contained within the City Region. The local authority district of Liverpool is the dominant employment centre, however economic activity is widely spread across the six districts. In broad terms Liverpool is the commercial, cultural and transport hub of the region. Halton has a cluster of chemical, science, technology sectors. Whilst Sefton, Knowsley, St Helens and Wirral provide key manufacturing and logistics for the area. Despite the region being a well contained economic area, the City Region’s coastal location in the North West of England means the region has economic connections with neighbouring areas (including Lancashire, Cheshire and Greater Manchester) but also internationally via the region’s ports and airport. Liverpool City Region provides access to around 32 million individuals in the UK within just a few hours2. The region’s economy is estimated to be worth £32.5bn3 based on GVA (gross value added) and has been one of the fastest growing in the North of England over the last 10 years. In the last decade, the Liverpool City Region has added over £1.5bn to its economy in real terms, against the backdrop of the deepest recession the UK has experienced since the Second World War. The City Region generates significant output through manufacturing, particularly in Halton and Knowsley (contributing 36% of all GVA4). Other sectors, including health, retail and education, also play a key role in the LCR economy. However, there is a productivity gap. The City Region economy generates £21,000 of GVA for every LCR resident this is only 74% of the UK level (£27,500 of GVA per resident) and since 2010, this gap has increased from £4,300 to £6,600. The difference in GVA per head is wider than the productivity gap (real GVA per hour) reflecting the need to get more people into work in the City Region. The pandemic has had an impact on some of the region’s largest sectors however, the latest data suggests workers are beginning to return from furlough, mirroring national trends, though it is too early to say what the impact of re-opening has been
1 Office for National Statistics, 2019; Mid-Year Population Estimates. 2 Liverpool City Region LEP, 3 Office for National Statistics, 2019; Regional Gross Value Added (Balanced) by Local Authority (1998-2018) 4 ONS Regional Gross Value Added (Balanced) by Local Authority (1998-2018) and ONS Mid-Year Population Estimates (1998-2018)
Page 5 of 18 Page 119 DRAFT Liverpool City Region Combined Authority Adult Education Budget Commissioning Plan 2022-2027 overall. As of April, 66,200 LCR employments were furloughed, which equates to just over 10% of all LCR employment. The same data shows that a large proportion of the pre-pandemic workforce remain on furlough within the hospitality and leisure sectors. As well as below average levels of productivity, the region faces a number of long- standing challenges around deprivation, with almost one third of all City Region neighbourhoods in the most deprived 10% in England. These are particularly concentrated in east Wirral, north Liverpool/south Sefton and north Knowsley5. Other challenges include high economic inactivity (second highest rate of economic inactivity of all LEP areas in England6), skills gaps (10% of working population have no qualifications compared with 7.5% nationally7), poor health (45% of neighbourhoods in the bottom 10% nationally8) and economic inactivity due to long- term sickness. LCR also faces challenges in relation to skills and qualifications, with attainment lower than regional (North West) and national levels. However, since 2010 LCR has seen the third fastest growth in the number of working age residents with NVQ4+ qualifications out of all LEPs, while the number of people with no qualifications has more than halved. In both measures, the City Region is catching up with the North West and the rest of the UK. Currently, the occupational profile of the City Region is skewed towards lower paid jobs. However, there is significant variation across the City Region. A large proportion of jobs in Liverpool (LA district) are in higher paid occupations, while Halton and St. Helens have more jobs in lower paid occupations. Across the City Region, 44% of LCR jobs are in managerial and professional occupations, compared with 46% nationally. Whilst progress has been made in addressing these challenges in the last 10 years these challenges continue to be key priorities for the Combined Authority over the next few years. Future AEB commissioning also needs to take account of the national picture, in particular with regards to the Skills for Jobs White Paper and the move by national government towards greater employer involvement in designing and specifying the local curriculum offer. The more detailed annual delivery plans agreed with providers will be mindful of this context and ensure that AEB supports skills and qualifications of value to employers locally.
3. SKILLS STRATEGY 2018-2023
The Combined Authority agreed the Liverpool City Region Skills Strategy 2018-2023 at its meeting in March 2018. Based on extensive stakeholder input and underpinned by the Skills Survey of over 1,800 employers, the Skills Strategy identifies a focused series of actions designed to improve the employment levels of
5 MHCLG, 2019; English Indices of Deprivation 6 Office for National Statistics, 2019; Annual Population Survey 7 See footnote 6. 8 See footnote 5.
Page 6 of 18 Page 120 DRAFT Liverpool City Region Combined Authority Adult Education Budget Commissioning Plan 2022-2027 individuals, improve the access of employers to skills and increase the productivity of employers across the City Region. These are shaped around six action areas and remain relevant for this second period of commissioning of devolved AEB:
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The Skills Strategy 2018-23 is currently subject to review, and any updates or iterations to this document, along with the Local Skills Action Plan 21/22 and subsequent updates will inform the skills priorities and planning in subsequent negotiations with grant funded providers, the next open procurement round, and provide a focus for growth awards in year.
4. THE LCR DEVOLVED ADULT EDUCATION BUDGET
The AEB’s principal purpose is to engage adults and provide them with skills and learning needed for work, an Apprenticeship or further learning. It also enables more tailored programmes of learning, which do not need to include a qualification, to help those furthest from learning or the workplace. AEB combines all post age 19 participation and support funding that is not European Social Fund (ESF), Advanced Learner Loans, Traineeships for 19-23 year olds or Apprenticeships outside of Higher Education. This commissioning plan also includes the National Skills Fund Level 3 offer, which has currently been delegated to the Combined Authority. Funding has been devolved to the Liverpool City Region Combined Authority since 1 August 2019, the original commissioning plan covered the first three year cycle which will complete on 31 July 2022. The devolved budget is circa £53m per year confirmed annually by the Department for Education and the LCR share remains fixed at 3.99% of the annual budget which is subject to change. Commissioning for academic year 2022/23 will continue with a combination of grant funding agreements and procured contracts for services in line with the commissioning legal advice provided from the Department for Education. The AEB continues to includes a statutory duty to fund learner entitlements for English and maths, a first Level 2 qualification and Level 3 for those aged 19 to 23 years, and a digital entitlement introduced in 2020. The 2019/20 devolved AEB delivered:
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5. PURPOSE OF THE COMMISSIONING PLAN
5.1 Purpose The Adult Education Budget Commissioning Plan has been produced to describe the approach of the Combined Authority in the ongoing contracting arrangements relating to delivery and describes some of the immediate priorities for use of AEB. This will be kept under review and guided by economic information particularly as we respond to the global pandemic and understand in more detail the impact this has had on businesses and residents of the LCR. All commissioning will build on the strategic ambition for the AEB outlined in the Liverpool City Region Skills Strategy 2018-2023 which is currently being reviewed and any subsequent updates or iterations to this document, as well as the published LCR Skills Action Plan 21/22 and future updates. It also reflects the experiences of delivering devolved AEB in the first Commissioning cycle, and ongoing feedback from engagement with the market described in more detail below. This Commissioning Plan also describes our approaches to: Grant funding agreement commissioning; Procuring contracts for services; Sub-contracting approaches; Flexible innovative approaches building on the test and learn pilots; Social value, and equality and diversity aspirations Additional delegated funding such as the National Skills Fund Level 3 Offer.
5.2 Principles of this Commissioning Plan The Commissioning Plan continues to be underpinned by a clear set of principles adopted in the first commissioning cycle for how the Combined Authority deploys resources. The following principles convey clarity, transparency and quality and provide the basis on which healthy dialogue and challenge can continue to exist amongst the commissioner and providers: be aligned to current Skills Strategy outcomes and any subsequent updates to this strategy along with the Local Skills Action Plan 21/22 and subsequent updates; align with national policy on funding eligibilities, rates and entitlements where appropriate, and will seek to improve or enhance these where local priorities add value; safeguard the provision of community learning; allow sub-contracting where this adds value to the mix and balance of provision locally; and allocate funding to grant funded colleges and local authorities and procure provision from other organisations, which will be openly published to ensure transparency of the commissioning process
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5.3 Market Testing Liverpool City Region Combined Authority conducted a significant market testing exercise ahead of the first cycle of AEB commissioning which garnered views from Colleges, Local Authorities and training providers relating to how the devolved Adult Education Budget could be improved to the benefit of learners and stakeholders. A number of these findings will be continued into the second commissioning cycle including:
£0.1m being a sensible minimum contract value and £1.0m maximum allocation at the start of any academic year for Contracts for Services Job entry recognised as being a valuable output to measure success for outcome-based commissioning Funding for learning outcomes should not be reduced Consideration to fully fund those ‘re-training’ whose skill levels may need updating – as implemented through fully funding all Level 2 provision Flexibility around fully funding priority sectors should be considered Sub-contracting fees should be limited between on a sliding scale with a cap at 20% Regular in year reviews are critical to avoid underspend and to redistribute resources from those underperforming Regular dialogue takes place with both the College and Local Authority community learning providers, through existing AEB contractual relationships and network engagement. There is a track record of working collaboratively to respond to learner and stakeholder needs, with local Colleges presenting our innovative test and learn approach to the Association of Colleges, alongside the development and implementation of new local learning opportunities for LCR residents. It is proposed that this approach to innovation will continue into the next cycle of delivery.
The Colleges represent an important sector in the delivery of AEB. Their experiences in delivering to learners, investing in local infrastructure and taking a longer term strategic approach to curriculum planning within the City Region is recognised. There is on-going engagement with the sector, including through the Merseyside Colleges Association Principals Group, as well as individual discussions outlined above.
The constituent Local Authorities play a key role in the delivery of Community Learning and regular dialogue with them as providers will continue into the next commissioning cycle. Their experience in delivering Community Learning in line with local authority individual needs remains important. Our commissioning approach includes discussion with, and reporting to, Portfolio Leads and the Employment and Skills Lead Officers of the Local Authority and reflects a close working relationship with Local Authorities as strategic bodies as well as grant funded delivery partners.
The Greater Merseyside Learning Provider Federation represents a number of independent training providers (as well as colleges and local authorities), and regular
Page 10 of 18 Page 124 DRAFT Liverpool City Region Combined Authority Adult Education Budget Commissioning Plan 2022-2027 contact take place to understand the sector’s priorities and challenges on a regular basis.
Regular meetings are also held with the other Mayoral Combined Authorities/Greater London Authority to discuss experiences of devolved AEB and share policy changes and flexibilities implemented. This provides a useful forum to share good practice and evaluation of the devolved activities undertaken to date, including planned changes for future years. The ESFA as the other key AEB funding agency also have regular dialogue with all MCAs/GLA, this allows the review of activities in context of national policy and helps to ensure that any policy decision relating to AEB does not disadvantage any provider delivering devolved AEB compared to the national programme.
6. HOW DEVOLVED AEB WILL BE COMMISSIONED
6.1 Grant Funding Agreements commissioning As the commissioner, the Combined Authority must continue to agree with Colleges and Local Authorities the right mix and balance of provision and new flexibilities in return for accountability and responsiveness that will be delivered through devolved AEB funding allocations. As part of commissioning (either negotiated Grants Funding Agreements or procured Contracts for Services) Colleges, Local Authorities and training providers will identify how their curriculum expertise and capital infrastructure (either existing or planned) that is accessible to Liverpool City Region residents meets local skills needs and targets under represented learner cohorts identified in the Skills Strategy. Commissioning will place an emphasis on: Quality provision Protecting Community Learning; Improving outcomes aligned to our Skills Strategy; The role of statutory entitlements and local priorities. The following organisations have current grant funding agreements with the Combined Authority and these form a critical AEB delivery infrastructure that we will continue to cultivate as major LCR stakeholders: Liverpool City Region indigenous grant funded providers include those detailed in Table 1 below.
Table 1: Liverpool City Region indigenous grant funded providers Local Authorities FE Colleges Knowsley Metropolitan The SK College (merged St Helens and Knowsley Borough Council College) Liverpool City Council Hugh Baird College (now merged with South Sefton Sixth Form) Sefton Metropolitan Borough Southport College (now merged with KGV Sixth
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Council Form College) Halton Borough Council Wirral Met College St Helens Metropolitan Riverside College Borough Council Wirral Metropolitan Borough The City of Liverpool College Council Myerscough College (for Liverpool City Region learner activities) All Colleges and Local Authorities will continue to submit a Delivery Plan to the Combined Authority reflecting their curriculum offer and outlining how this meets the needs of the LCR. The contents of the delivery plan will be reviewed annually to ensure local relevance and consistency where appropriate with national approaches to funding the sector. These providers are currently paid on the national grant funded payment profile, this will be kept under review. 6.2 Widening the grant funded offer to other Further Education Institutes (FEI)
In the first commissioning cycle, legal advice offered to Combined Authorities from the Department for Education confirmed that College and Local Authority negotiated grant funding commissioning could be continued. This split approach reduces risks of delays to the procurement process causing a hiatus in learning availability for LCR residents. For those providers deemed a ‘Further Education Institution’ (FEI) under the relevant statutes, it is the intention to explore additional arrangements with neighbouring and other FEIs to LCR for the second commissioning cycle. This approach will offer additional choice for LCR residents to access provision from their most appropriate FEI taking account of travel to learn areas or availability of specialist provision. This inclusion of FE Institutions peripheral to LCR or within the LCR but currently not grant funded within our negotiated commissioning approach may be subject to additional rules to ensure travel to learn areas remain indicative to current levels of LCR resident learner demand. It is proposed to fund these FE Institutions in arrears based on actual learner activity, which differs from the paid on profile approach taken with indigenous LCR based Colleges and Local Authorities.
6.3 Procuring contracts for services
Independent Training providers who aim to meet the needs of Liverpool City Region resident learners will be able apply through a formal procurement process. Historically through devolved funding, this is anticipated to be circa £12-15m per academic year. As the commissioner, the Combined Authority will set out its priorities and minimum requirements for AEB funded providers through a formal process led by the internal Procurement function of the Combined Authority. The devolved AEB for Liverpool City Region residents in 2022 / 2023 onwards will fund successful applicants with a
Page 12 of 18 Page 126 DRAFT Liverpool City Region Combined Authority Adult Education Budget Commissioning Plan 2022-2027 minimum contract value of £0.1m. Organisations with a smaller delivery capacity can collaborate to form a consortium with a named lead provider or seek sub-contracting arrangements with lead providers once established. The maximum fee to be charged by a lead provider to a sub-contractor will be proportionate to costs and continue to be capped at a maximum of 20% of AEB funding earned. The proposed length of contracts for services following this formal process will be for a period of up to 5 years, reviewed on an annual basis i.e. contracts with a break clause and option of renewal for further one year periods. This is a longer period than in the previous cycle for the following reasons:
Provide some financial stability to providers given the uncertainty that COVID- 19 has had on the sector Provide an opportunity for longer term partnerships maximising the investment of devolved AEB and the opportunity to develop more flexible skills programmes and curriculum development Maximise the impact of continuing professional development investments facilitated and funded by the Combined Authority in the provider base Taking into account the level of resources required to undertake procurement on this scale as both commissioner and tenderer The Combined Authority reserves the right to extend contracts for further academic years subject to funding availability, the provider’s delivery and performance against the contract, and skills policy (including any changes to the overall Liverpool City Region budget arising from the Spending Review or adjustments to the way in which Liverpool City Region’s allocation is calculated by central government). The Combined Authority will procure through The Chest (Pro-Contract) e-tendering system. Guides and documents and The Chest FAQ sections are available to make The Chest as user friendly as possible. These can be found on the homepage of www.the-chest.org.uk Key dates and procurement timeline for contracts for services will be available in due course.
6.4 Devolved Sub-contracting arrangements Sub-contracting continues to play an import role in the delivery of the AEB. Subcontractors can help widen participation amongst niche groups that would otherwise be hard to reach or deliver niche provision that may be under the minimum contracting levels of the Combined Authority. Subcontracting also provides an entry point to funding for smaller voluntary and community sector (VCS) The fees charged by lead providers to those they sub-contract with should be transparent. Fees should be proportionate to the services offered by the lead provider, recognising there may be a sliding scale for varying levels of support for managing the sub-contract relationship and associated risks, data processing, access to internal audit support, quality assurance and improvement, classroom
Page 13 of 18 Page 127 DRAFT Liverpool City Region Combined Authority Adult Education Budget Commissioning Plan 2022-2027 observations and accreditation support. The Combined Authority will continue to cap the amount charged by lead providers on sub-contractor’s earnings to 20%. All sub-contracts must be agreed with the Combined Authority prior to any learning commencing as part of lead provider due diligence arrangements. This will enable the Combined Authority to understand the learning it funds and better ensure the level of funding spent on sub-contract support infrastructure is proportionate to costs.
6.5 Cross border working with GMCA Continuation of our reciprocal cross border service level agreement with Greater Manchester Combined Authority will mean that LCR learners that choose a GMCA provider will be funded on a reciprocal basis i.e. LCR residents can access GM funded provision and vice versa. Historically the funding to support this arrangement is comparable for both GMCA and LCRCA. 6.6 National Skills Fund Level 3 Adult Offer The NSF Level 3 Adult Offer Lifetime Skills Guarantee funding was delegated to the Combined Authority from 1 April 2020 and currently runs until 31 July 2022. Should this funding be extended into the 2022/23 contract year and beyond, Level 3 provision will be negotiated with existing grant funded providers, and taken into account in the new procurement for Contract for Service provision. Decisions on how the funding will be paid to providers will remain at the discretion of the Combined Authority. Only qualifications from the nationally approved list can be funded.
7. DEVOLVED AEB FLEXIBILITIES
7.1 Innovation and Local Flexibility Devolution has provided a platform to diverge from national funding approaches and the first three years of delivery have tested new ways of working and adapting AEB funding to reflect local priorities. This has been particularly important in responding to the impact of COVID-19 and maximising the learning for our LCR residents. We remain aligned to some areas of the national approach, such as use of the formula funding model, national eligibility rules, and statutory entitlements, however, these will be kept under review to ensure we can respond to local need and demand. Outlined below are the areas of delivery that the Combined Authority proposes to continue or implement during this next commissioning phase: Expansion of Innovative delivery building on Test and Learn Pilots from the first commissioning cycle Encouraging Learner Progression into Employment; Fully Funded Learning for Individuals in receipt of low wage
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Fully Funding all Level 2s to support retraining and reskilling Capacity building through continuous professional development (CPD) Change funding rates and funding new qualifications and skills Continuation of the use of a Facilitation Fund to address gaps in provision or respond to economic shock
7.1.1 Expansion of Innovative delivery building on Test and Learn Pilots Test and Learn pilots developed since 2019/20 have evolved, and focus continues on the delivery of ESOL and English and maths provision in new and innovative ways. Added to this is an additional flexibility to test new approaches of delivery to address an identified gap in provision or perceived market failure. Contract for Service providers will be invited to use up to 5% of their contract value in a flexible way to test innovation – this will be agreed in advance at the discretion of the Combined Authority. 7.1.2 Encouraging Learner Progression into Employment The first commissioning cycle resulted in the Combined Authority testing the use of outcome payments and this has been refined over the first three years following discussion and feedback with stakeholders and providers. It is the intention to continue to incentivise providers to support and track learners into employment following engagement with pre-employment training or Sector based work academy programmes (SWAPs). Jobs that meet minimum criteria defined by the Combined Authority are eligible for outcome payments and we will continue monitor and refine this approach during the second commissioning cycle.
7.1.3 Fully Funded Learning for Individuals in receipt of low wage Introduced by the Combine Authority in the first three years of devolved AEB, this pilot will continue to ensure more low paid learners (earning less than a full time post equivalent to the Real Living Wage) in Liverpool City Region have access to free training to access fully funded AEB skills provision rather than co-funding their learning. The Combined Authority has and will continue to increase this threshold salary level to the Real Living Wage each year enabling a greater proportion of learners to access fully funded skills provision.
7.1.4 Fully Funding all Level 2 Provision to support reskilling and retraining
In response to early market engagement and consultation, and to support workers affected by furlough, the Combined Authority will continue to fully fund all Level 2 provision regardless of prior attainment or status. This will be kept under review with regards to affordability and demand as we emerge from the pandemic.
7.1.5 Capacity building through continuous professional development (CPD)
The first cycle of commissioning saw the Combined Authority supporting providers by facilitating training for Mental Health First Aid for staff to respond to the rising incidences of learners presenting with mental health needs locally. The success of
Page 15 of 18 Page 129 DRAFT Liverpool City Region Combined Authority Adult Education Budget Commissioning Plan 2022-2027 this work ensured that Colleges, Local Authorities and independent training providers are able to support learners as a point of mental health first aid and onward referral, and are better enabled to help someone who may be experiencing a mental health issue or illness with their resilience and future wellbeing.
In direct response to the pandemic, and the requirement for providers to adapt delivery to more blended learning, including distance and on-line platforms, the Combined Authority also sourced an external provider to deliver sessions and toolkits regarding embedding quality into on line learning. This aligned to the Ofsted guidance relating to delivering blended provision and many provider staff were able to benefit from these sessions, with continued access to on line toolkits.
It is the intention to continue to build on supporting our AEB provider base in areas identified through ongoing market engagement and consultation with providers. Future examples of this are likely to include providing support to specific learner cohorts, learning from other areas of good practice in the implementation of delivery, closer linkage with businesses and needs of industry in curriculum planning and delivery of AEB in a further education setting.
7.1.6 Change funding rates and funding new qualifications and skills
Changes to national funding rates may help to incentivise learning in priority areas such as digital skills. Locally developed new qualifications or learning aims could be funded to meet these needs. This approach could also be used to encourage engagement of specific learners to help narrow the gaps in achievement from disadvantaged groups. It has also been tested on a small scale during the first round of commissioning where new learning aims were developed in collaboration with Merseyside Colleges Association and local employers to address specific gaps in learning in priority areas.
The Combined Authority also has the opportunity to change the funding rate of qualifications to better represent the costs incurred by providers e.g. paying more for challenging areas of delivery such as English as a Second or Other Language (ESOL) or other qualifications that relate to local priority sector skills needs. Changing existing funding rates would require a robust business case that considers the potential impact on the market place, displacement of other provision such as apprenticeships and the impact of current employer funding contributions to sectoral skills needs.
Postcode specific uplifts could also be used to incentivise the engagement of learners from specific areas of the LCR and address very local issues faced by communities across the LCR.
7.1.7 Continuation of the Facilitation Fund
An element of AEB will be held back each year to provide resource for the use of a facilitation fund. This will be used to address specific gaps in learning or learner demand, respond to employer demand, and address factors caused by economic shock. The use of this fund throughout the pandemic outlined the importance of
Page 16 of 18 Page 130 DRAFT Liverpool City Region Combined Authority Adult Education Budget Commissioning Plan 2022-2027 having the ability to provide supplier relief and respond to specific learner demand for digital skills and this will continue in this next cycle of commissioning.
8. SOCIAL VALUE AND NARROWING THE GAPS - EQUALITY AND DIVERSITY MONITORING
The Combined Authority has a published Social Value Framework and this will be used as a basis for measuring and monitoring the impact of AEB in a number of ways. The commissioning of AEB will also focus on the concept of Fair Employment and what this means for both organisations delivering devolved AEB but also those learners that can benefit from policies that support the implementation of this across the LCR. Both of these will form part of the procurement process, and providers will be expected to report on these impacts throughout the commissioning period. The AEB aims to improve opportunities for people who are in need of new skills. Many potential AEB learners also have protected characteristics. The AEB Commissioning Plan and provision will support a range of under- represented groups, particularly the most disadvantaged residents, including those without basic skills, the unemployed, over 50s, single parents, black and minority ethnic groups and disabled people. The pilots outlined in this plan also seek to support residents in low paid/low skilled jobs. Colleges and providers will be expected to report on Equality and Diversity Impact Measures (EDIMs) linked to narrowing the gaps in skills participation and achievement for Black and Minority Ethnic groups (BAME), under-represented genders in particular sector subject areas and for learners with learning difficulties and disabilities (LLDD). Whilst EDIMs will not be paid measures and outcomes, they will be a contractual or grant requirements and part of accountability measures to ensure greater College, Local Authority and training provider transparency in the measurement and reporting of outcomes to the Combined Authority and local stakeholders.
9. CONTACT AND FURTHER INFORMATION
If you require any further information, clarification or have any queries please contact us at: [email protected]
To download a copy of this document, go to: http://www.liverpoolcityregion-ca.gov.uk/.
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Page 18 of 18 Page 132 APPENDIX TWO
Colleges and Local Authority Grant Funded Providers
Liverpool City Region based grant funded providers:
Local Authorities FE Colleges Knowsley Metropolitan SK College Borough Council Liverpool City Council Hugh Baird College Sefton Metropolitan Southport College Borough Council Halton Borough Council Wirral Met College St Helens Metropolitan Riverside College Borough Council Wirral Metropolitan The City of Liverpool College Borough Council Mysercough College (for Liverpool City Region learner activities)
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APPENDIX 3 External Colleges and other grant funded Proposed Providers (excluding those in scope for GMCA cross border arrangements)
College Other Designated Grant Funded Institution Warrington & Vale Royal Workers’ Educational Association College West Lancashire College (part of Newcastle Colleges Group) Reaseheath College Cheshire College South and West
Page 135 This page is intentionally left blank Agenda Item 9
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 23 July 2021
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: No
KEY DECISION Yes
REPORT OF THE INTERIM DIRECTOR OF INTEGRATED TRANSPORT AND THE PORTFOLIO HOLDER: TRANSPORT AND AIR QUALITY
ACTIVE TRAVEL FUND: LOCAL AUTHORITY CAPITAL FUNDING 2021/22
1. PURPOSE OF REPORT
1.1 This report sets out the Department for Transport (DfT) proposed process for applications to the Active Travel Fund: Local Authority Capitla Funding 2021/22. The LCR received the DfT invitation letter 14 June 2021, see Appendix 1.
1.2 As outlined in the letter the closing date for this competitive funding bid is 9 August therefore this report seeks approval from the Combined Authority to grant delegated authority for the submission of an appropriate bid to the Head of Paid Service in liaison with the Portfolio Holder: Transport and Air Quality.
1.3 A further report will be brought back to a future Combined Authority meeting confirming the content of the bid.
2. RECOMMENDATIONS
It is recommended that the Liverpool City Region Combined Authority:
(a) Notes the content of the report, and;
(b) Grants delegated authority to submit the final bid to DfT for the closing date of 9 August to the Head of Paid Service in liaison with the Portfolio Holder: Transport and Air Quality.
Page 137 3. BACKGROUND
3.1 Members will recall that in May 2020 the government announced they had identified £2bn to support cycling and walking measures, specifically in relation to providing alternative Active Travel opportunities. Members may also recall that the government released some of these funds during 2020 and 2021 to Transport Authorities to support Active Travel. So far the government has distributed £250m of this ring fenced fund via two tranches:
Tranche 1 (May 2020) to support the installation of temporary projects for measures during the COVID-19 pandemic; and
Tranche 2 (June 2020) to support the creation of longer-term active travel projects.
3.2 The LCR CA received an indicative allocation from Department for Transport (DfT) for Tranche 1 (£1.874m) and Tranche 2 (£7.896m) which we were successful in securing based on the „strength‟ of our submission, as reported to the Combined Authority in January 2021).
3.3 In addition to the above, and as reported under a „Notification of Officer Decision‟ in May 2021, the (DfT) informed the Liverpool City Region Combined Authority of an indicative active travel revenue funding settlement of £1,897,489, for the financial year 21/22. The DfT expects that the revenue funding will be used to support the following objectives:
“To support the development of infrastructure projects to the new standards set out, including updating previous plans (such as LCWIPs) as necessary; To promote increased levels of physical activity through walking and cycling for everyday journeys; and To support access to new and existing employment, education and training”
3.4 The LTP Development Team working with colleagues from across the 6 constituent authorities of the CA have developed a programme for active travel which supports these criteria.
3.5 The DfT have announced a further fund, the Active Travel Fund: Local Authority Capitla Funding 2021/22, 14 June 2021. The Key Principles as set out in the letter (Appendix A) for this fund are; • Compliance with Cycle Infrastructure Design (LTN 1/201) standards will be compulsory for all schemes.In addition, compliance with other good practice (eg Manual for Streets, Healthy Streets approach) is not compulsory, but highly recommended) • LCWIPs/network plans - not compulsory, but bids will be viewed more favourably where schemes have been prioritised through the LCWIP process • Commitment to consulting local communities on schemes – similar requirements as required by DfT in Active Travel Fund Tranche 2
Page 138 1 Cycle Infrastructure Design (publishing.service.gov.uk) • Local authority leader support – long term commitment to delivery of schemes. All bids will require a letter of support from CA/LA Leaders and were schemes are prematurely removed DfT may seek funding clawback • To agree to put schemes through a design review, to be managed by DfT and the future Active Travel England body.
3.6 The DfT have indicated that all bids will be assessed in line with the following criteria, which will guide final allocations to all authorities: • Compliance with the key requirements as set out in paragraph 3.5 above, • Propensity to convert short vehicle journeys into cycling and walking, resulting in carbon, air quality and congestion benefits; • Tackling areas with poor health outcomes and with high levels of deprivation; • Number of people that will benefit from the scheme introduction
3.7 DfT have also indicated that: • there will be no “indicative” allocations for this year 2021/22, rather the focus will be on quality assurance prior to funding awards, • funding levels likely to be similar to last year, 2020/21 • LAs will need to prioritise schemes when bidding. • this opportunity is for capital funding only • funding can support all phases of scheme development and Monitoring and Evaluation • Combined Authorities to lead bids on behalf of their constituent LAs • Open bidding w/c 14 June; bids due by 9 August (8 weeks), • any payment, should a CA or LA be successful will be made in October 2021 • Value for money assessments are required for schemes over £2 m • Schemes to be delivered by end March 2023
4. PROPOSALS FOR ACTIVE TRAVEL CAPITAL FUND 2021/22
4.1 As per the criteria set out above the LCR proposals for the „bid‟ will be focused around delivering the LCR LCWIP LCR-LCWIP-Final-1.pdf (liverpoolcityregion- ca.gov.uk).
Schemes will be assessed, and included within the programme / bid, based on the DfT key principles and critieria as set out in section 3 above. Where. scheme costs are over £2m, a VfM assessment will be carried out based on the DfT Active Mode Appraisal Toolkit (AMAT) by the LTP Development Team officers.
4.2 Within the invitation letter from DfT, authorities are also invited to submit two expression of interest (EoI), should they wish. One EoI relates to an opportiunity to be involved in the Governments Mini-Holland programme and the second is to take part in a GP prescribing pilot.
4.3 LCR officers are working with partners and, at this stage, is proposed to submit and EoI for both opportunities, although it is recognised that the EoI for the GP prescribing pilot will rely heavily on support from the approrpaite Clinical Commissiong Groups and Primary Care Network.
Page 139 4.4 Based on the above scheme programme, if the LCR CA were successful in the bidding process to DfT the funding would be distributed across the 6 constituent local authorities and Merseytravel.
4.5 If successful,the funds will be disbursed utilising a Grant Funding Agreement letter with each of the local authorities, one which reflects the DfT grant conditions which will be shared with the CA once the payment is made. An example of a similar legal agreement used for Active Travel Revenue Funding Allocations for 2021/22 – Capability Fund is shown in Appendix 2.
5. RESOURCE IMPLICATIONS
5.1 Financial
Should the LCR be successful with it‟s bid, it is proposed that the funds be disbursed across the constituent local authorities and Merseytravel depending on the final make up of the bid.
The DfT stated in their invitation letter that Monitoring and Evaluation can be included in the bid. Previously the LCR has installed sensor equipment on it‟s implemented active travel routes/ measures which record numbers of cyclists and pedestrians (and other modes of transport) 24 hours a day. These sensors are extremely effective in gathering data and evidence to support both the implementation of the schemes they are monitoring and future planned schemes. Maintenance Revenue Requiement
The proposal for use of sensors to monitor the usage of the schemes will have revenue implications. The capital fund will pay for installation and maintenance costs for the first 5 years of operation to ensure the LCR meets the DfT requirement for Monnitoiring and Evaluation. However, if the LCR were to maintain the sensors beyond five years (which if purchased appropriately can also be used to count vehicular traffic by classification and would therefore offer extra data to support the LCR) ongoing revenue would be required to maintain operation of the equipment. Estimated at £434 per annuam per sensor)
Similarly, if the sensors are to be incorporated with the exsiting dashboard currently operated by Liverpool John Morres University, there will be a revenue cost required as soon as the sensors are added to the dashboard. The cost for validation of additional sensors is anticipated to be in the region of £20k. Where appropriate Project Manager costs will be incorporated into the scheme costs as submitted by sponsor local authorities and Merseytravel.
5.2 Human Resources
There are no direct implications arising from this report. Work will be commissioned by Local Authorities and Merseytravel as one of the delivery partners to consultancy services and contractors.
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5.3 Physical Assets
Active Travel schemes will impact on the physical assets of the constituent local authorities as a result of the introduction of permanent cycle measures and improvement to junctions which should if they are to be eligible for funding result in meaningful reallocation of road space as stated in the governments recent policy document Gear Change: A Bold Vision for Cylcing and Walking2.
5.4 Information Technology
As part of the Monitoring of the Active Travel measures proposed for implementation it is proposed to install sensors along the routes of any completed schems / junction improvements. The sensors will be suitable to be added to the network of current sensors used in the LCR to monitor existing active travel schemes.The current sensors in the LCR feed into a dashboard operated by Liverpool John Moores University, which has been developed as part of the Sustainable Urban Development (SUD) ERDF funded project. 2 Gear change: a bold vision for cycling and walking (publishing.service.gov.uk)
6. LEGAL IMPLICATIONS
A funding agreement will be made with each of the constituent local authorities as a result of the Active Travel Fund: Local Authoority Capital Funding 2021/22, to meet the requirement of the DfT grant funding, when available, as explained in 4.5 above.
7. RISKS AND MITIGATION
Risks will include those associated with project delivery. Both a programme risk register and individual risk registers will be formulated by the LTP Development Team and each of the project sponsors and will be monitored as part of the CA monitoring process, which as per previous Active Travel Funds will be undertaken in liaison with the Programme Management Office.
8. EQUALITY AND DIVERSITY IMPLICATIONS
8.1 Following the recent publication of the governments guidance note Local Transport Note 1/20 Cycle Infrastructure Design, (LTN1/20), all newly implemented infrastructure for cycling and walking will need to meet minimum standards which includes provision for adapted bikes, and a safe separated environment for cyclists suitable for use by children and adults.
8.2 The provision of safer cycle and walking routes also provides opportunity for individuals who may find themselves in transport poverty as a result of lower incomes to utilise active travel, potentially supported by the revenue activities which are also part of this fund.
Page 141 8.3 An Equality Impact Assessment will be undertaken as part of the bid process to ensure that the programme meets the needs of those with protected characteristics under the Equality Act 2010.
9. PRIVACY IMPLICATIONS
There are no direct privacy implications in respect to the Active Travel Capital Fund.
10. COMMUNICATION ISSUES
10.1 As indicated in paragraph 3.5 it is a government requirement for all Active Travel Capital Fund schemes to be subject to local consultation. It is anticipated that consultation will be undertaken at a local level as appropriate within each constituent local authority of the LCR.
11. CONCLUSION
11.1 The LCR bid will be developed and submitted to the DfT to meert the deadline of 9th August. The Final bid submission will be agreed with the Head of Paid Service in liaison with the Portfolio Holder: Transport and Air Quality and reported to the Combined Aurthority in the future.
11.2 The LCR proposes to submit a bid to the DfT as outlined above and which meets the bid criteria. If successful,the constituent local authorities of the LCR will be required to undertake consultation on the schemes and theywill need to be completed by end of March 2023.
11.3 If successful, and once the funds are received by the CA, it is proposed that the funds be disbursed as outlined above in accordance with the bid submission.
COUNCILLOR LIAM ROBINSON Portfolio Holder: Transport and Air Quality
SHANE FITZPATRICK Interim Director of Integrated Transport
Contact Officer(s): Barbara Wade, LTP Development Manager
Appendices: 1. Active Travel Fund: Local Authority Capitla Funding 2021/22. The LCR received the DfT invitation letter 2. Active Travel Revenue Funding Allocations for 2021/22 – Capability Fund
Background Documents: None Page 142
Rupert Furness DEPUTY DIRECTOR, ACTIVE TRAVEL DEPARTMENT FOR TRANSPORT 33 HORSEFERRY ROAD LONDON SW1P 4DR
Web Site: www.dft.gov.uk
14 June 2021 Dear Sir/Madam,
Active Travel Fund: Local Authority Capital Funding for 2021/22 and expressions of interest for Mini Hollands and GP Prescribing Pilot
This letter invites your local authority to bid for capital funding for the current financial year 2021/22, to support delivery of ambitious new cycling and walking infrastructure schemes. This funding is part of the Government’s £2 billion commitment set out in “Gear Change” to deliver a step change in the provision of high quality schemes that deliver better streets for everyone.
Bids must be submitted by Monday 9 August but you are encouraged to bid sooner. Combined Authorities are expected to produce a single bid on behalf of their constituent authorities. Funding for London boroughs is being handled separately, and London boroughs do not need to submit proposals to the Department for Transport.
The Department does not intend to set indicative capital allocations. To give an indication of scale, the total amount of funding being made available is £239 million, and eligible local authorities may therefore receive broadly similar levels of funding to 2020/21; however, to qualify for any funding at all this year, authorities must commit to the following key principles:
1. The Department only intends to fund schemes which comply with the Cycling Design Standards set out in local transport note LTN 1/20. All cycling schemes will need to include segregation or point closures to through traffic. Advisory cycle lanes, and those marked only with white paint, will not be funded. We expect local authorities and developers to utilise the guidance in the design of all schemes regardless of whether they are seeking Government funding. Over the coming months, we will be offering training events aimed at local highway teams, active travel teams and accessibility teams, covering the key features of the standards, and its supporting tools.
2. All authorities are to undertake network planning to inform prioritisation of future schemes, in the form of Local Cycling and Walking Infrastructure Plans (LCWIPs) or similar local strategies. This helps to ensure that schemes are integral to long term investment plans and are driven by local demand for cycling and walking infrastructure. LCWIPs should be supported by your authority at the
Page 143 very highest levels of leadership; developed in consultation with local communities; and integrated with your local transport plans, as well as wider plans for public health, economic development and carbon reduction. These plans must also show proper integration with cross-modal schemes, such as opportunities for boosting cycling and walking around HS2, East West Rail, Highways England, Restoring Your Railways, Historical Railways Estate and National Cycle Network schemes.
We know that many authorities have already developed LCWIPs with support via the Department’s pilot support programme, or through your own independent work. If your authority has yet to develop a LCWIP, or it is at an early stage of development, the Department will be offering dedicated technical support in partnership with Sustrans to help you develop your future plans. We will provide further details of this support, and what you need to do to access it, shortly. Authorities without LCWIPs are still able to bid for capital funding this year, but it must be demonstrated that proposed schemes fit into a robust long-term network plan, which will need to be provided as part of the bidding process.
3. All schemes must include plans to be developed in consultation with local communities, in line with the process set out for the Active Travel Fund (see Annex A). As we have set out in previous letters, consultation does not mean giving anyone a veto, requiring consensus on schemes, or prioritising the loudest voices. It could include adopting measures (such as polling) to cut through the noise and come to an accurate understanding of public views.
4. All schemes must be supported by local authority leaders, who will need to provide written confirmation of the authority’s long-term commitment to them. All schemes should be given sufficient time to bed in and for benefits to be realised before any changes are made to them: the Department will reserve the right to claw back funding where schemes which it has funded are prematurely removed.
5. To agree, if asked, to put larger schemes through a design review, to be managed by DfT and the future Active Travel England body.
Bids will be assessed in line with the following criteria, which will guide final allocations to authorities:
1. Propensity to convert short vehicle journeys into cycling and walking, resulting in carbon, air quality and congestion benefits; 2. Tackling areas with poor health outcomes and with high levels of deprivation; 3. Number of people that will benefit from the measures; 4. Compliance with the key principles above.
The bidding proforma should be completed via Smart Survey. More detailed FAQs for bidding authorities are attached to this letter, along with a copy of the bid proforma. It is our intention that the bidding process should be swift and not onerous. In many cases authorities will already have proposals for LTN1/20-compliant schemes or may wish to make permanent some of the temporary schemes installed under the Emergency Active Travel Fund in the last year.
Page 144 Funding can be used to support a range of scheme types and can also be used to support feasibility studies and scheme design as well as construction, providing that the funding can be capitalised. Local authorities should also consider, and take steps to mitigate, the wider impacts of any proposals, particularly on disabled people and others with protected characteristics as part of their Public Sector Equality Duty.
In applying for funding, we are asking authorities to supply the following evidence to the Department within the bid proforma:
• Updated LCWIPs (if applicable), including your latest network plans. • Brief information on your authority’s investment priorities for cycling and walking infrastructure schemes over the next 1 year, 4 years and 10 years. Only high level information is required for schemes to be delivered over the 4 and 10 year time period. This information will enable the Department to establish a clearer picture of future funding demand. • Details of the schemes for which you are seeking funding in 2021/22, in priority order.
Applicants are also expected to assess and confirm, through their section 151 officer, the value for money of their schemes. For all schemes costing £2 million or more, the Department will require applicants to undertake a value for money assessment using the Active Mode Appraisal Tool (AMAT). Accompanying this letter, we have sent you value for money guidance to help assess your schemes which should make this process straightforward.
In the event that schemes are unable to be delivered, the authority should submit revised proposals which do offer value for money to the Department as soon as possible. Where this is not possible, the Department will reserve the right to claw back any funding by adjusting downwards a future grant payment to your authority.
The Department will also expect the impact of schemes to be monitored and evaluated. A copy of the monitoring and evaluation guidance issued with earlier tranches of funding accompanies this letter. This will be a requirement for all schemes costing £2 million or more and is recommended for other significant schemes.
Mini Hollands development programme
The Department is also taking this opportunity to invite expressions of interest from authorities in the Government’s Mini-Hollands development programme. Mini Hollands involve intensive, transformational spending on local roads and streetscapes to make them, over time, as cycle and pedestrian-friendly as their Dutch equivalents. This includes installation of high quality segregated cycle lanes on main roads, low-traffic neighbourhoods and high streets, and greater roadspace allocation for people walking.
The results from three Mini Holland schemes in London have shown dramatic improvements, with cycling increasing by 18 per cent and walking by 13 per cent in the first year after construction. Congestion did not rise in the longer term, because the changes allowed many people who had previously driven very short journeys to walk or cycle instead.
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We are therefore looking to develop a shortlist of around 12 non-London local authority areas, to benefit from intensive investment in mini-Holland schemes on the same model. The main focus will be on replacing short car trips. Candidate authorities must be places where there is serious political commitment to dramatic change – not just for cyclists, but for everyone who lives and works there. There must also be clear plans for the mini- Holland schemes to be properly integrated into wider cycling and walking network plans (e.g. within the 4 and 10-year project pipelines).
More details on how to apply are set out in the attached FAQ guidance. Revenue funding will be made available to shortlisted authorities (up to £100k per authority) to develop detailed proposals later in the year. Longer term funding will be provided following the next multi-year Spending Review, expected later in 2021.
GP prescribing pilot
We are looking for a small group of Local Authorities to take part in a pilot to provide cycling and walking interventions as part of a social prescribing offer. These pilots must be supported by the local Clinical Commissioning Groups and Primary Care Networks.
Taking up cycling is amongst the most effective health interventions a person can make: according to a recent Glasgow University study, cycling to work can contribute to a 45% lower risk of developing cancer, a 46% lower risk of heart disease and a 41% lower risk of premature death, compared to a nonactive commute.
We will develop a shortlist of up to four authorities to take part in the pilot. The Department wishes to invite local authorities with areas of poor health and low physical activity rates to express their interest via a short letter. We invite EOIs from authorities with a range of experiences in social prescribing, from more to less mature. A commitment to innovation and buy-in from key stakeholders is important.
The project will seek to deliver personalised care through approaches determined most appropriate for the identified areas. A key network for this will be link workers experienced in social prescribing in primary care networks. Pilots will prescribe cycling or walking wherever appropriate, and make available cycles, as well as training, access to cycling groups and peer support.
To support patients to feel safe to cycle in their local community, places will need to invest in infrastructure improvements such as segregated lanes, low-traffic neighbourhoods and secure cycle parking. There must also be clear plans for the prescribing pilots and related infrastructure improvements to be properly integrated into wider cycling and walking network plans. Access to good quality green space and green routes, away from traffic, can both increase attractiveness of cycling and bring mental health benefits. Such interventions could be connected to NHS campaigns in the pilot areas.
As with the mini-Hollands development programme, more details on how to apply are set out in the attached FAQ guidance. Revenue funding will be made available to shortlisted authorities (up to £100k per authority) to develop detailed proposals later in the year.
Page 146 Longer term funding will be provided following the next multi-year Spending Review, expected later in 2021.
Further advice and guidance
Cycle Infrastructure Design Guidance (LTN 1/20) one-day training events will be available to all local and combined authorities. This training is aimed at local highway teams, active travel teams and accessibility teams and will comprise a one-day interactive course. The training will be provided from July 2021 through to January 2022 by Sustrans with support from the LCWIP consortium (Sustrans, Living Streets and Cycling UK). Courses will generally be provided for single authorities (or combined authorities) and will be for 8 to 12 places for each authority (or combined authority) per course. To register your interest please book a slot for your authority at the following Eventbrite link https://www.eventbrite.co.uk/e/designing-high-quality-walking-cycling-infrastructure-ltn- 120-guidance-tickets-155795834535.
We are arranging two one-hour online sessions for LAs during the early phase of the bidding window, to discuss the key requirements of the bidding process, and answer any remaining questions. These sessions will cover general bid and value for money requirements, monitoring and evaluation and guidance on consultation. Invitations for these sessions will be circulated in due course.
The Department is in the process of commissioning a number of roundtable events, where Local Authority Leaders and Cabinet Members, will have the opportunity hear from senior representatives of the Department for Transport, joined by other speakers, to discuss their experiences of implementing ambitious active travel programmes. More details on speakers, facilitators, aims, outcomes, and how to reserve a place will be circulated in due course.
Yours sincerely,
Rupert Furness
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Our Ref: LDSP/ Contact: Claire Hering Your Ref: Tel: 07425613085 Date: [ ] [ ] [ ] [ ] [ ]
For the attention of [ ]
Dear Sirs
Active Travel Revenue Funding Allocations for 2021/22 – Capability Fund
Liverpool City Region Combined Authority (“LCRCA”) has received revenue grant funding from Central Government for schemes to support cycling and walking within the Liverpool City Region (“Capability Fund”).
This new Local Authority Capability Fund replaces the Access Fund of previous years. It supports the commitment made in Gear Change, the Prime Minister‟s Cycling and Walking Plan in July 2020, to increase the capabilities of local authorities to plan good active travel infrastructure, including building more expertise and undertaking more evidence-based planning. The Capability Fund will also support traditional behaviour change initiatives, where linked to improvements in infrastructure.
LCRCA proposes to make a total sum of £[ ] available to [ ] (the “Recipient”) based on summary of work to be delivered over 2021/22 submitted to the Department for Transport detailing plans which are compliant with LTN 1-20, insofar as it relates to the Recipient (the “Project”), attached as schedule 1 hereto.
This letter hereby sets out the responsibilities of both LCRCA and the Recipient in relation to the Project:
1. Commitments by LCRCA
(a) LCRCA hereby agrees to pay the Recipient a total sum of £[ ] (the “Funding”).
2. Commitments by the Recipient
Postal Address: No.1 Mann Island,Page Liverpool, 149 L3 1BP
(a) The Recipient agrees to use the Funding solely for the delivery of the Project as detailed in the summary of work that was submitted to the Department for Transport by the LCRCA and only for the purposes of revenue spend.
(b) The Funding is comprised solely of a revenue grant. The Recipient agrees to use the revenue grant solely for revenue expenditure. Further the Recipient agrees to split the Funding between LCWIP Development and behavioural change is set out in the table below:
Allocation LCWIP Development Behavioural Change
The Recipient agrees and acknowledges that LCRCA will retain a top slice of £10,000 to fund adult cycle training across the Liverpool City Region.
The Recipient will ensure that all Funding for the Project is committed by 28 February 2022. Further the Recipient will ensure the Funding is fully spent no later than 21 March 2022.
(c) The Recipient will comply with all monitoring, evaluation and data provision requirements imposed by the LCRCA from time to time, or otherwise in accordance with the guidance on the monitoring, reporting and evaluation requirements issued by the Department for Transport.
The Recipient will provide all reasonable assistance as and when required by LCRCA in its implementation of a proportionate monitoring an evaluation programme to understand the impact of the Funding in relation to the Project, and where required by the Department for Transport take part in a national evaluation.
The Recipient hereby acknowledges that this obligation shall continue until 31 March 2025.
(d) Should the Recipient become aware of any material change to the Project, this must be immediately reported to the LCRCA. The Recipient will not make any changes to the Project without the prior written consent of LCRCA.
For the purposes of this provision, material shall include but not be limited to any change in the nature, purpose or scope of the Project, the timescales of the Project, or any Monitoring and Evaluation requirements in relation to the Project.
(e) The Recipient warrants that they will comply with all material terms contained in the „Grant Offer letter‟, dated [ ] and reproduced as Schedule 2 to this Agreement.
(f) The Recipient shall ensure the Funding will support the following objectives:
Page 150 To support the development of infrastructure projects to the new standards set out, including updating previous plans (such as LCWIPs) as necessary; To promote increased levels of physical activity through walking and cycling for everyday journeys; To support access to new and existing employment, education and training.
The Recipient is encouraged to design inclusive approaches that take advantage of and build on existing programmes that have high value for money, such as Living Streets' Walk to School Outreach and Cycling UK‟s Big Bike Revival, where this is appropriate to local objectives. The Recipient will collaborate with local businesses and charities to develop and deliver initiatives to support funding objectives.
(g) The Funding provided by the Department for Transport is only to be utilised for in scope interventions and activities detailed within the Grant Offer Letter. The list below is illustrative of the type of interventions that ae in scope for the Funding:
Objective/s Type of intervention/activity To support the development of Scheme and network planning. infrastructure schemes and plans (such as Improvement of existing scheme plans and Local Cycling and Walking Infrastructure LCWIPs to new LTN 1/20 standards. Plans) • Evidence collection. • Design of and consultation on cycling and walking schemes. To support access to new and existing Behaviour change programmes, linked to employment, education and training. the delivery of effective infrastructure, which To actively promote increased levels of could include: physical activity through walking and • Cycle and e-cycle hire schemes (ie for cycling, linked to the delivery of effective employees, jobseekers, students and those infrastructure. seeking training). • Business grants to provide facilities / equipment / training. • Travel planning and support discussions (ie workshops with employers, employees and students about transport needs). • Cycling skills courses (for adults and families). • Walking and cycling engagement events such as: o led rides/walks, o school and workplace-based cycling and walking challenges
• Marketing campaigns. • Cycle and walk to school initiatives.
Page 151 • Measures to reduce cycle theft and improve cycle security. • Measures to tackle inclusion and accessibility barriers to traditionally excluded groups such as disabled people, older people and Black and Minority Ethnic communities.
To raise the profile of cycling and walking within authorities • Ensuring other local plans and strategies take proper account of active travel considerations. • Reviewing the active travel element of planning applications
(h) By no later than [ ] the Recipient shall provide the following to the LCRCA at the email address listed in paragraph (m):
Project Delivery Plan; Risk Register; Forecast of Spend; and Forecast of Outputs.
(i) For the duration of the Project, the Recipient shall submit a monthly dashboard to the email address stated in paragraph (m), to be submitted no later than 5 working days after the end of each month.
(j) The Recipient shall ensure that the Project is delivered by [ ] unless otherwise agreed in writing with the LCRCA.
(k) The Chief Financial Officer (s151 Officer) of the Recipient shall sign and provide to the Funder a declaration, to be received no later than [ ], in the following terms:
“To the best of my knowledge and belief, and having carried out appropriate investigations and checks, in my opinion the conditions detailed in the letter from Liverpool City Region Combined Authority to [ ] dated titled “Active Travel Revenue Funding Allocations for 2021/22” have been complied with”.
Page 152 (l) The aforementioned declaration should be sent to the email address [email protected].
(m) The Recipient must comply with all applicable law, including the Public Contract Regulations 2015 when undertaking the Project and utilising the Funding.
(n) The Recipient shall ensure that its use of the Funding is in accordance with subsidy control rules. The Recipient agrees to maintain appropriate records of compliance with state aid rules and agrees to take all reasonable steps to assist LCRCA to make any reports or respond to any investigation(s) in respect of its use of the Funding and the Project as a whole 3. Recovery of the Funding
LCRCA may require all or part of the Funding to be repaid if:
(a) the Recipient fails to comply with the terms of this agreement in any material respect, subject to the LCRCA having given the Recipient a reasonable opportunity to remedy the failure, where possible;
(b) the Funding has not, or the LCRCA has reasonable grounds to suspect that the Funding has not, been used for the purpose for which it was given;
(c) The LCRCA has reasonable grounds to consider that the recording and monitoring information and evidence provided by the Recipient in relation to the Project or the Funding has not been complete and accurate or supplied honestly and in good faith;
(d) the Funding or any proportion of the Funding remain uncommitted to the delivery of the Project by 28 February 2022 or unspent by 21 March 2022;
(e) there is a risk or a genuine belief that there is a risk that reputational damage to the Funder will occur as a result of this agreement continuing.
If the above terms are acceptable to you then I should be grateful if you would arrange for this letter to be signed below by a duly authorised officer of your organisation.
If you have any queries in relation to the above, please do not hesitate to contact the above named.
Yours faithfully Agreed and accepted for and on behalf of [ ] Jill Coule
...... Signed Page 153 ...... Name
...... Title Chief Legal Officer
Schedule 1 Summary of Work
Page 154
Schedule 2 S31 Grant Offer Letter
Page 155 This page is intentionally left blank Agenda Item 10
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 23 July 2021
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: Report – Not exempt Appendix 1 - Exempt by virtue of paragraph 3 of Part 1 ofSchedule 12A of the Local Government Act 1972No
KEY DECISION Yes
REPORT OF THE INTERIM DIRECTOR OF STRATEGIC COMMISSIONING AND DELIVERY AND THE PORTFOLIO HOLDER: EDUCATION, SKILLS AND EQUALITY & DIVERSITY
STRATEGIC INVESTMENT FUND – RACE EQUALITY HUB
1. PURPOSE OF REPORT
1.1. This report seeks Combined Authority (“CA”) approval to fund the Race Equality Hub. The Race Equality Hub will aim to reduce labour market inequalities for Black, Asian and Minority Ethnic groups across Liverpool City Region (“LCR”).
2. RECOMMENDATIONS
2.1. It is recommended that the Liverpool City Region Combined Authroity:
(a) Approve the provision of funding up to £3,196,000 of funding for the Race Equality Hub from the SIF for the following project up to the amount specified:
Phase One – £893,000 Phase Two – £2,303,000
(b) Approves funding for Phase One of the project and agree in principle to funding for phase 2, subject to satisfactory development of Phase Two as outlined in Appendix 1 and returning to the CA for final approval.
(c) Grant delegated authority to the Chief Executive of Liverpool City Region Combined Authority, in consultation with Chief Legal Officer and Combined Authority Treasurer, to put appropriate legal agreements, arrangements and structures in place in relation to Phase 1, including the awarding of contracts further to a procurement exercise carried out in compliance with the Procurement Procedure Rules.
1 Page 157
3. BACKGROUND
3.1 The May 2020 global protests following the murder of George Floyd in Minneapolis, USA, alongside the disproportionate impact on Black, Asian and Minority Ethnic communities of the COVID-19 Pandemic, have given issues of racial inequality and social justice, renewed urgency and recognition of the need for change.
3.2 In June 2020, the Chief Executive of the CA committed to address this inequality and set up, a Race Equality Programme with a number of interdependent projects focused on addressing racial inequality.
3.3 The vision of the Race Equality Programme is;
“…tackling systemic injustice and inequality and driving forward positive change for our BAME employees and residents – influencing the partners we work with to do the same”.
The Programme was supported by a Declaration of Intent, which was approved by the CA and published in March 2021, outlining the CA‟s organisational commitment to race equality.
3.4 More broadly, the Combined Authority‟s Economic Recovery Plan sets out how the city region can emerge from the current crisis with a fairer, more socially just economy underpinned by principles of Building Back Better. Ensuring the city region meets its commitments to race equality will be critical to the building of this socially just economy.
4. RACE EQUALITY HUB
4.1 The establishment of a Race Equality Hub represents a bold, new approach to how race inequality is to be addressed. It will co-ordinate strategies to address the range of inequalities faced by Black, Asian and Minority Ethnic communities within the city region workforce, so providing long-term and holistic solutions, that will focus on positive action, training and business support.
4.2 The Race Equality Hub will build upon the initial work of the LCRCA Race Equality Programme to deliver a combination of new provision and scaled up existing activity.
NEW PROVISION SCALED UP ACTIVITY Growth Sector Job Courageous Conversations: Readiness and Recruitment Racial Literacy Training Support Developing Ethnic Minority Mentoring and Sponsorship Future Leaders 2 Page 158 Ethnic Minority Business Race Equality Business Support Advisors Consultancy Ethnic Minority Business Diversity Toolkit and Support Bank Training
4.3 The work of the Hub will be highly innovative, not only in terms of its overall aims and objectives, but also in how it is designed. Our research both in the UK and abroad, informs us that nowhere appears to have successfully addressed racial inequality, therefore the Hub will adopt a „test and learn‟ approach, which will seek to become a model of good practice for how race equality initiatives will be developed and delivered. The design principles of the Hub will be based on the following features:
Long-standing commercial sustainability Dynamic and flexible approach Test and Learn A hub of knowledge Outputs Driven Bold and Impactful Strategic driver for race equality Black, Asian and Minority Ethnic led
5. RACE EQUALITY HUB DEVELOPMENT
5.1 The phased delivery of the Race Equality Hub will be structured as follows:
Phase 1 – Funding for Learning and Development Collaboration, The World Re- Imagined national project, design and development activities for Race Equality Hub Business Plan, Recruitment of a Race Equality Hub Manager, establishment of a Race Equality Hub Development Board.
The World Reimagined is a national art education programme that aims to help reframe cultural narrative on what it means to „be British‟. It will create a trail of Globe sculptures created by artists, communities and schools across LCR.
It is anticipated that the Race Equality Hub‟s overall vision, aims, objectives, governance arrangements and operating model will be established over a period of around 6 months.
Phase 2 – Funding for the establishment of the Hub in line with its overall aims and objectives, governance and management arrangements, operating model and core activities, including procurement of key delivery contracts and recruitment of delivery staff.
5.2 To optimise delivery arrangements the CA will seek to find partners to co-develop phase two through a development panel. As part of this, an expression of interest process will be run to attract and recruit panel members with relevant experience and expertise. This approach will bring transparency to the identification and appointment of members and ensure fair opportunity for those with the right 3 Page 159 knowledge, expertise and infrastructure to lead on the development of this innovative project.
6. SUMMARY APPRAISAL
6.1 Given the phased nature of the project and recognition of the development work that is needed for phase two to be brought forward, only phase one has been economically appraised.
6.2 Phase one is anticipated to have the direct benefit of creating 113 jobs with a net additional GVA of £1.77m, representing a BCR of 1.5. However, it should be noted that this comes with the wider benefits associated with the interventions including increased participation rates and confidence among Black, Asian and Minority Ethnic individuals and greater employer literacy around diversity and equality.
4.3 The development of the economic case for phase two will be ongoing and subject to external appraisal once phase two is sufficiently developed. Early high-level economic analysis suggests a significantly higher BCR, however, this requires further testing in line with the development of the interventions run through the Hub. A condition of the drawdown of phase two funding has been recommended to reflect the need for this additional work.
7. EXTERNAL INVESTMENT PANEL CONSIDERATIONS
7.1 The project is due to be considered by the CA‟s External Investment Panel on the 15 July 2021. Considerations will be provided via a verbal update to the Combined Authority Meeting on 23 July 2021.
8. RESOURCE IMPLICATIONS
8.1. Financial
The CA funding required to deliver phase one activities is £893,000. This figure includes £813,000 gainshare revenue and £80,000 pre-development funding. The funding required to deliver phase two activities is £2.303m gainshare revenue. It is intended to be drawn entirely from the Strategic Investment Fund. A total budget of up to £3.196m is required.
8.2. Human Resources
A small internal team will be required for the delivery of phase one activities to develop and deliver the activities outlined and support the development of phase two activities. These costs have been estimated and benchmarked again other similar interventions and included in the SIF allocation of the project. This team will form part of the Strategic Commissioning and Delivery directorate.
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Phase two will require support from several teams across the CA; Mayoral Programme Delivery, Commercial Development and Investment, Evidence Research & Intelligence and Legal to ensure that conditions are met for phase two.
The Project Management Office will also be required to monitor and evaluate both phases.
8.3. Physical Assets
There are no physical asset implications arising from this report.
8.4. Information Technology
There are no IT implications arising from this report.
9. LEGAL IMPLICATIONS
7.1 The CA may enter into Funding Agreements with partners for phase two. Any agreements that come forward will be drafted by Legal Services, in accordance with agreed Heads of Terms for the scheme.
7.2 There may be a requirement for some of the service provision to be procured as part of the project. Any procurement will be subject UK public procurement law.
7.3 The proposed funding arrangements will be subject to the UK‟s Subsidy Control Commitments, which replaced EU State Aid rules for all funding arrangements agreed after 1st January 2021 (the end of the Brexit transition period). This includes principles on subsidy control which are set out in the UK-EU Trade and Co- operation Agreement.
10. RISKS AND MITIGATION
8.1 The identified risks include:
8.1.1 Delivery
The delivery structure selected will have a significant bearing on the Hubs ability to create positive impact. This risk is mitigated by presenting the project in two phases. The phasing allows for some of the low risk interventions to start whilst phase two is being developed.
5 Page 161 8.1.2 Intervention and commercialisation
The innovative nature of this project means that there is limited evidence to demonstrate there will be a demand for products and services that will be offered in phase two. In addition, the nature of the market failure around business support is unclear. Innovative projects are naturally more high risk, but this will be mitigated in two ways: 1. phasing the project to allow more development, learning and co- development of riskier interventions; and 2. adopting a test and learn approach and allocation of additional funding in the project costs for monitoring and evaluation.
8.1.3 Longevity of the Hub
The lack of any significant gains in this space historically is largely due to the short- term and siloed nature of interventions. The project provides the foundations for a more long-term and holistic approach. To deliver the scale of long-term change required, ongoing public sector intervention should be anticipated noting that in the future there may be the opportunity to offset and reduce costs with commercial activities.
8.1.4 Reputational risk
The funding approval sets out the CA as leading this project, however it should be noted that this is a collaborative project. To date extensive stakeholder engagement has taken place to better understand the issues faced by Black, Asian and Minority Ethnic residents, employees, businesses and young people across LCR. Officers have also developed a detailed stakeholder plan that sets out the CA‟s approach to co-developing phase two of the project with those who the will be impacted by the project.
11. EQUALITY AND DIVERSITY IMPLICATIONS
11.1. This project aims to increase positive action for Black, Asian and Minority Ethnic residents of LCR. It is anticipated that there will be a positive impact for these groups.
11.2. Project costs include provision to ensure that legal advice is sought to ensure that other groups are not discriminated against as a result of this programme.
11.3. A full equality impact assessment has been completed for this project and this confirms favourable equality outcomes.
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12. PRIVACY IMPLICATIONS
10.1 Though there are no direct privacy implications associated with this report, the work of the Race Equality Hub will involve the processing of personal data. Consultations will be carried out with the Combined Authority‟s Data Protection Officer to ensure appropriate measures are put in place.
13. COMMUNICATION ISSUES
11.1 All projects will be subject to the CA‟s branding guidelines and publicity requirements placed upon them as part of the funding agreement. In addition, the CA will, through its adopted communication protocols, publicise the award of funding to the project.
14. CONCLUSION
14.1. This report presents the case to create a Race Equality Hub that seeks to reduce systemic racial inequalities that exist within the LCR economy.
14.2. The project will be primarily funding by the CA to ensure work can start in a timely manner. Additional funding from other bodies will be sought as phase two of the project develops.
14.3 The report recommended approval of funding for Phase One of the project and provisional approval for Phase 2, subject to satisfactory development of Phase Two as outlined in the Appendix 1. Phase Two should return to the CA for approval.
14.4 Delegated approval is sought for the Chief Executive of the Combined Authority, in consultation with Chief Legal Officer and Combined Authority Treasurer, to put appropriate legal agreements, arrangements and structures in place for Phase 1, including the awarding of contracts after a procurement exercise carried out in compliance with the Procurement Procedure Rules.
AILEEN JONES Interim Executive Director of Strategic Commissioning and Delivery
MAYOR JOANNE ANDERSON Portfolio Holder: Education & Skills and Equality & Diversity
Contact Officer: Aileen Jones, Interim Executive Director of Strategic Commissioning and Delivery Tel: 07775110317, Email: [email protected]
Appendices:
7 Page 163 Appendix One – External Investment Panel FBC paper
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LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the LCR Combined Authority
Meeting: 23 July 2021
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: Report – Not exempt Appendix 1 - Exempt by virtue of paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972No
Key Decision Yes
REPORT OF THE INTERIM EXECUTIVE DIRECTOR OF STRATEGIC COMMISSIONING AND DELIVERY AND THE PORTFOLIO HOLDER: CULTURE, TOURISM AND THE VISITOR ECONOMY
STRATEGIC INVESTMENT FUND - DESTINATION MARKETING
1. PURPOSE OF REPORT
1.1 The report seeks Combined Authority approval for the grant of £1.5million funding to the Destination Marketing project, part of the Liverpool City Region (LCR) Visitor Economy Strategy.
2. RECOMMENDATIONS
2.1 It is recommended that the Liverpool City Region Combined Authority:
(a) Approve the provision of revenue grant funding of £1.5million from the Strategic Investment Fund;
(b) Grant delegated authority for the Director of Strategic Commissioning and Delivery to finalise negotiation of detailed funding terms and associated agreements for the project noted in a) above in consultation with the Combined Authority Monitoring Officer and the Combined Authority Treasurer.
3. BACKGROUND
3.1 The original application for this project was made in January 2019 by the LCR Growth Platform. This was based on the priority markets and interventions which had been identified in the 2016 Visitor Economy Strategy for the city region. The total project costs were c.£4million, with a SIF request of £1.6million.
Page 211 3.2 The project was still in development at the start of the Covid19 pandemic from March 2020 onwards. Clearly, the immediate and ongoing impact on travel has had and will continue to have a major impact on the LCR visitor economy. As a result, the decision was made to pause the project and repurpose the bid to reflect the context of a revised visitor economy strategy to be implemented post-Covid.
3.3 In June 2021, Amion produced the draft LCR Visitor Economy Strategy Report and the Growth Platform has submitted an updated FBC reflecting the latest data and strategy. The impact of the Covid-19 pandemic on the LCR Visitor Economy has been substantial: the economic value of the sector fell from £5.31bn in 2019 to £3.29bn in 2020, primarily due to the domestic and international lockdown regulations required to contain the virus. Visit Britain forecasts that visitor spend nationwide in 2021 will be only 23% of 2019 levels and visitor numbers only 29%.
3.4 Whilst lockdown regulations are currently easing, substantial uncertainty remains regarding the roadmap to normality, for both domestic visitor patterns and international short and long haul. Visitor economy businesses, including hospitality and entertainment, are generally in short term survival mode and, despite government support funding, are financially constrained.
4. PROJECT OVERVIEW
4.1 The Destination Marketing project now seeks LCRCA funding of £1.5million for a total project cost of £3.2million, based on a 3 year programme. The early intervention of public funding aims to provide support and confidence to the private sector, to enable their contributions to follow in year 2-3 of the programme once economic conditions are anticipated to have improved.
4.2 The project is based on marketing plans for Liverpool, Wirral and Southport as the main destination brands for the LCR, using an “attract and disperse” principle focused on the pulling power of Liverpool whilst also developing the regional markets.
4.3 The main priorities of the bid are to: bring tourists back to the city region, rebuilding confidence amongst existing markets when they are ready to come back and ensuring that the city region remains competitive; develop new visitor markets that have emerged as a result of the pandemic; attract markets that can come mid-week to replace the loss of international business visits; help all businesses in the hospitality, retail, attraction and cultural sectors to resume successful trading; establish a new sustainable funding model to support future marketing campaigns beyond the next two years; and support the emerging destinations which have been (or are in the process of being) transformed through the regeneration schemes around the city region.
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4.4 The project interventions comprise:
Digital development – improving the region’s destination websites through investment in a new integrated operating platform and CRM system, to better support online marketing activity, customer management and user tracking; Visitor welcome – enhancing visitor information and connectivity, LCR Welcome programme and Coach Welcome; Market research and evaluation to commence activity and procurement from Autumn 2021.
5. INVESTMENT PANEL CONSIDERATIONS
5.1 The Strategic Investment Fund Panel are meeting on 15 July 2021 and will consider a paper prepared by the SIF investment team that summarises the due diligence undertaken of the proposed project.
5.2 A copy of the Investment Panel paper is attached as Appendix 1. The paper recommends that the offer of grant support to the project is conditional on the following:
Full procurement of digital platform provider Match funding commitment from public/private sector Development of sustainable funding model
5.3 A verbal update of the Panel’s considerations will be presented to members at the meeting of the Combined Authority on 23 July 2021.
6. RESOURCE IMPLICATIONS
6.1 Financial
The level of SIF funding represents the LCRCA’s sole financial commitment to the Project.
6.2 Human Resources
The Investment Team and Legal Team will lead the necessary amendments to the existing Funding Agreement and the Programme Management Office will have responsibility for continuing their management of the delivery of the LCRCA’s investment.
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6.3 Physical Assets
There are no direct implications arising from this report on physical assets.
6.4 Information Technology
There are no implications for IT arising from this report.
7. LEGAL IMPLICATIONS
7.1 There are no legal implications arising out of this report.
8. RISKS AND MITIGATION
8.1 The identified project risks include:
Delivery – procurement and delivery of the project programme is dependent on a) sufficient resource and b) no substantial reversal of the anticipated timeline for relaxation of Covid-19 restrictions; Match Funding – the match funding is proposed to come partly from LCR local authorities and partly from private sector businesses such as Liverpool One.
9. EQUALITY AND DIVERSITY IMPLICATIONS
9.1 No adverse impacts are anticipated; the project aims to require use of local suppliers and contractors where possible and to increase local spend through increased visitor numbers.
10. PRIVACY IMPLICATIONS
10.1 There are no privacy implications arising from this report.
11. COMMUNICATION ISSUES
11.1 All productions and communications will be subject to the LCRCA’s branding guidelines and publicity requirements placed upon them as part of the funding agreement. In addition, the LCRCA will, through its adopted communication protocols, publicise the award of additional funding to the project.
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12. CONCLUSION
12.1 The Liverpool City Region is heavily dependent on its leisure and hospitality businesses, which are reliant on the buoyancy of its Visitor Economy. It is important that the City Region retains and rebuilds its share of the market in the coming years, in the context of significant competition from international destinations and other UK destinations to attract visitors. This project seeks a grant of £1.5million to support marketing activity to stimulate demand from leisure and business visitors to the City Region, as part of a wider Visitor Economy Strategy. Delegated approval is sought for the Director of Strategic Commissioning and Delivery to proceed with the finalisation of the funding arrangements in consultation with the Combined Authority Monitoring Officer and Combined Authority Treasurer.
AILEEN JONES Interim Exceutive Director of Strategic Commissioning and Delivery
COUNCILLOR. MIKE WHARTON Portfolio Holder: Culture, Tourism and the Visitor Economy
Contact Officer(s):
Sarah Lovell – Lead Officer Culture Co-ordinator (tel.07342058232) Email: [email protected]
Sophie Bevan – Investment Manager (tel. 07765 614048) Email [email protected]
Appendices: Appendix One – External Investment Panel Report - FBC
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LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 23 July 2021
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: Report is not exempt Appendix A is exempt by virtue of paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972
KEY DECISION Yes
REPORT OF THE INTERIM EXECUTIVE DIRECTOR FOR STRATEGIC COMMISSIONING AND DELIVERY AND THE PORTFOLIO HOLDER FOR TRANSPORT AND AIR QUALITY
DEVELOPMENT FUNDING FOR THE TRANSPORT PIPELINE
1. PURPOSE OF REPORT
1.1. The aim of this report is twofold:
i) Firstly, to update the Combined Authority on the quantum of development funding that is required for the financial year 2021/22 to support the development of the priority transport pipeline projects; and
ii) Secondly, to agree the principles by which pre-development expenditure on the priority transport pipeline projects will be approved and the frequency at which the Combined Authority will be updated on progress.
2. RECOMMENDATIONS
2.1. It is recommended that the Liverpool City Region Combined Authority:
(a) Approves the increase of the Transport Pre-Development Thematic Fund from £4.5m to £16.77M to cover the expenditure on the transport pipeline projects in FY21/22 and as set out in Appendix A of this report; (b) Requests that progress on the development of projects identified within the refreshed transport pipeline is reported on a quarterly basis to the Combined Authority; and (c) Notes the ongoing work of Combined Authority officers to streamline funding processes for transport schemes to enhance the efficiency and effectiveness of delivery.
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3. BACKGROUND
3.1. Members will recall that at the meeting of the Combined Authority on the 19th March 2021, it was agreed to establish a Transport Pre-Development” Thematic Fund to cover pre-development expenditure on transport pipeline projects. Guidelines for the provision of funding from the Transport Pre-Development Fund are set out at Appendix B to this Report.
3.2. In total, a fund of £4.5M was agreed and the approach to the management of this expenditure was established in line with the Combined Authority’s Constitution and principles included therein for managing Strategic Investment Fund (SIF) pre- development funds.
3.3. Members will also recall that as a result of a recent exercise to refresh the Combined Authority’s transport pipeline, a list of 20 projects (including two studies) have been prioritised for development and delivery between now and 2026. These are projects in addition to those that are currently programmed for delivery under the Transforming Cities Fund (TCF).
3.4. Pre-development funding of £388,000 was awarded to five of the pipeline projects in FY20/21 using existing budgets. The small number of projects and low value of allocations is due to the lateness in the year of the transport pipeline being agreed and project sponsors’ ability to scope development required. These asks have been fulfilled and have ensured funded projects can progress closer to the delivery phase.
3.5. Subsequently, further work has been undertaken by officers within the Strategic Commissioning and Delivery Directorate to understand the overall quantum of development funding required for the financial year 2021/22 on each of the projects within Pool 1 of the transport pipeline.
3.6. Consultation has been undertaken with project sponsors to establish the development funding requirements, with careful attention placed on understanding milestones and outputs with a view to the projects being candidates for the Department for Transport’s (Dft) Intra-Cities Transport Fund (ICTF). ICTF is the successor to the Transforming Cities Fund (TCF) and whilst capital funding will not be available until 2022/23, the DfT has made £5.6m of capacity funding available (via HM Treasury) to the Combined Authority to support scheme development for ICTF.
3.7. Officers have also reviewed the likely funding requirements to undertake a number of supporting activities to the transport pipeline, including the Mayor’s transport manifesto commitments.
4. PROPOSAL
4.1. The development funding required this financial year (2021/22) is £16.77M. Appendix A provides the amount of development funding required for the financial year 2021 on a project by project basis. This funding will be made up of the following: Page 256
£5.6 M ICTF capacity funding from the HM Treasury (received on 13th April 2021); £11.17M from existing Combined Authority budget FY 21/22 (The thematic pot of £4.5 M agreed at the March 2021 Combined Authority Meeting is covered in this allocation)
4.2 The management of the Transport Pre-Development Fund will be as agreed at the meeting of the Combined Authority of 19th March 2021 and in line with principles set out in the SIF Assurance Framework previously approved by Members, which are reflected within the Combined Authority’s Constitution. Members are specifically asked to note the following:
The Combined Authority’s Internal Investment Panel reviewed the proposed breakdown of pre-development funding for transport projects set out in Appendix A at its meeting on 8th July 2021. The Internal Investment Panel recommended that the proposal should be approved by the Combined Authority, and noted that it had previously been reviewed and endorsed by the internal officer led Transforming Cities Fund Board.
The SIF Assurance Framework includes the principle that up to 10% of funding for transport schemes can be spent on pre-development works. This reflects the importance of development work in securing efficient and effective delivery of transport schemes. Whilst capital funding for these projects has not yet been confirmed by the DfT, the costs of development works set out in Appendix A will fall within this 10% threshold based on current cost estimates for these schemes.
Transport schemes present a different set of risks and challenges from other Strategic Investment Fund projects. Individual schemes cannot be considered in isolation as they comprise part of an integrated transport network serving the whole of the Liverpool City Region. All transport schemes are delivered by either Merseytravel or one of the constituent Local Authorities, which facilitates a connected approach to delivery. In order to achieve the full benefits of an integrated approach in terms of efficient and effective delivery, Combined Authority officers are reviewing current processes and seeking to identify how these can be made more streamlined and flexible, whilst focusing on the key priorities of value for money and achievement of Combined Authority objectives. Members are asked to note that specific proposals to streamline and increase flexibility in the funding and delivery of transport projects may be brought to a future Combined Authority meeting.
In line with the SIF Assurance Framework, officers have authority to make pre-development expenditure decisions in excess of the key decision threshold (£150K). When such decisions occur, it will be in consultation with the Portfolio Holder for Transport and Air Quality and be the subject of a published officer decision.
Furthermore, should any additional/new projects be identified, the Interim Executive Director of Strategic Commissioning and Delivery will consult the Portfolio Holder for Transport and Air Quality to determine their inclusion in Page 257 the refreshed Transport Pipeline. This will mean that new projects will therefore be able to secure funding from the Transport Pre- Development Thematic Fund.
4.3 The Combined Authority will be updated on the progress of the transport pipeline at quarterly intervals.
5. RESOURCE IMPLICATIONS
5.1. Financial
The proposals in respect of the allocation of the transport pipeline are affordable within the funding provided from HM Treasury and that secured as part of the Combined Authority budget setting for 2021/22.
5.2. Human Resources
Support will be required from Legal, PMO, finance and procurement teams to manage tasks around the award and monitoring of pre-development funding. Resources from Bus, LTP, Rail, Tunnels, Assets Management will also be required.
5.3. Physical Assets
There are no physical asset implications arising as a result of the implementation of the recommendations in this report.
5.4. Information Technology
There are no information technology implications arising as a result of the implementation of the recommendations in this report.
6. LEGAL IMPLICATIONS
6.1. Pre-Development Funding Agreements will be drafted between the Combined Authority and funding recipients by Legal Services. Due to the nature of the projects being funded and the identity of the funding recipients it is unlikely that there will be significant subsidy control implications in relation to the proposed schemes, however this will be considered on a case by case basis and appropriate safeguards included in Funding Agreements. The constitutional implications of this report are contained in the recommendations and set out in Paragraph 4.2 of this report.
7. RISKS AND MITIGATION
7.1. As schemes develop additional funding may be required, or additional time required to deliver outputs. The level of funding that is presented in this report reflect the best available information at the time of writing. Careful monitoring of progress and outputs and expenditure will be undertaken with support from the Project Management Office. Page 258
8. EQUALITY AND DIVERSITY IMPLICATIONS
8.1. Equality and Diversity implications are considered as part of the appraisal process in accordance with the LCRCA’s Investment Strategy.
9. PRIVACY IMPLICATIONS
9.1. There are no specific privacy implications with the implementation of the recommendations in this report.
10. COMMUNICATION ISSUES
10.1. There are no specific communications issues with the implementation of the recommendations in this report.
11. CONCLUSION
11.1. The proposal to commit £16.77m of funding to pre-development activities in the financial year 21/22 is crucial to the Combined Authority being able to deliver the projects in the agreed transport pipeline. Increasing the size of the Transport Pre- Development Thematic Pot will enable development of projects to be expedited, with a view to the securing capital funding from the Department for Transport’s Intra-Cities Transport Fund.
DR AILEEN JONES Interim Director of Strategic Commissioning and Delivery
COUNCILLOR. LIAM ROBINSON Portfolio Holder: Transport and Air Quality Contact Officer(s): Nick Green: [email protected] Tel: 07500 573082
Appendices: Appendix A – Breakdown of Development Funding by Scheme for FY 21/22 Appendix B - Guidelines for the Provision of Pre-development Funding from the Transport Pre-Development Fund
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LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 23 July 2021
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: No
REPORT OF THE INTERIM EXECUTIVE DIRECTOR OF STRATEGIC COMMISSIONING AND DELIVERY
REQUESTED CHANGES TO PREVIOUSLY AGREED SIF PROJECTS
1. PURPOSE OF REPORT
1.1 To consider and agree changes requested by applicants in relation to previously approved Strategic Investment Fund (SIF) projects.
2. RECOMMENDATIONS
2.1 It is recommended that the Liverpool City Region Combined Authority:
(a) Consider and agree the changes requested by the applicant Sefton Council with regards to an extension in timescales for the Urban Traffic Control (UTC) project as set out in paragraph 3.4-3.8 below; (b) Consider and agree the changes requested by Rotunda Skills capital project as set out in paragraphs 3.9-3.13 below; (c) Consider and agree the changes requested by St Helens Council to the St Helens Connectivity/Lea Green station improvements funded by Transforming Cities as set out in paragraph 3.14 – 3.17 below; (d) Consider and agree the proposals set out with regards to the Cambridge Road Skills Project as requested by Sefton Council at 3.18-3.21 below; (e) Consider and agree the changes requested by the applicant Sefton Council with regards to the acquisition and demolition of land and property at Bootle Town Centre as set out in paragraphs 3.22-3.24 below.
3. BACKGROUND
3.1 Members will recall that in December 2019, a revised change control threshold was approved for the LCRCA. This set out the thresholds/criteria to deal with changes that may occur in the life of an approved SIF project.
3.2 For ease, the agreed change control criteria is set out below;
Page 265 1) Immaterial includes:
a. financial increments up to the greater of £100k or 5% of the value of the SIF funding approved;
b. changes in outputs which in the opinion of the Director of Commercial Development and Investment (or a nominated delegate) amount to an immaterial change; and
c. delays in timing in excess of the original funding end date (for either funding and/or outputs) of up to 10%.
Such decisions will be reported to the Combined Authority as part of the SIF monitoring arrangements in the quarterly update.
2) Intermediate Changes:
Changes to SIF funded projects that are intermediate in nature to the financing, delivery or risk of the proposition approved by the Combined Authority may be approved by a Director or the Monitoring Officer and the Treasurer on the recommendation of the Internal Investment Panel. This includes:
a. Financial increments up to the greater of £250k or 10% of the value of the SIF funding approved;
b. changes in outputs which in the opinion of the Internal Investment Panel amount to an intermediate change; and
c. delays in timing in excess of the original funding end date (for either funding and/or outputs) of up to 20%.
Such decisions will be reported to the Combined Authority as part of the SIF monitoring arrangements in the quarterly update.
3) Material Changes
Changes in excess of the above-mentioned thresholds shall be approved by the Combined Authority on the advice of the Internal Investment Panel. If desired, the Internal Investment Panel may seek the views of the External Investment Panel in considering a change request that may constitute a material change 3.3 In this period, six changes warrant consideration and determination by the Combined Authority, as material changes.
Urban Traffic Control Project (UTC) Key Route Network
3.4 This project is one of the remaining projects that make up the wider Key Route Network (KRN) Programme. Since receiving CA approval in March 2018 the project has been working towards an upgrade of traffic signals across the City Region, moving from analogue communications, which were due to become obsolete, to a new digital communications platform.
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3.5 The project has been Project Managed by Sefton Council, however individual Local Authorities have been responsible for a variable level of local delivery. Sefton have been collaborating with external providers BT and Siemens for the bulk of the on- site delivery and hardware provision. 3.6 The project has made several changes since its inception initially and most notably they discovered that the originally anticipated amount of hardware would not be required and therefore costs would not be as high as originally anticipated. In July 2018 the scope of works was reviewed and almost £200,000 was returned to the Combined Authority for reallocation. 3.7 Work has since been affected by the pandemic as in early 2020 BT moved to essential works only and effectively ceased all works on this project. This rendered the original completion date of March 2020 impossible to achieve. Continued disruption to works involving BT and Siemens have continued to hinder progress and although extensions to the delivery timeframe have previously been approved it has not been possible to complete within the last financial year as expected.
a) Extension to Timelines
3.8 The team at Sefton have continued to work with external providers and partner authorities to complete the UTC project. They anticipate the remaining works to have been complete by the end of Q1 and request an extension to both practical and financial completion to 30th June 2021. This will require approx. £100,000 of their original £2.6m budget to be made available from Gainshare to facilitate completion. As this overall extension exceeds the 20% threshold it will require approval from the Combined Authority as a material change.
Rotunda – Skills Capital Project
3.9 This project forms part of the wider Skills Capital programme and was awarded funds via the delegated powers given to the Director of Commercial Development and Investment during the December 2019 Combined Authority meeting. The project is sponsored by Rotunda Limited and the aim of the project was to bring parts of their building back into regular use by embarking on an external/internal refurbishment programme. A change to the scope of the project was reviewed and approved at the November LCRCA meeting and the project was awarded a further £89,689 as prices had increased due to the pandemic. Phasing of work was reviewed, and the external refurbishment was due to complete June 2021 with Rotunda seeking external funding to complete the internal elements across the longer-term M&E period for the project. Outcomes related to learners would not have been affected by this.
3.10 Recent inclement weather and poor weather proofing when slate was removed from the building have been catastrophic for the project and a major floor caused extensive damage to the third floor making it completely uninhabitable for the staff currently working there. Two ceilings have been damaged as well as a large amount of electrical equipment. The contractor has dismissed any possibility that they are liable for the damage so staff at Rotunda have engaged with their Insurers who will be pursuing costs from the contractor separately. Page 267
3.11 The team have also suffered several setbacks due to specialist contractors agreeing to masonry work then leaving before work onsite was due to start. A third contractor has been engaged and this work is underway.
a) Change in project timelines
3.12 The delays experienced this year mean that the external refurbishment is now not anticipated to be complete until early October 2021. The team anticipate that this will not hinder their enrolment of learners as to date many of their courses continue to be delivered online or in other areas of the building. This extension to the delivery of the initial outputs exceeds the 20% threshold for Combined Authority approval.
3.13 The Rotunda team wish to request permission to push back evidence of their local contribution to the end of October 2021 to align with the revised programme of works. Rotunda have staff focused on ongoing fund raising and are actively pursuing several alternative options to support the wider programme of works.
St Helens Connectivity/Lea Green Station – (Transforming Cities)
3.14 The St Helens Connectivity/Lea Green Station project has received funding from the Transforming Cities Fund (TCF) to deliver six pedestrian and cycle routes in St Helens, improved bus interchange facilities at Lea Green Station and the reconfiguration of Marshalls Cross Roundabout.
3.15 The original award value is set at £4.89m, but since funding agreement signing, it has been noted that this award did not capture the full funding ask which had been set out in the full business case document, and which was also appraised as part of value for money case (£5.2m scheme costs).
3.16 Following the consideration of the TCF Project Board, the sponsor has requested that a further £532k be awarded to the project which includes scheme development costs. This will take the total award value to £5.2m – the amount appraised as part of the business case appraisal process.
Increase in funding
3.17 The project sponsor has requested an increase in award of £532k. This increase in costs requires the consideration and approval of the Combined Authority. The increase will not impact the timelines associated with this project.
Cambridge Road (Skills Capital Funding)
3.18 The Cambridge Road skills project is located in the Sefton area and sponsored Sefton Council. The original contract was to run from September 2020 to March 2021, delivering refurbished floorspace for a range of adult learning opportunities.
Page 268
3.19 During the delivery phase, the project has experienced both delays in contract start date, further compounded by COVID 19 pandemic which resulted in a delay to programme which has necessitated a rephasing of activity.
3.20 While the Local Growth Fund has been disbursed to the project sponsor, activity funded by local contribution continues on site. As a consequence, the project sponsor has requested an extension to the financial completion date.
a) Extension to financial completion date
3.21 The project is now expected to complete 30th September 2021. As the extension to completion date is greater than 20% of the original programme length, this change requires the approval of the Combined Authority.
Acquisition and demolition of Land and property at Bootle Town Centre
3.22 The project was awarded £998,500 in 2019 to purchase buildings and land holdings in Bootle Town Centre as part of the redevelopment of The Strand. Also included was the development of a strategic masterplan including the commissioning of a professional team to support preparation of the masterplan including the architect and property consultant.
3.23 In 2020, Sefton Council was awarded a further £650,000 to demolish the acquisition of the properties in Phase 1 and to complete boundary treatment and making good external elevations.
3.24 Both projects were due to be completed by 31st March 2021. The purchase of the buildings and demolish work was completed by the deadline. However, the making good work will not be completed until June 2021 and the Masterplan has yet to commence.
a) Re-allocation of underspend
3.25 The cost of the acquisition and demolition costs were lower than budgeted and Sefton Council are seeking to re-allocate the underspend of £280,072 to broaden the scope of the project to include consultancy support to deliver the Masterplan, Delivery Plan, Investment Strategy and Asset Management Review (within context of Masterplan Phasing). The work will inform the capital investment cost of re-purposing the asset and redevelopment of the town centre.
b) Extension to project completion date
3.26 Sefton Council are seeking to extend the project timeline from 31st March 2021 to 31st March 2022 to complete Phase 2 and to broaden the scope of the project to include the appointment of a specialist transformation adviser to produce the Strand Masterplan, Delivery Strategy, Investment Strategy, Asset Management Review and Strategic Investment Case for its repurposing including identifying delivery model and agreeing preferred delivery approach.
Page 269 4. RESOURCE IMPLICATIONS
4.1 Financial
If approved, Lea Green Station project will receive a further £532k from the Transforming Cities Fund. This will impact the amount available for wider TCF projects.
4.2 Human Resources
No human resource issues are thought to arise from this paper.
4.3 Physical Assets
The paper proposes changes to projects which have received investment to improve a number of existing physical assets situated around the Liverpool City Region.
4.4 Information Technology
No information technology implications are thought to arise from this paper.
5. RISKS AND MITIGATION
5.1 Members can choose to not agree to the requested changes; however, this may mean that project delivery of agreed outputs and outcomes may be compromised.
6. EQUALITY AND DIVERSITY IMPLICATIONS
6.1 Equality and diversity implications are considered at project approval stage. All business cases have been approved by the CA with equality and diversity implications considered. No negative equality and diversity implications are thought to arise from this report.
7. COMMUNICATION ISSUES
7.1 Appropriate liaison has occurred with relevant project sponsors before progressing these changes and ahead of submission of this paper.
8. PRIVACY IMPLICATIONS
8.1 There are no privacy implications thought to be associated with this report.
Page 270
9. CONCLUSION
9.1 Members are requested to consider and agree changes to previously agreed SIF projects.
DR AILEEN JONES Interim Executive Director of Strategic Commissioning and Delivery
Contact Officer(s): Dan McCafferty, Head of Programme Management Office, 0151 330 4513
Background Documents: None
Page 271 This page is intentionally left blank Agenda Item 14
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 23 July 2021
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: Report – Not exempt Appendix 1 - Exempt by virtue of paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972
KEY DECISION Yes
REPORT OF THE INTERIM EXECUTIVE DIRECTOR STRATEGIC COMMISSIONING AND DELIVERY AND THE PORTFOLIO HOLDER: INCLUSIVE ECONOMY AND THIRD SECTOR
STRATEGIC INVESTMENT FUND – LIVERPOOL CITY REGION VENTURES INCUBATOR
1. PURPOSE OF REPORT
This report seeks Liverpool City Region Combined Authority (LCRCA) approval to award Strategic Investment Funding (SIF) to support the development and delivery of Liverpool City Region Ventures (the Project). Liverpool City Region Ventures (working title) will be established as a new vehicle to provide incubator services and associated proof of concept funding to support high growth start-ups and spin- outs in the Liverpool City Region (LCR). Initially the Project will focus on the Health and Life Sciences sector (H&LS) but with the ambition to expand to other sectors in future as and when funding becomes available.
2. RECOMMENDATIONS
It is recommended that the LCRCA:
(a) Approve £10.475m from SIF Gainshare Revenue for the Project;
(b) Note that up to £2.975m of this allocation will be for phase II of the Project which is still under development and will be subject to the full SIF assurance process review;
(c) Subject to approval for the overall Project, approve entry into interim arrangements with the Academic Health Science Network for North West Coast (acting through its lead trust Liverpool Heart and Chest Hospital
Page 273 NHS Foundation Trust) as the initial grant recipient to commence the establishment/mobilisation phase of the Project;
(d) Subject to approval for the overall Project, and following satisfaction of the establishment/mobilisation phase, approve the subsequent transfer of the Project.
(e) Grant delegated authority to the Interim Executive Director Strategic Commissioning and Delivery to finalise negotiations of detailed funding terms and associated agreements for the Project specified at (a) above in consultation with the Combined Authority Monitoring Officer and Combined Authority Treasurer.
3. BACKGROUND
3.1 The LCR has a significant array of distinctive, nationally significant and (in some cases) world-leading, innovation assets and capabilities, as highlighted in the seminal 2017 LCR+ Science & Innovation Audit. These assets include the STFC Hartree Centre for cognitive computing, Materials Innovation Factory for materials chemistry and Liverpool School of Tropical Medicine for infectious diseases. Despite this, the LCR underperforms in terms of translating ideas and knowledge into commercial success and new business formation. Put simply, LCR has too few commercialisation episodes. Less commercialisation fails to convert our significant innovation assets and capabilities into jobs for LCR residents.
3.2 The LCRCA has set itself a stretching target to increase business research & development (R&D) spending in the City Region to 5% of GVA by 2027. Note this exceeds the national target of 2.4% of GDP over the same timeline. To this end, the LCR Economic Recovery Plan targets investing £158m to deliver long-term, stable investment for high growth companies alongside integrated business-led business support to stimulate a cultural shift that will help us “build back better” and contribute to the “levelling up” agenda. By contributing to long term productivity growth, it also addresses the priorities of Central Government‟s Plan for Growth published with the Spring Budget.
The Project
3.3 Liverpool City Region Ventures (working title) will establish a centralised commercialisation vehicle for the LCR. This will provide the capacity and capability to address the market and information failures currently inhibiting commercialisation of innovation. The ask of the SIF is an initial £7.5m from Gainshare Revenue to establish a new company limited by guarantee.
3.4 It is proposed that the company will be established as an independent SME (hereinafter referred to as NewCo). Such a status allows the NewCo to maximise access to funding streams, however this limits the level of control the Combined Authority can have in relation to the NewCo. This risk will be mitigated by integrating the NewCo within the existing LCR Innovation Ecosystem and ensuring oversight from the LCR Innovation Board together with input from the Advisory Board. The terms of the Funding Agreement will also place requirements on the
Page 274 LV Company to mitigate the control issue. The project aims for NewCo to be established within two months of CA approval. 3.5 The delivery of Phase I has been split into two stages: (1) company set-up and (2) operation. The AHSN, via the Innovation Agency is Applicant for stage 1. Once the CLG is As such, Heads of Terms (HoTs) for 2 separate, but connected, GFAs have been developed
3.6 The purpose of the NewCo is to provide a specialist venture builder (incubator) and a highly targeted proof of concept funding to support the development of high growth potential businesses in knowledge intensive sectors within the LCR, initially in the H&LS sector. Once established, the incubator team will seek to secure additional investments from other investors.
3.7 A second phase is in development to expand the model beyond H&LS to provide significant commercialisation and R&D activity in the LCR. £2.975m Gainshare Revenue is requested for this expansion which requires the new company to be established as a Research Technology Organisation and for provision to be made for additional roles within the governance and management structure. Funding for this second phase would flow directly to the new company subject to a full SIF appraisal.
3.8 The new company aims to complement and integrate with the existing business and innovation support landscape in the LCR and has been co-developed by Growth Platform, the LCRCA and the Academic Health Science Network for North West Coast via the Innovation Agency. This is seen as a core element of soft infrastructure for the business ecosystem that addresses an evidenced need and integrates with other complementary projects in development.
3.9 The Innovation Agency has explored the option to take space in the Knowledge Quarter and/or Sci-Tech Daresbury to accommodate the incubator team. The incubator will not be offering physical space to participating ventures instead working on a “soft start-up” model.
4. SUMMARY APPRAISAL
4.1 The LCRCA appointed SQW to conduct an external economic appraisal of the Project. The report estimates that the Net Present Public Value (NPPV) of the first phase of the Project stands at £20.2m with a BCR of 4.0, and therefore represents high value for money. Early analysis on Phase II activities suggests it will deliver a BCR of 3.2.
5. EXTERNAL INVESTMENT PANEL CONSIDERATIONS
5.1 At its meeting on the 17 June 2021, the SIF External Investment Panel endorsed the full business case to proceed to the LCRCA for consideration.
5.2 The Investment Panel recommended that the LCRCA should retain active oversight of the governance of the vehicle given it is a core element of soft infrastructure for the business ecosystem. As part of this oversight, the Panel recommended that the LCRCA receives regular updates on the Project to ensure it Page 275 integrates with other complementary projects in development and considers emerging sectoral strengths for investment.
6. RESOURCE IMPLICATIONS
6.1 Financial
In addition to the £10.475m of Gainshare Revenue requested from SIF, the LCRCA has also contributed £60k Pre-Development funding towards the development of the Project.
6.2 Human Resources
The Investment Team and Legal Team will lead the preparation of the Funding Agreement with the Academic Health Science Network for North West Coast and the new commercialisation vehicle, once established.
The Investment Team and Legal Team will work closely with the Academic Health Science Network for North West Coast for the initial funded period to determine and ensure an appropriate long-term governance structure is in place. It is estimated that this period will be 3 - 6 months.
The Programme Management Office will have responsibility for managing the delivery of the LCRCA‟s investment.
6.3 Physical Assets
There are no physical asset implications arising from this report.
6.4 Information Technology
There are no IT implications arising from this report.
7 LEGAL IMPLICATIONS
7.1 The LCRCA will enter into Funding Agreements with the Academic Health Science Network for North West Coast and the new company, once established, which will be drafted by Legal Services, in accordance with agreed Head of Terms for the scheme.
7.2 The proposed funding arrangements will be subject to the UK‟s Subsidy Control Commitments, which replaced EU State Aid rules for all funding arrangements agreed after 1st January 2021 (the end of the Brexit transition period). This includes principles on subsidy control which are set out in the UK-EU Trade and Co-operation Agreement.
Page 276
8 RISKS AND MITIGATION
8.1 The identified risks include:
8.2 Financial sustainability
The £7.5m allocation is the minimum viable amount required to launch phase one of this project. It is likely that further funding contributions may be required (based on performance and funding availability) and match funding from industry for the company to continue operating beyond year 5.
8.3 Impact
The economic model assumes ready access to a local seed fund and attractive angel investment for follow-on funding purposes. Without this all/some of the projects may not progress beyond TRL3/4. Although plans for a LCR seed fund are being tested, there is no certainty that this will provide funding to those companies supported by this Project.
8.4 Delivery
This Project relies of the support of key stakeholders – higher education institutions and NHS Trusts in particular.
8.5 Management & Governance
This Project will take a central role within the evolving innovation ecosystem therefore the identity of the guarantors and the composition and role of the advisory board will be key.
The project‟s success relies on recruiting the right specialist core team to support Innovation.
9 EQUALITY AND DIVERSITY IMPLICATIONS
No adverse impacts are anticipated. The project applicant has completed the Social Value Questionnaire and accords with LCR aims.
10 PRIVACY IMPLICATIONS
There are no privacy implications in this report.
11 COMMUNICATION ISSUES
All projects will be subject to the LCRCA‟s branding guidelines and publicity requirements placed upon them as part of the funding agreement. In addition, the LCRCA will, through its adopted communication protocols, publicise the award of funding to the project. Page 277
12 CONCLUSION
12.1 This report presents the proposed incubator and associated „challenge fund‟ to support high growth potential businesses in knowledge intensive sectors within the LCR, initially focused on the Health and Life Science sector.
12.2 Delegated approval is sought for the Interim Executive Director Strategic Commissioning and Delivery to proceed with the finalisation of the funding agreements in consultation with the Combined Authority Monitoring Officer and Combined Authority Treasurer.
AILEEN JONES Interim Executive Director of Strategic Commissioning and Delivery
COUNCILLOR J WILLIAMSON Portfolio Holder: Inclusive Economy and Third Sector
Contact Officer: Aileen Jones, Interim Executive Director Strategic Commissioning and Delivery Email: [email protected]
Appendices: Appendix One – Investment Panel FBC (Exempt)
Background Documents: None
Page 278 By virtue of paragraph(s) 3 of Part 1 of Schedule 12A of the Local Government Act 1972.
Document is Restricted
Page 279 This page is intentionally left blank Agenda Item 15
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 23 July 2021
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: No
KEY DECISION: Yes
REPORT OF THE INTERIM EXECUTIVE DIRECTOR OF STRATEGIC COMMISSIONING AND DELIVERY AND THE PORTFOLIO HOLDER:HOUSING AND SPATIAL PLANNING
Request for Delegation of Decision Making Powers to the Liverpool City Region (LCR) One Public Estate Partnership Board
1. PURPOSE OF REPORT
1.1. This report requests approval for the Combined Authority to act as lead authority for the Liverpool City Region One Public Estate Partnership Board and for the Interim Director of Strategic Commissioning and Delivery to have delegated authority to implement decisions taken by this Board.
2. RECOMMENDATIONS
2.1. It is recommended that the Combined Authority approves the following:
(a) the role of the Combined Authority as lead authority and Acountable Body for the Liverpool City Region One Public Estate Partnership Board;
(b) delegation of authority to the Interim Executive Director of Strategic Commissioning and Delivery, in consultation with the Executive Director of Corporate Services and the Chief Legal and Monitoring Officer to exercise the Combined Authority’s responsibilities as lead authority to implement decisions taken by the Liverpool City Region One Public Estate Partnership Board in accordance with its Terms of Reference;
(c) decisions of the Liverpool City Region One Public Estate Partnership Board that involve an allocation of funding in excess of £150,000 (or significantly impact on more than one local authority area) will be further approved by a published decision by the Interim Director of Strategic Delivery in consultation with the Portfolio Holder; and
Page 297 (d) note the re-purposing of funds decisions taken by the Combined Authority’s Chief Executive on 28th May 2021.
3. BACKGROUND
Liverpool City Region One Public Estate Partnership
3.1. The Liverpool City Region One Public Estate Partnership was re-established in November 2020 by the Combined Authority and Liverpool City Region partners. The Partnership was previously managed by Liverpool City Council. As an interim measure, the Combined Authority has taken lead responsibility for the following;
Triannual One Public Estate reporting The Liverpool City Region One Public Estate Board, hosted quarterly. Supporting the submission of funding bids Supporting the repurposing of funding allocated to the LCR One Public Estate Partnership
3.2. One Public Estate is a programme, established in 2013, in partnership with the Local Government Association (LGA) and the Office of Government Property (OGP) within the Cabinet Office, working with over 300 Local Authorities on projects that will transform communities and public services across the country.
3.3. The programme is about facilitating major service transformation such as health and social care integration and benefits reform; unlocking land for new homes and commercial space; or creating new opportunities to save on running costs or generate income. This is encompassed in three objectives:
1. Creating economic growth (new homes and jobs) 2. Delivering more integrated, customer-focused services 3. Generating efficiencies, through capital receipts and reduced running costs.
3.4. One of the requirements from One Public Estate is to have an established One Public Estate Board to facilitate partnership decision making. The Liverpool City Region Board was reinstated in November 2020 and meets quarterly to discuss progression of the One Public Estate Partnership. This board is made up of Local Authority and other public sector land and property owners including Network Rail and the NHS as examples. Further details of current Board representation is included at Appendix 1 to this Report.
3.5. The purpose of a Board is to allow public sector property holders to work in partnership to explore and identify opportunities for better use of all public land and, including:
Providing cross public sector leadership and governance to deliver One Public Estate projects;
Page 298 Enabling senior local leaders to develop collaborative plans and strategy for the public estate in their areas; To unblock local barriers impacting delivery; Earmark surplus assets for disposal to generate capital receipts which can be used to reduce deficits or reinvested to stimulate economic growth; Freeing up surplus land for housing and local regeneration; Identify opportunities for co-location, making better use of space, reducing the footprint of the public estate and leading to revenue savings, reducing costly maintenance and lease costs; and Opportunities for integration and joint working thereby improving service delivery and customer satisfaction.
3.6. The vision and key outcomes from the LCR One Public Estate Partnership is for the One Public Estate Board to sign off key deliverables, to provide leadership amongst partners and stakeholders and intervenes to remove barriers where necessary to funding and future project approvals.
3.7. There are specific funding opportunities attached to One Public Estate Partnerships, such as OPE Revenue Grant for public sector land and property projects, and Land Release Fund Capital Grant. Liverpool Knowledge Quarter is cited in the Government’s One Public Estate: Building a Movement Through Partnership 2018 publication as a leading example of a scheme that was initiated with One Public Estate funding. It is therefore important for the future development of the Liverpool City Region that it has an effective One Public Estate Partnership, and the Combined Authority is best placed to take the lead in managing this Partnership, given its strategic role across the Region.
3.8. Members are asked to note that due to central Government deadlines for repurposing of One Public Estate funds, on 28th May 2021 the Combined Authority Chief Executive approved repurposing of the following funds in line with recommendations received from the One Public Estate Partnership Board:
Local Authority and Funding Sustainable Non-repayable project requested Grant grant
Sefton – Bootle Strand £50,000 £34,725 £15,275 Health and Wellbeing Hub
Wirral – Birkenhead £58,000 £40,275 £17,725 Waterfront
It is proposed that any future re-purposing decisions will be made in line with the decision making powers recommended by this Report.
Page 299 4. RESOURCE IMPLICATIONS
4.1 Financial
There are no financial implications associated with the LCR One Public Estate Partnership. Funding awarded to the LCR One Public Estate Partnership will be managed and transferred to Local Authorities and other public sector partners by a member of the Combined Authority Finance team. A cost code has formally been set up to manage funding.
4.2 Human Resources
There are no HR resource implications arising from this report.
4.3 Physical Assets
There are no physical assets implications arising from this report.
4.4 Information Technology
There are no IT implications arising from this report.
5 LEGAL IMPLICATIONS
5.1 The Combined Authority has the legal powers to deliver this programme as set out in the agreement between the Liverpool City Region One Public Estate Partnership, the Local Government Association (LGA), the Cabinet Office’s Office of Government Property (OGP) and Ministry of Housing, Communities and Local Government (MHCLG) with regards to the allocations of grant made under Section 31 of the Local Government Act 2003. The Combined Authority Liverpool City Region Combined Authority, as the lead authority in the Liverpool City Region Partnership, will also receive grant funding under Section 31 of the Local Government Act 2003. Legal Services will advise on appropriate arrangements to ensure that any financial obligations connected to a particular project are passed on to the Local Authority or public sector body delivering that project.
5.2 All One Public Estate grant and sustainable grant funded activities must adhere to reporting requirements. Repayment schedules of Sustainable Grant funding have to be returned to the One Public Estate team by a set date (this is different depending on each project). Any issues with project delivery or repayment schedules should be discussed with OPE Regional Programme Managers at the earliest possible point. There will be no interest rate applicable to the Sustainable Grant.
Page 300 6 RISKS AND MITIGATION
6.1 Risks connected to the One Public Estate Programme and individual projects will be reviewed by the LCR One Public Estate Board on a periodic basis and mitigating actions identified and implemented where required.
6.2 The Local Authority or public sector body developing the proposal is responsible for the appropriate spend of the funding and any claw back or over / underspend is the responsibility of the Local Authority or public sector body, and not the Combined Authority.
7 EQUALITY AND DIVERSITY IMPLICATIONS
7.1 There are no equality and diversity implications for this report.
8 PRIVACY IMPLICATIONS
8.1 There are no privacy implications associated with this report.
9 COMMUNICATION ISSUES
9.1 There are no communication issues associated with this report.
10 CONCLUSION
10.1 The benefit of One Public Estate across the Liverpool City Region is anticipated to expand moving forward with further funding opportunities and increased scope for joined up strategic approaches to property use and development within the public sector. This Report will ensure that the Liverpool City Region has an effective mechanism for exploiting these opportunities through an effective and efficient One Public Estate Partnership Board.
AILEEN JONES Interim Executive Director of Strategic Commissioning and Delivery
GRAHAM MORGAN Portfolio Holder Housing and Spatial Planning and Leader of Knowsley Council
Contact Officer(s): Mark Dickens, Lead Officer – Spatial Planning E-mail: [email protected] Mobile: 07880480107
Tracy Gordon, Lead Officer- Housing Partnerships E-mail: [email protected] Mobile: 07825 044110
Page 301
Emma Washbourn, Graduate - Policy E-mail: [email protected] Mobile: 07826 921618
Appendices:
Appendix 1 – Current Board representation
Page 302
Appendix 1: Liverpool City Region One Public Estate Partnership Board Representation:
Chair: Aileen Jones (Interim Executive Director of Strategic Commissioning and Delivery, LCRCA)
Local Authority Members representatives from each of the six Local Authorities, including Halton, Knowsley, Liverpool, Sefton, St Helens and Wirral.
Other Public Sector representation includes organisations such as; Cheshire and Halton NHS Trust Network Rail Liverpool John Moores University University of Liverpool Homes England.
LCR One Public Estate Officers are looking to expand Board membership to other Public Sector partners in the future, and this list is not exhaustive.
Page 303 This page is intentionally left blank Agenda Item 16
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 23rd July 2021
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: No
Key Decision
REPORT OF THE TREASURER AND THE PORTFOLIO HOLDER FOR EDUCATION, EMPLOYMENT & SKILLS
ACCEPTANCE OF ADDITIONAL EUROPEAN SOCIAL FUND AND YOUTH EMPLOYMENT INITIATIVE GRANTS AND EXTENSION OF THE EXISTING LIVERPOOL CITY REGION WAYS TO WORK PROJECT
1. PURPOSE OF THE REPORT
1.1 The purpose of this report is to seek approval to accept additional grant funds under European Social Fund (ESF) and Youth Employment Initiative (YEI) for the LCR ESF Ways to Work project and to review and extend some of the grants awarded to the Delivery Partners.
Please note that formal approval from the Department of Work and Pensions (DWP) for the award of additional European Social Fund (ESF) and Youth Employment Initiative for the ESF Liverpool City Region Ways to Work project is still awaited.
2. RECOMMENDATIONS
2.1 It is recommended that the Liverpool City Region Combined Authority:
(a) agree to accept the additional European Social Fund grant outlined in Table 1A (subject to approval from DWP), for which the Combined Authority acts as the Accountable Body;
(b) agree the onward grant awards of the additional money to the relevant Delivery Partners listed in Table 2A and;
(c) delegate authority to the Treasurer and the Monitoring Officer to sign the variation to grant funding agreement letter and agree any necessary amendments to the scheme during the period of its delivery.
Page 305 3. BACKGROUND
3.1 ESF Ways to Work
3.1.1 The Liverpool City Region ESF Ways to Work programme was awarded European Social Fund (ESF) and Youth Employment Initiative (YEI) funding from 2 investment priorities (1.1 – Access to employment for jobseekers and inactive people and 1.3 - Sustainable integration into the labour market of young people) in 2016. The funding helps to support unemployed and inactive residents across the City Region to improve personal resilience and progress to sustainable employment.
3.1.2 Since the project began in 2016, over 29,000 unemployed and inactive residents in the Liverpool City Region have accessed support. As a result of the support provided, over 12,000 participants have successfully secured employment, education, and training opportunities.
3.1.3 The Department of Work and Pensions (DWP), is the Managing Agent for the European Social Fund, and in January 2021 they announced that there was a further £6m of priority 1.3 ESF/YEI grant available for bidders to deliver support to unemployed and inactive residents aged 16-29 in the transitional area of the Liverpool City Region (Knowsley, Liverpool, Sefton, St. Helens and Wirral).
3.1.4 The Combined Authority submitted a request for £6m of additional grant to extend the 1.3 activity of the current Ways to Work project until 30th September 2023 in the transitional area.
3.1.4 The request to extend the 1.3 element of the current Ways to Work project and to award additional 1.3 ESF/YEI grant to help fund the costs of the extension period, as listed in table 1A, is still subject to final approval by DWP. We are advised that a final decision from DWP is imminent and therefore to accelerate the approval process once DWP has confirmed their decision, we have included the request to accept the grant in this report. It is hoped that this will reduce delays in issuing onward variations to existing grant funding agreements to Delivery Partners, should the request be approved by DWP.
Table 1A: Revised Grant Allocation
Scheme Name Amount of Grant Revised Amount of Grant Previously Awarded Awarded, Including Approved Additional 1.3 Funding Liverpool City Region ESF Ways £43,672,335 £49,639,471 to Work Project
The Combined Authority will be required to issue Delivery Partners with variations to their existing grant funding agreements to extend their end dates and to confirm the larger grant awards as detailed in Table 2A.
Page 306 Table 2A: Revised Grant Allocations for ESF Ways to Work Delivery Partners
Delivery Partner Current Amount of Revised Amount of Grant Awarded Grant Awarded Including Approved Priority 1.3 Funding Knowsley Metropolitan £7,541,958 £8,801,958 Borough Council Liverpool City Council £12,808,162 £14,527,845
Sefton Metropolitan Borough £5,486,082 £6,326,082 Council St Helens Metropolitan £3,656,050 £4,300,583 Borough Council Wirral Metropolitan Borough £7,778,752 £9,278,752 Council Total £37,271,004 £43,235,220
Over the forthcoming months as national lockdown measures are eased and the Coronavirus Job Retention scheme ends, the demand for support from the project is expected to be high. An extension to the project will enable partners to support a greater number of existing and newly unemployed and inactive Liverpool City Region residents during this crucial time.
Halton Borough Council who deliver the Ways to Work project in the More Developed area of the Liverpool City Region accessed funding from a previous Call which enabled them to extend their delivery of the Ways to Work project until 30th September 2023. Therefore, Halton Borough Council did not apply for additional funds via this application.
If accepted, the additional money for the transitional area will enable the transitional partners to also continue delivery of the project in their areas until 30th September 2023. This would provide consistency across the Liverpool City Region, ensuring that all unemployed and inactive LCR residents would be able access support to move them nearer to the labour market until 30th September 2023.
4. RESOURCE IMPLICATIONS
4.1 Financial
All Delivery Partners contribute towards the overall costs for the Programme Management costs incurred by the Combined Authority. Therefore, accepting the additional grant will not result in any additional costs for the Combined Authority.
Page 307 4.2 Human Resources
The Combined Authority ESIF Programmes Team will continue to oversee the delivery and compliance of the project with support from the Combined Authority’s legal and finance teams.
4.3 Physical Assets
There are no impacts on physical assets arising from the recommendations in this report.
4.4 Information Technology
The approval to accept the additional grants and to extend the Ways to Work project will not give rise to Information Technology issues.
5. LEGAL IMPLICATIONS
ESF and YEI funding remains subject to EU State Aid Rules and processes are in place to ensure ongoing compliance. Existing grant funding agreements with Delivery Partners will be varied to include the additional funding and ensure that responsibilities for delivery and risk are allocated appropriately. European grant management officers will use established processes to make the necessary revisions with support from Legal Services.
6. RISKS AND MITIGATION
6.1 There is always a risk of clawback when dealing with European funding. This has been mitigated by putting into place back to back grant funding agreements with Delivery Partners and by securing experienced European grant management officers to oversee this work. The Combined Authority will issue each Delivery Partner with a variation to their current grant funding agreement to confirm the revised end date and increase in grant.
6.2 There is a risk that the project will underperform against the contracted targets, but this will be mitigated by clear management responsibilities, along with regular reporting to the Combined Authority on progress and performance.
7. PRIVACY IMPLICATIONS
There are no privacy implications associated with this report.
Page 308
8. EQUALITY AND DIVERSITY IMPLICATIONS
8.1 Extending the Ways to Work project and accepting the additional grant will not result in any negative implications to those who have protected characteristics.
9. COMMUNICATION ISSUES
9.1 Each Delivery Partner listed in table 2A has a responsibility to continue to promote the LCR ESF Ways to Work project to unemployed and inactive residents in their wards and to advise of the extension. They should provide Combined Authority members with a range of good news opportunities within their local area. All publicity will be done in line with the ESIF publicity guidelines and marketing material will include the Combined Authority logo.
10. CONCLUSION
10.1 This report presents the Combined Authority with the opportunity to accept an additional £6,000,000 of ESF and YEI funding to enable the LCR ESF Ways to Work project to support more residents across the Liverpool City Region.
JOHN FOGARTY Treasurer
JOANNE ANDERSON Portfolio Holder for Education, Employment & Skills
Contact Officer(s):
Louise Chamley, Liverpool City Region Combined Authority - 07391 737671
Appendices: Nil
Background Documents: Nil
Page 309 This page is intentionally left blank Agenda Item 17
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 23 July 2021
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: No
REPORT OF THE MONITORING OFFICER
GOVERNANCE UPDATE AND VARIOUS APPOINTMENTS
1. PURPOSE OF REPORT
1.1 This report provides a brief update on some governance matters and proposes the appointment to a number of Company Directorship positions which have been vacated following the departure of both Frank Rogers, Director General of Merseytravel and Mark Bousfield, Director of Investment and Commercial Development.
2. RECOMMENDATIONS
2.1 The Liverpool City Region Combined Authority is recommended to:
(a) thank Frank Rogers for his considerable contribution to Mersey Tunnels, Merseytravel and the LCR Combined Authority over his many years of service; (b) appoint John Fogarty, Executive Director of Corporate Resources as the Director General for Merseytravel until such time as a successful recruitment for Director General has been completed; (c) appoint Kirsty McLean, Executive Director for Strategy, Policy and Government Relations and Shane Fitzpatrick, Interim Executive Director for Integrated Transport as Directors to Merseytravel; (d) note that Katherine Fairclough will be invited to observe meetings of Merseytravel; (e) approve the appointments to Merseytravel companies as set out in paragraphs 3.7 to 3.11; (f) approve the appointment of John Fogarty, Executive Director of Corporate Resources to the Mersey Tidal One Limited company; (g) agree to transfer the delegations previously designated to the Director of Commercial Development and Investment to the Interim Executive Director of Strategic Delivery. (h) agree the suggested changes to the Terms of Reference to the Appointments and Disciplinary Committee set out in paragraph 6.
Page 311 3. MERSEYTRAVEL COMPANIES
3.1 Merseytravel
The Director General (DG) recently notified Merseytravel of his intent to vacate the office of Director General with effect from 16 July 2021.
3.2 The Transport Act 1968 provides that a Passenger Tranpsort Executive must have a DG and that it is the Combined Authority’s responsibility to appoint to this position.
3.3 In light of the notification, a recruitment exercise will be undertaken to fill the position of DG. In the meantime, Merseytravel proposes that John Fogarty, Executive Director of Corporate Resources is appointed to the position of DG.
3.4 Furthermore, to provide resilience to the Board it is proposed that Kirsty McLean, Executive Director Policy, Strategy and Government Relations and Shane Fitzpatrick, Interim Executive Director of Integrated Transport be appointed as Directors to Merseytravel, to provide resilience and add value.
3.5 Katherine Fairclough, Combined Authority Chief Executive, will be invited to observe the proceedings of the Board.
3.6 The change in Director General has implications for a number of Merseytravel subsidiary companies and the proposed nominations are set out below.
3.7 Merseytravel Limited (Non-Trading)
John Fogarty be appointed to replace Frank Rogers. The company’s other remaining Directors are Liz Dean (Executive Director of Corporate Delivery and Development) and Kirsty McLean (Executive Director Policy, Strategy and Government Relations).
3.8 The Real Time Information Group Limited
John Fogarty be appointed to replace Frank Rogers. The company’s remaining Directors are Liz Dean (Executive Director of Corporate Delivery and Development) and Kirsty McLean (Executive Director Policy, Strategy and Government Relations).
3.9 Mersey Ferries Limited
John Fogarty be appointed to replace Frank Rogers. The company’s remaining Directors are Liz Dean (Executive Director of Corporate Delivery and Development) and Kirsty McLean (Executive Director Policy, Strategy and Government Relations).
3.10 The Beatles Story Limited
John Fogarty be appointed to replace Frank Rogers. The company’s remaining Directors are Liz Dean (Executive Director of Corporate Delivery and Development) and Kirsty McLean (Executive Director Policy, Strategy and Government Relations).
3.11 Accrington Technologies Limited (Dormant)
John Fogarty be appointed to replace Frank Rogers. Page 312
4. LCR COMBINED AUTHORITY COMPANIES
4.1 Mersey Tidal One Limited
Mersey Tidal compromises three Directors and they are Brent Cheshire, Mark Knowles and Frank Rogers. It is therefore proposed that John Fogarty, Executive Director of Corporate Resources be appointed to replace Frank Rogers.
5. DELEGATED AUTHORITY
5.1 Following the departure of Mark Bousfield from the LCR Combined Authority, changes need to be made to the delegated authority that was previously given to the post of Director for Commercial Development and Investment.
5.2 On a temporary basis, Dr Aileen Jones, Interim Executive Director for Strategic Commissioning has subsumed the responsibility for the Directorate of Commercial Development and Investment. Therefore, to ensure that previously approved projects, where delegation was granted expressly to the Director of Commercial Development and Investment, be undertaken by the Interim Executive Director for Strategic Delivery.
6. STAFFING STRUCTURE
6.1 Members will be aware that the Terms of Reference for the Appointments and Disciplinary Committee are currently drafted to include their involvement in the appointment and disciplinary of both the Chief Officers and Deputy Chief Officers. It is proposed that the Committees involvement focuses on the Chief and Statutory Officers exclusively. Since the establishment of the CA, the number of officers designated as Deputy Chief Officers, has grown to warrant a revision to this approach. Notably this approach falls in line with arrangements in some of the constituent councils.
6.2 If this approach is agreeable, references to Deputy Chief Officers will be removed from the Terms of Reference for the Appointments and Disciplinary Committee in the Constitution. Clarity will be provided that the remit of the Committee applies to Chief and Statutory Officers.
7. RESOURCE IMPLICATIONS
7.1 Financial
There are no direct financial implications arising from this report.
7.2 Human Resources
There are no direct human resources implications arising from this report.
7.3 Physical Assets
Page 313 There are no direct physical asset implications arising from this report.
7.4 Information Technology
There are no direct information technology implications arising from this report.
8. RISKS AND MITIGATION
8.1 Merseytravel is required to have a DG, the decision to appoint will mitigate the risk of non-compliance with legislation.
9. EQUALITY AND DIVERSITY IMPLICATIONS
9.1 There are no equality and diversity implications arising from this report.
10. COMMUNICATION ISSUES
10.1 The recommendations arising from this report will be shared with Elected Members, staff, and all partner agencies.
11. PRIVACY IMPLICATIONS
11.1 There are no privacy implciations because of this report.
12. CONCLUSION
12.1 The Combined Authority is requested to consider and take appropriate decisions to reflect the changes as set out within this report.
JILL COULE Monitoring Officer
Contact Officers: Louise Outram, Secretary to Merseytravel and Deputy Monitoring Officer Email: [email protected] Trudy Bedford, Democratic Services Manager Email: [email protected], Tel: 07803630124
Appendix: None
Background Documents: None
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