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, 6th December, 2019 at 1.00 pm in the Authority Chamber - No.1 Mann Island, Liverpool, L3 1BP.
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 1 NOVEMBER 2019 (Pages 1 - 12)
4. LIVERPOOL CITY REGION METRO MAYOR ANNOUNCEMENTS AND UPDATES To receive updates from the Liverpool City Region Metro Mayor.
POLICY DEVELOPMENT
5. LIVERPOOL CITY REGION MUSIC STRATEGY AND ACTION PLAN To consider the report of the Assistant Director of Policy and Strategic Commissioning and the Portfolio Holder: Culture, Tourism and the Visitor Economy. (Pages 13 - 38)
6. LIVERPOOL CITY REGION CLIMATE CHANGE PROGRESS UPDATE To consider the report of the Assistant Director of Policy and Strategic Commissioning and the Portfolio Holder: Low Carbon and Energy Renewables. (Pages 39 - 46)
STRATEGIC INVESTMENT FUND
7. STRATEGIC INVESTMENT FUND UPDATE - DECEMBER 2019 To consider the report of the Director of Commercial Development and Investment and the Portfolio Holder: Inclusive Growth and the Third Sector. (Pages 47 - 58)
8. STRATEGIC INVESTMENT FUND - TRANSFORMING CITIES FUND To consider the report of the Director of Commercial Development and Investment and the Portfolio Holder: Transport and Air Quality. (Pages 59 - 104)
9. LIVERPOOL CITY REGION GOOD BUSINESS FESTIVAL To consider the report of the Director of Commercial Development and Investment and the Portfolio Holder: Inclusive Growth and Third Sector. (Pages 105 - 190)
10. LIVERPOOL CITY REGION SINGLE INVESTMENT FUND – GROWING BUSINESS VISITS AND EVENTS UPDATE To consider the report of the Director of Commercial Development and Investment and the Portfolio Holder: Inclusive Growth and Third Sector. (Pages 191 - 220)
11. LIVERPOOL CITY REGION STRATEGIC INVESTMENT FUND: SKILLS CAPITAL INVESTMENT FUND - THIRD CALL FOR RECOMMENDATIONS FOR FUNDING To consider the report of the Director for Commercial Development and Investment and the Portfolio Holder: Education, Employment and Skills. (Pages 221 - 242)
GOVERNANCE
12. LIVERPOOL CITY REGION COMBINED AUTHORITY QUARTER 2 FINANCIAL PERFORMANCE REPORT 2019-20 To consider the report of the Director of Corporate Services. (Pages 243 - 264)
13. APPOINTMENT TO THE OVERVIEW AND SCRUTINY COMMITTEE To consider the report of the Monitoring Officer. (Pages 265 - 266)
14. 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 2 December 2019.
15. 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 2 December 2019.
16. MINUTES OF THE TRANSPORT COMMITTEE HELD ON 10 OCTOBER 2019 (Pages 267 - 274)
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) 17. VARIOUS PROPERTY ACQUISITIONS - SEFTON To consider the report of the Director of Commercial Development and Investment and the Portfolio Holder: Inclusive Economy and Third Sector.
(Pages 275 - 296) 3
18. STRATEGIC INVESTMENT FUND - KIRKBY TOWN CENTRE ACQUISITION AND DEVELOPMENT To consider the report of the Director of Commercial Development and Investment and the Portfolio Holder: Inclusive Growth and Third Sector.
(Pages 297 - 332) 3
This page is intentionally left blank Agenda Item 3
LIVERPOOL CITY REGION COMBINED AUTHORITY
PUBLICATION: 1 NOVEMBER 2019
DEADLINE FOR CALL-IN: 8 NOVEMBER 2019
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, 1st November, 2019 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 Councillor D Baines, Portfolio Holder: Digital Connectivity and Inclusion Councillor P Hackett, Portfolio Holder: Inclusive Economy and Third Sector Councillor G Morgan, Portfolio Holder: Housing and Spatial Framework Councillor R Polhill, Portfolio Holder: Low Carbon and Energy Renewables Councillor J Fairclough, Substitute Member for Councillor I Maher Councillor L Robinson, Portfolio Holder: Transport and Air Quality
Deputy Portfolio Holder Councillor L Robertson-Collins, Digital, Connectivity and Inclusion
Mayoral Advisors Councillor E Spurrell, Tackling Violence against Women and Girls G Ben-Tovim OBE, Natural Environment
88. ANNOUNCEMENT
In opening the meeting, Metro Mayor S Rotheram congratulated St Helens Rugby League Club on winning the Super League Grand Final.
89. MINUTE'S SILENCE
Metro Mayor S Rotheram referred to the recent sad passing of the former Leader of Warrington Borough Council, Councillor Terry O‟Neill, who had served on the Combined Authority as an Associate Member.
The Combined Authority stood for a minute‟s silence as a mark of respect.
Metro Mayor S Rotheram also explained that as this was the last meeting before Remembrance Sunday. To honour the lives of those lost during active service
Page 1 and those who had served in the Armed Forces the Combined Authority stood to observe a minute‟s silence.
90. APOLOGIES FOR ABSENCE
Apologies for absence were received on behalf of:
Members of the LCR Combined Authority Mayor J Anderson OBE, Portfolio Holder: Education, Employment & Skills Mr A Hamid MBE, Portfolio Holder: Business Growth and Brexit Councillor I Maher, Portfolio Holder: Culture, Tourism and the Visitor Economy
Co-opted Members Rt Hon J Kennedy, Portfolio Holder: Criminal Justice
Associate Members Councillor I Moran, Leader of West Lancashire Borough Council Councillor R Bowden, Leader of Warrington Borough Council
Deputy Portfolio Holders Councillor K Groucutt, Inclusive Growth and Third Sector Councillor T Hardy, Housing and Spatial Framework Councillor N Nicholas, Transport and Air Quality Councillor S Powell, Culture, Tourism and the Visitor Economy Councillor P Sinnott, Education, Employment and Skills Councillor G Wood, Low Carbon and Energy Renewables Councillor C Thomas, Policy, Reform and Resources
Mayoral Advisors Professor Dame J Beer, Higher Education Reverend Canon Dr E Loudon, Community and Voluntary Sector B Spicer, Social Housing Growth L Morris, Fairness and Social Justice
91. DECLARATIONS OF INTEREST
It was reported that no Declarations of Interest had been received.
92. MINUTES OF THE MEETING OF THE LCR COMBINED AUTHORITY HELD ON 4 OCTOBER 2019
RESOLVED – That the minutes of the LCR Combined Authority held on 4 October 2019 be approved as a correct record.
93. LIVERPOOL CITY REGION METRO MAYOR ANNOUNCEMENTS AND UPDATES
Metro Mayor S Rotheram provided Members with an update on his activities and key developments since the last meeting of the LCR Combined Authority.
Metro Mayor S Rotheram paid tribute to the emergency services who had responded to a high number of incidents over the Halloween period. Which had sadly also included a 12 year old girl being knocked down by a car whilst she was out trick or treating. On behalf of the LCR Combined Authority, the Metro Mayor wished her a full recovery.
Page 2
Metro Mayor S Rotheram reported that in relation to the Merseyrail dispute positive talks with the RMT had continued and there would be no further industrial action over the Christmas period. Furthermore, over the coming weeks all parties would be looking to reach a deal ahead of the arrival of the new trains in 2020. The Metro Mayor referred to the industrial dispute on Northern Rail and stated that he had always supported the RMT in this dispute as there was a clear need for a Guard on intercity rail services, as there was often long distances between stations, many of which were not staffed. He also reported that he had met with Northern Rail Executives to discuss the deteriorating rail service. During which he had emphasised how customers were fed-up with the on-going cancellations and delays to the service and that this poor performance demonstrated that Northern Rail should have their franchise removed.
Metro Mayor S Rotheram explained how as part of the announcement of a 600km walking and cycling network across the City Region and to encourage people to consider cycling as a healthy and environmentally friendly means of travel, Councillor Robinson and himself had cycled across parts of the City Region. To encourage cycling across the City Region, the Metro Mayor had appointed Simon O‟Brien as the City Region‟s Cycling Commissioner. He reported that Simon was passionate about cycling and he wished him well in his endeavours.
Metro Mayor S Rotheram reported that the LCR Combined Authority had announced the establishment of a £5m Social Innovation Fund, in association with „Power to Change‟. The Fund would support the growth of a socially responsible business sector in the City Region and an example of this was Homebaked in Anfield. The Metro Mayor had also attended MIPIM in London and along with Councillor Polhill had attended the Smarter Tomorrow event.
Metro Mayor S Rotheram informed the LCR Combined Authority of his recent meeting with Grant Shapps, Secretary of State for Transport, at which he had pressed for the withdrawal of Northern Rail‟s franchise. He had also meet with Simon Clarke, Exchequer Secretary to the Treasury, were he had encouraged the Treasury for a fair funding settlement for the Liverpool City Region.
Metro Mayor S Rotheram provided an update on the following community engagement activity he had undertaken:-
A visit to Runcorn Station Quarter with Councillor Polhill to view the proposals for the area and then met with Unlock Runcorn to learn about their project; Visited social enterprises Make Hamilton Square and Byrne Avenue Trust. The Trust wanted to reopen Byrne Avenue Baths and operate it with and for the local community. Visited the proposed site for the new Headbolt Lane Station in Kirkby. Met with Asylum Link, the Williamson Tunnels Group and Nutricia.
Metro Mayor S Rotheram referred to the LCR Housing Statement and Delivery Plan 2019-2024 which was included on the agenda for this meeting. He referred to recent press articles in which the LCR Combined Authority was asking Central Government to allocate £200m to the region to carry out brownfield remediation works. The Metro Mayor explained how this funding could unlock the potential for the development of 42,000 homes across all six of the local authority areas and deliver on the City Region‟s Brownfield First aspirations.
Page 3
In conclusion, the Metro Mayor advised the LCR Combined Authority that he was supporting the GMB Union and ASDA employees in their ongoing industrial dispute with ASDA.
94. CONSTITUTION UPDATE
The LCR Combined Authority considered a report of the Monitoring Officer which sought the establishment of an officer delegation in relation to the use of Thematic Funds as set out in paragraphs 3.6 of the report.
Members were advised that recommendation D would be deferred to a future meeting.
RESOLVED – That:-
(i) the Part 3, Bodies of the Combined Authority and Responsibility for Functions, Section A – The Combined Authority at paragraph 3.1 (d) be changed to a majority vote;
(ii) the Head of Paid Service has exercised his delegated authority to appoint the Senior Head of Service – Operations to the interim appointment to the position of Director of Integrated Transport in accordance with Part 3, Bodies of the Combined Authority and Responsibility for Functions, Section E – Appointments and Disciplinary Committee, paragraph 5.2 be noted; and
(iii) delegated authority be granted to the Head of Paid Service, Directors and Statutory Officers to expend up to £1million in relation to decisions in the Thematic Fund created from the Strategic Investment Fund and that decisions or more to be considered by officers in conjunction with the relevant Portfolio Holder(s) be agreed.
95. LIVERPOOL CITY REGION COMBINED AUTHORITY FINAL ACCOUNTS 2018-19
The LCR Combined Authority considered the report of the Director of Corporate Services which set out the results of the external auditors, Mazars, audit of the LCR Combined Authority‟s annual accounts for 2018/19.
Members were advised that as a consequence of Mazars completing their audit in July 2019, they had identified a technical accounting issue relating to the treatment of cash between the LCR Combined Authority single entity accounts and Merseytravel. This accounting issue had been rectified and submitted to Mazars for consideration. Mazars had subsequently accepted the proposals and had issued an unqualified opinion without modification in repsect of the financial statements.
RESOLVED – That:-
(i) the external auditor‟s Audit Completion Report on the annual Statement of Accounts of the LCR Combined Authority attached at Appendix One to the report be noted; and
(ii) the Annual Statement of Accounts of the LCR Combined Authority as attached at Appendix Two to the report be approved.
Page 4 96. ACCEPTANCE OF ADDITIONAL EUROPEAN SOCIAL FUND GRANT AND EXTENSION OF EXISTING PROGRAMME
The LCR Combined Authority considered the report of the Treasurer which sought approval to accept an additional £5,869,094 of EU funding and to extend LCR ESF Ways to Work programme.
RESOLVED – That:-
(i) the additional European Social Fund grant outlined in Table 1a in the report now submitted for which the LCR Combined Authority acts as the Accountable Body be formally accepted;
(ii) the end date of the existing ESF Ways to Work programme as detailed in Table 1b in the report now submitted be agreed;
(iii) the onward grant awards of the additional money to relevant partner agencies listed in Table 2 in the report now submitted be agreed; and
(iv) authority be delegated to the LCR Combined Authority Treasurer and Monitoring Officer to sign relevant variation to grant funding agreement letters and agree any necessary amendments to these schemes during the period of their delivery.
97. LIVERPOOL CITY REGION HOUSING STATEMENT AND DELIVERY PLAN 2019-2024
The LCR Combined Authority considered a report of the Portfolio Holder: Housing and Spatial Framework and Assistant Director, Policy and Strategic Commissioning, which set out the draft Liverpool City Region Housing and Statement and Delivery Plan 2019-2024.
Councillor G Morgan, Portfolio Holder: Housing and Spatial Framework, explained that the Housing Statement and Delivery Plan set out an ambitious five year programme. He advised that the LCR Combined Authority had worked in conjunction with constituent Local Authorities, Homes England and the Mayoral Advisor: Social Housing Growth to develop an ambitious Housing Statement and Delivery Plan which also reflected Local Plans. With the aim of accelerating housing growth to include all tenures with a range of affordable homes. In conclusion, Councillor Morgan reported that the Housing Statement would support improvements to health, improve fuel poverty, carbon emissions and climate change. He explained that the Delivery Plan would be co-ordinated by the Housing and Spatial Planning Board.
Councillor P Hackett, Portfolio Holder: Inclusive Economy and Third Sector welcomed the Housing Statement and Delivery Plan and highlighted how it would support the development of Wirral Waters.
Metro Mayor S Rotheram wished to place on record his thanks to the Housing Officers at both the LCR Combined Authority and constituent Local Authorities for their work in developing the Housing Statement and Delivery Plan, both of which were an excellent demonstration of collaborative working.
Page 5 RESOLVED – That the non-statutory LCR Housing Statement and Delivery Plan set out in Appendix One of this report which articulates the LCR‟s vision and priorities for housing for the period 2019-24 be approved.
98. STRATEGIC INVESTMENT FUND: AGENT ACADEMY INTENSIVE SCALE-UP
The LCR Combined Authority considered the report of the Portfolio Holder: Inclusive Growth and Third Sector and the Director of Commercial Development and Investment which sought approval of Strategic Investment Fund grant support for the scale-up of the Agent Academy industry led-social enterprise programme.
Councillor P Hackett, Portfolio Holder: Inclusive Growth and Third Sector reported that the Agent Academy assisted 16-25 year olds to gain the skills to begin careers in the digital, creative and tech industry. He explained that Agent Academy was based in the Baltic Triangle, Liverpool and young people were provided with an opportunity to participate in the 12 week programme, with 90% of finishers securing a full time job. The grant support would enable the programme to expand its cohort and to run programmes in Wirral and St Helens.
RESOLVED – That:-
(i) grant funding of up to £706,299 allocated from SIF Skills Capital (£121,388) and Gainshare Revenue (£584,911) be approved; and
(ii) authority be granted to the Director of Commercial Development and Investment, in consultation with the Combined Authority Monitoring Officer and Combined Authority Treasurer, to finalise negotiation with the Sponsor of the detailed terms of the legal agreements necessary to deliver the project.
99. STRATEGIC INVESTMENT FUND: LIGHT INDUSTRIAL PROJECTS
The LCR Combined Authority considered the report of the Portfolio Holder for Inclusive Economy and Third Sector and Director of Commercial Development and Investment which sought approval to award Strategic Investment Funding to specific projects to support the development of speculative light industrial floorspace across the City Region.
Councillor P Hackett, Portfolio Holder: Inclusive Economy and Third Sector, reported that the grant funding would support four light industrial projects in Liverpool, St Helens, Knowsley and Wirral. The projects would support SME‟s who were looking to expand or upgrade their facilities.
RESOLVED – That:-
(i) the provision of grant funding from the Strategic Investment Fund (SIF) for each of the following four projects up to the amount specified be approved:
Brookfield Park, Ph 2 (Liverpool) - £1,092,247 Gerards Park, Ph 2 (St Helens) - £1,040, 029 Image Business Park (Knowsley) - £861,069 Magazine Point (Wirral) - £766,943;
Page 6
(ii) the funding conditions set out in Appendix 3 be approved;
(iii) the progress of the Sutton Fold project be noted and request that the project applicant demonstrate deliverability by 31 May 2020 in order for a decision to be taken regarding SIF grant funding for the project; and
(iv) delegated authority be granted to the Director of Commercial Development and Investment to finalise negotiations of detailed funding terms and associated agreements for the projects specified at (i) and (ii) above in consultation with the Combined Authority Monitoring Officer and Combined Authority Treasurer. 100. APPOINTMENT OF OFFICERS TO THE LIVERPOOL CITY REGION URBAN DEVELOPMENT FUND (GP) LIMITED
The LCR Combined Authority considered the report of the Chief Executive which proposed a number of appointments of Combined Authority officers to serve on the Board of Directors of the Liverpool City Region Urban Development (GP) Limited (“LCR UDF (GP) Limited”).
RESOLVED – That:-
(i) the LCR UDF (GP) Limited has been established following the recommendations approved at the 8 March 2019 Combined Authority meeting be noted;
(ii) the appointment of the Chief Executive, Section 73 Officer and Director of Commercial Development and Investment of the LCR Combined Authority to the Board of Directors of the LCR UDF (GP) Limited be approved;
(iii) the funding decisions made by the Special Purpose Vehicle will be made in accordance with the terms agreed in the Funding Agreement with the Ministry of Housing, Communities and Local Government (“MHCLG”) for receipt of the European Regional Development Fund (“ERDF”) money, as per the report approved at the 8 March 2019 Combined Authority meeting be noted;
(iv) authority be delegated to the appointed officers to undertake or delegate appropriately, all activities and steps that are necessary to effect the efficient and appropriate operation of the special purpose vehicle, namely to the LCR UDF (GP) Limited; and
(v) the Liverpool City Region Urban Development Fund provide periodic updates to the LCR Combined Authority as part of the Strategic Investment Fund update process.
101. PROVISION OF GRANT SUPPORT TO THE MANUFACTURING TECHNOLOGY CENTRE'S DIGITAL MANUFACTURING ACCELERATOR
Page 7
The LCR Combined Authority considered the report of the Portfolio Holder for Inclusive Growth and Third Sector and Director of Commercial Development and Investment which sought approval to support The Manufacturing Technology Centre Ltd (“MTC”) to develop a digital manufacturing accelerator (“DMA”).
Metro Mayor S Rotheram reported that The Manufacturing Technology Centre (MTC) Ltd where seeking approval of grant support of up to £14,950,000. This grant support would enable MTC to expand its facilities and create more than 40 highly skilled jobs.
Councillor P Hackett, Portfolio Holder: Inclusive Growth and Third Sector, reported that MTC was a national leader in advanced manufacturing and the grant funding would support a Rapidly Reconfigurable Factory Environment at Liverpool Science Park in the Knowledge Quarter and a Digital Factory Environment („digital sandpit‟) which would be located at STFC‟s Hartree Centre in the SciTech Daresbury campus.
Metro Mayor S Rotheram reported that over 30 letters of support had been received from regional and national businesses in relation to the application, as they believed this project and pattern would help them develop further in the City Region, leading to high quality advanced manufacturing and digital jobs.
Mark Bousfield, Director of Commercial Development and Investment provided Members with a short presentation which demonstrated the proposals.
RESOLVED – That:-
(i) the provision of grant support of up to £14,950,000 to the Manufacturing Technology Centre be approved; and
(ii) authority be granted to the Director of Commercial Development and Investment to finalise negotiations of detailed terms of the funding and associated agreements in consultation with the Combined Authority Monitoring Officer and Combined Authority Treasurer.
102. REQUESTED CHANGES TO PREVIOUSLY AGREED SIF PROJECT: CITY CENTRE CONNECTIVITY 1
The LCR Combined Authority considered the report of the Portfolio Holder: Inclusive Economy and Third Sector and the Director of Commercial Development and Investment which presented a number of requested changes by Liverpool City Council in relation to the City Centre Connectivity 1, which was a previously approved Strategic Investment Fund (SIF) project.
Councillor P Hackett, Portfolio Holder: Inclusive Economy and Third Sector, reported that £38.4million of SIF funding was being requested to support the works required on the Churchill Flyovers.
RESOLVED – That:-
(i) the LCRCA agreed to invest £38.4 million to the City Centre Connectivity 1 scheme in October 2017 be noted;
Page 8 (ii) the changes requested to increase the SIF support from £38.4m to £40.15m and recognising the change to scope be agreed; and
(iii) delegated authority be granted to the Director of Commercial Development and Investment to finalise negotiations of detailed terms of the funding and associated agreements in consultation with the Combined Authority Monitoring Officer and Combined Authority Treasurer.
103. LOCAL INDUSTRIAL STRATEGY UPDATE
The LCR Combined Authority considered the report of the Assistant Director, Policy and Strategic Commissioning, which provided an update on the development of the Local Industrial Strategy and its strategic framework.
Dr Aileen Jones, Assistant Director, Policy and Strategic Commissioning, provided Members with a presentation which covered the following key issues:-
An update on the engagement and consultation work to inform the development of the Local Industrial Strategy; Set out the key messages which had been received from the public consultation and engagement with the business community; Explained how the Strategic Framework would inform and provide a foundation for the structure of the Local Industrial Strategy and policy interventions; and Summarised the next steps, with the aim of having a draft Local Industrial Strategy completed by the end of December 2019.
Councillor R Polhill, Portfolio Holder: Low Carbon and Energy Renewables welcomed the development of the Local Industrial Strategy but sought clarity on how climate change would be reflected within it.
Dr A Jones advised Members that the issue of climate change was a significant factor within the Local Industrial Strategy. She explained that the City Region had a distinct opportunity to utilise the River Mersey to generate clean energy.
Councillor P Hackett, Portfolio Holder: Inclusive Economy and Third Sector, enquired about how this strategy would be different to previous economic strategies?
Dr A Jones reported that the Local Industrial Strategy would reflect the distinctiveness of the City Region and it would also need to be attuned to the National Industrial Strategy. This would be an ambitious Strategy and the extensive consultation undertaken to inform the Strategy would also make it different to previous economic strategies.
RESOLVED – That:-
(i) the ongoing progress made in the development of the Local Industrial Strategy be supported;
(ii) the emerging strategic framework for the strategy that is set out in the Appendix to this report be noted; and
Page 9 (iii) the final Local Industrial Strategy be submitted to Government at the end of March 2020.
104. DEVELOPING AN AIR QUALITY ACTION PLAN FOR THE LIVERPOOL CITY REGION
The LCR Combined Authority considered a report of the Portfolio Holder: Transport and Air Quality and Assistant Director, Policy and Strategic Commissioning which presented the interim Liverpool City Region Air Quality Action Plan.
In presenting the Air Quality Action Plan to the LCR Combined Authority, Councillor L Robinson, Portfolio Holder: Transport and Air Quality, explained how air pollution trends had changed over the decades, however, poor air quality still remained a significant issue. He went on to outline the short and long term health effects of air pollution on residents who were often the most vulnerable citizens.
Councillor L Robinson explained that a LCR Combined Authority Air Quality Task Force had been established following an Air Quality review undertaken by the Overview and Scrutiny Committee. Councillor Robinson provided an overview of the membership of the Task Force, which included Portfolio Holders from each of the constituent Local Authorities, health bodies, businesses and other stakeholders. The Task Force had worked collaboratively to develop an ambitious and practical Action Plan which would require significant behaviour changes to bring about improvements to air quality.
Councillor Robinson explained that the Action Plan set out actions for each of the following:-
LCR Combined Authority; Constituent Local Authorities and partners; Residents, communities and businesses; Central Government and its agencies.
Gideon Ben-Tovim OBE, Mayoral Advisor: Natural Environment welcomed the report, particularly as it coincided with the Year of the Environment.
Councillor G Morgan, Portfolio Holder: Housing and Spatial Framework, noted that the Action Plan was particularly focused on the City Centre and sought clarity on what work the other Local Authorities were undertaking. Councillor Robinson advised Members that the Action Plan had been developed in collaboration with the six constituent Local Authorities, some of whom had introduced initiatives to stop cars idling outside schools. Examples of best practise such as this would be shared across the City Region.
Councillor D Baines, Portfolio Holder: Digital Connectivity and Inclusion, identified that the Action Plan had focused heavily on improvements to Transport. However, building houses and industry operations also impacted on air quality and he sought clarity on how the Action Plan would address these matters. Councillor L Robinson explained that the domestic consumption of fuel was key and through potential changes to planning guidance there was an opportunity for developers to build new homes which avoided energy waste.
Metro Mayor S Rotheram welcomed the excellent report and work undertaken to develop the Action Plan.
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RESOLVED – That:-
(i) the draft, interim Air Quality Action Plan set out within Appendix Two of this report be endorsed;
(ii) the LCR Combined Authority reiterated its support for taking urgent, collective action to tackle poor air quality across the city region, lined to its commitments around Climate Emergency, net zero carbon by 2040 and key messages in the emerging Local Industrial Strategy around clean growth and
(iii) a draft final version of the Air Quality Action Plan, following pre- decision scrutiny by the LCR Combined Authority‟s Overview and Scrutiny Committee, be received ahead of the end of the 2019/20 financial year. 105. PUBLIC QUESTION TIME
Metro Mayor S Rotheram reported that no public questions had been received.
106. PETITIONS AND STATEMENTS
Metro Mayor S Rotheram reported that no petitions or statements had been received.
107. MINUTES OF THE TRANSPORT COMMITTEE HELD ON 12 SEPTEMBER 2019
RESOLVED – That the minutes of the Transport Committee held on 12 September 2019 were received as a correct record.
Minutes 88 to 107 be received as a correct record on the 6th day of December 2019.
Chairperson of the Combined Authority
(The meeting closed at 2.07pm)
Page 11 This page is intentionally left blank Agenda Item 5
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 6 December 2019
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: No
REPORT OF THE PORTFOLIO HOLDER: CULTURE, TOURISM AND VISITOR ECONOMY AND THE ASSISTANT DIRECTOR: POLICY AND STRATEGIC COMMISSIONING
LIVERPOOL CITY REGION MUSIC STRATEGY & ACTION PLAN
1. PURPOSE OF REPORT
This report seeks Combined Authority (“CA”) approval and endorsement of the Liverpool City Region Music Strategy and action plan as developed through the work of the LCR Music Board.
2. RECOMMENDATIONS
It is recommended that the Liverpool City Region Combined Authority:
(a) Agree and endorse the Liverpool City Region Music Strategy and Action Plan as set out in Appendix One; and
(b) Agree to support the delivery of the LCR Music Board Strategic priorities pending the success of the Strategic Investment Fund bid which is currently in development.
3. BACKGROUND
3.1 The Liverpool City Region Music Board was set up in December 2018 as an independent, sector-led Board, endorsed and supported by both the Liverpool City Region Mayor, Steve Rotheram, and the Mayor of Liverpool, Joe Anderson OBE. The Liverpool City Region Music Board brings together leading individuals from across Liverpool‟s music sector. (Appendix Two shows the full membership).
Page 13 3.2 The LCR Music Board was tasked with the key mission:
‘To champion Liverpool’s music scene, protect and build upon Liverpool’s unique music heritage, increase engagement in music of all of Liverpool City Region’s diverse communities, and promote Liverpool’s status as a UNESCO World City of Music.’
3.3 Since it was established the LCR Music Board has worked with a range of stakeholders to develop the strategy. The strategy builds on the 2018 report „Developing a Liverpool City of Music Strategy‟ - commissioned by the Mayor of Liverpool, Joe Anderson OBE and carried out by BOP Consulting. The strategy is also informed by two reports from UK Music, “Wish you Were Here” (2018) and “The Beatles Heritage in Liverpool and its Economic & Cultural Sector Impact” (2015). These reports are available on line as Background documents.
3.4 Strengths: Findings from the BOP report recognise that Liverpool is a music city with high levels of recognition amongst UK and international audiences. In 2015, Liverpool was recognised in the award of UNESCO World City of Music status.
3.5 The City Region‟s music economy is increasing in scale and significance. Figures based on the UK Music annual reporting 2017/18 estimate that the core music sector generates over £100m in turnover each year and employs over 2,330 people. Critical to its success is a vibrant festivals and live music offer worth over £48m per annum.
3.6 The City Region boasts a clutch of high growth businesses that operate across different music sectors – Adlib, Sentric, Ditto, Sound City, Modern Sky – as well as a major arena venue, anchoring the commercial music offer and bringing opportunities that could stimulate further investment and growth. All these businesses have significant national and international reputations and in the case of Ad Lib and Sentric in particular, employ large numbers of local people and have sizeable turnovers.
3.7 The Royal Liverpool Philharmonic (RLP) is a major asset; directly employing 250 people and contracting an additional 349 freelance musicians in 2016/17, when some 270,000 people attended RLP events, contributing to a turnover of £10.9 million.
3.8 Music tourism, underpinned by the Beatles‟ legacy, generates an additional £98m per annum and the number of visitors attending Beatles attractions has grown year on year for a decade.
3.9 The City Region benefits from a strong and diverse higher education sector with four universities, including the Liverpool Institute for Performing Arts (LIPA), and a range of undergraduate and postgraduate provision focused on developing careers in music as much as academic study.
3.10 Challenges: The combination of heritage and a music sector that has strengths across contemporary and classical genres is reflected in Liverpool‟s
Page 14 status as a UNESCO World City of Music but there are concerns about the sector‟s sustainability, most notably in the following areas:
(a) Commercial pressures on venues, particularly at risk of displacement from residential developments and/or closure which threaten the vibrancy and relevance of live music;
(b) Fragmentation of responsibilities and lack of strategic planning and coordination across the public sector means that public resources are inefficiently allocated. As a result, sector support, marketing and inward investment have not been fully optimised;
(c) The industry does not represent the diversity of the city region and its communities; and
(d) Cuts to education, particularly within arts subjects, including music, increase the risk of exclusion of individuals and whole communities from the opportunity to pursue and develop a career in the music industry.
3.11 The BOP report recommends that the Liverpool City Region address:
(a) sector leadership and governance to better engage the private sector; and (b) streamline public sector engagement with all parts of the music sector (this has commenced with the establishment of the LCR Music Board).
3.12 The LCR Music Board Strategy outlines 4 key priorities:
(a) To ensure the long term development and growth of the Liverpool City Region music industry.
(b) To support the growth and development of a sustainable music tourism offer across the Liverpool City Region.
(c) To facilitate music and education sectors to come together with a plan to increase engagement in music and investment in, and development of, talent from all communities across the Liverpool City Region.
(d) To ensure a sustainable and strong network of venues and to work with local authorities across the Liverpool City Region to introduce the Agent of Change principle.1
3.13 These strategic priorities are long term (5 years) but are supported with an action plan for the first 12 months (Appendix One). The action plan aims to support new and existing businesses, create new jobs; develop greater sector
1 Agent of Change Principle describes the position that a person or business (i.e. the agent) introducing a new land use is responsible for managing the impact of that change. It is part of the National Planning Policy Framework (NPPF2) which states that both planning policies and decisions should ensure that new development can be integrated effectively with existing businesses and community facilities. "Unreasonable restrictions" should not be placed on existing businesses as a result of development permitted after they were established. Page 15 connectivity; support talent and artist development; increase music tourism and spend; increase collaborative working and develop a model of good practice that can be replicable to other cities/city regions.
3.14 Germane to the success of the implementation of the strategy and action plan will be the setting up of an independent fully operational Music Office, supported by the LCR Music Board, see Terms of Reference attached at Appendix Three.
3.15 The development of the strategy, its priorities and action plan has been influenced by a range of stakeholders drawn from the music industry across the Liverpool City Region, including artists, music education, music businesses and arts organisations, independents, record labels, promotors, managers, production service providers and from both the public and private/commercial sectors.
3.16 The strategy is not a stand alone document, its priorities fit clearly with the LCR Combined Authority objective of generating sustainable and inclusive economic growth which benefits all the city region and ambitions for our Local Industrial Strategy. Opportunity for growth is high; developing infrastructure to facilitate future growth, supporting incremental and radical innovation and investment, supporting targeted inward investment and business growth capability, and supporting skills and professional development overall.
3.17 It complements and builds upon the Culture & Creativity Strategic aim to develop a music strategy that supports and provides educators and young people with information, advice and guidance on the opportunities and progression routes within the Music Industry and the Visitor Economy Strategy particularly on the promotion of expansion of visitor numbers for our music offer.
4. RESOURCE IMPLICATIONS
A joined up Liverpool City Region Music strategy will enable the region to respond to nationally funded initiatives and attract more resources into the Liverpool City Region. It will enable the LCR Combined Authority to have sector and partnership discussions with major funders including Arts Council England, Big Lottery and National Heritage Lottery Fund as well as from private and commercial investment.
4.1 Financial
There are no direct financial consequences associated with this report, however the action plan defines a number of actions and activities which, to the extent that the Combined Authority wishes to progress these, there will be a requirement for funding to be made available to support the delivery. An application for SIF funding has been made and is currently in Outline Business Case development with the aim to go to first external panel in December 2019. Following consideration by the External panel, any award of SIF money would be determined by the Combined Authority in due course.
Page 16 4.2 Human Resources
Support for this strategic work is provided by the LCR Music Board, the UNESCO Head of Music and the LCR Combined Authority Lead Officer for Culture. If the strategy and action plan is adopted by the Combined Authority and the SIF application is successful the Music Office will be established and another appointment to support delivery of the action plan will be created.
4.3 Physical Assets
There is no immediate impact on Physical Assets associated with adoption of the Strategy. Potential impact on Physical Assets will however be kept under review.
4.4 Information Technology
There are no Information Technology implications arising from the implementation of the recommendations in this report. Specific actions within the Strategy include use of IT and digital communications in their implementation.
5. RISKS AND MITIGATION
5.1 The key risks association with the recommendations are:
(a) There is a risk that the significant benefits of the music industry to the Liverpool City Region economic and social growth will not develop fully due to a lack of strategic buy in from the music sector and/or local authorities.
To mitigate this, the LCR Music Board has a broad representation and reach across the music industry sector, including key stakeholders who have regional, national and international profiles. Music Board task and finish groups were established to develop the strategy and action plan during the early months of 2019. External representatives from across the music industry were invited to contribute and inform the developing action plan which increased the reach of the Board. In addition, 2 consultation sessions took place involving over 200 attendees and resulted in clear re-affirmation of the proposed priorities and actions.
Discussions have taken place with relevant parties across all the Local Authorities regarding the work of the LCR Music Board and the SIF bid will ensure that benefits accrue across the whole of the Liverpool City Region with increased opportunities for residents irrespective of where they live.
Page 17 (b) There is a risk that as part of the strategic actions to safeguard venues Agent of Change will not be adopted by all local authorities across the Liverpool City Region.
In mitigation, Liverpool City has arguably the largest number of music venues in the City Region. Liverpool City Council recently adopted the Agent of Change principle which has communicated nationally and internationally that Liverpool is a music city that supports music venues and the wider music community.
It is highly unlikely that Local Authorities adopting the Agent of Change principle will deter a developer from developing a property. It may increase their costs slightly to ensure that there is no noise impact from the neighbouring venue. However, these costs are likely to be a small percentage of the overall cost. As long as developers are informed upfront that the Local Authority is adopting and enforcing the Agent of Change principle this should not be an issue.
Adopting this approach will be a statement to the music industry/community that the whole Liverpool City Region is supportive of the music industry and taking this agenda seriously.
(c) There is a reputational risk that delays in approval of the strategy and financial (SIF) support to implement the action plan may incur a loss of credibility in the LCR Music Board which to date has had a high profile both regionally and nationally and result in members leaving and lack of progress.
Members of the LCR Music Board will be engaged where appropriate in detailed planning over project delivery whilst awaiting the outcome of the funding decision.
(d) There is a risk that some of the actions in the plan will not be focused in the right areas to make the most impact.
To mitigate this, the plan contains some actions which relate to maintaining and developing a strong data set which will serve to provide a full picture of the sector in the City Region and its economic value and emerging trends. LCRCA evidence and intelligence / economist teams will also be able to assist.
6. EQUALITY AND DIVERSITY IMPLICATIONS
There are no specific equality and diversity implications arising from the recommendations in this report. Music has a valuable role to play in widening access to all and supporting engagement in music by protected characteristic groups. Full consideration will be given to equality and diversity through the implementation of the Strategy‟s action plan.
Page 18 7. COMMUNICATION ISSUES
A communication plan is being developed for the LCR Music Board including the creation of an industry facing web presence. In addition, the Combined Authority will, through its adopted communication protocols, will publicise the launch of the Music Office and the associated envisaged outcomes when the SIF funding decision is agreed.
8. CONCLUSION
The establishment and development of a Liverpool City Region Music Board is a Mayoral priority and a key action in the Cultural & Creativity Strategy. Work by the Music Board over the last 10 months to develop this strategy and action plan builds on existing work and reporting and has gone some way to building confidence and expectation within the music industry. The LCR music sector already has a number of existing assets but there is a need to build on these to deliver a step change. If the priorities are delivered this will be seen as the world‟s leading music city region. A city region that has a great music heritage but isn‟t dependent on this, because of an innovative programme of music education, talent development and business support and an overall Combined Authority‟s policy and commitment to recognising the economic and cultural importance of music. Liverpool City Region will be the place that music businesses want to be based and where local people have the skills to take the jobs that are created.
COUNCILLOR IAN MAHER Portfolio Holder: Culture, Tourism and Visitor Economy
DR AILEEN JONES Assistant Director: Policy and Strategic Commissioning
Contact Officer(s): Sarah Lovell, Lead Officer – Culture, LCRCA Email: [email protected] Mobile: 07342 058 232
Appendices:
(i) LCR Music Board strategy & action plan (ii) LCR Music Board membership (iii) LCR Music Board Terms of Reference
Background Documents:
(i) Developing A Liverpool City of Music Strategy – BOP Consulting (ii) Wish You Were Here - UK Music Report (iii) Beatles Heritage in Liverpool and its Economic & Cultural Sector Impact – University of Liverpool (Institute of Popular Music), LJMU (European Institute of Urban Affairs) and the Institute of Cultural Capital
Page 19 This page is intentionally left blank LIVERPOOL CITY REGION MUSIC BOARD – STRATEGY AND ACTION PLAN
INTRODUCTION
This is the Liverpool City Region Music Strategy and Year one Action Plan. It has been developed by The Liverpool City Region Music Board. The Board is a sector led group appointed by the LCR Combined Authority Metro Mayor and charged with both creating and then overseeing a strategy to grow the sector and its economic and social impact on the City Region. It is one of the first such Boards created in the UK. Less than a year in to its work it has helped ensure that Liverpool City Region is seen as well ahead of its peer UK cities in taking a strategic approach to this sector.
In developing the Strategy the Board has built upon a series of reports:
Beatles Heritage in Liverpool Report November 2015 Page 21 Page Developing Liverpool City of Music Strategy Report, February 2018 Wish You Were Here: UK Music Report on Liverpool City Region Music Economy, 2018
It also held two substantial consultation meetings drawing together representatives from across the sector.
DELIVERY AND MONITORING
The Board will have oversight of the Strategy and will drive and monitor progress against the agreed target dates and outputs.
Delivery will be undertaken by officers from Liverpool City Region, and the Liverpool City Council Music Officer, supported by the Board, pending the creation and setting up of the Music Office. This Office will then be responsible for delivery of the Plan, reporting and accountable to the Board. The Board reports to the LCR Mayor on a quarterly basis.
Full consideration will be given to equality and diversity through the implementation of the Strategy’s action plan.
Draft Liverpool City Region Music Strategy and Action Plan October 19 1
PRIORITIES
1 To ensure the long term development and growth of the Liverpool City Region music industry.
2 To support the growth and development of a sustainable music tourism offer across the city region.
Page 22 Page 3 To facilitate music and education sectors to come together with a plan to increase engagement in music and investment in and development of talent from all communities across the city region.
4 To ensure a sustainable and strong network of venues and to work with local authorities across the city region to introduce and implement the Agent of Change principle.
Draft Liverpool City Region Music Strategy and Action Plan October 19 2
1. To ensure the long term development and growth of the Liverpool City Region music industry a. Create a hub, virtual or physical, to help the sector network, gain information and contacts, provide useful resources etc. (mindful of need to reach across the City Region). b. Establish effective employment resources – providing careers guidance, company placements etc. c. Establish live data exercises to capture annual, ongoing data collection (drawing upon Universities, national bodies eg PRS Foundation) to be able to monitor progress and capture changes within the City Region and its economic value, trends, including qualitative as well as quantitative information. d. Strengthen the Combined Authority and City Region’s commitment to promoting and supporting the sector as a priority sector for the city’s economy.
23 Page
2. To support the growth and development of a sustainable music tourism offer across the city region a. Establish a central website and hub promoting music in the city; what’s on, etc. b. Encourage a strategy around The Beatles based not only on heritage but also what they stood for – innovation, experiment, forward looking – to promote and grow the current music offer. c. Secure a strategy with the City’s tourism and marketing agencies to market Liverpool and the City Region as a World Music City Region. d. Establish a clear view, policy and plan for how to use the UNESCO status. e. Establish the role of the Councils as enablers rather than direct producers and curators of festivals as part of the City Region’s visitor offer.
Draft Liverpool City Region Music Strategy and Action Plan October 19 3
3. To facilitate music and education sectors to come together with a plan to increase engagement in music and investment in and development of talent from all communities across the city region.
a. Establish Liverpool City Region as a place in which every child has a chance to learn an instrument (across a diverse range of instruments from orchestral to electronic). b. Invest in music growth from individuals and communities in lower socio-economic areas, and across our diverse population, including support for business development, facilities and access to investment funds. c. Establish effective employment resources – providing careers guidance, company placements etc.
Page 24 Page d. Establish a scheme to make better and more coordinated use of existing and often underused resources in schools and other community spaces (equipment, studios etc.), across the city, with a coordinated approach to managing them, providing training in their use, and generating effective use of them.
4. To ensure a sustainable and strong network of venues and to work with local authorities across the city region to introduce and implement the Agent of Change principle a. Create an open source information hub for venues and promoters to share resources, guidance information etc. b. Work with Councils for a positive and cheap approach to road closures and other infrastructure help to stimulate greater and better festival activity. c. Work with Merseytravel, City Region Mayor and other transport providers on need to develop better late night transport to support use of venues both in city centre and elsewhere across the city region. d. Promote the active adoption by all planning authorities of Agent of Change and explore utilising Deeds of Easement of noise as an approach. e. Encourage financial and other support models that enable venues to own their buildings rather than rent and be at risk to landlords wishing change of use.
Draft Liverpool City Region Music Strategy and Action Plan October 19 4
IMMEDIATE ACTIONS (over a period of 10 - 12 months)
ACTION WHO WHEN OUTPUTS OUTCOMES
1. Secure funding through Strategic K McManus lead SIF bid submitted SIF bid successful. 250 businesses supported Investment Fund to tackle priorities on securing SIF by Q3 with aim of identified by the LCR Music Board funding. funding Sector growth and international 20 new businesses created to: agreement in recognition of the LCR as music a) ensure the long term development Music Office, place by end of industry hub. Minimum of 7% increase in GVA and growth of the LCR music Music Board, and Q4.
Page 25 Page industry. partners to Increased GVA, employment, 60 new apprenticeships created b) support the growth and deliver against investment and inward development of a sustainable music the agreed investment into the LCR. 30 new jobs created tourism offer across the city region. priorities. c) facilitate music and educations Minimum of 3 successful new inward sectors to come together with a plan investments creating minimum of 6 to increase engagement in music new jobs. and investment in the development of talent of all communities across 120 artists from across the LCR the city region. benefitting from talent development d) ensure a sustainable and strong programmes network of venues and to work with local authorities across the city region to introduce the Agent of Change principle. 2.Build website as central source of Music Office with Completed by Website established and Greater sector connectivity.
Draft Liverpool City Region Music Strategy and Action Plan October 19 5
information and open source support of LCR end of Q2 2020 operational. information hub for venues and Music Board Practical resource being used by music promoters Site recognised as ‘go to’ businesses / venues / promoters etc. resource by sector. leading to improved business performance. Supports all aspects of strategy delivery. Increase in collaborative working.
Establishment of a model of good practice/replicable and potentially sold on to other cities. 3.Secure agreement for a funded Music Office with Music Office will a) Office operational as single c) 250 businesses supported Page 26 Page independent Liverpool City Region support of LCR begin operating point of contact for the sector. Music Office to provide the following: Music Board immediately on 20 new businesses created a) A central hub of information signing of funding One job secured, and one new b) Up to-date mapping and information agreement. job created. 60 apprenticeships created on the sector including: - Businesses Fully operational b) Up to date and accurate 30 jobs created - Music education provision within 3 months sector intelligence informing - Facilities – studios, venues etc. of funding ongoing delivery, future 120 artists benefitting from talent c) Sector support and training allocation with 2 priorities and the mapping of development programmes. d) Single point of contact for external f/t staff sector growth. companies looking to invest in or At least 20 supported to have a engage music industry in the city sustainable career in the music region industry. e) Promotion of Liverpool City Region to the national and international d) Minimum of 3 successful new music industry as a Music City inward investments creating minimum Region of 6 new jobs. Draft Liverpool City Region Music Strategy and Action Plan October 19 6
f) Delivery of the strategy g) Establish risk investment fund for Simplified structure of support for sector development local music businesses, making it easier to access and secure external investment.
e)/ f) Clearly defined strategy and action plan to market Liverpool City Region as a World Music City Region with identified budgets, resources and understanding of organisational responsibilities in delivery.
Page 27 Page e) 20 investments securing business growth, access to new markets. Minimum of 7 new jobs created. 4. Establish networking structures for Music Office with All networks and a) Industry Leaders network Networks established with clear the sector support of LCR sector established. agendas and recognised as adding a) Quarterly meeting for leaders of key Music Board relationships value to the sector. industry organisations. operational by b) Music educators’ network b) Networking for music educators in the end of Q2 of established. Better connected music sector the LCR to share good practice and 2020 encouraging sharing of good practice develop collaborations. c) Improved partnership and resources as well as increased c) Build relationships and clarification working with BLG and BIG to collaboration. Established and of roles with Beatles Legacy Group support Beatles legacy plans. functioning networks underpin all of and Beatles industry Group plus strategy delivery. other related stakeholders. d) Clearly defined strategy and d) Work with Marketing Liverpool to action plan on how to market d) Increase in music tourism visitors discuss strategy to market Liverpool Liverpool City Region as a World with related increase in music tourism City Region as a World Music City Music City / City Region with spend. and City Region. identified budgets, resources Draft Liverpool City Region Music Strategy and Action Plan October 19 7
and understanding of organisational responsibilities in delivery. Strategy and plan on how to use the UNESCO City of Music strategy established. 5 Advocate for the robust adoption of S Lovell/K By end of Q2 A shared approach across all the A joint approach across the city region the Agent of Change principle across McManus 2020 LCR Local Authorities to the providing a more supportive the whole of the City Region protection of venues by a environment for venues. rigorous but fair adoption of the Agent of Change principle, A clearly established policy that including exploring the Deeds of ensures developers are aware in Easement of noise approach. advance that they will not be able to build at the expense of already Page 28 Page existing live music venues.
A strong signal that the LCR is a music friendly City Region that recognises the importance of live music in the ecology of a music City Region. 6.Engage local authorities in discussion Music Office with Begin Music sector strategic plan A city region where the local on support of Music immediately and endorsed by all local authorities authorities adopt a common, a) Endorsement of the Strategic Plan Board and CA. ensure open and use this to leverage further supportive approach to the b) Supporting locally generated dialogue is appropriate support to the sustainable development of the music festivals and events through waiver maintained on an benefit of the sector. sector. of road closure and infrastructure ongoing basis. costs c) The role of Local authorities as enablers and supporters
LONGER TERM AIMS Alongside the work set out above, we will also be developing a longer term plan with clear aims and objectives. Draft Liverpool City Region Music Strategy and Action Plan October 19 8
In 12 months we will have a clear action plan and timeframe for how we will deal with agreed priorities including:
Ensuring that every child in the LCR has a chance to learn an instrument Establishing effective careers support for the music sector Identifying community hubs across the LCR to provide local support for talent development Page 29 Page
Draft Liverpool City Region Music Strategy and Action Plan October 19 9
This page is intentionally left blank LCR MUSIC BOARD as of 06.11.19
NAME PROFESSIONAL WORK ROLE Michael Eakin CEO Royal Liverpool Philharmonic Chris Meehan CEO Sentric Music / Director Boss Group Ltd Rebecca Ayres Managing Director Liverpool Sound City Ian Thomas Chair of LCR Music Education Alliance Steve Levine Independent Music Producer Craig Pennington Editor Bido Lito Matthew Flynn Lecturer University of Liverpool (Music Industries) Paul Gallagher Deputy Director Museum of Liverpool, NML Ben Williams Commercial Director ACC Liverpool Andy McCluskey Lead Singer Orchestral Manoeuvres in the Dark Cath Hurley Director/Artist Manager mostdeffo Hannah McKearnen Independent Accessibility and Inclusion Advocate (standing down due to other commitments) Yaw Owusu Executive Manager THE PLAYMAKER GROUP Catherine Tackley Head of Music University of Liverpool Alok Nayak Artistic Director MILAPFEST Barbara Phillips Artist Manager Positive Impact Anne Thwaite Artistic Director Arabic Arts Festival (standing down due to other commitments) Jennifer John Creative Director, Music Manager – Sense of Sound Singers
OBSERVER ROLES
Tom Kiehl / Natalie Representative from UK Music Williams / Sam Murray Cllr Ian Maher Portfolio Holder for Culture, Tourism & Visitor Economy TBC Cllr Shelley Powell CA Deputy Portfolio holder for Culture, Tourism and TBC the Visitor Economy Kevin McManus Head of Liverpool UNESCO City of Music Pete Hooton Chair Beatles Legacy Group Sarah Lovell Lead Officer Culture – LCR Combined Authority Kelly Wood Musicians Union representative
Page 31 This page is intentionally left blank Liverpool City Region Music Board TERMS OF REFERENCE
This Terms of Reference defines the roles and responsibilities of the Liverpool City Region Music Board (‘the LCR Music Board’); its governance structure and overview of the business, mission, strategic priorities and the competencies, skills and experience represented by the membership.
1. Background of the LCR Music Board One of the key recommendations of the report, Developing a Liverpool City of Music Strategy, launched in March 2018, was the establishment of a Liverpool City Region Music Board.
This was intended to give Liverpool’s music businesses and communities a stronger voice in local and regional decision making.
The role of the Liverpool City Region Board will be to set strategy and advise and scrutinise quality and coordination of interventions by public sector and institutional actors.
2. Mission As set out in previous consultation documents, its mission will be,
‘To champion Liverpool’s music scene, protect and build upon Liverpool’s unique music heritage, increase engagement in music of all of Liverpool City Region’s diverse communities, and promote Liverpool’s status as a UNESCO World City of Music.’
3. Strategic Priorities Developing a Liverpool City of Music Strategy report identified five immediate key objectives for the LCR Music Board to consider as part of its initial remit. The Board may decide to develop and/or change these priorities following further discussion and consultation with the sector. The current objectives are: a) To oversee the development and implementation of a sector-led strategy, backed by all local government and economic development agencies and non-departmental public bodies, to underpin, preserve and sustain growth in live music and other core music sector activities, and invest in building music infrastructure. b) To work with local authorities across the city region to introduce the Agent of Change principle to ensure that music venues are not put at risk by residential development. c) To support the growth and development of a sustainable music tourism offer across the city region, encompassing Liverpool’s unique music heritage and the vibrancy of the live music scene across the city region, from grassroots music venues to large concerts and festivals. d) To facilitate music and education sectors to come together with a plan to increase engagement in music and investment in and development of talent from all communities across the city region.
Page 33 e) To support and coordinate the city’s engagement with Apple Corps to secure agreement on the use of Beatles-related IP rights in order to acknowledge, define and develop the contribution it has made to the city over six decades, to optimise revenue generation from the visitor economy (including export, in the form of international exhibitions), and contribute to the development of music education, more effectively to preserve the legacy of the Beatles for future generations.
4. Membership The members of the LCR Music Board will collectively, have the necessary personal attributes, influence and proven leadership ability and competencies required to: Add value and provide support to the Combined Authority and other authorities in establishing strategy and reviewing risks and opportunities for investment; Effectively monitor the performance of projects to enhance the music sector; Account for the performance of the LCR Music Board.
The list of key competencies - core skills, knowledge and experience - for the LCR Music Board has been agreed to reflect the following broad areas:
i) International and Music Tourism – national and international business and leisure visitors in music or related cultural field.
ii) Commercial – including some or all of: grassroots venues, record labels, music publishing, physical and online distribution, artist management, music agency, tour promotion, venue management, festival management, music production services, manufacturing and sales of musical instruments and music technology (including demonstrable knowledge and experience of developments in any of: technology for live performance, immersive content and other payment/ distribution systems, such as crypto-currencies and blockchain.)
iii) Strategic Planning – partnerships that influence and support music sustainability and development.
iv) Education and Community
v) Talent Pathways –including children, young people and emerging musicians and music industry practitioners with a focus on career pathways.
vi) Funding and Fundraising – public funding bodies, charities, trusts and private sector funders.
vii) Communication and PR
viii) Music History and Heritage –history and heritage of the music industry in the City and City Region and experience of celebrating history and heritage in a contemporary way for existing and new audiences.
ix) Equality and Diversity –diverse approach to development and engagement of communities and artists in ways that ensure equality of opportunity.
Page 34
x) SME Music sector
Additional members may be appointed at any time by the Chair in consultation with the Board and as agreed with the Metro Mayor.
The LCR Music Board is a Music sector led Board. Although it can't represent the whole of the sector within its constituency it will aim to engage more widely with the rest of the sector and will ensure that opportunities occur to facilitate conversations with the wider sector at regular intervals.
Membership of the LCR Music Board and any sub groups set by members will aim to reflect the cultural, ethnic and socio-economic makeup of the population including people from minority populations and excluded groups based on the particular skill sets required.
5. Membership requirements Time Commitment Members are required to attend LCR Music Board meetings every month for the initial 3 – 4 months and then approximately every 2 months.
Where members are unable to attend an LCR Music Board meeting, replacement representatives are not accepted without prior approval of the Chair.
Quorate The minimum number of Board members to be quorum when important decisions are to be voted on is 10 for the current membership (18). If the membership of the voting Board members increases to 20, quorate will be amended to 12. Observers are not included as part of quorum.
Responsibilities The LCR Music Board will determine and shape its own programme of work, subject to compliance with the Terms of Reference and agreement with the LCR CA Metro Mayor and Liverpool City Council Mayor.
Members will also be asked to lead or be an active member of sub-working groups or panels with others from the wider sector, as needed to deal with specific issues.
Members are expected to advocate and be champions for the work of the LCR Music Board within their individual and wider Music sector within the LCR.
Members may be invited by the Chair to undertake the following activities on behalf of the LCR Music Board: Give public speeches Take part in panel discussions /seminars / consultation events Write or contribute to press articles Give media / press interviews Provide quotes for media activity
Page 35 The LCR Music Board does not have a political affiliation and will not propose recommendations related to political affiliation.
Confidentiality All Board members, including Observers and guests should not discuss or share the contents of LCR Music Board meetings with their constituents. Chatham House Rule to apply.
An abridged version of the minutes of the LCR Music Board meetings will be made available online to facilitate external communications.
6. Elected Officials and Public Servants Barring exceptional circumstances, elected officials and public servants will not normally be appointed to the LCR Music Board, although they may be invited to sit as an observer to provide specialist and technical advice to the board.
If an elected official or public servant is appointed as an observer to the LCR Music Board, their services are provided within the scope of his/her elected post or employment and he/she shall receive no further remuneration.
7. Administration of Board meetings Meetings of the LCR Music Board will be held as outlined previously and will take place in accessible locations across the Liverpool City Region as agreed in advance.
The agenda for each meeting will be set in advance by the Chair – members will be encouraged to provide suggestions for items for subsequent agendas.
The Secretariat will distribute the previous meetings minutes, agenda and any further papers / documentation in advance of the meeting. Meeting minutes and agendas will be published online.
The Secretariat for the LCR Music Board will be provided by the LCR CA / LCC.
8. Term of Appointment The LCR Music Board will comprise 18 members, including the Chair and are appointed for an initial term of two-years. Members have the option to stand for further two-years to ensure continuity, but cannot stand for a third consecutive term without a break of one year. The term of appointment may change at the Mayor of the Combined Authority’s pleasure.
Membership may be terminated in the event that a member is unable to regularly attend meetings of the LCR Music Board or breaches these Terms of Reference.
Any member may resign by giving written notification to the LCR Music Board secretariat.
9. Conflict of interest Members of the LCR Music Board are appointed in a personal capacity, not as representatives of their employer or any other organisation.
Page 36 LCR Music Board membership should register and declare any conflicts of interest as a standing agenda item at the outset of each LCR Music Board meeting. If the agenda includes discussion or recommendations of investment that may present a conflict of interest with their employment or membership of another organisation, board members should declare this in advance. The Chair should then decide if the member should be asked to remove themselves from such discussion.
10. Compensation Members of the Music Board volunteer their time and expertise to sit on the board. They will not be reimbursed for expenses, except in exceptional circumstances as agreed in advance with the Mayor of the Combined Authority/ Liverpool City Council Mayor.
Any works commissioned by the LCR Music Board will be managed by the Secretariat and commissioned in line with the LCR CA procurement policy.
No member shall obtain any employment or other rights to remuneration and /or expenses in relation to membership or participation, outside of being commissioned through the LCR CA’s procurement procedure.
11. Limitation of authority The LCR Music Board is an advisory Board to the LCR CA (Metro Mayor) and Liverpool City Council Mayor. It is not an executive body and therefore does not have the authority to spend or allocate funding on behalf or make decisions on behalf of the LCR CA / LCC.
12. Declarations On joining the LCR Music Board, all members must submit a declaration of personal interests, in accordance with the LCR CA policies and including a declaration that they understand and will abide by the Nolan Principles of Standards in Public Life.
Page 37 This page is intentionally left blank Agenda Item 6
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: Chair and Members of the Combined Authority
Date: 06 December 2019
Authority/Authorities Affected: ALL
EXEMPT/CONFIDENTIAL ITEM: No
Non-Key Decision
REPORT OF THE ASSISTANT DIRECTOR OF POLICY AND STRATEGIC COMMISSIONING AND PORTFOLIO HOLDER: LOW CARBON AND RENEWABLE ENERGY
LIVERPOOL CITY REGION CLIMATE PROGRESS UPDATE
1. PURPOSE OF REPORT
This report is intended to update the Combined Authority on progress since a Climate Emergency was declared in July 2019. It also describes the latest position on work being undertaken by the Combined Authority that will inform a Climate Action Plan for the Liverpool City Region.
2. RECOMMENDATIONS
Liverpool City Region Combined Authority are recommended to:
(a) Note the progress achieved to date in the development of a range of measures and initiatives outlined in this report that contribute to the City Region reducing its carbon and climate impacts.
(b) Agree to progress to the next stage of developing a climate action plan.
3. BACKGROUND
3.1 There is near consensus from the world’s leading climate scientists and experts of an acceleration in negative impacts derived from man-made climate change. The causes of many of these changes are well understood as are the appropriate responses for individual citizens, businesses, municipalities and countries.
Liverpool City Region has a rich heritage as a global, mercantile and industrial powerhouse harnessing its natural resources and talented people to be at the forefront of revolutions in industry, transport, energy, medicine and public health and social justice. These areas are at the start of another revolution in order to successfully decarbonise our industries, homes and communities whilst improving the quality of life for our citizens. This reflects the LCR’s challenges in terms of its Page 39 socio-economic base, plus the need to decarbonise its energy, industrial, housing and transport assets. The city region has related challenges associated with poor air quality stemming from transport emissions in the main.
3.2 At the June meeting of the Combined Authority, members agreed to declare a ‘Climate Emergency’ for the City Region and to return to this meeting with a Climate Action Plan. Significant progress has been made in establishing the shape of this Plan, building a baseline evidence base of climate impacts in the City Region and identifying how a ‘climate in all policies’ might work in practice. The work of the LCR Year of the Environment committee, the LCR Air Quality Task Force and the public engagement via the LCR Listens process has also begun to provide a ground swell of public sentiment evidence which will support and direct this work.
3.3. At the LCR Year of the Environment Summit on 9 November 2019 the Metro Mayor announced the creation of a new City Region Climate Partnership. It is anticipated that this group will be established before the end of the year and should be given time to convene to shape and direct the work of the Combined Authority as representatives of the public and environmental interest groups.
3.4 To this end the Combined Authority will bring forward an Interim Climate Action Plan to the March 2020 meeting, followed by a Final plan later in the calendar year. This will allow the Climate Partnership an initial period of engagement, followed by a fuller opportunity to engage public interest groups, with a final approach agreed by the Combined Authority following the May elections, which will also reflect any political change across that period.
3.5 UK Government Position In July 2019 the Government committed the UK to be Net Zero Carbon by 2050. This represents the most ambitious legally binding target of any major economy. We will need to see the direction of the next Government as to whether they will continue with this roadmap approach or whether they will propose new structures and pace of adoption and transition.
4. COMBINED AUTHORITY PROGRESS
4.1 Public Engagement
A number of recent public engagement processes have been undertaken across the city region with reference to the environment and climate change over recent months, including:
(a) The LCR Listens process has seen environment rated as the second highest concern after transport. The framing of the questions put to the public, respondents focused on a wider environmental agenda rather than climate change, including areas such as energy, food, resilience or resource management.
(b) As part of the 2019 Year of the Environment programme, a series of consultation events were held including one specifically focused on climate change this recommended that the Combined Authority take a leading role to shape and deliver climate change policies focused on energy, transport, housing, skills and strategic planning. Also to assist in ensuring that all LCR Page 40 areas can achieve the greatest levels of carbon reduction through shared best practice.
(c) The Local Industrial Strategy development work featured a stakeholder consultation focused on the Clean Growth agenda and featured leaders from local industry, community energy, transport, local authorities and civic amenity groups – this offered concrete ideas and ambition to shape our approach.
4.2 Climate Evidence Base
In October 2019 the CA team were given access to the Government’s ‘SCATTER’ model; the principle tool developed by UK Government to measure carbon footprint piloted in Greater Manchester. Data is currently being loaded and test modelling started in early November. Initial findings will be offered to the CA in early 2020. A Strategic Energy Masterplanning project commenced in September 2019. The project is mapping capacity and systems resilience to climate change across the City Region for both electricity and gas networks and will direct strategic interventions from central Government to support decarbonisation of energy and transport networks.
4.3 SDS
Joint work between LCRCA and the Royal Town Planning Institute (RTPI) on the possible climate impacts of our approach to strategic planning will be completed in December 2019.
Early engagement on the SDS has highlighted climate response as a key topic to address – especially with younger demographics. The SDS team is undertaking preliminary work on policies which may address this, including reviewing housing standards in national and local policy, including materials and insulations standards, which may make a positive contribution to the mitigation of Climate Change. Other areas of focus will include the options to facilitate zero emission transport systems including electric vehicle charging provision and climate resilience for infrastructure and buildings from impacts such as weather events.
4.4 Housing
The City Region Housing Statement and Delivery Plan 2019-24 was approved by the CA on 1 November. A key priority of the Statement is to improve housing quality in the city, including reducing carbon emissions from our housing stock (roughly a third of city region carbon emissions comes from homes). This will be achieved through SDS housing standards and the Strategic Investment Fund whereby housing development that the CA funds will be expected to be thermally and energy efficient. This will also help address fuel poverty. The City Region has recent experience of running large-scale energy efficiency housing retrofit programmes that delivered transformative change in efficiency, liveability and affordability. The City Region also hosts several leading research centres focused on aspects of building efficiency. The expertise in these centres will be harnessed to deliver sustainable solutions that are appropriate for the City Region.
Page 41 4.5 Transport
In June 2019, the CA adopted its new Transport Plan. This includes prioritisation of green and active travel options as part of our delivery plan. Specific activities in delivery phase include:
(a) Delivery of the LCR Hydrogen Bus project by mid 2020 – this will put 25 hydrogen-powered busses on our roads, and establish a permanent refuelling station in St Helens.
(b) Project Charge commenced in July 2019. It is a national research programme centred on LCR that aims to understand the impacts, operational requirements and supply chain opportunities from the mass electrification of transport in the City Region, and the geographic master planning of a network of electric charging stations for the City Region.
(c) In October 2019, the CA Local Cycling and Walking Investment Plan was adopted and Simon O’Brien was appointed LCR Cycling Commissioner.
(d) The first of the new Class 777 Merseyrail trains has been assembled and commenced pre-delivery testing in early November. The new units are highly energy efficient and are also being designed to allow future energy technologies such as battery energy storage.
(e) New train fleets are being introduced by Northern Trains and Trans Pennine Express. Both fleets will allow much greater running on electricity rather than diesel, significantly reducing carbon and air quality emissions from regional and inter-city rail operations.
(f) Liverpool will have new direct services to both Glasgow and Edinburgh from early December. These will be the first direct rail services to Scotland for thirty years.
(g) The Halton Curve became fully operational during the summer bringing new, direct services between Liverpool and North Wales.
(h) Work is underway to create and consider options for bus reform in the City Region, with the intention to deliver a higher quality, fully integrated bus network that provides an attractive option to the private car for local journeys.
4.6 Air Quality
The CA approved an Interim Air Quality Action Plan in November 2019. The report highlights how tackling poor air quality and harmful emissions are mutually supportive, especially in terms of transport interventions that seek to support modal switch, clean fuels and a mass increase in walking and cycling.
In early November, Sefton Council announced plans to explore options for the implementation of a Clean Air Zone (CAZ). This could see the introduction of a charge on Class B vehicles like Heavy Goods Vehicles, buses, taxis and private hire vehicles that do not meet required emission standards. Other City Region authorities are also considering options to reduce emissions from polluting vehicles.
Page 42 4.7 Energy
There has been significant activity on the energy front since June 2019, including:
(a) Detailed technical, commercial and environmental assessments are continuing on the Mersey Tidal project to ensure that the business case assessment is put before the CA in March 2020.
(b) Throughout Qs 2 and 3 of 2019, the Crown Estate approved proposals for a further extension of offshore windfarm in Liverpool Bay to capacity of 2000 MW and released priority for a further 3000MW of investment by 2032.
(c) Liverpool City Region has also been selected to host a new Offshore Energy Alliance centre. This centre is a joint venture between the Offshore Wind Industries Council and the Offshore Renewable Energy Catapult.
(d) LCR Hydrogen projects received funding from BEIS to support industrial decarbonisation and trialling the use of hydrogen in energy provision: Project Centurion, HyNet and Glass Futures.
A Hydrogen Plan for the City Region will be published in January 2020. This will offer a roadmap for exploitation of a key City Region ‘competitive advantage’ in the low carbon economy and offer concrete investment proposals and timelines for delivery which will support our efforts to deliver a net zero carbon economy. The plan will be the first in a series of technology plans focused on delivering specific areas of energy development such as offshore wind and power networks. The plans will be developed in conjunction with key stakeholders including local and central government, businesses, regulators and investors.
5. RESOURCE IMPLICATIONS
5.1 Financial
The financial requirements to complete the required carbon assessments and climate change resilience requirements are to be determined.
A dedicated project management resource requirement has been identified to ensure the effective delivery of the required workstreams, external stakeholder relations and supply chain engagement.
5.2 Human Resources
Additional resource requirements to deliver individual elements will be identified.
5.3 Physical Assets
The medium and long-term viability of major Physical Assets will need to be assessed for their resilience and adaptability arising from the implementation of the recommendations in this report.
Page 43 5.4 Information Technology There are no Information Technology implications arising from the implementation of the recommendations in this report.
6. RISKS AND MITIGATION
6.1 There is presently no dedicated budget for a climate change and decarbonisation programme of works and resources. A costed options paper will be produced for the Combined Authority
6.2 There is potential for changes in national Government’s energy, environmental or industrial policies and strategies post Brexit that could have ramifications for a range of the City Region’s climate change projects and investments. The prevailing expectation is that existing standards and regulations will be ‘passported’ across and remain in force during the period.
6.3 There will be a new government from mid-December. It is fully expected that, whatever its makeup, climate change mitigation and adaptation will be at the forefront of government thinking.
7. EQUALITY AND DIVERSITY IMPLICATIONS
Members are reminded that under Public Sector Equality Duty, the Combined Authority has a duty to eliminate discrimination, advance equality of opportunity and foster good relations between people who share a protected characteristic and those who do not. Whilst the level of detail contained within this report does not lend itself to a full appraisal of the operational implications with respect to equality and diversity, it is possible that there could be resultant implications for people who share a protected characteristic, for example older disabled people. Therefore whilst there are no issues with the budget itself, any actions undertaken as part of the management of any schemes, the equalities consequences will be fully appraised and considered as part of the process, and any negative implications for any of the protected characteristics will be mitigated, where possible, subject to available resources.
8. COMMUNICATION ISSUES
None as a direct result of this report.
Page 44
9. CONCLUSION
The Combined Authority is providing thought leadership on delivering viable, scalable and deliverable climate change solutions. However, a strong and dynamic evidence base and significant public engagement are necessary to ensure a sustainable, and community led, approach to this agenda. It also requires effective communications to allow all our citizens and businesses to engage with and understand what is needed from them, how they can deliver their contributions and ensure opportunities from this revolution can be maximised to deliver a truly sustainable City Region economy and society.
The Combined Authority will bring forward an Interim Climate Action Plan to the March 2020 CA meeting which highlights the required pace of action and change based on modelling and evidence and offers a framework for delivery developed in harness with the new LCR Climate Partnership.
COUNCILLOR ROB POLHILL Portfolio Holder: Low Carbon and Renewable Energy
AILEEN JONES Assistant Director of Policy and Strategic Commissioning
Contact Officer – Mark Knowles, Lead Officer: Energy and Climate Change
Page 45 This page is intentionally left blank Agenda Item 7 LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 6 December 2019
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: No
REPORT OF THE PORTFOLIO HOLDER FOR INCLUSIVE GROWTH AND THIRD SECTOR AND DIRECTOR OF COMMERCIAL DEVELOPMENT AND INVESTMENT
STRATEGIC INVESTMENT FUND - QUARTERLY UPDATE
1. PURPOSE OF REPORT
This report provides a quarterly update on the Strategic Investment Fund.
2. RECOMMENDATIONS
It is recommended that the Liverpool City Region Combined Authority
(a) Note the quarterly update
(b) Agree the proposed approach to continuing project approvals, in advance of future funding
(c) Approve the inclusion of the hydrogen buses proposal as a Transforming Cities scheme
(d) Note the projects approved in line with the agreed criteria for pre-development funding in the table set out at paragraph 5.
(e) Agree changes as outlined in Section 6 of the report to the following projects:
(i) M58 Junction 1 Improvement Scheme (ii) Silver Jubilee Bridge Steady State Maintenance Scheme (Year 3) (iii) Women’s Technology Training Limited
(f) Note the project changes outlined in Appendix 1 of the report agreed by officers in accordance with the agreed SIF change control criteria
(g) Consider the revisions proposed to the SIF change control criteria as set out in Section 8 and note that, if approved, the revised criteria will be reflected in a revised CA Constitution
Page 47
3. BACKGROUND
The CA provides a quarterly update on Strategic Investment Fund activity:
1. SIF Round I – projects approved from 2013 to end 2018, using Local Growth Fund and Gainshare sources, including under the original methodology of the CA
2. SIF Round II – a request for projects up to £90m in total launched in November 2018, using Local Growth Fund and Gainshare sources not used in SIF Round I, plus a minority of Regional Growth Funds and ERDF
3. Skills Capital – a request for projects up to £18m in total launched in April 2019, using previously unclaimed Local Growth Funds
4. Transforming Cities Fund – commissioned projects for up to £172.5m of dedicated transport funding
4. ACTIVITY UPDATE DECEMBER 2019
4.1 SIF Round I
4.1.1 SIF Round I refers to projects approved up to year end 2018. The CA and its member local authorities are focused on moving remaining projects under SIF Round I from approval into delivery.
4.1.2 The Combined Authority continues to engage positively and robustly with strategic schemes where delays have been experienced. This includes engaging on delivery timetable, potential obstacles and risks, and offering support where appropriate. The active approach and positive collaboration has resulted in an increase in the release of funding.
4.1.3 Nevertheless, the timing of disbursements is key to maintaining a good track record with HM Government, particularly as future funding allocations are negotiated. The CA will move to transfer SIF Round I funding from delayed projects towards those that can deliver faster.
4.2 Skills Capital
4.2.1 The CA released a call to meet £18m in Skills Capital funding, intended for the maintenance, improvement and expansion of further education institutions, in April 2019. A separate item at this Combined Authority meeting requests approval for £19.7m in total eligible schemes, to be delivered by March 2021, and thereby exhausting the Skills Capital funding provided under Local Growth Funds. The CA has sought to over-programme against funds available and may increase this level of over-programming.
4.2.2 The CA will monitor disbursement of funds carefully to assure progress.
4.3 SIF Round II
4.3.1 SIF Round II is a call for projects designed to allocate all remaining funding from Local Growth Funds, Growing Places Funds, the first tranche of Gainshare and, potentially, the new “urban developmentPage 48 fund”, for up to £90m in total.
4.3.2 The table below highlights the strong and continuing demand for funding under this round. The level of demand materially outstrips funding available with two consequences: The City Region needs significant additional funding to meet its pipeline of projects, which will benefit both local residents as well as contribute to “UK PLC”. The number and breadth of projects is testament to the potential of our City Region
There is competition amongst projects, forcing the CA to make difficult choices. Value for money, deliverability and strategic fit are key decision criteria.
Call / Commission SIF Round II Figures in £m Launch date Nov-18 Funds available (up to) 90 Deadline for spend Mar-22 Gross pipeline 429 Qualified pipeline 207 Cumulative progress Count Amount, £m Passed SOC 31 158 Passed FBC 15 86 CA approved 14 81
4.3.5 In order to maintain a strong pipeline of schemes, the SIF 2 process is currently and significantly over-programmed. As a result, the CA needs to balance SIF approvals with its ability to fund its commitments.
4.3.6 The CA is anticipating the next round of Gain share, at £150m, and an unknown sum of future devolved money, potentially stimulus money in response to Brexit. On the other hand, there is no benefit in making commitments the organisation cannot keep. The CA therefore proposes:
(a) To continue progressing and approving projects under SIF Round II but to make all approvals above £100m subject to funding becoming available. This provides for a level of over-programming for both SIF Round I and SIF Round II, and assumes that projects approved but not funded under these rounds will be funded by future sources
(b) To balance the focus of its resources between progressing new projects and moving already approved projects from approval to delivery
(c) To continue using panels such as its Town Centres panel and Housing Delivery panel to add to its medium-term of investible economic development schemes
Page 49 4.4 Transforming Cities
4.4.1 The CA agreed its list of commissioned projects in September 2019. Merseytravel as transport executive is now developing each scheme for approval and funding.
4.4.2 These include schemes such as the extension of the Merseyrail Network to Headbolt Lane, enhancements to passenger experience on the new rolling stock and investments in smarter ticketing.
4.5 Commissioning of Hydrogen Buses
4.5.1 The CA agreed to commission TCF schemes on a rolling basis, to respond to changing circumstances and priorities, and ensure that the £172.5m is committed effectively and in a timely manner.
4.5.2 The first list of commissioned projects was agreed in July 2018, followed by a second round of projects in September 2019.
4.5.3 Since the last commissions were agreed, the Mayor’s commitment to roll-out a fleet of highly innovative, hydrogen-powered buses, with fuelling facilities, has been progressed in depth with delivery partners, and a need for TCF funding to match the related £6.4m OLEV (Office for Low Emission Vehicle) grant has been identified as part of the financial and commercial case being developed, in order to realise the full benefits of the project.
4.5.4 This activity fits comfortably with the principles that govern TCF, and in particular, with theme two of the fund which seeks to improve the appeal of public transport, particularly bus, via technological enhancements to secure more competitive journey times, operational efficiencies, lower levels of congestion and improved air quality.
4.5.5 The CA therefore proposes to admit the hydrogen buses project as a commission.
4.6 2019 Approvals
The CA is on track to approve circa £180m in strategic investment this financial year.
5. PRE-DEVELOPMENT FUNDING
The table below shows projects approved for pre-development funding in the last three months: Project title Project description Ask (up Status to) SAFE To deliver new community £188,724 Accepted Regeneration – facilities in the form of a Creative by internal and Digital hub (inc. business panel incubation units, start up support, artist studios, guest accommodation), 177 residential dwellings (inc. extra care, shared ownership and affordable rent), canal side eatery and guest Page 50 accommodation. Social A Collective Vehicle offering £62,000 Accepted Investment investment and a support by internal Vehicle – programme will grow the number panel and scale of *Socially Trading Organisations (STO’s) and build *Collaborating Communities (CC’s) to deliver more inclusive growth and community wealth. Bio inspire Increase jobs, focusing on skills £40,000 Accepted and innovation in health and life by internal sciences, advanced panel manufacturing and creative and digital industries Glass Futures The delivery of a National Centre £720,000 Accepted of Excellence for hot glass by internal production, located within St panel Helens for use by both academia and industry for R&D trials, testing and short commercial runs. Festival For a Contractor to undertake the £150,000 Accepted Gardens pre-remediation material by internal processing trials (1,000 m³), to panel provide increased certainty on ground conditions and reduce cost risk.
6. CHANGES REQUIRING COMBINED AUTHORITY CONSIDERATION/APPROVAL
Three changes currently warrant consideration and determination by the CA. The first change relates to M58 Junction 1 Improvement Scheme, the second relates to Silver Jubilee Bridge Steady State Maintenance Scheme (Year 3), the third relates to Women’s Technology Training Limited.
6.1 M58 Junction 1 Improvement Scheme
6.1.1 The M58 Junction 1 Improvement Scheme is located in Sefton and sponsored by Sefton Council. It involves the construction of new motorway slip roads at junction 1 of the M58, providing a northbound off slip and a southbound on-slip. As well as improving journey times between Maghull and North Liverpool, the scheme will reduce traffic on the A59 and some residential roads and facilitate potential future development in the Maghull area.
6.1.2 The sponsor requests an extension to the agreed Project Works Completion Date as the project has experienced significant delay following prolonged land assembly issues. The project is currently progressing on site, with practical completion of the project forecast to take place by 30 June 2020. The project scope remains the same and the outputs and outcomes of the project remain as originally specified.
Page 51 As a consequence of the delay referred above, the expenditure profile set out in the Grant Funding Agreement requires a re-profile into 2020/21 and Sefton Council has requested an increase in the SIF funding allocation of £500k towards the increase in construction costs (amounting to £943k approx.) that have been experienced following the delay. This would increase the total funding allocation to £6m.
6.2 Silver Jubilee Bridge Steady State Maintenance Scheme (Year 3)
6.2.1 Silver Jubilee Bridge (SJB) Steady State Maintenance Scheme (Year 3) is a project sponsored by Halton Metropolitan Council. The project includes a programme of maintenance works on the Silver Jubilee Bridge and its approach viaducts. The improvements had originally been planned to be made over a three year period from April 2016 through to March 2019, seeking to ensure that this critical regional infrastructure can continue to support growth in the Liverpool City Region.
A number of delays have however been encountered within the programme. With a number of the projects scheduled to run concurrently within the locational constraints of the Runcorn Bridge Complex, this left little room for any project slippage without it having a knock on delay impact. For example, the Runcorn de-linking projects, steel arch superstructure painting project, and a programme of sustainable transport enhancements had all been scheduled to be delivering work on the SJB or its associated approach roads at the same time. Due to the location, delays in one project, could impact adversely on others. The falling out of sync of some of the projects has therefore been a key factor leading to delay. The project has also been affected adversely by inclement weather.
In total, the project which was expected to complete on 31/03/2019 has been delayed by approximately 12 months and completion of the works is now forecast to be late spring, early summer 2020. The outputs and outcomes of the project are unaffected and remain as originally specified.
6.2.2 Due to savings of approximately £900k, made as a result of value engineering, Halton Borough Council is also requesting that any anticipated project underspend be used to extend the scope of the original project in order to undertake cyclical and other maintenance works that were unforeseen at the time of the original bid. If agreed, these additional tasks will extend the scope of the project and will enhance the predicted outputs and outcomes by further preserving the integrity and extending the lifespan of the Hutchinson Sidings Bridge, which is a structure within the SJB complex. In previous inspections, a number of defects within the reinforced concrete deck and supports were observed. In order to preserve the long-term integrity of the structure these defects will need to be repaired.
6.3. Women’s Technology Training Limited
6.3.1 Women’s Technology Training Limited (WTECH) has been awarded £1,961,976 by Liverpool City Region Combined Authority to deliver the Enterprising Futures 2 project. The project was originally based on the completion of work on two properties, the first a refurbishment at Blackburn House to create a digital and creative training facility, and the second a refurbishment of a training facility at Falkner Street. Land assembly issues prevented the second property progressing at pace, resulting in a change of scope which was approved by the CA in October 2018.
6.3.2 These land issues have now been resolved, and there is now an opportunity to bring additionality to the project in terms of an increase in outputs including an additional 300m2 of skills floor space being utilised for training, resulting in an increase in associated learner numbers andPage traineeships. 52
6.3.3 This project sponsor however seeks an extension to the original project completion date which will take project completion through to March 2020, and an increase in scheme costs of upto £150k is requested which will allow the Falkner Street facility to be fitted out with digital training equipment.
7. DELEGATED PROJECT CHANGES There are a number of changes to projects that have been agreed under delegated powers. These are listed in Appendix 1.
8. PROPOSED REVISIONS TO THE CHANGE CONTROL CRITERIA
8.1 Members will recall that change control criteria (the “Change Control Criteria”) were approved at the meeting of the CA in May 2019. The purpose of the Change Control Criteria is to delegate to officers some flexibilities to deal with schemes and projects that have already been agreed by the CA.
8.2 Indeed, this report in earlier sections outlines the operation of the current Change Control Criteria as currently designed and approved.
8.3 Officers have now had the opportunity to work with the current criteria, consider it would be helpful to update the criteria and to make them more readily understood by all parties both internally and externally.
8.4 To that end, the following wording is proposed in the constitution to replace the wording currently included in Part 3, Section G, Standing Delegations to Officers (SIF Decision Making).
8.5 The Liverpool City Region Combined Authority has delegated authority to deal with changes that may occur whilst a project is being delivered as follows:
Immaterial Changes
Changes to SIF funded projects that are immaterial to the financing, delivery or risk of the proposition approved by the Combined Authority, may be approved by agreement of a Director and the Treasurer or Monitoring Officer.
For this purpose:
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 quarterlyPage update.53
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.
For this purpose:
2) Intermediate 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.
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.
8.6 The key changes in the text include:
(a) The removal of the financial threshold and reliance on the a proportionate and percentage based approach to each project.
(b) Clarification on the role of some officers (e.g. Directors, Monitoring Officer and Treasurer) and the Internal Investment Panel
(c) A possible option to escalate consideration of a change to the External Investment Panel
8.7 The power for the Combined Authority to deal with all material changes to previously agreed SIF projects remains the same.
9. RESOURCE IMPLICATIONS
9.1 Financial This paper requires no decision to be made on finances, it rather provides an update on a range of SIF associated issues and requests approval for a proposed constitutional change.
Page 54 9.2 Human Resources N/a.
9.3 Physical Assets N/a.
9.4 Information Technology N/a.
10. RISKS AND MITIGATION Top Three Issues and Remedial Action
Issue Change Remedy since last report Delay in N/A Major SIF Round I schemes are subject to delay resulting major from dependence on external bodies (like Highways schemes England), need to acquire key sites (with risk of compulsory purchase order) or commercial funding availability. This reflects the challenging nature of strategic projects. The CA’s ideal position is to support positively and to reallocate funding internally to improve delivery because cancellation of funding is not appropriate at this time.
Delivery N/A The SIF Round II pipeline is strong and will lead to under SIF reasonable over-programming. Nevertheless, the CA Round II must select schemes most likely to deliver and monitor their progress actively.
Shortage N/A The CA has no visibility over future SIF funding: the next of future gainshare round is outstanding; UK Shared Prosperity funding Fund consultation is delayed; and the delivery mechanism for the Towns Fund is unknown. Against this, the City Region has a ~£600m gross pipeline that needs to be serviced. The CA is engaging with HM Government on future funding; in any case, it is clear that future rounds will be more competitive than previous rounds.
11. EQUALITY AND DIVERSITY IMPLICATIONS
Equality and Diversity Implications are addressed through project implementation.
12. COMMUNICATION ISSUES
Any communications in relation to the report will be considered by the communications team as necessary.
Page 55
13. CONCLUSION
The report provides a quarterly update on SIF activity. This demonstrates improving performance and a significant total approval record for the year. It also provides for an update to SIF change controls designed to clarify and increase processing efficiency.
Pat Hackett Portfolio Holder for Inclusive Growth and Third Sector
Mark Bousfield Director of Commercial Development and Investment
Contact Officer(s): Mark Bousfield (0151 330 1101)
Appendices: Appendix 1 - Delegated Project Changes
Page 56 Appendix 1
The table below summarises project changes the CA has agreed under delegated authority in the last three months:
Project Summary of Change Hugh Baird Health Transfer of funds between expenditure headings Engagement Hub and change to grant end date. Alchemy Phase 3 Re-profiling of funding and acknowledgement of an underspend. Key Route Network Extension of project completion date. (A58/A580) North West Training Re-allocation of budget lines. Council – Advanced Manufacturing Centre Key Route Network Financial re-profiling and change to completion (Bank Lane) date. Cultural Events Change to project end date. STEP Programme Re-profiling of funds following slippage. Baltic Triangle Key Route Network Re-profiling of spend and notification of UTC Project underspend. Enterprising Futures Extension of financial completion date pending Blackburne House delivery of equipment. Key Route Network Extension of financial completion date. Kingsway Tunnel Key Route Network Acknowledgement of slippage and re-baselining of Intelligent Transport milestones. System STEP Programme Extension to end date and inclusion of wider project partners. Halton Curve Extension of financial completion and re-profiling of spend. M6 Study Re-profiling of funding and extension to end date. Town Centres Fund Extension of project timelines.
Page 57 This page is intentionally left blank Agenda Item 8
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 6 December 2019
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: In Part Report is not exempt Appendix one is not exempt Appendix two is exempt by virtue of paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972
Key Decision
REPORT OF THE DIRECTOR OF COMMERCIAL DEVELOPMENT AND INVESTMENT AND PORTFOLIO HOLDER: INCLUSIVE GROWTH AND THIRD SECTOR
STRATEGIC INVESTMENT FUND - TRANSFORMING CITIES FUND
1. PURPOSE OF REPORT
1.1 To advise the Combined Authority on the progression of proposals from scheme promoters for the Transforming Cities Funding.
1.2 Please note that this report is progressing under the investment process provided in the Combined Authority’s new investment strategy and assurance framework. The assurance framework states that the basis for Combined Authority approval shall be “a summary project submission, summary appraisal submission and the Investment Panel’s commentary.” This report follows that requirement.
2. RECOMMENDATIONS
2.1 It is recommended that the Liverpool City Region Combined Authority:
(a) Approve the provision of grant funding from the Strategic Investment Fund (SIF) for each of the following four projects up to the amount specified:
Smart Ticketing (phase 1) - £1,396,000 Independently Powered Electrical Multiple Units (IPEMU) - £3,540,279 Train Connectivity and Information Systems (TCIS) - £16,176,237
(b) Grant authority to the Director of Commercial Development and Investment to finalise negotiations of detailed terms of the funding and associated agreements in consultation with the Combined Authority Monitoring Officer and Combined Authority Treasurer. Page 59
3. BACKGROUND
3.1 Members will recall from previous reports that the Liverpool City Region Combined Authority will receive £172.5 million in capital grant to cover local transport investment over a 5 year period between 2018 and 2023, to be known as the Transforming Cities Fund (TCF). The aim of the fund is to support programmes of interlinking interventions which will transform sustainable transport connectivity in key commuter routes in major city regions. This funding forms part of the Strategic Investment Fund and is managed in accordance with its underlying principles and Assurance Framework.
3.2 At its meeting of July 2018, the Combined Authority agreed a commissioning framework to guide the priorities that would be eligible for funding, and which comprise three priority actions:-
Theme 1: Improving and expanding the public transport network to meet new areas of demand Theme 2: Improving the appeal of public transport, and particularly bus, against private transport Theme 3: Intervening for health and wellbeing
3.3 At the same time, the Combined Authority also agreed to start the commissioning process, focusing on the first year’s funding allocation, with the aim of seeking to commit, and where possible, spend the £10 million of funding available in 2018/19.
3.4 More specifically, members agreed to commission Merseytravel, on behalf of the Liverpool City Region’s local authorities, to bring forward three proposals at a Strategic Outline Case stage ahead of a deadline of 1 November 2018:-
a) Funding for the launch of a smart ticketing portal and new ticketing media as a successor to “Walrus”; b) Support for a new, low carbon and low emission vessel(s) to replace the ageing Mersey Ferries; and c) Match funding in respect of the priority European Regional Development Fund Sustainable Urban Development (SUD) programme of green travel routes for cyclists
3.5 These interventions were identified as they directly support Mayoral priorities and were in the strongest position to commit funding that is available this financial year.
3.6 In October 2019, a second “call” for commissioned projects and technical studies was issued by the Combined Authority, as listed in Table 1 below:-
Table 1: Three priority themes and projects
Name of scheme Outline of concept Promoter Runcorn Station This project will transform the existing Halton BC Quarter space around Runcorn station.
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Page 60 Eastern City Region A package of measures aimed at St Helens Connections improving the interchange options for Lea Green station Rolling Stock Provision of infrastructure to deliver Merseytravel Technological high capacity/quality wireless Enhancements (TCIS) connectivity for the new Merseyrail fleet. Rolling Stock Development of on board battery Merseytravel Technological technology for the new Merseyrail Enhancements(IPEMU) fleet. Headbolt Lane This proposal extends Merseyrail Knowsley Gateway through to a new station at Headbolt MBC Lane from Kirkby. Liverpool Central Liverpool Central Station Expansion Merseytravel Station Growth Hub Study. The current station is close to capacity. The objective is to develop the station to allow for the anticipated growth in Merseyrail usage. Liverpool Central A Station Commission (MPR HS2 Merseytravel Station HS3 Gateway station commission) has been established to consider delivery options for a new station in Liverpool City Centre, to enable the city region`s connection to HS2 and Northern Powerhouse Rail. Birkenhead Central Redevelopment at Birkenhead Central Wirral MBC Gateway Rail Station, access at Hind street and improving the bus offer connection between Liverpool and Chester.
Green Bus Routes Green Bus Routes - developing a Merseytravel package of improvements on the A57, A562, B5178, A59 and A567 commuting corridors.
Smart Ticketing Streamlining and enhancing the Merseytravel transport ticketing system to deliver transport simple multi modal ticketing for customers across the Liverpool City
of public transport, and and of transport, public Region.
particularly bus, against privateparticularly bus, against Theme the appealImproving 2:
Page 61 Public Transport Liverpool City Region Traffic Signals Merseytravel Connectivity Scheme network upgrade. Ensuring that the signals are digital, connected together across the region and managed in the same way.
Hydrogen Buses Supporting Hydrogen buses within the Merseytravel Liverpool City Region. Liverpool City Region Phase 1 of developing a network of Merseytravel Cycle Network (Phase 600km of commuter cycle routes 1) across the Liverpool City Region.
Liverpool City Region Phase 2 of developing a network of Merseytravel
Cycle Network (Phase 600km of commuter cycle routes 2) across the Liverpool City Region (Wirral & Halton).
wellbeing Intervening for health and for Intervening Mersey Ferries The purchase of two new low carbon Merseytravel replacement ferries and associated infrastructure
Theme 3:
Access for All To create an obstacle free, accessible Merseytravel route from train station entrances to the platform. First stations include:
Birkenhead Park, Broad Green, Hillside, Hunts Cross and St. Michaels.
Connecting Wirral Green travel corridor from Wirral Wirral MBC Waters Waters to Birkenhead making use of a
disused railway line.
3.7 Two schemes from the above table, Ferries and walking and Cycling phase 1 have been CA approved to date. Members will be aware that elsewhere on the agenda a recommendation has been made to include hydrogen buses as part of this programme in Theme 2.
4. PROPOSAL
4.1 Three schemes have been developed to Full Business Case stage; a description of each project is included at Appendix 1. It should be noted that funding for Smart Ticketing is a continuation of work undertaken to date. An independent review of the costs and values, an economic assessment and a review of deliverability have been undertaken. Following this work, three projects are presented for funding approval, these being:
Page 62
Smart Ticketing;
IPEMU; and
TCIS.
5. SUMMARY APPRAISAL
5.1 All three projects have been subject to an economic appraisal compliant with HM Treasury Green Book and DfT Transport Appraisal Guidance methodologies. All projects show strong economic returns, providing positive Net Present Values, with Smart Ticketing having a very high value for money (BCR of 6.87) and TCIS a high value for money (2.18). In the case of IPEMU, the project provides cost savings (and in this instance the BCR is not applicable) and is classified as being both financially positive and very high value for money.
5.2 The below table provides the key metrics from the economic appraisal:
Metric Smart IPEMU TCIS Ticketing NPV (£m) 15.5 60.7 10 BCR 6.87 N/A 2.18 VfM Very High Very High High
6. INVESTMENT PANEL CONSIDERATIONS
6.1 At its meeting of 14th November, the Strategic Investment Fund (SIF) Investment Panel endorsed the 3 projects to proceed to the Combined Authority for consideration. It welcomed the proposal and strong value for money case.
6.2 A copy of the Investment Panel papers are attached as Appendix 2.
7. RESOURCE IMPLICATIONS
7.1. Financial
It has been confirmed that the proposed funding request can be accommodated as part of the overall Strategic Investment Fund allocation.
7.2. Human Resources
The Investment Team and Legal Team will lead the negotiation of the Grant Agreement and the Corporate Programme Management Office will have responsibility for managing the delivery of the Combined Authority’s investment.
7.3. Physical Assets
The physical assets to be created by the project are fully detailed in this report. Page 63
7.4. Information Technology
The approval of funding will not give rise to Information Technology issues.
8. RISKS AND MITIGATION
8.1 A risk assessment and management strategy has been produced as part of the full business case.
9. EQUALITY AND DIVERSITY IMPLICATIONS
9.1. Equality and Diversity implications are considered as part of the appraisal process in accordance with the LCRCA’s Investment Strategy.
10. COMMUNICATION ISSUES
10.1. All projects approved will be subject to the Combined Authority’s branding guidelines and publicity requirements placed upon them as part of the Grant Agreement. In addition the Combined Authority will, through its adopted communication protocols, publicise the award of funding to the projects and the associated envisaged outcomes.
11. PRIVACY IMPLICATIONS
11.1 There are no privacy impact implications associated with this report, but this will be considered as the programme is implemented.
12. CONCLUSION
12.1 The proposal is to commit £21,112,516 of Transforming Cities Funding for three projects offering high value for money and seeking to improve transport and quality of life in the Liverpool City Region.
MARK BOUSFIELD Director of Commercial Development and Investment
COUNCILLOR L ROBINSON Portfolio Holder: Transport and Air Quality
Contact Officer(s): Paul Buntin Investment Manager M: 07872418939 paul.buntin@liverpoolcityregion- ca.gov.uk
Page 64 Sam Graham Investment Analyst m: 07765824981 sam.graham@liverpoolcityregion- ca.gov.uk
Appendices: Appendix 1 Summary of Projects (non exempt) Appendix 2 SIF Panel Paper (exempt)
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Appendix 1 - Summary of projects
Smart Ticketing
Liverpool City Region Combined Authority (LCR CA) aims to transform the way people pay for and use public transport ticketing across the Liverpool City Region through a Smart Ticketing and Technology Programme (3TP). The proposed 3TP investment programme is a continuation of progress made to date on Smart Ticketing and consists of multiple elements such as electronic ticket machines, web portal and product management.
The roll-out of the Liverpool City Region Smart Ticketing scheme phase 1 will consist of equipping bus operating companies with new electronic ticket machines (ETMs), allowing contactless payment, onboard ticket collection and improved journey data recording.
IPEMU
The concept of using battery technology, rather than third rail, on the lines has been identified as a cost effective, potential solution to extending the reach of Merseyrail trains. This technology is known as Independently Powered Electrical Multiple Units (IPEMU).
Merseytravel wish to run a trial of IPEMU to:
a) Test the concept of using battery power; and
b) Assess the suitability of the technology to deliver the LTRS ambition of extending the geographic reach of the Merseyrail trains.
This is an opportunity to develop a new train fuel technology that could have major benefits for the LCR in terms of network expansion, efficiency and the potential for new rail stations.
TCIS
The TCIS project, sponsored by Merseytravel, will deliver the installation of high fibre optic cables across the entire Liverpool City Region train network map. In total 120km of fibre cable will be laid. The installation of this cabling will allow the technological capabilities of the new rolling stock to be used. Without the cabling the capability referenced above will be redundant.
Enabling this technology will provide passengers with on board, real-time information, location services and Wi-Fi connectivity across the network. A review across the rail sector has identified that provision of 100 Megabits per second (Mbps) will provide a good quality Wi-Fi coverage for passengers. Delivering this project will give Merseyrail the UK’s highest capacity, full coverage rail Wi-Fi system.
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LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 6 December 2019
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: Report – Not Exempt Appendix One and Two– Exempt by virtue of paragraph 3 of Part 1 of Schedule 12A of the Local Government Act 1972
Key Decision
REPORT OF THE DIRECTOR OF COMMERCIAL DEVELOPMENT & INVESTMENT AND PORTFOLIO HOLDER: INCLUSIVE GROWTH AND THIRD SECTOR
LIVERPOOL CITY REGION GOOD BUSINESS FESTIVAL
1. PURPOSE OF REPORT
1.1. This report seeks Combined Authority (“CA”) approval to fund the delivery of the 2020 Good Business Festival.
1.2 Since the Combined Authority last considered this matter at their meeting on 6 September 2019, a procurement exercise has been carried out and a consortium bid prepared by Culture Liverpool of Liverpool City Council and Hemingway Design LLP was identified as the successful bidder.
2. RECOMMENDATIONS
2.1. It is recommended that the Liverpool City Region Combined Authority:
a. Approve the provision of funding of up to £3,000,000; and
b. Grant authority to the Director of Commercial Development and Investment to finalise negotiations of detailed terms of the agreement and Festival approach in consultation with the Combined Authority Monitoring Officer and Combined Authority Treasurer.
3. BACKGROUND
3.1 Liverpool successfully hosted the International Festival for Business in 2014, 2016 and 2018 on behalf of the UK. They were noteworthy interventions in the UK economy and had a clear mandate from Government to promote international trade,
Page 105 generate jobs and enable investment by bringing businesses together and connecting them with new trading and investment opportunities.
3.2 The Festival also provided a platform for international partnerships to be formed and brought businesses and governments from across the globe under one roof in Liverpool to talk about opportunities, share innovation, be inspired by thought leaders and do business together.
3.4 This focus on trade and investment delivered significant outputs and help to raise awareness of the LCR as a key destination, not only for investment and trade but also as a vibrant and ambitious visitor destination.
3.5 Equally, this focus also presented some limitations, reducing the potential for local businesses across the city region to engage as fully as they could; nor did it maximise the potential that the „Place‟ could offer such an event.
3.6 Previous festivals have recorded good value for money according to the evaluations undertaken.
2020 Festival
3.7 Building on this legacy, but recognising the need to change in a changing world, it is intended that the Business Festival will be staged once again in Liverpool City Region in October 2020 and a new delivery partner has been selected that will harness the sense of place, which LCR represents and will also enable inclusive participation from across the LCR. It is intended that the new product will not just focus on globally trading businesses but showcase the key assets and capabilities from across the LCR including its culture, music and business proposition.
3.8 Very importantly, there is a strong emphasis on delivering a Festival that focuses on social purpose and lives up to its name in delivery, form and function.
3.9 Specifically, the LCR CA has worked up the objectives of the Festival as follows: . Has a focus (whether thematic, sectoral, demographic or otherwise) that: o Is contemporary and capable of appealing to a local, national and international audience o Can showcase the Liverpool City Region‟s character, strengths and economy o Is relevant to the debate about Britain‟s place in the world (under any Brexit scenario) . Comprise, at a minimum, four days of events in the Liverpool City Region o Events shall comprise talks, panels, workshops, lunches, guided walks, dinners etc. o Generate a narrative thread and activity profile that links Liverpool City Region with the Festival focus and enables follow-on festivals to occur in future years o Be inclusive by design, i.e. positively enables participation by groups otherwise unlikely to participate in a business festival o Be experiential, bold and green, with good design credentials
Devolution Agreement
Page 106 3.10 It is important to note the festival‟s unique position in the devolution agreement, which compels the CA to deliver a festival in 2020 and for which SIF funding is the sole available source. For the Festival, the choice, therefore, is not whether to pursue the Festival but how best to pursue it; and the procurement exercise undertaken was designed to establish the best delivery method.
4. RESOURCE IMPLICATIONS
4.1. Financial The CA funding required to deliver the festival is intended to be drawn entirely from the Strategic Investment Fund. A budget of up to £3m has been set out in the contract1.
In addition to the SIF request, the organisers will seek to gain commercial sponsorship. In the event that commercial sponsorship exceeds £2m, the CA has the contractual right to reduce its own contribution.
4.2. Human Resources The CA intends to recruit a small internal team, of 2-3, to act as intelligent client in delivering the festival. Its cost shall also be included in the SIF allocation to the festival. The team shall join the mayoral CA priorities service and play a role in steering group discussions.
The Delivery Partner selected shall nominate 3-5 senior individuals to resource a Festival steering group. The group shall meet monthly until circa 2 months before the Festival when it shall meet weekly. The group shall meet in person when practicable and otherwise by video call.
4.3. Physical Assets Not applicable
4.4. Information Technology Not applicable
5. SUMMARY APPRAISAL
5.1. The approach for previous Business Festivals in the LCR has been to provide an ex poste evaluation of the event. The focus of the organisation of the Festival has been to provide high quality and business relevant events over the duration of the event (in 2020 over 4 days) and to undertake a comprehensive marketing approach to ensure that the events draw on a large and relevant audience.
5.2 The evaluations of previous events have demonstrated strong value for money measures.
1 The £3m budget represents the funding for the overall event. Within this the festival organiser will receive a management fee. The management fee structure has been established as a fixed fee expressed as a single sum (“Base Fee”); and a sponsorship incentive fee expressed as a percent of sponsorship revenue obtained up to a maximum of 15% (“Sponsorship Incentive Fee”)
Page 107 5.3 The expectation is that the economic output for the 2020 Festival will be proportionately in line with the results recorded for 2018 recognising the lower budget and shorter duration of the proposed 2020 event.
5.4 Indicative targets are as follows: . 50 events / activities . 10,000 core attendees including those participants who view events remotely / virtually . 300,000 involved in wider participation from across LCR and beyond in advance of, during and after the Festival – this figure is inclusive of; virtual and digital participation through online streams, wider events contributed to by the Festival including fringe events, aligned Cultural programmes, educational and community programme and other promotional events.
6. RISKS AND MITIGATION
6.1. The risks of the project to the CA relate predominantly to the performance of the Delivery Partner. It is for this reason that a strong internal team acting as an „intelligent client‟ with a role in the steering group is an extremely important aspect within the management of delivery.
The Delivery Partner has established a clear framework for the management of risk and has identified the categories of risk as strategic, operational and technical. Their approach is to RAG rate risks according to likelihood and impact and has a requirement to fully inform the CA of all risks rated as „red‟.
Whilst the risk register will be maintained by the Delivery Partner, the risks are considered to relate to:
. Attendance – the attraction of sufficient numbers of delegates of appropriate quality to create a financial return, add to the Festival atmosphere and help drive economic outcomes. . Quality of experience – the experience of delegates in signing on to the programme and the quality of the events that they attend. . Costs and Financial Return – the ability to procure high quality venues and services within the budget envelope and add commercial sponsorship to share the cost burden and provide a greater capacity to run more activities. . Economic outcomes – the business outcomes achieved through the learning, introductions, networking and brokerage opportunities for delegates.
A combination of these factors will create an overall reputational risk to the CA and the LCR.
The CA will therefore scrutinise all aspects of these identified risks in particular as part of its work managing the Delivery Partner.
7. EQUALITY AND DIVERSITY IMPLICATIONS
7.1. The Equality and diversity implications mainly relate to the procurement activity that will be provided by the Delivery Partner. Within the Delivery Partner, Culture Page 108 Liverpool will be responsible for procurement. All procurement from Culture Liverpool will be carried out in line with LCCs procurement policy.
7.2 A pillar of the 2020 Business Festival is that it will be inclusive by design, i.e. positively enables participation by groups otherwise unlikely to participate in a business festival.
7.3 Culture Liverpool has developed a strategy for the Festival seeking to match the highest standards of equality and diversity. The organisation already delivers events to ISO20121:2012, the guidelines for sustainable events, but has identified that the Festival will need to go beyond this to ensure that the entire design establishes the values required – their approach includes (for example); . Ethical and inclusive ticketing strategy . Waste management with recycling bins and reusable cups/bottles. . Streaming content to allow participation without travel. . All purchases and suppliers should be sourced from the local supply chain where possible, sustainable and delivered by the best local/regional businesses – supporting local SMEs and providing opportunities for local employment where possible by also reducing carbon footprint. . Partner with local enterprise TLC (Transform Lives Company) to create meaningful opportunities for those in long term unemployment to volunteer with high profile organisations to get new skills, improve their confidence and build their professional and social networks. http://transform-lives.org/ . Create a truly inclusive festival by engaging local companies who specialise in DDA/Accessibility.
8. COMMUNICATION ISSUES
8.1. The communication issue for the CA will be ensuring that the work in promoting the Festival aligns with the communication messaging of the CA. This will be managed by the steering group. In particular, the communication issues associated with the Festival will need to reference the SIF Funding.
8.2 The Delivery Partner has established a comprehensive marketing strategy for the marketing of the Festival and this is provided as an appendix.
9. CONCLUSION
9.1 A 2020 business festival is a requirement under the Liverpool City Region devolution agreement. The CA‟s approach, to be SIF funded with up to £3m, can ensure a high quality festival of global interest and local impact.
MARK BOUSFIELD Director of Commercial Development and Investment
COUNCILLOR PAT HACKETT Portfolio Holder: Inclusive Economy and Third Sector
Page 109
Contact Officer(s): Mark Bousfield, Director of Commercial Development and Investment
Appendices:
1. Business Plan for the Festival 2. IFB Q5.5.1 Tender Response
Background Documents:
N/A
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LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 6 December 2019
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: Appendix 1 - Economic Review – Exempt under paragraph 3 of Schedule 12A of the Local Government Act 1972 Appendix 2 – Revised Business Case – Exempt under paragraph 3 of Schedule 12A of the Local Government Act 1972 Key Decision
REPORT OF THE DIRECTOR OF COMMERCIAL DEVELOPMENT AND INVESTMENT AND PORTFOLIO HOLDER: INCLUSIVE ECONOMY AND THIRD SECTOR
LIVERPOOL CITY REGION SINGLE INVESTMENT FUND – GROWING BUSINESS VISITS AND EVENTS UPDATE
1. PURPOSE OF REPORT
1.1 This report updates the Combined Authority on the Growing Business Visits project and requests a decision on a £1,000,000 extension to the project.
2 RECOMMENDATIONS
2.1 It is recommended that the Liverpool City Region Combined Authority:
(a) Note that the LCRCA agreed at its meeting on 11 January 2019, to invest a £572,833 revenue grant in the Growing Business Visits project to support the development by the Growth Company of a strategy and a commercial model to sustain conference subvention in the Liverpool City Region;
(b) Approve an increase in Strategic Investment Fund (“SIF”) revenue grant funding support from £572,833 to £1,572,833 for use in the period set out in 3.9 below; and
(c) Delegate authority to the Director of Commercial Development and Investment, in consultation with Monitoring and Treasurer officers, to finalise negotiations of detailed terms of the funding materially in line with the existing grant funding agreement which was signed by all parties on 8 August 2019. Any material variations to the project as detailed in this report are to be referred back to the Combined Authority for consideration.
Page 191
3 BACKGROUND
3.1 The original business case was to develop a business tourism strategy for the Liverpool City Region, underpinned by a commercial subvention model to sustain funding for the conference sector. The business case provided for additional resources for both the Southport Convention Bureau and The Arena and Convention Centre Liverpool (ACCL).
3.2 It included time limited subvention funding for attracting international/national multi- day conferences to the City Region over a 3-year period. For ACCL this subvention amounted to £400,000 to assist them to attract in the region of 5/6 large scale conferences per annum by 31 May 2022 and a total of 18 conferences in that timeframe.
3.3 It is noted that ACCL is the only venue within the City Region with the capacity to host large scale (2,000+ delegates) conferences.
3.4 Performance to date:
3.4.1 Consultants (The Right Solution) for the development of the commercial subvention model were appointed in September 2019. They have completed most of their partner consultations, benchmarking and desk research, to enable them to start scoping the preliminary commercial model which is ready to be piloted from May 2020.
3.4.2 Resources for the Southport and Liverpool Convention Bureau have now been appointed. The new posts will work on a pipeline of conferences and establish an approach to generating sales leads and meeting commercial targets.
3.5 An addendum to the Full Business Case application (“the original project business case”) has been received from the Growth Company for the Growing Business Visits and Events project. An internal economic appraisal has been undertaken in line with the Single Investment Fund Assurance Framework. This is attached as Appendix 1 and summarised in 3.11.
3.6 The internal Investment Panel considered both the appraisal report and the addendum. The Panel endorsed the project to proceed to the Combined Authority for consideration. The Panel noted that the original project business case contemplated a proof of concept to improve co-ordination and to build a subvention model with a view to informing future, more streamlined delivery mechanisms and that this application conforms with that ambition.
3.7 The Panel also noted that the extension will adhere to the terms and conditions of the current grant funding agreement. Within this, the ACCL are required to provide a profit share statement for each conference being supported by the subvention funding provided by this project. Based on the agreed profit share calculation, any resulting funds will be paid into a Profit Share Account that will be used as subvention funding for future LCR conferences.
Page 192 3.8 The LCR Visitor Economy Strategy to 2025, targets the specific priority of attracting large scale conferences to the Region and increasing mid-week hotel occupancy from 70% to 74%. The Addendum forecasts that the total project will deliver 62 conferences in total by the end of financial year 2026/27.
3.9 The Addendum requests an:
Extension to the project from a project end date of 31 May 2022 to 31 May 2027; Additional revenue funding of £1,000,000.
3.10 This will deliver in the period to 31 May 2027: additional SIF supported conferences per annum 2020/21 to 2026/27, 14 in total, (or an equivalent of 28,000 delegates); 84,000 bed nights in the City Region; a benefit: cost ratio of 35:1 representing a very high value for money; and £35,280,000 net additional expenditure creating net 653 jobs.
3.11 The appraisal adheres to the agreed Single Investment Fund appraisal criteria, which is compliant with the HMT Green Book Guidance. The appraisal has considered all aspects of the business case.
3.12 The main risk highlighted by the Appraisal concerns the ability of the private sector to commit sufficient funding to sustain the commercial model once planned reductions in subvention funding to the ACCL have been reduced to zero. This risk has been mitigated but not eliminated by the inclusion of the private sector in developing the commercial subvention model and by retaining the services of the consultants to test and refine the model until May 2022.
3.13 It should be noted that this represents a Key Decision due to the community impact of the project. A Key Decision Notice has been prepared and published for this project.
4 RESOURCE IMPLICATIONS
4.1 Financial
The Combined Authority Treasurer has confirmed that the proposed funding request can be accommodated as part of the overall Single Investment Fund allocation.
4.2 Human Resources
The Investment Team and Legal Team will lead the implementation of the amendments to the funding agreements. The Programme Management Office will continue to have responsibility for managing the delivery of the investment.
4.3 Physical Assets
The approval of funding will not give rise to the creation of physical assets.
Page 193 4.4 Information Technology
The approval of funding will not give rise to Information Technology issues.
5 RISKS AND MITIGATION
5.1 There are risks associated with any funding stream, in the event that funds are misused or not fully committed, which can lead to a risk of funding being clawed back, legal proceedings and/or reputational damage.
5.2 The grant funding agreement between the Combined Authority the Liverpool City Region Growth Company sets parameters to ensure that funds are used in an appropriate and effective manner, including in relation to State aid.
5.3 Individual project risks are identified and considered as part of the independent appraisal process. The Programme Management Office will be responsible for ensuring that, during delivery, risks are understood and that the applicant takes necessary steps to mitigate these.
6 EQUALITY AND DIVERSITY IMPLICATIONS
6.1 Equality and Diversity Implications are considered as part of the appraisal process and relevant considerations are set out in the appendices.
7 COMMUNICATION ISSUES
7.1 All projects approved will be subject to the Combined Authority’s branding guidelines and publicity requirements placed upon them as part of the grant funding agreements. In addition, through its adopted communication protocols, the Combined Authority will publicise the award of funding to the projects and the associated envisaged outcomes.
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8 CONCLUSION
8.1 This report presents the extension to the Growing Business Visits and Events project for approval. This represents very high value for money. It requests the Combined Authority delegate approval to the Director of Commercial Development and Investment to proceed with the negotiation of the amendments to the grant funding agreement.
MARK BOUSFIELD DIRECTOR OF COMMERCIAL DEVELOPMENT AND INVESTMENT
COUNCILLOR P HACKETT PORTFOLIO HOLDER: INCLUSIVE ECONOMY AND THIRD SECTOR
Contact Officer(s): Mark Bousfield, Director of Commercial Development and Investment (0151 330 1101)
Appendices: Appendix 1 Internal Appraisal Report of Addendum to the Full Business Case – Exempt under paragraph 3 of Schedule 12A of the Local Government Act 1972 Appendix 2 Addendum to the Full Business Case. – Exempt under paragraph 3 of Schedule 12A of the Local Government Act 1972
Background Documents: Combined Authority meeting 9 January 2019, agenda item 7.
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LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 6 December 2019
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: No
Key Decision
REPORT OF THE DIRECTOR OF COMMERCIAL DEVELOPMENT & INVESTMENT AND PORTFOLIO HOLDER: EDUCATION, EMPLOYMENT AND SKILLS
LIVERPOOL CITY REGION STRATEGIC INVESTMENT FUND: SKILLS CAPITAL INVESTMENT – THIRD CALL RECOMMENDATIONS FOR FUNDING
1. PURPOSE OF REPORT
1.1 The purpose of this report is to present for approval an aggregate investment package for applications received under third prospectus of the Liverpool City Region Skills Capital Fund.
2. RECOMMENDATIONS
2.1 Liverpool City Region Combined Authority is recommended to:-
a) Note the submissions received as set out in Appendix 1 and Table B; b) Note that Strand 4 (FE College maintenance) allocations which were agreed by the Combined Authority on 12 April 2019, now have Grant Funding Agreements in place, with work progressing (paragraph 3.3); c) Approve all Strand 2, Strand 3 and Strand 5 submissions to progress to Grant Funding Agreement following robust appraisal and review by the SIF Investment Panel (paragraph 4.4, summarised in Appendix 2); d) Approve Strand 1 submissions for SIF2072 - Southport College; SIF2086 - City of Liverpool College; SIF2087 - Sefton Council Community Learning Cambridge Rd and SIF2085 - Riverside College (paragraph 4.6); e) Note the programme risks and proposed mitigating actions in Section 7; f) Grant authority to the Director of Commercial Development and Investment to approve up to £400,000 of Low Carbon Investment Fund SIF resources to Low Carbon focused Skills Capital Investment Fund submissions (paragraph 5.2); and, g) Grant authority to the Director of Commercial Development and Investment to approve further investment, in consultation with Monitoring Officer and Treasurer, of the remaining uncommitted SIF Capital funds, including reshaping Page 221 of existing Strand 1 submissions, to ensure deliverability, subject to appropriate reporting to the SIF Internal Investment Panel up to £1,932,796 (paragraph 5.5).
3. BACKGROUND
3.1 The Skills Capital Investment Fund is an element of the Local Growth Fund which is deployed through the Growth Deal process. Liverpool City Region secured £41.1m of Local Growth Fund (LGF) monies in 2014 to support skills capital investments as part of our Growth Deal with Government as well as a further £8m from LGF Round 3 in 2017. Circa £18m of this ring-fenced funding remains uncommitted within the Strategic Investment Fund (SIF).
3.2 A third Liverpool City Region specific Skills Capital call for submissions was agreed by the Combined Authority on 12 April 2019 and was subsequently agreed by the LEP chair. Table A details the five investment strands with indicative allocations previously agreed by the CA.
Table A:- Skills Capital Investment Fund Summary Investment Indicative Description Strand Allocation For large construction and refurbishment projects, with a Strand 1 - focus on innovation to support economic growth sectors and Sites and £8.0m high volume employment including apprenticeships. Premises Min £0.500m grant and Max £2.0m grant Strand 2 - For improvements in conditions of facilities/learning Improved £3.5m environment where skills training is delivered. Facilities Min £0.100m grant and Max £0.500m grant Investment in equipment to ensure training environments are up to modern industry standards, with a particular focus Strand 3 - £2.0m on advanced manufacturing, digital, logistics, health and Equipment construction sector skills needs. Min £0.025m grant and Max £0.500m grant Strand 4 - Maintenance Maintenance of existing FE Colleges delivery facilities, with of Further £3.5m a particular emphasis on those with an inadequately Education maintained estate. Facilities
Strand 5 - A fund for FE Colleges to invest in their plant and facilities to Low Carbon £1.0m reduce their carbon impact. Reinvestment Fund Max £1.00m grant
3.3 Strand 4 is dedicated to Liverpool City Region FE Colleges maintenance through allocations previously agreed by the CA on 12 April 2019. Strand 5 is also dedicated local FE Colleges low carbon capital investments. Other Strands were open to training providers, VCS organisations and universities with either LCRCA, Education and Skills Fundng Agency (including Apprenticeships) or ESF skills revenue contracts to ensure deliverable outcomes over a sustained period.
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4. SKILLS CAPITAL INVESTMENT FUND – OVERVIEW AND APPRAISAL OUTCOMES
4.1 The third Skills Capital Prospectus was launched on 31 May 2019 with accompanying strand guidance, with the call closing on 31 August 2019.
4.2 Thirty six submissions were recieved and appraised against a proportionate Treasury Green Book, five case appraisal process and considered by the SIF Investment Panel.
Table B – Submissions by Skills Capital Investment Strands Indicative Number of Submissions Strand allocation (£) submissions total (£) Variance (£) Strand 1 £8,000,000 6 £11,205,404 £3,205,404 Strand 2 £3,500,000 9 £3,450,733 -£49,267 Strand 3 £2,000,000 9 £1,945,935 -£54,065 Strand 4 £3,500,000 6 £3,500,000 £0 Strand 5 £1,000,000 6 £1,000,000 £0 TOTAL £18,000,000 36 £21,092,072 £3,092,072
4.3 All Strand 2, Strand 3 and Strand 5 submissions received either a good or satisfactory score. A summary of all submissions appraisal scores is detailed in Appendix 1 with project descriptions and outcomes summarised in Appendix 2.
4.4 The Combined Authority is recommended to approve all Strand 2, Strand 3 and Strand 5 submissions to progress to Grant Funding Agreement.
4.5 Strand 1 received six project submissions requesting SIF investment of £11,205,404.
4.6 The Combined Authority is recommended to approve Strand 1 submissions for SIF2072 - Southport College; SIF2086 - City of Liverpool College; SIF2087 - Sefton Council Community Learning Cambridge Road and SIF2085 - Riverside College with a collective investment of £6,570,536 from the £8m Strand 1 indicative allocation at this time.
4.7 Two Strand 1 submissions will not progress at this time.
Table C – Strand 1 submissions recommended to proceed to Grant at this time SIF No - Title SIF Grant £ Leverage £ Total Cost SIF2072 - Southport College £1,980,000 £220,000 £2,200,000 SIF2086 - City of Liverpool College £1,445,869 £361,467 £1,807,336 SIF2087 - Sefton MBC Cambridge Rd £1,144,667 £130,547 £1,275,214 SIF2085 - Riverside College £2,000,000 £4,000,168 £6,000,168 TOTAL £6,570,536 £4,712,182 £11,282,718
Page 223 5. EXTERNAL INVESTMENT PANEL
5.1 The proposed investment was presented to the External Investment Panel on 14 November 2019. The panel endorsed the approach to the deployment of the Skills Capital funding.
6. RESOURCE IMPLICATIONS
Financial
6.1 If the above recommendations are accepted by the Combined Authority and the Local Enterprise Partnership the SIF financial investment for all Skills Capital strands would total £16,317,204 from the £18m call, with an uncommitted remainder of £1,532,796.
6.2 In order to maximise SIF budgets, the Investment Team is minded to utilise £400,000 of low carbon Local Growth Funds to support low carbon related Skills Capital submissions. The Combined Authority are therefore recommends approval of this.
6.4 Assuming the above recommendations are approved the total uncommitted Skills Capital funds remains £1,932,796, to be spent by 31 March 2021.
6.5 The Combined Authority are recommended to grant authority to the Director of Commercial Development and Investment to approve further investment uncommitted SIF Capital funds, subject to appropriate reporting to the SIF Internal Investment Panel up to a total value of £1,932,796. The Investment Team has already indentified several schemes, each of which has potential to deliver high value for money.
Human Resources
6.7 There are no direct issues as a result of recommendations set out within this report. However this type of activity is resource intensive so communication on likely staff resource requirements from across the Combined Authority from Legal, the Programme Management Office and Finance colleagues are already underway.
6.8 Physical Assets
The recommendation regarding Strand 1 SIF2087 impacts on Cambridge Road Adult Learning Centre, an asset of Sefton Council. The recommendation regarding Strand 2 SIF2070 impacts on Kingsway Adult Learning Centre, an asset of Halton Borough Council. The recommendation regarding Strand 2 SIF2065 and Strand 3 SIF2053 impacts on The Engineering College at Monks Ferry, the building is provided on a peppercorn rent and is ultimately an asset of Wirral Council. The other recommendations within this report have no direct bearing upon any land/ buildings/other physical assets owned by the Combined Authority or its constituent Councils.
Page 224 6.9 Information Technology
The recommendations in this report will not have any direct impact upon the use of IT, or need for IT support by the Combined Authority. Although the digital skills of residents will be supported by a number of submissions recommended for approval.
7. RISKS AND MITIGATION
7.1 There are key risks and issues with implementing an investment fund of this nature as follows:-
Risk Issue Mitigation Ensuring the award of Skills The operation of the fund has been managed Capital Investments is open and through a clear and transparent process, transparent and that conflicts of under the SIF Assurance Framework, the interest are effectively managed scheme prospectus, eligibility, strand ensuring the approval and guidance and application paperwork have all decision making process is agile been made publicly available. and fit for purpose. Progress to Grant Funding All colleagues are aware of their roles and the Agreements is labour intensive. time sensitive nature of this work. Template Further work will involve the Grant Funding Agreements have been Project Management Office, legal developed by Legal colleagues and Finance colleagues, finance colleagues colleagues to expedite grant agreements. and colleagues within the Adult Education Budget Commissioning Team and Investment Team. All investment must be The request for projects under the call completed by 31 March 2021. remained open until 31st August 2019. Applicable projects are those that are (ideally) capable of launching in December 2019 with, where applicable, building works scheduled to complete by Summer 2020. State Aid and planning State Aid legal opinions for all FE College permission will be required for a submissions will be sourced through a single number of projects. legal opinion commissioned by the CA, reducing overall cost of the public purse. State Aid is not thought to be a barrier to any projects proceeding. Planning permission is being addressed where applicable by individual projects. Project Delay leading to loss of This risk is higher in respect of the more funds (funds need to be complex (Strand 1) projects. disbursed by March 2021 as a All projects have been assessed to ensure requirement of Skills Capital deliverability by 31 March 2021. LGF3 Growth Deals) There may be some ability to bring forward expenditure/funding amounts.
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9. EQUALITY AND DIVERSITY IMPLICATIONS
9.1 There are no specific equality and diversity implications arising as a result of the recommendations in this report. Specific projects will benefit learners with learning difficulties and disabilities in terms of accessibility and sector specific curriculum developments.
10. COMMUNICATION ISSUES
10.1 The information contained within this report will be communicated as appropriate to Combined Authority teams and applicants through existing contacts and networks.
11. CONCLUSION
11.1 This paper has set out the outcome of the appraisal process for the latest round of Skills Capital submissions. The Combined Authority is asked to note and approve the recommendations for investment. They are also asked to note and approve the proposal to expedite Skills Capital investments from pipeline projects by granting authority to the Director of Commercial Development and Investment to approve investment of remaining uncommitted SIF Capital funds.
MARK BOUSFIELD Director of Commercial Development and Investment
MAYOR JOE ANDERSON OBE Portfolio Holder: Education, Employment and Skills
Contact Officer(s): Mark Bousfield 0151 330 1101
Appendices: Appendix One – A summary of Skills Capital submission appraisal scores Appendix Two – A summary of Skills Capital project descriptions and outcomes.
Background Documents: Liverpool City Region Skill Capital Prospectus 2019 (Liverpool City Region Combined Authority Meeting 12 April 2019, Agenda Item 6.)
Page 226 Appendix 1 - A summary of Skills Capital submission appraisal scores recommended to proceed to grant
An Appraisal Scoring Framework has considered whether the evidence presented within submissions is either: poor or unsatisfactory response giving rise to serious concerns about meeting the criteria (0 score); a weak response suggesting there are shortcomings of a less serious nature in meeting the criteria (1 mark scored); a satisfactory response suggesting that the criteria is likely to be met (2 marks scored); a good response giving confidence that the criteria will be met in all relevant respects with cases of added value to be noted (3 marks scored)
All submissions have been compared to criteria and descriptors sourced from the Treasury Green Book checklist and scored out of a total available score of 15 marks against the five-case model of: Strategic case (SC - the case for change); Economic case (EC); Commercial case (CC); Financial case (FC); and Management case (MC).
Strand 1 summary of submissions – Highest to Lowest score SIF No Applicant and Title SIF Ask Business case score summary Southport College - SC 3; EC 2; CC 3; FC 2; MC 2 Southport College SIF2072 Skills Centre £1,980,000 TOTAL: 12 The City of Liverpool SC 3; EC 2; CC 3; FC 2; MC 2 College - SIF2086 Digitalisation £1,445,869 TOTAL: 12 Sefton Council - SC 2; EC 2; CC 3; FC 2; MC 2 Cambridge Road SIF2087 Hub £1,144,666.9 TOTAL: 11 Riverside College - SC 3; EC 2; CC 3; FC 3; MC 2 SIF2085 Site and Premises £2,000,000 TOTAL: 13 TOTALS £6,570,536 MEAN: 12
Page 227 Strand 2 summary of submissions – Highest to Lowest score SIF No Applicant and Title SIF Ask Business case score summary SIF2078 Greenbank College - Visitor Economy £483,775 TOTAL: 15 SC 3; EC 3; CC 3; FC 3; MC 3 SIF2082 Merseyside Youth Association £460,484 TOTAL: 14 SC 3; EC 2; CC 3; FC 3; MC 3 Myerscough College SIF2066 - Improved Facilities £389,440 TOTAL: 14 SC 2; EC 3; CC 3; FC 3; MC 3 The Engineering SIF2065 College £315,000 TOTAL: 14 SC 3; EC 2; CC 3; FC 3; MC 3 Wirral Met College - SIF2064 Micro-turbine £358,344 TOTAL: 13 SC 3; EC 3; CC 2; FC 3; MC 2 Halton Borough SIF2070 Council £443,495 TOTAL: 13 SC 3; EC 2; CC 3; FC 3; MC 2 SIF2073 Liverpool John Moores University £294,500 TOTAL: 12 SC 3; EC 3; CC 2; FC 2; MC 2 Northwest SIF2062 Community Services £260,100 TOTAL: 12 SC 3; EC 2; CC 3; FC 2; MC 2 SIF2088 Alt Valley Community Trust £445,595 TOTAL: 10 SC 2; EC 2; CC 2; FC 2; MC 2 TOTALS £3,540,733 MEAN: 13
Strand 3 summary of submissions – Highest to Lowest score SIF No Applicant and Title SIF Ask Business case score summary Merseyside Youth SIF2083 TOTAL: Association £165,701 15 SC 3; EC 3; CC 3; FC 3; MC 3 SIF2069 Myerscough College TOTAL: £61,425 14 SC 3; EC 2; CC 3; FC 3; MC 3 Halton Borough SIF2071 TOTAL: Council £256,210 14 SC 3; EC 2; CC 3; FC 3; MC 3 Northwest Training SIF2074 TOTAL: Council £499,841 14 SC 3; EC 3; CC 3; FC 2; MC 3 SIF2067 Wirral Met College TOTAL: £278,800 13 SC 3; EC 2; CC 3; FC 3; MC 2 SIF2052 The Engineering TOTAL: College £180,000 13 SC 3; EC 2; CC 3; FC 3; MC 2 SIF2060 TOTAL: St Helens Chamber £93,118 13 SC 3; EC 2; CC 3; FC 3; MC 2 SIF2084 Riverside College TOTAL: £358,724 13 SC 3; EC 2; CC 3; FC 3; MC 2 Northwest Community SIF2063 TOTAL: Services £52,116 11 SC 3; EC 2; CC 2; FC 2; MC 2 MEAN: TOTALS £1,945,935 13
Page 228 Strand 5 summary of submissions – Highest to Lowest score SIF No Applicant and Title SIF Ask Business case score summary The City of Liverpool TOTAL: SIF2079 £166,667 SC 2; EC 3; CC 3; FC 3; MC 3 College Low Carbon 14 TOTAL: SIF2059 Riverside College £166,667 SC 3; EC 3; CC 2; FC 3; MC 2 13 Southport College TOTAL: SIF2055 Low Carbon £166,667 SC 3; EC 2; CC 3; FC 2; MC 2 12 Reinvestment TOTAL: SIF2054 Wirral Met College £166,667 SC 2; EC 3; CC 3; FC 2; MC 2 12 Hugh Baird College TOTAL: SIF2040 £166,667 SC 3; EC 2; CC 2; FC 2; MC 2 Solar Panels 11 SK College Low TOTAL: SIF2077 £166,667 SC 2; EC 2; CC 2; FC 2; MC 2 Carbon 10 MEAN: TOTALS £1,000,000 12
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Appendix Two – A summary of Skills Capital project descriptions and outcomes.
Strand 1 - Sites and Premises - For large construction and refurbishment projects, with a focus on innovation to support economic growth sectors and high volume employment including apprenticeships. Min £0.500m grant and Max £2.0m grant SIF Ref Number Organisation Lead / Project Description SIF Funding Appraiser’s overall Project Title comments, key outcomes and outputs SIF2072 Southport College The intended outcomes/objectives of the £1,980,000 Additional enrolments include; Construction Skills scheme are to: - 116 places in bricklaying, Centre - Grow provision in construction industry painting and decorating and specific skills. allied skills in year 1 - Better meet the needs of employers and - 78 places in pre-apprentice enhance the employability of trainees. training - Improve curriculum links between - 28 places for on the job vocational areas and English and Math training for apprentices which will improve the outcomes for - 24 NEET enrolments Page 230 Page vocational students taking English and - 20 adult funded provision for Math. over 50-year olds - Develop construction programmes for - 24 HNC/HND surveying and adults aged 50 and over. project management - Deliver the key LEP construction growth - 100 places on specialist principles in the north of the City region. technical training - Refurbish 2004m2 of floor area for £765/m2, which is in line with industry expectations. SIF2086 The City of Liverpool Establishment of a Digital Employability £1,445,869 The increase in total learner College - Skills Zone (DESZ); co-located with on-site numbers from the result of this Digitalisation nursery, Student Progress Hub, and intervention after 3 years is 396. dedicated Digital Academy (offering Total refurbished floor space specialist digital skills up to Level 7),l totals 1,464m2. supporting working age residents with - Introduction of a motion digital literacy and employability skills, capture studio and editing supporting games development, film- suite measuring 665m2 to making and sports performance – support further development animation, special effects, sports of the Digital Academy performance monitoring and virtual and - Creation of a dedicated augmented reality (VR/AR), industrial digital engineering suite control and automation, sensor tech, measuring 188m2, pneumatics and hydraulics, robotics and - 15 employers/partners mechatronics. involved across the four aspects of the project. SIF2087 Sefton Council - The project involves a transformational £1,144,667 In total, 2,537m2 of new build Cambridge Road development project to re-develop a well- training/learning floor space. Hub utilised Council owned asset (Cambridge - Estimated 4,650 residents Road Centre) in Sefton, with the objective will take up initial learning of providing a fit-for-purpose learning (after three years), environment, targeting returning learners - 45% of these progressing to and facilitating their progression into the further skills development labour market in key sectors. opportunities. - 35 newly created/safeguarded permanent FTE jobs - 6 apprenticeship posts created. SIF2085 Riverside College - The objectives of this project are to provide £2,000,000 Phase One will add 865sqm to Site and Premises a highly skilled future workforce for Health the footprint. and Social Care Sector and improve - 185 new learners assisted in resilience of students in mental health and courses leading to a full wellbeing in readiness for employment, qualification
Page 231 Page alongside mathematical skills to progress - 1000m2 will be demolished required for growth sectors. and rebuilt to a 3-storey A two-phased project with immediate building. capacity to respond to health and social - New build training/learning care and wellbeing in collaboration with floorspace constructed totals Halton Borough Council, followed by 2,260m2. demolition of 1000sqm of the most outdated accommodation on the site and building a new 3 storey structure to house maths and health and social care provision currently delivered in Portacabins. £6,570,5364
Strand 2 - Improved Facilities - For improvements in conditions of facilities/learning environment where skills training is delivered. Min £0.100m grant and Max £0.500 grant SIF Ref Number Organisation Lead / Project Description SIF Appraiser’s overall comments, Project Title Funding key outcomes and outputs
SIF2088 Alt Valley Community Refurbishment of construction training £445,595 This project is aimed at Trust - centre, creating workshop areas for key craft increasing the capacity of a Alt Valley Community trades and classroom space, including a provider to deliver in two priority Trust Improved mezzanine floor sectors. The additional capacity Facilities will be recruited from areas of deprivation within Liverpool, Knowsley and Sefton. The project will deliver:
Creation of a digital training Page 232 Page centre, creating screens and connectivity on an existing mezzanine space. - 185 learners in total from areas of deprivation - 50 additional Apprentices. - 712m2 of construction workshop refurbished floor space. SIF2062 Northwest Improvement of classroom facilities at £260,100 The project has clearly Community Services - NWTC Fazakerley site with benefits for demonstrated the expected Northwest Traineeships, Apprenticeships and AEB benefits and outcomes relating Community Services funded learners, supporting apprenticeship to narrowing the gaps for under- Improved Facilities growth in line with priorities set out in the represented learners from LCR Apprenticeship Growth Plan. disadvantaged areas. Low carbon benefits have been detailed. - Key outputs include: - 336 additional learners over three years, - 154 additional Apprentices over a three-year period and 140 additional AEB funded learners. - 861m2 of refurbished floor space total SIF2064 Wirral Met College - Purchase and installation of a microturbine, £358,344 The college is experienced in the Wirral Met College electric battery storage and heat capture delivery of SIF skills capital Microturbine technology to significantly reduce the projects with the necessary college‟s energy costs at its Conway Park systems in place to deliver the campus. The project has a strong strategic intervention successfully. The fit with the low carbon aspects of the Skills project will deliver: Capital Prospectus and the Mayoral - 50 additional Apprentices commitment to be carbon neutral by 2040. - Estates energy cost by at least £43,000 per annum invested in 1 additional job. - 4 Delivery jobs created / safeguarded. SIF2065 The Engineering This project will produce digital skills within £315,000 There is strategic alignment to College - The the engineering and digital technology the Digital and Advanced Engineering College current centre at Monks Ferry in Birkenhead. Manufacturing Skills for Growth Improved Facilities Responding to emerging Industry skills Agreements. needs that combine digital technology and The LEP Advanced
Page 233 Page engineering skills. The Engineering College Manufacturing Sector Manager will develop a SMART factory capability and is also supportive of the invest in simulation facilities and software. submission alongside several Floor space will also be increased to letters of support from accommodate further learners through a employers. new mezzanine floor. The project will deliver: - 108 additional learners total including 78 apprentices and 30 traineeships. - Total additional floor space of 160m2 - 2 Apprenticeship posts created, and 3 Delivery jobs created / safeguarded. SIF2066 Myerscough College - The project seeks to provide accessible £389,440 The applicant has a good track Myerscough classroom facilities to meet the needs of record of SIF Skills Capital Improved Facilities learners with Special Educational Neds and / delivery. The project will support or Disabilities (SEND) The installation of existing high volumes of SEND new, modular classrooms on the existing learners in line with the LCR College site will meet the needs of SEND Skills Strategy of attracting learners; providing fully accessible facilities. under-represented learners. The area surrounding the new classrooms The project will deliver: will be re-surfaced to support learners with - 114 addition learners in total. mobility issues. - Total additional floor space of 120m2 - 19 Delivery jobs created / safeguarded. SIF2070 Halton Borough The project will look to improve facilities at £443,495 This project will benefit learners Council - Halton the Kingsway Learning and Centre to benefit who are funded via the devolved Borough Improved learners and allow other core services, such Adult Education Budget. Facilities as Halton into Jobs and the Councils The project will deliver: employment team to relocate into the same - 945 additional learners total. building, allowing the Council to offer a more - Total floor space of 644m2 seamless service to residents e.g. those will be refurbished. further away from the labour market. - 118 jobs created / safeguarded. - 30 Apprentice posts will also be entered into over three years. SIF2073 Liverpool John Creation of a shared space for Construction £294,500 The strategic case is strongly Moores University - Apprentice learners at (LJMU) Byrom Street linked to the aims of the Page 234 Page LJMU Skills Escalator campus. The aim is to create a shift change Construction Skills for Growth in perception that entry-level jobs are the Action Plan and the final destination in the construction sector Apprenticeship Growth Strategy opening up opportunities for apprenticeship and achieves a satisfactory or advancement and progression within the good appraisal against all workplace (Apprenticeship growth plan 2018 business cases and is - Priority 3). The project refurbishment would recommended for investment. be to an existing building on the Byrom The project will deliver: Street site. - 120 additional learners over three years including 60 under-graduates and 60 Apprenticeship learners. - 155m2 of floor space refurbished. - 19 Delivery jobs created / safeguarded. SIF2082 Merseyside Youth Merseyside Youth Association aim to £460,484 The project offers considerable Association - improve their learning environment and low carbon and wider learning Merseyside Youth energy efficiency through SIF investment in benefits from a VCS organisation Association new windows and heating systems. with considerable delivery Refurbishment experience. Works have been fully costed and wider options considered. The project will deliver: - Plans also relate to supporting learners with autism and sensory processing difficulties, narrowing gaps in participation within the Skills Strategy. - 444 additional new learners. - 1982.6m2 of learning space refurbished. - Engage an additional 1404 NEET young people. SIF2078 Greenbank College - Exists to support disabled people and £483,775 The submission addresses many Greenbank College underrepresented groups. SIF Investment of the narrowing gaps issues Visitor Economy will refurbish an existing accommodation highlighted in the Skills Strategy block to the standard of a hotel and front of addressing under-represented house visitor economy facility. The new disabled and BAME learners‟ facilities with support an employment and skills needs in the sector. This training progression ladder for disabled project will deliver:
Page 235 Page people that provides skills and employment - 55 additional learners in total. experience. - 37 paid hospitality jobs created. - 301m2 of floor space will be refurbished. £3,540,733
Strand 3 – Equipment - Investment in equipment to ensure training environments are up to modern industry standards, with a particular focus on advanced manufacturing, digital, logistics, health and construction sector skills needs. Min £0.025m grant and Max £0.500 grant SIF Ref Number Organisation Lead / Project Description SIF Appraiser’s overall comments, Project Title Funding key outcomes and outputs
SIF2052 The Engineering Equip a new mezzanine floor with £180,000 There are clear benefits to College - The engineering and digital equipment at the learners with a greater volume of Engineering College current centre at Monks Ferry in Birkenhead. Apprenticeships offered and a Industry 4.0 Support new Apprenticeship Standards and broader curriculum. There is support the delivery of a broader range of strategic alignment to the Digital Higher and Digital Apprenticeships and an and Advanced Manufacturing End Point Assessment Centre. Skills for Growth Agreements. Outputs: - 195 learners p.a. after 3 years including 150 Page 236 Page Apprentices, 20 Traineeships & 25 other learners - 2 Apprenticeships posts created - 24 Delivery jobs & 5 other jobs SIF2060 St Helens Chamber - Provide a dedicated space in the main £93,118 A deliverable project from an St Helens Chamber building on the 1st floor learning centre organisation with a clear track Digital Equipment needs to be focussed on a more „digital‟ record of delivering SIF Skills offer. Current equipment is very basic and Capital successfully. Offers does not keep pace with learner‟s needs, or increased learner outcomes the expectations of business. including Apprentices and traineeships and supports the Digital Skills for Growth Action Plan. Outputs: - 44 learners p.a. after 3 years. including 70 Apprentices, 35 Traineeships, 320 Adult Education Budget and 19 ESF funded learners - 1 Apprenticeship post - 2 Delivery jobs after 3 years SIF2063 NWCS - NWCS The project aims to make learning more £52,116 Clearly supports additional accessible – 24 hours per day with volumes of learners in the health Equipment equipment that will enable this to take place. and social care sector and Supporting learners across several supports the delivery of the programmes (Traineeships, Apprentices and future digital entitlement. AEB), alleviating any barriers specific for the Outputs: sector to operate. - 336 learners p.a. after 3 years including 154 Apprentices, 42 Traineeships and 140 AEB funded learners - 6 Apprenticeship posts - 9 Delivery jobs SIF2067 Wirral Met College - Improve the department‟s equipment to £278,800 The project has a short period of Wirral Metropolitan industry standard. Incorporate new vehicle installation (across 4 months)
College - Motor technologies and teaching techniques. and is therefore deliverable Vehicle and Develop an apprenticeship end point within the time and funding Construction assessment centre. Incorporate “Working at available. There is a good Height” within the College‟s large proportional of match funding
Page 237 Page Construction department in Wirral Waters 20% offered by the college to the overall costs. Outputs: - 67 learners p.a. after 3 years. including 7 Apprentices and 15 16-18 study programme learners - 10 Delivery jobs SIF2069 Myerscough College - Invest in specialist equipment to support the £61,425 A strong proposal to purchase Myerscough College delivery of land based programmes to LCR specialist equipment which will
Equipment residents that meet the needs of learners directly enhance learners‟ whilst achieving modern industry standards. experience and support Adult
Equipment includes: a bank of electric and SEND learners in land chainsaws; a specialist ride-on rotary mower based courses. Outputs: and cylinder mower; a rotavator and a - 83 learners p.a. after 3 years. mechanical horse. including 30 Adult Education Budget funded learners; 30 Level 3 learners and 23 16- 18 ESFA study programme learners - 74 Delivery jobs SIF2071 Halton Borough Upgrading and utilisation of new digital £256,210 All scores and either satisfactory Council - Halton technology in the Kingsway Learning Centre or good against the business
Borough Equipment in Widnes. Provide much enhanced cases. Clear planning has classroom equipment including learner already taken place that
hardware and software, new technology to mitigates risks in terms of prepare the Kingsway Learning Centre for overspend and time constraints. the Digital Skills programme in 2020. Outputs: The project will deliver Learners will benefit from up-to-date 945 learners including: interfaces and software programme to help - 750 Adult Education Budget them be exposed to digital technology. funded learners p.a. after 3 yrs - 195 other technical skills for learners p.a. after three years - 254 jobs safeguarded or created
Page 238 Page - 30 Apprenticeship jobs through Apprenticeship Hub referrals/ delivery of support SIF2074 NWTC - NWTC Facilitate the extension of the apprenticeship £499,841 Clear consideration for the Equipment programme into Advanced Manufacturing in deliverability of the 5 month
the Food and Drink industry. SCF will timescale for installation within
contribute towards the cost of Industry 4 the deadline for Skills Capital. standard technology meeting the demands Application is supported with of employers in the Engineering and Food letters of support including Kraft and Drink Manufacturing sectors in LCR. Heinz, Trigon Snacks & Peel Ports. Outputs: - 50 learners p.a to the existing baseline after 3 years including 50 Apprentices to the existing baseline per annum after 3 yrs - 50 Apprenticeship posts through delivery of training - 6 Delivery jobs safeguarded and 3 jobs created after 3 years SIF2083 Merseyside Youth Improve the quality and accessibility of skills £165,701 A good strategic fit with the Post Association - MYA and employment provision at Merseyside 16 Area Based Review which
Learning Space Youth Association. Support the engagement called for greater volumes of of learners, enhance the learning experience SEND learner places and the
of underrepresented learners who are SIF Skills Capital Prospectus. furthest away from the labour market to Outputs: develop their employability skills. E.g. Autism - 444 new learners accessing friendly learning spaces learning - 28 (15-29yrs) job search support - Refurbish 1982.6 m2 of learning space - Engage 1404 NEET individuals SIF2084 Riverside College - Purchase of specialist industry standard £358,724 The submission has clear links Riverside College training rigs to enable delivery of and employer support for low Equipment mechatronics, process and renewable carbon technologies and Page 239 Page maintenance training to meet employer advanced manufacturing Skills demand in priority growth sectors of advanced manufacturing and low carbon for Growth Action Plans. Output: aligned to the related Skills Strategy - 246 learners p.a. after 3 outcomes and Skills for Growth Action years including 52 Adult Plans. Education Budget funded There will be a reduction in operating costs learners as wind and solar equipment will support - 1 Apprenticeship lowering of the college carbon footprint. - 6 Delivery jobs safeguarded £1,945,935
Strand 5 - Low Carbon Reinvestment Fund - A fund for FE Colleges to invest in their plant and facilities to reduce their carbon impact. Max £1.00 grant SIF Ref Number Organisation Lead / Project Description SIF Appraiser’s overall comments, Project Title Funding key outcomes and outputs
SIF2040 Hugh Baird College - Installation of solar roof panels will be fitted £166,666 Project identifies low carbon HBC Solar Panels on a two-story building with an approximate estate needs and demonstrates
surface area of 885m2 which is not strategic fit supporting local
overlooked or shaded. The roof will also be general FE College carbon inspected, resurfaced and strengthened with reductions and energy improved insulation, lowering energy costs. efficiencies. Efficiencies including energy efficiency benefits to meet industry standards will be made with reduced operating costs and a more efficient estate to support learners. Page 240 Page SIF2054 Wirral Met College - Address the Liverpool City Region Skills £166,667 Value for money is considered in Wirral Met College Capital Prospectus by reducing estates terms of reliable costed plans
low carbon energy costs of at least £20,000 p.a. (to be and quotes with plans in place to improvements invested in improving quality of ensure deliverability and what apprenticeships) and to reduce the College‟s would be sacrificed should costs carbon footprint by 50 tonnes p.a. escalate. Output: - Carbon emission savings with 50 tonnes of Carbon reduced (by LED lighting, solar panels on roof, air handling system installation, window repairs and replacements etc) SIF2055 Southport College - The college works to reduce its energy £166,666 A college project team will be Southport College usage and the project will help escalate the assembled for the project,
Low Carbon pace of the upgrading to further reduce ensuring that advice is on hand Reinvestment energy and maintenance costs. The college throughout the course of the has previously benefited from a number of project. The College has a
specific energy saving initiatives over recent successful track record of similar years as well continually embedding energy scheme management assuring efficiency initiatives in its day to day planned deliverability. Output: and routine maintenance works. - LED lighting, replacement of windows - Installation of Zen boiling and chilled taps SIF2059 Riverside College - The project focusses on two areas to reduce £166,667 The submission offers Riverside College the carbon impact of the College‟s Kingsway considerable 50/50 match Low Carbon Campus by increasing energy efficiency. funding and additional low This will be done by upgrading to LED carbon measures above and lighting in all rooms that are being beyond the level of SIF refurbished and upgrading of mechanical investment. The project is heating and ventilation plant to improve deliverable with the College efficiency having a clear track record, experienced staff and considerable match reserves to enable the project to be completed quicker than would have otherwise been the case as a result of SIF investment. SIF2077 SK College - SK Low Update the College‟s lighting to energy £166,667 The applicant has considered Page 241 Page Carbon efficient LED lighting, creating an improved efficiency savings and is working learning environment and generating to improve its carbon footprint energy, carbon and financial savings. The and reduce energy usage. The College will utilise the LEP grant of £166,667 investment is recommended to as the first phase of a wider project to be supported. Planned works are complete a full £500,000 upgrade of all scheduled to be completed lighting over the next couple of years. within 12 months and within the proposed timescales to be completed by 31 March 2021. SIF2079 City of Liverpool Replace the lighting system with efficient £166,667 The collage aims to achieve College - CoLC Low LED lighting system, significantly improve savings of £21,466 plus VAT p.a. Carbon the energy performance of „The Learning and Reduce the colleges CO2 Exchange‟ in the colleges‟ flagship building. emissions by an estimated The college will provide innovative solutions 59,484kg per year. to energy savings by solutions such as removing inefficient high frequency lighting. £1,000,000
This page is intentionally left blank Agenda Item 12
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 6 December 2019
Authority/Authorities Affected: All
EXEMPT/CONFIDENTIAL ITEM: No
REPORT OF THE DIRECTOR OF CORPORATE SERVICES
LIVERPOOL CITY REGION COMBINED AUTHORITY QUARTER 2 FINANCIAL PERFORMANCE REPORT 2019-20
1. PURPOSE OF REPORT
The purpose of this report is to provide members of the Liverpool City Region Combined Authority with a financial update for the revenue and capital activity for the period April to 30 September 2019 and an update on its treasury management activity.
2. RECOMMENDATIONS
It is recommended that the Liverpool City Region Combined Authority:
(a) Note the revenue position for the Combined Authority for the period to 30 September 2019; (b) Approve the revised budget and the increase in the non precepted budget of £3.224m reflecting the transfer of budgets from Merseytravel to the Combined Authority and the corresponding reduction in the Merseytravel operating grant of £3.224m, as detailed in table 1; (c) Approve the reduction in the Mersey Tunnels operating grant and the corresponding reduction in the utilisation of reserves of £0.076m as detailed in table 1; (d) Approve OLEV funding of £6.5m to support the deployment of a hydrogen refueller and hydrogen buses as detailed at 4.2.10; (e) Note the capital position for the Combined Authority for the period to 30 September 2019; (f) Note the mid year treasury management strategy statement; and (g) Approve the updated Prudential Indicators.
Page 243 3. BACKGROUND
3.1 The Combined Authority approved a revenue budget of £239.08m for 2019-20 at its meeting of 1 February 2019. As part of the revenue budget, the CA approved a grant of £93.9m to Merseytravel to support the discharge of its transport related responsibilities. A separate grant of £23.73m to support the operation of the Mersey Tunnels was approved. The transport related costs of the CA were funded through the Transport Levy and income from Tunnel tolls.
3.2 The quarter one report detailed an increase of £0.31m to the Allowed Budget to take account of slippage on key mayoral priorities. This increased the budget to £239.39m.
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 In addition to the transport related activities of the CA, an initial revenue budget of £11.77m, increasing to £12.08m (as detailed at 3.2) was approved to support the operation of the non transport related activity of the Combined Authority. As part of its funding arrangements, the Combined Authority approved a Mayoral Precept of £7.675m to support the costs of operating the Mayoral Combined Authority. The balance of funding for CA running costs was met through a combination of grants and reserves.
3.5 The financial performance of the Combined Authority is shown in Section 4 of this report.
4. FINANCIAL PERFORMANCE
4.1 Revenue Performance
4.1.1 The table below provides an overview of the Combined Authority’s revised revenue budget showing movements from quarter one reporting.
Page 244
Table 1 – Liverpool City Region Combined Authority Revised Budget Statement to 30 September 2019.
Revised Budget Revised Budget Variance June 2019 September 2019 £’000 £’000 £’000 Mayoral Precepted Costs 7,675 7,675 0 CA Non Precepted Costs 4,405 7,629 3,224 Merseytravel Operating Grant 93,916 90,692 (3,224) Mersey Tunnels Operating Grant 23,734 23,658 (76) Capital Financing Costs 21,892 21,892 0 Halton Transport Grant 3,148 3,148 0 Special Rail Grant 75,993 75,993 0 Rolling Stock Project Costs 8,620 8,620 0 Total Revenue Cost 239,383 239,307 (76) Funded by: Mayoral Precept (7,675) (7,675) 0 Transport Levy (95,400) (95,400) 0 Halton Differential Levy (3,148) (3,148) 0 Tunnels Tolls Income (39,597) (39,597) 0 Use of Gainshare Revenue (2,348) (2,348) 0 Application of Reserves (14,222) (14,146) 76 Special Rail Grant (75,993) (75,993) 0 Mayoral Capacity Grant (1,000) (1,000) 0 Total Income (239,383) (239,307) 76 Net Budget Requirement 0 0 0
4.1.2 Overall the revised revenue budget for the Combined Authority remains balanced however there is an increase in the CA non-precepted costs of £3.224m offset by a reduction in the Merseytravel Operating Grant. This adjustment reflects the transfer of directorate support staff budgets, and policy, corporate communications and marketing budgets to the CA from Merseytravel. In addition, there is a minimal reduction of £0.076m to the Mersey Tunnels Operating Grant reflecting adjustments to rechargeable services budgets. This adjustment has resulted in a corresponding reduction in the utilisation of reserves. A breakdown of the Merseytravel revenue budget is provided at Appendix A for Members information.
4.1.3 The table below provides a more detailed analysis of the revised budget and phased spend for the Combined Authority to the end of September 2019.
Page 245
Table 2 – Liverpool City Region Budget and Spend to Date to 30 September 2019
Revised Phased Spend to Variance Budget Budget Date to date £’000 £’000 £’000 £’000 CA Running Costs 12,620 6,300 6,108 192 Mayoral Priority Spend 2,684 1,325 1,321 4 Merseytravel Operating Grant 90,692 45,346 45,346 0 Mersey Tunnels Operating Grant 23,658 11,829 11,829 0 Capital Financing Costs 21,892 9,555 8,846 709 Halton Transport Grant 3,148 1,574 1,574 0 Special Rail Grant 75,993 37,997 37,997 0 Rolling Stock Project Costs 8,620 4,310 2,366 1,944 Total Revenue Cost 239,307 118,236 115,387 2,849 Funded by: Mayoral Precept (7,675) (3,838) (3,838) 0 Transport Levy (95,400) (47,700) (47,700) 0 Halton Differential Levy (3,148) (1,574) (1,574) 0 Tunnels Tolls Income (39,597) (19,799) (20,357) 558 Gainshare Revenue Funding (2,348) (1,174) (1,174) 0 Application of Reserves (14,146) (5,652) (2,245) (3,407) Special Rail Grant (75,993) (37,999) (37,999) 0 Mayoral Capacity Grant (1,000) (500) (500) 0 Total Income (239,307) (118,236) (115,387) (2,849) Net Budget Requirement - - - -
4.1.4 The table below provides a more detailed breakdown of the revenue spend against budget for the Combined Authority’s running costs.
Table 3 – Combined Authority Running Costs Budget and Spend to Date to 30 September 2019
Revised Budget to Spend Variance Budget date to date £’000 £’000 £’000 £’000 Mayoral & Chief Exec Office 888 419 415 4 Communications & Stakeholder 3,037 1,889 1,814 75 Engagement Policy & Commissioning 3,258 1,386 1,230 156 Programmes & Projects 167 0 0 0 Employment and Skills 630 333 394 (61) Households into Work 496 335 330 5 Commercial Development & 1,887 840 871 (30) Investment Corporate Services 2,257 1,098 1,055 43 Transport: Bus Alternative Service 500 500 500 0 Delivery CA Running Costs 13,120 6,800 6,608 192 Mayoral Priorities Fund 2,184 825 821 4 Total Running Costs 15,304 7,625 7,430 196 Page 246 4.1.5 At the end of quarter two the revenue budget for the CA is showing a positive variance of £2.849m. The underspend on capital finance costs has arisen as a consequence of the Authority being able to defer the need to undertake external borrowing at this point in the year and as such has avoided an element of debt servicing that it would have otherwise anticipated incurring. The underspend on CA running costs is largely driven by a small number of vacancies held across the organisation, which it is forecast will reduce as the year progresses and these posts are filled. Tunnel Tolls income is slightly ahead of budget at this point in the year, arising from ancillary income streams generated by the service. The underspend on Rolling Stock arises from three main areas; firstly reduced spend against projected NNLNNG lines on the budget as a result of less industrial action to date than anticipated, secondly prudent assumptions regarding pension top up payments and finally avoiding incurring interest payments as a consequence of external interest having not yet been incurred.
4.1.6 Under the Combined Authority Finance Order (2017), the Authority can raise funding through a Mayoral Precept to cover certain costs associated with the operation of the Mayoral Combined Authority. These costs are in effect a sub set of the totality of the CA revenue budget and as detailed at 3.4; a precept of £7.6m was approved for the financial year 2019/20. The table below details the budget for the Mayoral Combined Authority costs, together with spend to date.
Table 4 – Mayoral Combined Authority Running Costs Budget and Spend to Date to 30 September 2019
Budget Budget to Spend to Variance Cost Centre 19/20 date Date £000 £000 £000 £000 Direct Mayoral Costs Cost of Mayor and Mayor's/Chief Exec Support Office 651 325 295 30 Specified Programme Costs Tidal Energy Project 951 500 498 2 Digital Connectivity Project 266 72 69 3 Mayoral Transport Priorities 780 546 547 (1) Wirral Borough of Culture Award 300 207 207 0 Total Specified Programme Costs 2,297 1,325 1,321 4 Direct Service Costs Policy & Future Devolution 1, 622 611 590 21 Employment & Skills 408 281 280 1 Housing & Spatial Planning 246 123 114 9 Commercial Development 708 354 367 (13) Total Direct Service Costs 2,985 1,369 1,351 18 Corporate Management Costs Chief Executive's Office 124 107 106 1 Corporate Services 877 512 509 3 Communication and Engagement 741 286 280 6 Total Corporate Management Costs 1,742 905 895 10 Total Cost to be met by Precept 7,675 3,924 3,862 62
Page 247 4.2 Capital Spend
4.2.1 The Combined Authority approved a capital programme of £297.85m at its meeting on 1 February 2019. The programme approved for the year incorporated all planned expenditure on schemes funded through the Strategic Investment Fund which comprises schemes delivered by constituent local authorities, third parties Merseytravel and includes the following elements:
(a) Local growth deal schemes; (b) Transforming cities; (c) Integrated transport block, pothole funding and highways maintenance; (d) Rolling stock replacement project; (e) Mersey Tunnels renewal and maintenance; and (f) Small scale transport schemes delivered directly by Merseytravel.
4.2.2 Local Growth funds have been received by the Local Enterprise Partnership (LEP) on the back of successful bids for these funds with the Combined Authority fulfilling the Accountable Body role for these funds. To date bids have been made and received against three rounds of Local Growth Fund allocations with funding provided for specific thematic areas. Whilst a significant proportion of the Local Growth Fund 1 funds have been committed, with the agreement of the LEP, uncommitted Local Growth Fund funds form part of the Strategic Investment Fund to be invested in accordance with its assurance framework.
4.2.3 In addition to LGF and Gain Share funding, the Combined Authority has been awarded £134m Transforming Cities Funding (TCF) over the period 2018/19 to 2021/22. Members will be aware from previous reports that the government, to support improved productivity through investment in public and sustainable transport, has provided this funding directly to the CA.
4.2.4 The table below provides an overview of the revised capital programme for the Combined Authority, together with spend to date and projected outturn for the year.
Table 5 – Capital Monitoring to 30 September 2019
Scheme Revised Spend to Projected Projected Budget date Outturn (Over)/ Underspend £’m £’m £’m £’m LGF 1 51.6 14.0 55.3 (3.7) LGF 2 7.0 4.3 6.1 0.9 LGF 3 37.1 8.9 30.3 6.8 Gainshare Capital 13.0 2.5 12.0 1.0 Transport Single Pot 26.5 26.5 26.5 0 Transforming Cities 21.5 0.1 21.5 0 Merseytravel Capital 169.0 45.7 126.2 42.8 Programme Adjustment for Merseytravel (1.7) (1.1) (1.9) 0.2 Schemes funded by the CA Total 324.0 100.9 276.0 48.0
Page 248 4.2.5 The table above incorporates all schemes that have either commenced or are anticipated to commence and spend during the current year and are based on the approved spend profiles. To the extent that there may have been change controls requesting rephasing that have not been approved, these are not reflected in the figures above. Included in the above are a number of SIF schemes that have not yet reached grant funding approval. An adjustment is made to account for Merseytravel schemes funded by the CA to avoid double counting expenditure. A more detailed analysis at a scheme level is included at Appendix B.
4.2.6 The projected underspend on the Merseytravel capital programme is largely explained by delays in the Rolling Stock Programme. This is due to a Force Majeure event with one of Stadler’s suppliers, which means that some payment milestones have slipped and will now occur in 2020/21 rather than 2019/20.
4.2.7 The Combined Authority has also approved the following schemes which are not expected to commence and spend in the current financial year, but will progress during 2020-21.
Table 6 Approved schemes commencing 2020/21
Provisional Scheme Allocation £'m Tower Road 3,000 Sandon Global 2,000 Strand 4 - Hugh Baird 477 Strand 4 -Wirral Met 385 Strand 4 - Southport College 489 Strand 4 - Riverside 486 Strand 4 - SK College 761 Strand 4 - COLC 902 Shakespeare Playhouse 10,550 Cruise Liner 20,000 Parkside Road 23,800 Town Centres 6,000 Brexit Fund 15,000 Flexible Growth Fund 20,000 Createch Scale Up 336 MTC Project in a Box SIF2039 9,240 Eureka! 6,642 Inward Investment Fund 4,500 Ferries 30,300 Cycling & Walking 4,830 Total Capital Schemes 159,698
Page 249 4.2.8 In addition to the above, the Combined Authority has provided initial approval to a number of schemes to progress through to Outline Business case or Full Business Case. Whilst these schemes have not received full approval to proceed to GFA, there is, nonetheless, an assumption that these will progress through and thus there are commitments to fund. The table below details these funding commitments. Providing for these schemes in this way does not in anyway commit the Combined Authority to approving the scheme, nor does it pre-determine the outcome of the assurance framework process.
Table 7 Schemes progressing through to CA Approval
Provisional Scheme Allocation £'m Strand 1 - Southport College 1,980 Strand 1 - LJMU 3,329 Strand 1 - COLC 1,446 Strand 1 - Sefton MBC 995 Strand 1 - Rotunda College 1,306 Strand 1 - Riverside 2,000 Strand 5 - Hugh Baird 125 Strand 5 - Wirral Met 167 Strand 5 - Southport College 167 Strand 5 - Riverside College 167 Strand 5 - SK College 167 Strand 5 - COLC 167 Kirkby Town Centre 2,750 Strand 2 Wirral Met 358 Strand 5 Hugh Baird 42 Project Violet 3,750 Kirkby Town Centre 7,750 Vymoma 6,000 Strand 2 AVCT 446 Strand 2 NWCS 260 Strand 2 Engineering College 315 Strand 2 Myerscough 389 Strand 2 Halton MBC 443 Strand 2 LJMU 295 Strand 2 Merseyside Youth Association 460 Strand 2 Greenbank 484 Strand 3 - Engineering College 180 Strand 3 -St Helens Chamber 93 Strand 3 - NWCS 52 Strand 3 - Wirral Met 279 Strand 3 - Myerscough 61 Strand 3 - Halton BC 256 Strand 3 - NWTC 500 Strand 3 - Merseyside Youth Association 166 Strand 3 - Riverside 359 Page 250 Provisional Scheme Allocation £'m Festival Gardens 9,900 Access For All 7,500 Smart Ticketing = Phase 1 1,390 Smart Ticketing = Phase 2 3,200 Hydrogen Bus Project 10,000 Rolling Stock Enhancement (TCIS) 16,200 Rolling Stock Enhancement ( IPEMU) 3,500 Total Capital Schemes 89,394
4.2.9 As these schemes progress through the approval process and to Grant Funding Agreement, more detailed spend profiles will be provided.
4.2.10 The CA has submitted a successful bid for £6.4m of OLEV funding to support a hydrogen bus and refueller project. This project is to deploy a fleet of 25 hydrogen buses to operate in the Liverpool City Region. The OLEV funding is secured subject to offer letter signature.
4.3 Treasury Management Mid Year Report
Context
4.3.1 In accordance with the CIPFA Code of Practice for Treasury Management in Public Services, the Combined Authority is required to produce an interim report which provides a review of the Treasury Management Strategy Statement and Annual Investment Strategy, together with an update on investments and borrowing and a review of its Treasury Limits and Prudential Indicators.
4.3.2 The Combined Authority’s Treasury Management Strategy was approved at its meeting on 1 February 2019. At the mid-point in the year it is felt pertinent to provide the Authority with an update on progress against the original approved strategy.
4.3.3 The interim report has been prepared in accordance with CIPFA’s Code of Practice on Treasury Management and covers the following:
(a) an update on interest rates; (b) a review of treasury management strategy statement and annual investment strategy; (c) an update on current investments and borrowing profiles; and (d) a review of compliance with Treasury Limits and Prudential Indicators for 2019-20 together with forward estimates.
4.4 Interest Rates Forecasts
4.4.1 The Authority’s treasury advisors, Link Asset Services have provided the following forecast for interest rates.
Page 251 Table 8 – Forecasts for Interest Rates
Link Asset Services Interest Rate View Sep-19 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Bank Rate View 0.75 0.75 0.75 0.75 0.75 1.00 1.00 1.00 1.00 1.00 1.25 3 Month LIBID 0.70 0.70 0.70 0.70 0.80 0.90 1.00 1.00 1.00 1.10 1.20 6 Month LIBID 0.80 0.80 0.80 0.80 0.90 1.00 1.10 1.10 1.20 1.30 1.40 12 Month LIBID 1.00 1.00 1.00 1.00 1.10 1.20 1.30 1.30 1.40 1.50 1.60 5yr PWLB Rate 1.20 1.30 1.50 1.60 1.70 1.70 1.80 1.90 2.00 2.00 2.10 10yr PWLB Rate 1.50 1.60 1.80 1.90 2.00 2.00 2.10 2.20 2.30 2.30 2.40 25yr PWLB Rate 2.10 2.30 2.40 2.50 2.60 2.70 2.70 2.80 2.90 3.00 3.00 50yr PWLB Rate 2.00 2.20 2.30 2.40 2.50 2.60 2.60 2.70 2.80 2.90 2.90
4.4.2 At the time of writing the treasury management strategy, the forecast for interest rates was that rates would increase gradually from 0.75% to 1.00% by June 2019, reaching 2.00% by March 2022. This forecast was contingent on the strength of GDP growth, inflationary pressures and perhaps most prominently of all the speed and orderliness of the UK’s exist from the European Union. Changes in the political environment with an impending general election on 12 December and a lack of clarity over the shape of any Brexit deal has led to the MPC voting to maintain the Bank Rate at 0.75%. As a consequence of this uncertainty, Link have revised their interest rate forecasts down with the base assumption being that rates will be held for longer and the pace of increases to Bank Rate will be much more gradual.
4.4.3 It is Link’s view that the overall balance of risk to economic growth in the UK is probably on the downside due to weight of uncertainty over Brexit, as well as the softening global economic picture.
4.5 Treasury Management Strategy and Annual Investment Strategy Update
The Treasury Management Strategy Statement, which includes the Annual Investment Strategy, was considered and approved by the Combined Authority at its meeting on 1 February 2019. The Investment Strategy outlined the Authority’s investment priorities which can be summarised as achieving the best return available on fund whilst maintaining the security of capital and liquidity of investments.
4.6 Investments
4.6.1 As at 30 September 2019, the Combined Authority held investments and cash balances of £231m (£277m at 30 September 2018). The chart below details the maturity profile of the Combined Authority’s investments.
Page 252 Maturity profile of investment portfolio at September 2019 140,000
120,000
100,000
80,000 £'000 60,000
40,000
20,000
0 Instant UP to 3 months 3 to 6 months 6 to 9 months 9 to 12 months Notice (open)
4.6.2 At the mid-point of the year, cash holdings have reduced from the same point in 2018-19. A reduction in cash holdings has been anticipated in previous reports and reflects a realigning of income profiles and expenditure. In previous years the funding received for Local Growth Fund and Gain Share has been in excess of the expenditure on the associated projects due to the front loading of funding. The reversal of this trend will see cash levels decrease and it is forecast that cash holdings will fall further before the end of the year.
4.6.3 There is the potential for the Rolling Stock project to have a significant impact on the cash levels at the year end. Whilst the Authority has been able to defer the need for external borrowing thus far there is an expectation that external borrowing will be undertaken before the end of the year to ensure that there is sufficient funding to meet all capital requirements and secondly to allow the Authority to secure funding through the European Investment Bank.
4.6.4. Despite the limited availability of high quality counterparties and continued subdued rates of return available within the market, the Authority’s weighted average rate of return is 0.94% compared with 0.85% in 2018-19. Whilst the Authority has continued to maintain a good level of return commensurate with its key investment priorities of security and liquidity, whilst Bank Rate is forecast to increase slowly, it is not anticipated that the fundamentals of the market will change before the end of the year. It is therefore envisaged that returns on investments will remain subdued for some time.
4.7 Borrowing
4.7.1 As at 30 September 2019, the Combined Authority has outstanding debt of £161.05m together with £14.88m debt transferred on the abolition of the former Merseyside County Council. The chart below shows the profile of residual maturities for external debt (excluding transferred debt).
Page 253 PWLB Residual Maturity Analysis as at 30/09/2019 60,000,000
50,000,000
40,000,000
£ 30,000,000
20,000,000
10,000,000
0 Up to 1 1 to 2 2 to 5 5 to 10 10 to 15 15 to 20 20 to 25 25 to 30 30 to 35 35 to 40 Over 40 year years years years years years years years years years years Period to Maturity
4.7.2 Based on its capital financing requirement, the Authority has an underlying need to borrow: based on the capital programme for the next three years, it is envisaged that significant borrowing will be undertaken which will reduce the under borrowed position. Interest rates and trends will be monitored closely to ensure that any borrowing is secured at the optimal point. As detailed at 4.6.3 the Rolling Stock project presents the Authority with an absolute need to borrow before the end of the financial year.
4.7.3 The Authority has a strategy of running down cash balances in lieu of new borrowing to help minimise credit risk. This borrowing strategy is considered to still be fit for purpose. On 9 October 2019, HM Treasury used secondary legislative powers to increase PWLB borrowing rates by 100 Base Points, thus taking borrowing rates back to 2018 levels. The 1% increase in borrowing rates was implemented in response to concerns about the levels of borrowing being undertaken by councils and the impact of this on the national statutory debt levels. With the changes that have been introduced to the PWLB rates structure, EIB borrowing offers a competitive option for funding.
4.7.4 As part of its treasury management activity, the Authority will consider any options to restructure its debt portfolio to improve the profile or cash flow associated with debt servicing. In the current climate and with the current structure of Public Works Loan Board interest rates, there have been no viable debt restructuring opportunities.
4.8 Treasury Limits and Prudential Indicators
It is a statutory duty under Section 3 of the Local Government Act 2003 for local government bodies to determine and keep under review how much they can afford to borrow. The Combined Authority’s Treasury Limits and Prudential Indicators were outlined in the approved Treasury Management Strategy. During the year the Combined Authority has operated within these limits. A copy of the current and Page 254 latest projected Treasury Limits and Prudential Indicators are shown in Table 9 below. Revisions have been made to the estimates to take account of anticipated level of capital expenditure over the medium term.
Table 9 – Capital Prudential and Treasury Indicators 2019/20 -2022-23
Indicator Description 19/20 20/21 21/22 22/23 Forward Forward Forward Forward Estimate Estimate Estimate Estimate Capital Spend Proposed capital spend 324.00 262.58 42.98 50.00 (£m) to which the Authority plans to commit In year Additional borrowing 154.32 109.42 26.51 12.50 Requirement requirement for capital expenditure Capital This is the aggregation 435.38 537.23 543.61 536.28 Financing of historic and Requirement cumulative capital (£m) expenditure which has yet to be paid for through either capital or revenue resources Ratio Financing Identified the impact 25.89% 30.18% 43.58% 42.55% Cost to Income and trend of revenue Stream costs of capital financing decisions on the revenue budget Net Borrowing Represents the net 70.41 59.59 48.77 37.95 Requirement investments or (£m) borrowing requirement based on the debt and investments held Authorised Represents the 435.38 537.23 543.61 536.28 Limit for absolute limit of Borrowing (£m) borrowing that could be raised and afforded in the short term however this is likely to be unsustainable in the long term Operational Represents the level 355.89 423.94 425.16 416.78 Limit for beyond which debt is Borrowing (£m) not normally expected to exceed Upper Limit for These limits seek to 100.00% 100.00% 100.00% 100.00% Fixed Interest ensure that the Rate Exposure Authority does not Upper Limit for expose itself to an 30.00% 30.00% 30.00% 30.00% Variable inappropriate level of Interest Rate interest rate risk Exposure Gross Debt and This indicator can 264.97 377.64 394.84 398.33 the CFR (£m) highlight where an authority may be borrowing in advance of need
Page 255 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.
8. COMMUNICATION ISSUES
None as a direct result of this report
9. CONCLUSION
The Liverpool City Region Combined Authority is performing within its budget allocation for 2019/20. At the end of the second quarter there is a small underspend against the budget however based on the quantum of the budget this is not deemed material and it is not envisaged that this will impact on the organisation’s delivery during the year.
JOHN FOGARTY Director of Corporate Services
Page 256
Contact Officer(s): Sarah Johnston, Assistant Director of Finance (0151 330 1015) Liz Storey, Corporate Communications Manager (0151 330 1430)
Appendices: Appendix A – Merseytravel Revenue Spend to Quarter Two Appendix B – Quarter Two Capital Monitoring Background Documents: None attached
Page 257 This page is intentionally left blank Appendix A
MERSEYTRAVEL REVENUE FINANCIAL MONITORING REPORT - TO SEPTEMBER 2019
Description YEAR TO DATE £
Variance Annual Budget Budget Actual Committed Total Spend Fav/(Unfav)
Sub-Service - Asset Management Total Employees 6,927,180 3,435,500 3,342,820 2,250 3,345,070 90,430
Total Premises 4,988,640 2,656,470 2,611,363 22,551 2,633,914 22,556
Total Transport 243,600 130,850 121,553 3,203 124,756 6,094
Total Vessels 0 0 0 600 600 (600)
Total Supplies & Services 375,980 222,040 122,739 12,470 135,209 86,831
Total Third Party Payments 0 0 (52,035) 48,010 (4,025) 4,025
Total Support Service Recharges 7,987 7,987 7,987 0 7,987 0
Total Income (12,543,387) (10,591,304) (10,926,376) 0 (10,926,376) 335,072
Total Asset Management 0 (4,138,457) (4,771,950) 89,085 (4,682,866) 544,408
Description YEAR TO DATE £
Variance Annual Budget Budget Actual Committed Total Spend Fav/(Unfav)
Sub-Service - Bus Services Total Employees 2,252,386 1,126,193 1,084,542 0 1,084,542 41,651
Total Premises 117,000 58,500 60,614 0 60,614 (2,114)
Total Transport 67,025 34,512 29,489 2,629 32,118 2,394
Total Supplies & Services 1,473,961 911,015 438,192 267,011 705,203 205,812
Total Third Party Payments 18,771,772 9,152,097 8,991,945 0 8,991,945 160,152
Total Support Service Recharges 2,742,170 2,742,170 2,742,170 0 2,742,170 0
Total Other Costs 100,000 0 0 0 0 0
Total Income (4,960,000) (3,405,500) (3,273,788) 0 (3,273,788) (131,712)
Total Bus Services 20,564,314 10,618,988 10,073,164 269,640 10,342,804 276,183
Description YEAR TO DATE £
Variance Annual Budget Budget Actual Committed Total Spend Fav/(Unfav)
Sub-Service - Policy and LTP Development Total Employees 458,967 224,128 183,425 0 183,425 40,702
Total Transport 1,804 902 267 0 267 635
Total Supplies & Services 21,186 11,037 48 766 814 10,223
Total Support Service Recharges 257,599 257,599 257,599 0 257,599 0
Total Income (47,845) (27,611) (27,615) 0 (27,615) 4
Total Policy and LTP Development 691,711 466,055 413,724 766 414,490 51,565
Description YEAR TO DATE £
Variance Annual Budget Budget Actual Committed Total Spend Fav/(Unfav)
Sub-Service - Rail Services Total Employees 823,000 406,750 342,975 0 342,975 63,775
Total Premises 343,330 169,455 155,807 0 155,807 13,648
Total Transport 8,200 4,100 1,764 0 1,764 2,336
Total Supplies & Services 193,470 57,671 26,282 29,464 55,746 1,925
Total Third Party Payments 79,923,000 36,884,739 45,851,303 0 45,851,303 (8,966,564)
Total Support Service Recharges 709,864 709,864 709,864 0 709,864 0
Total Income (78,042,000) (36,008,654) (44,853,640) 0 (44,853,640) 8,844,985
Total Rail Services 3,958,864 2,223,924 2,234,355 29,464 2,263,819 (39,895)
Page 259 Appendix A
MERSEYTRAVEL REVENUE FINANCIAL MONITORING REPORT - TO SEPTEMBER 2019
YEAR TO DATE £
Description Annual Variance Budget Actual Committed Total Spend Budget Fav/(Unfav)
Sub-Service - Concessionary Travel Total Supplies & Services 0 0 00 0 (0)
Total Third Party Payments 74,096,000 33,690,099 33,690,098 0 33,690,098 1
Total Support Service Recharges 1,162,466 1,162,466 1,162,466 0 1,162,466 0
Total Income (22,132,000) (8,418,672) (8,418,671) 0 (8,418,671) (1)
Total Concessionary Travel 53,126,466 26,433,893 26,433,893 0 26,433,893 (0)
Description YEAR TO DATE £
Annual Variance Budget Actual Committed Total Spend Budget Fav/(Unfav)
Sub-Service - Finance Total Employees 1,133,010 561,893 458,666 0 458,666 103,227
Total Transport 430 215 231 0 231 (16)
Total Supplies & Services 28,200 10,600 50,119 10,850 60,969 (50,369)
Total Support Service Recharges 102,300 102,300 102,300 0 102,300 0
Total Income (1,263,940) (1,208,440) (1,186,207) 0 (1,186,207) (22,233)
Total Finance (0) (533,432) (574,890) 10,850 (564,040) 30,608
Description YEAR TO DATE £
Annual Variance Budget Actual Committed Total Spend Budget Fav/(Unfav)
Sub-Service - Internal Audit Total Employees 392,238 193,962 181,540 0 181,540 12,422
Total Transport 960 480 18 0 18 462
Total Supplies & Services 29,268 4,668 3,590 0 3,590 1,078
Total Support Service Recharges 7,100 7,100 7,100 0 7,100 0
Total Income (429,566) (404,713) (395,414) 0 (395,414) (9,299)
Total Internal Audit 0 (198,503) (203,166) 0 (203,166) 4,663
Description YEAR TO DATE £
Annual Variance Budget Actual Committed Total Spend Budget Fav/(Unfav)
Sub-Service - Legal & Procurement Total Employees 1,320,602 712,301 637,852 0 637,852 74,449
Total Transport 9,820 8,560 7,963 0 7,963 597
Total Supplies & Services 134,876 102,959 110,025 0 110,025 (7,066)
Total Support Service Recharges 9,773 9,773 9,773 0 9,773 0
Total Income (1,475,071) (1,322,447) (1,279,068) 0 (1,279,068) (43,379)
Total Legal & Procurement 0 (488,854) (513,455) 0 (513,455) 24,601
Page 260 Appendix A
MERSEYTRAVEL REVENUE FINANCIAL MONITORING REPORT - TO SEPTEMBER 2019
Description YEAR TO DATE £
Annual Variance Budget Actual Committed Total Spend Budget Fav/(Unfav)
Sub-Service - Programme Management Office Total Employees 590,750 293,250 253,936 0 253,936 39,314
Total Transport 2,300 1,150 1,009 0 1,009 141
Total Supplies & Services 10,350 8,850 4,088 0 4,088 4,762
Total Income (603,400) (520,400) (503,340) 0 (503,340) (17,060)
Total Programme Management Office 0 (217,150) (244,307) 0 (244,307) 27,157
YEAR TO DATE £
Description Annual Variance Budget Actual Committed Total Spend Budget Fav/(Unfav)
Sub-Service - Customer Delivery Total Employees 4,297,825 2,118,017 1,975,383 3,872 1,979,254 138,762
Total Premises 2,043,977 874,714 781,087 29,195 810,281 64,433
Total Transport 8,000 4,454 3,903 649 4,552 (98)
Total Supplies & Services 816,353 353,731 283,024 19,123 302,146 51,585
Total Support Service Recharges 2,936,004 2,706,004 2,705,976 0 2,705,976 28
Total Income (2,827,000) (1,853,653) (1,853,796) 0 (1,853,796) 143
Total Customer Delivery 7,275,159 4,203,267 3,895,576 52,838 3,948,414 254,853
YEAR TO DATE £
Description Annual Variance Budget Actual Committed Total Spend Budget Fav/(Unfav)
Sub-Service - IT Total Employees 1,884,192 939,392 921,322 0 921,322 18,070
Total Premises 1,000 1,000 602 0 602 398
Total Transport 8,765 4,383 2,605 0 2,605 1,778
Total Supplies & Services 2,262,295 1,720,631 1,648,980 30,371 1,679,351 41,279
Total Income (4,156,252) (4,106,127) (4,105,250) 0 (4,105,250) (876)
Total IT 0 (1,440,721) (1,531,741) 30,371 (1,501,370) 60,648
YEAR TO DATE £
Description Annual Variance Budget Actual Committed Total Spend Budget Fav/(Unfav)
Sub-Service - Mersey Ferries Group Total Employees 2,280,079 1,139,160 1,080,593 0 1,080,593 58,567
Total Premises 985,627 587,211 558,424 35,631 594,056 (6,845)
Total Transport 110,900 92,950 100,193 10,533 110,726 (17,776)
Total Vessels 1,049,899 609,328 502,367 14,348 516,715 92,613
Total Supplies & Services 344,089 172,045 239,992 33,223 273,215 (101,170)
Total Third Party Payments 0 0 (597) 0 (597) 597
Total Support Service Recharges 2,324,983 2,055,984 2,055,983 0 2,055,983 1
Total Income (4,434,687) (2,826,352) (3,361,817) 0 (3,361,817) 535,465
Total Mersey Ferries Group 2,660,890 1,830,325 1,175,139 93,735 1,268,874 561,450
Page 261 Appendix A
MERSEYTRAVEL REVENUE FINANCIAL MONITORING REPORT - TO SEPTEMBER 2019
YEAR TO DATE £
Description Annual Variance Budget Actual Committed Total Spend Budget Fav/(Unfav)
Sub-Service - People Development Total Employees 1,244,079 617,938 569,035 22,580 591,615 26,323
Total Transport 4,655 2,328 7,860 0 7,860 (5,533)
Total Supplies & Services 22,408 8,750 9,142 423 9,566 (816)
Total Support Service Recharges 62,000 62,000 62,000 0 62,000 0
Total Income (1,333,142) (1,333,142) (1,336,545) 0 (1,336,545) 3,403
Total People Development 0 (642,126) (688,508) 23,003 (665,505) 23,378
YEAR TO DATE £
Description Annual Variance Budget Actual Committed Total Spend Budget Fav/(Unfav)
Sub-Service - The Beatles Story Total Employees 1,683,450 889,873 849,253 2,340 851,593 38,280
Total Premises 1,026,451 713,164 727,634 15,311 742,946 (29,782)
Total Transport 21,039 8,520 4,894 320 5,214 3,305
Total Supplies & Services 1,959,548 1,190,406 1,326,471 46,161 1,372,632 (182,227)
Total Third Party Payments 219,000 109,500 109,500 0 109,500 0
Total Support Service Recharges 0 0 000 0
Total Other Costs 520,004 260,002 260,000 0 260,000 2
Total Income (6,402,191) (3,921,101) (4,373,593) 0 (4,373,593) 452,492
Total The Beatles Story (972,699) (749,636) (1,095,840) 64,133 (1,031,707) 282,071
YEAR TO DATE £
Description Annual Variance Budget Actual Committed Total Spend Budget Fav/(Unfav)
Sub-Service - Mersey Tunnels Total Employees 4,894,400 2,455,153 2,419,722 1,650 2,421,372 33,781
Total Premises 3,629,600 1,318,508 1,295,534 96,557 1,392,091 (73,583)
Total Transport 197,000 73,139 72,413 2,241 74,654 (1,515)
Total Supplies & Services 1,281,000 817,330 727,824 82,115 809,939 7,391
Total Third Party Payments 7,500,000 0 0 0 0 0
Total Support Service Recharges 6,155,669 5,265,669 5,265,669 0 5,265,669 (0)
Total Income (23,734,000) (11,867,000) (11,867,065) 0 (11,867,065) 65
Total Mersey Tunnels (76,331) (1,937,201) (2,085,903) 182,562 (1,903,340) (33,860)
Page 262 Appendix B
Capital Monitoring to September 2019
2019/20 Revised Budget Spend to date Projected Outturn Under/(Over)spend LGF 1 Schemes £'000 £'000 £'000 £'000 Transport Halton Curve 36 0 36 0 M58 Junction Improvements 3,975 1,847 3,975 0 STEP 6,556 2,204 8,575 -2,018 A570 Linkway 2,018 1,618 2,018 0 Silver Jubilee Bridge ( Phase 1) 1,530 433 1,530 0 City Centre Strand Corridor 33,315 5,013 33,315 0 City Centre Strand Corridor phase 2 1,680 1,680 1,680 0 City Centre Strand Corridor - flyover ( not yet in GFA) 0 0 1,700 -1,700 Total LGF 1 Transport 49,110 12,794 52,829 -3,718
Skills Liverpool South Work & Wellbeing (STEC) 724 32 714 10 Everton Learning & Skills Centre ( LCC) 655 28 655 0 Health & Engagement & Training Hub ( Hugh Baird) 131 131 131 0 Advance Manufacturing Training Centre (NWTC) 979 979 978 0 Extreme Low Energy Project (Wirral Met) 2 0 2 0 Total LGF 1 Skills 2,490 1,170 2,480 10
Total LGF 1 Schemes 51,600 13,963 55,308 -3,709
2019/20 Revised Budget Spend to date Projected Outturn Under/(Over)spend LGF 2 Schemes £'000 £'000 £'000 £'000
Business Capital Alstom 878 -71 0 878 Alchemy Phase 3 268 204 204 64 Chancerygate ( Merseyreach) 763 763 763 0 Magazine Point (Not yet in GFA) 252 0 252 0 Gerrards Park ( not yet in GFA) 342 0 342 0 Image Business Park (not yet in GFA) 285 0 285 0 Total LGF 2 Business Skills 2,788 896 1,846 942
Business Growth Pall Mall 3,850 3,453 3,850 0 Brookfield Business Park 360 0 360 0 Total LGF 2 Business Growth 4,210 3,453 4,210 0
Total LGF 2 Schemes 6,998 4,348 6,056 942
Page 263 Appendix B
Capital Monitoring to September 2019 2019/20 Revised Budget Spend to date Projected Outturn Under/(Over)spend LGF 3 Schemes £'000 £'000 £'000 £'000
Transport Key Route Network 18,729 4,935 16,915 1,814 Shakespeare Rail 3,998 866 1,892 2,106 City Centre Strand Corridor phase 2 2,320 2,320 2,320 0 Halsnead Garden Village 1,481 30 1,481 0 Total LGF 3 Transport 26,528 8,150 22,608 3,920
Business Capital 00 0 0 Digital Innovation 6,825 791 3,987 2,837 Project Violet 3,750 0 3,750 0 Total LGF 3 Business Capital 10,575 791 7,737 2,837
Total LGF 3 Schemes 37,103 8,941 30,346 6,757
2019/20 Revised Budget Spend to date Projected Outturn Under/(Over)spend Gainshare Capital £'000 £'000 £'000 £'000 Paddington Village Phase 1 4,176 2,386 3,216 960 Cultural Events 68 68 68 0 City Centre Connectivity ( Phase 2) 6,744 -493 6,744 0 Liverpool Film 2,000 500 2,000 0
Total Gainshare Capital 12,988 2,460 12,028 960
2019/20 Revised Budget Spend to date Projected Outturn Under/(Over)spend Transport Single Pot £'000 £'000 £'000 £'000 Transport Single Pot 26,500 26,500 26,500 0 Transport Single Pot 26,500 26,500 26,500 0
2019/20 Revised Budget Spend to date Projected Outturn Under/(Over)spend Transforming Cities £'000 £'000 £'000 £'000 Bus Corroidors Development 215 0 215 0 Cycle Corridor Development 250 132 250 0 Smart Ticketing Phase 1 (not in GFA) 1,390 0 1,390 0 Rolling Stock Enhancement- TCIS (not GFA) 16,100 0 16,100 0 Rolling Stock Enhancement -IPEMU (not in GFA) 3,500 0 3,500 0
Total Transforming Cities 21,455 132 21,455 0
Total Merseytravel Capital Programme Spend 168,991 45,743 126,221 42,770
Adjustment for Merseytravel Schemes Funded by LCRCA -1,723 -1,080 -1,909 186
TOTAL CAPITAL EXPENDITURE 323,911 101,007 276,004 47,907
Page 264 Agenda Item 13
LIVERPOOL CITY REGION COMBINED AUTHORITY
To: The Metro Mayor and Members of the Combined Authority
Meeting: 6 December 2019
Authority/Authorities Affected: Sefton MBC
EXEMPT/CONFIDENTIAL ITEM: No
REPORT OF THE MONITORING OFFICER
APPOINTMENT TO THE OVERVIEW AND SCRUTINY COMMITTEE
1. PURPOSE OF REPORT
1.1 The purpose of this report is to recommend an appointment to the Overview and Scrutiny Committee.
2. RECOMMENDATIONS
2.1 The Liverpool City Region Combined Authority is recommended to approve the appointment of Councillor Liz Dowd (Sefton MBC) to the Overview and Scrutiny Committee.
3. BACKGROUND
3.1 Notification has been received from Sefton Metropolitan Borough Council, that Councillor Liz Dowd is to replace Councillor Paula Murphy on the Overview and Scrutiny Committee. The Combined Authority is recommended to appoint the following Member to the Overview and Scrutiny Committee: -
Nominating Body Member Sefton MBC Councillor Liz Dowd (Labour)
4. RESOURCE IMPLICATIONS
There are no resource implications as a result of this report.
4.1 Financial
There are no financial implications as a result of this report.
Page 265
4.2 Human Resources
There are no human resource implications as a result of this report.
4.3 Physical Assets
There are no physical asset implications as a result of this report.
4.4 Information Technology
There are no Information Technology implications as a result of this report.
5. RISKS AND MITIGATION
5.1 There are no risks and mitigation issues associated with this report.
6. EQUALITY AND DIVERSITY IMPLICATIONS
6.1 There are no equality and diversity implications associated with this report.
7. COMMUNICATION ISSUES
7.1 Subject to approval, the LCR Combined Authority website will be updated to reflect the change in membership.
8. CONCLUSION
8.1 This report has recommended an appointment to the Liverpool City Region Overview and Scrutiny Committee.
JILL COULE Monitoring Officer
Contact Officer(s): Jill Coule, Monitoring Officer, Tel: 0151 330 1855 Email: [email protected]
Trudy Bedford, Committee Services Manager, Tel: 0151 330 1330 Email: [email protected]
Appendices: None
Background Documents: None
Page 266 Agenda Item 16
TRANSPORT COMMITTEE
10TH OCTOBER 2019
Present: Councillor L Robinson, Chair, G Friel, Deputy Chair, P Cleary, J Dodd, S Foulkes, H Howard, N Killen, M O'Mara OBE, K McGlashan, P McKinley, N Nicholas, G Philbin, C Rowe, J Stockton, H Thompson, M Uddin, J Williams, J Wiseman and F Wynn
37. APOLOGIES FOR ABSENCE
Apologies for absence were received from Councillors Allan Jones, Paul Hayes, Anthony Lavelle, Linda Mooney and Paul Pritchard.
38. DECLARATIONS OF INTEREST
There were no declarations of interest.
39. MINUTES OF THE LAST MEETING
RESOLVED that the minutes of the last meeting of the Transport Committee held on 12th September 2019, be approved as a correct record.
40. PRESENTATION - TRANSPENNINE EXPRESS
The Committee received a presentation from the Regional Development Manager, Ms Lucja Majewski Kent in relation to the TransPennine Express (TPE).
Members raised the following: -
Councillor Ken McGlashan enquired about the TPE rolling stock and its current position and what had been put in place to mitigate any further delays.
Mrs Lucja Majewski informed the Committee that TPE have already accepted about 45% of the new fleet which was about 20 new trains, however, with the delays, the new services won‟t be introduced till December 2019.
Councillor Harry Howard commented about the TPE customer services and not having any integration in the North between the bus and train services. He enquired about the differences with First Group in Cornwall and the services in the north and whether any discussions were taking place with operators in the north to better integrate the services.
Mrs Lucja Majewski stated that she agreed that customer services was paramount and that it had been a challenge to integrate the services, but TPE would be open to having those discussions with the bus operators in the City Region to improve and better integrate the services.
Page 267 Councillor John Stockton commented about the success of the travel schemes and affordability for young people in the City Region and enquired if TPE were introducing any new deals and what had been done to encourage the rail industry to do the same.
Mrs Lucja Majewski informed the Committee that TPE had recently worked with Merseytravel on discounted apprenticeship tickets and was also looking at other age groups including the under 25s. She also spoke about a recent pilot scheme for job seekers in Hull, to have free train travel to attend job interviews and if they were successful in getting the job, the free train travel would continue for the first month and she would be happy to have discussions to try and pilot a similar scheme in the City Region.
Councillor Nathalie Nicholas enquired about rail performance in the north and any steps that may have been taken by TPE and other industry partners e.g. Network Rail to avoid any repeat of the chaos from last autumn.
Mrs Lucja Majewski informed the Committee that a new timetable was introduced in December 2018 which had more contingencies into the service and for the autumn in 2019 Network Rail have already started to treat the tracks. She also spoke about not introducing an autumn timetable this year as a result of the timetable introduced in December 2018 and not expecting any disruptions for 2019.
Councillor Jerry Williams enquired about whether TPE would be interested in looking at the Liverpool to Bradford route and possibly assisting the region with an express service to Manchester in the Huyton area.
Mrs Lucja Majewski informed the Committee that the train services requirements for the franchise are already set out and there were no plans to expand it, but she would be happy to take the information away and see if there was any scope with the TPE train planners.
Councillor John Wiseman enquired about the travel-safe initiatives that were ongoing within the passenger transport executive for 2019/2020 and beyond.
Mrs Lucja Majewski stated that she didn‟t have a response for the question, but would take it away and provide a response at a later time.
Councillor Gordon Friel enquired about the autumn timetable and if there was anything in place to provide assurance that there would not be a repeat of last year‟s problems.
Mrs Lucja Majewski stated that 15th December 2019 is the scheduled timetable day. In terms of performance there is a lot more due diligence taken and there is focus regarding the services and delivery.
Councillor Ged Philbin enquired about staffing locally for both on and off the trains and the apprenticeship programme of TPE.
Mrs Lucja Majewski spoke about recently employing about 100 drivers with local offices for on board hosts and conductors. The apprenticeship programme is going well with 12
Page 268 apprentices recently being recruited. The programme at TPE recruits apprentices every 2 years.
Councillor Pat Cleary commented about the TPE bicycle shelters not being fit for purpose in 2019 and a more protective shelter should be considered to encourage bike users on the network similar to that currently installed along the Merseyrail routes. He also enquired about the provisions for bicycles on the new trains.
Mrs Lucja Majewski informed the Committee that she would look at the bike shelters with her colleague and would be happy to look at improving the shelters and checking the shelters currently used by Merseyrail. She stated that there were 4 spaces for bicycles on the new trains with an updated reservation service which allowed for bookings to be made 10 minutes before train journeys via „Whats App‟.
The Chair, Councillor Robinson enquired about smart ticketing and how it was progressing on the TPE network.
Mrs Lucja Majewski stated that it was going well and tickets can be booked online with about 60% of season ticket holders having smartcards. There is a team working with Transport for the North to make things work better.
The Chair, Councillor Robinson enquired about the progress being made with TPE rail division and why the First bus division was refusing to take up smart ticketing in the North.
Mrs Lucja Majewski stated that she had no explanation but would take it back to the organisation
The Chair, Councillor Robinson thanked Mrs Lucja Majewski for the presentation and requested that if there were any concerns about services or delays in the future it would be helpful if the Combined Authority could be informed as early as possible.
RESOLVED that the Transport Committee noted the contents of the presentation.
41. QUARTERLY BUS UPDATE
The Committee considered a report from the Bus Strategy Programme Manager, Laura Needham who highlighted the following: -
9% growth in fare paying patronage year on year, which „bucks‟ the national trend in bus patronage; For the first time adult patronage has increased and is now driving overall growth with over 150m bus journeys being made in the Liverpool City Region; Green Bus Routes programme has begun with consultants being appointed to lead on the interventions and options along the corridors; 100% of buses in the Liverpool City Region are now taking contactless payments with the first week of take up being around 8.2% with an increase in September 2019 up to 11.10%;
Page 269 The Customer Growth and Development Work-stream continues in October 2019 with the campaign “We cannot wait to tackle climate change” theme which mirrors public concern; Second phase of consultation for the Sefton Network review has commenced in early June 2019 and the changes have been implemented since September 2019; „Cumfybus‟Ltd have applied and been accepted to join the Liverpool City Region Bus Alliance and are already participating in the business planning process for next year; The Liverpool City Region continues to explore the Bus Services Act with 3 options being assessed including franchising, enhanced partnerships and the Bus Alliance, an update was considered recently by the Combined Authority in July 2019; As a result of the new ticket machines for contactless payments there has been an increase in real time information accuracy; The Liverpool City Region Combined Authority has been shortlisted for the City Region Authority of the year; The Liverpool City Region Combined Authority Bus Alliance has also been shortlisted for three
Members enquired about the following issues:- The increase in patronage being contrary to the reduction in usage and if there was demand for the services available? Was the „older tyre ban‟ already done locally? What routes have been identified for the 24-hour service? Are there any other bus operators considering joining the Bus Alliance? Any plans for another service for the High Park estate? How accurate is the 95.3% for the RTI punctuality and reliability system? How is the demand responsive travel going in the Speke area? What provisions are in place for rural bus services in the city region, when operators are withdrawing services at short notice?
Laura Needham responded to the questions as follows: - The vision and information was built upon the public consultation and forms part of the business planning with the Bus Alliance for next year. Regarding the vision for the 24 hour services, it is to be rolled out across all services by April 2020. There is one other operator who is interested in the Bus Alliance. A review is conducted every 6 months and the High Park estate will be looked at again. Using the new ticket machines in place has assisted how the RTI information is tracked. Demand Responsive Travel has been good and in the first full week 472 new journeys were made on the service and it was running on about 21% in comparison to the 211 bus service. There has been a further 39% growth between week 1-4 and it is currently being monitored. Regarding rural bus services it is down to the network review services in each of the areas and looking at the provisions.
Page 270 Shane Fitzpatrick also responded as follows: - The „older tyre ban‟ is a policy that has been expanded nationally and been in place for a period of time. The Support Services contracts are checked regularly through an independent audit to ensure the services comply and meet the requirements of the „older tyre ban‟ policy. In terms of patronage there has been growth of fare paying passengers of over 16% and is currently bucking the trend in the region. Each small operator that tries to come into the Bus Alliance must set out a 2 year business plan, but there is also an allowance for an investment plan. There are currently very restricted budgets available, so it is not just providing services in the rural bus services areas. There is a protocol introduced through the Bus Alliance.
The Chair, Councillor Robinson commented about that the City Region does not have the budget it needs to cover the network in the City Region. He also complimented the team regarding the contents of the report and highlighted the good news stories including contactless ticketing being available on all buses in the region, Selwyns taking on the Avon Depot in the Wirral and coming into the region and the vision and ambition for the City Region relating to the bus service. He concluded that the nature of the devolved power is very prescriptive in the legislation and everything is being done to put together the business plan and to submit the recommendations for early 2020.
RESOLVED that the Transport Committee noted the contents of the report.
42. MERSEY TUNNELS LONG TERM OPERATIONS AND MAINTENANCE STRATEGY
The Committee considered a report from the Principal Policy Officer, Suzanne Cain relating to the Mersey Tunnels Long Term Operations and Maintenance Strategy.
Members commented about the following: - Excellent report highlighting the history and the work involved in keeping the tunnels going. The future demand projections and the increases identified are not consistent with the climate emergency figures. Flood risk probability concerns raised and enquiries about what was being done to mitigate these concerns. What was the outstanding amount still owed on the tunnels. Why could hydrogen vehicles not use the tunnels without a risk assessment. What was the contamination „spoil‟ scattered across the site at the Wallasey toll plaza.
Shane Fitzpatrick informed the Committee that the forecast was based on the Transport Model and following the approval of the strategy, the workforce would be consulted and governance arrangements would be put in place by establishing a Tunnels Board. He also stated that the hydrogen vehicles in the tunnels would be a risk, so a risk assessment would need to be completed and due consideration given. He also spoke about the contaminated land near the Wallasey toll plaza and the previous lease holders of the land.
Page 271
The Chair, Councillor Robinson spoke about the traffic levels and the charging levels for emissions.
John Fogarty informed the Committee that the total amount of tunnels debt was £31.8m and there had not been any new borrowing on the tunnels. Councillor Steve Foulkes thanked the officer team and welcomed the content of the report which provided a broader understanding of the tunnels, its network and infrastructure for the general public across the City Region.
The Chair, Councillor Robinson commented that the tunnels were part of the economic and social well-being of the region and welcomed the long-term plans for maintenance over the next 20-30 years.
RESOLVED that the Transport Committee noted the contents of the report and the officers be thanked for their work.
43. MULTI OPERATOR TICKETING SCHEME - PRODUCT AND PRICING UPDATE AND PROPOSALS
The Committee considered a report from the Head of Customer Deliver, Gary Evans relating to the ticketing scheme arrangements.
Councillor Christopher Rowe enquired about the income generated from the range of tickets across the region and how it was divided among the operators.
Gary Evans informed the Committee that there was an overarching operator scheme agreement which varied depending on the product and smart data.
The Chair, Councillor Robinson welcomed the report and reminded the Committee that it was a delegated decision being taken by the Committee and that it was the only region outside of London taking these types decisions.
RESOLVED that the Transport Committee endorsed the content of the report and the consultation response.
44. PUBLIC QUESTION TIME
The Committee received five questions from members of the public as follows: -
Ms Pam Hanson Question 1
I was on the X1 Liverpool to Runcorn bus when it broke down on the West Bound A562 just after the Knowsley Express Way around 15.35 on Friday 4 October 2019.
Page 272 The reason it broke down was because it caught fire. Some of us evacuated the bus but some passengers stayed on.
My question is why did it take an hour for us passengers to get another bus?
There was a mother and a baby on the bus and if it had been a serious fire then they would have had to get off the bus on uneven terrain by a very busy road.
The driver informed us that the next X1 would stop but when it arrived the driver of this bus shook his head and said no. So we had to wait for the next one. Admittedly it could have been full and unable to take more passengers.
However surely there should be a way of transporting passengers, from a broken down bus, when it is by a very busy road and they are in a dangerous position.
Question 2
I believe that you could only charge a Walrus card at a station within the Merseyside zone, but when I boarded the X1 in Greenway Road, Runcorn I saw a lady pay for the Walrus card on this bus and she and the driver said that this was alright?
I have had other discussions with people who believe that they can use it outside the Merseyside zone. Apparently, there are tickets that you can get that you can use but this causes confusion between the drivers and passengers.
Could it not be made clearer where the tickets can be used to save confusion between the drivers and passengers?
The Chair informed Ms Hanson that a formal response would be provided within 10 working days.
Mr Andrew Wennell Question 1 On the route towards Ecclestone in West Park there is a bus stop in Knowsley Road just before Rivington Road but the 35/35E doesn't stop there even though it says it does on the bus shelter. So instead, it stops just after it turns into Rivington Road. Now according to Google maps there is a bus stop but on street view there clearly is no stop there, but on the bus stop on the other side going towards St Helens it states the times and says the bus will stop on the opposite side of the road going towards Ecclestone. Why doesn't this bus stop at Rivington Road stop on Knowsley Road & why is there no bus stop with a flag going towards Ecclestone just after the bus turns into Rivington Road.
Question 2 If you apply for a Merseytravel OAP English National Concessionary Pass you could take your completed form plus evidence to a Merseytravel shop & they have a machine to make the pass while you wait.
Page 273 Now if you apply for a Merseytravel DISABLED English National Pass it needs to be sent away to get approved & when its application is successful they will send out your pass in the post. A lot of people who apply for an OAP pass can also drive and have a car. The majority of Disabled people who apply for a Merseytravel Pass are unable to drive and use public transport to access the community. If they can make the pass while you wait for the OAP'S then why can't they do this for the Disabled Pass? If the people who apply for the Disabled Pass have to wait then the OAPS should wait too.
The Chair informed Mr Wennell that a formal response would be provided within 10 working days.
Mr John Brace Question 1 At the end of the Transport Committee on the 4th April 2019, you announced that the Liverpool City Region Combined Authority had been successful in its bid for £7.5 million of Access for All funding from the government to improve disabled access at various train stations (Birkenhead Park, Broad Green, Hillside, St Michael‟s and Hunts Cross Stations). The Liverpool City Region Combined Authority also decided at its meeting on the 28th June 2019 to also contribute £7.5 million of its own funds towards the project from the Strategic Investment Fund.
Therefore, as the budget has already been agreed could you please give timescales (or indicative timescales) as to when the LCRCA expects that works to improve disabled access at each of those 5 stations will be completed? The Chair informed Mr Brace that a formal response would be provided within 10 working days.
45. PETITIONS AND STATEMENTS
No petitions or statements were submitted for this meeting.
46. ANY OTHER URGENT BUSINESS APPROVED BY THE CHAIR
There was no urgent business.
Chair of the Transport Committee
(The meeting closed at 3.25 pm)
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