Devolution Prospectus

Transcription

1 Devolution Prospectus EXECUTIVE OVERVIEW A unique devolution deal between Government and the two Combined Authorities of the D2N2 LEP area. The first in a two tier area with significant physical and social geographic challenges this deal represents a nationally scalable model of sustained economic growth in partnership with cities, counties and districts. Using the two Combined Authorities as the platform for strong cohesive delivery we are resolute in ensuring our devolution ambitions drive sustainable economic growth across the D2N2 LEP and are detailed in this prospectus through an approach of robust collaboration and a firm commitment to work in partnership with Government. Our key proposals that demonstrate this ambition are to establish: 1. A Free Trade Zone in association with East Midlands Airport, working with Government to define its form location and development 2. An Investment Fund to maximise market success through the finance required to develop infrastructure and help business to grow 3. London Style Transport Powers for bus franchising to better manage and rebalance the network, the devolution of traffic management powers to allow more efficient operation of local roads and to take over the Highways England role in the operation and maintenance of our trunk roads. Through this Devolution Prospectus, D2N2 make the offer to Government to; provide a model of two tier devolution that is scalable nationally; make resources and funding go further that will demonstrate real value for money; enable Government to talk to us as two Combined Authorities; increase competitiveness for UK businesses in terms of trading on a global scale; help create the 55,000 new private sector jobs committed to in our Strategic Economic Plan; develop a Further Education approach in the two areas that is focused on business need now and in the future; ensure more of our population become economically active, reducing NEET levels, unemployment and the welfare burden; deliver a collective approach with developers to bring forward sites that are exclusively or predominantly employment related, including the reclaiming of contaminated sites; coordinate local responses through our two Combined Authorities to key national infrastructure decisions such as HS2 and trunk road programmes; deliver a detailed programme of strategic infrastructure improvement through Midlands Connect process; develop an international exemplar through a Smart Commission taking our traditional connectivity strengths into a new age; Develop an advanced energy strategy that secures the long term security and affordability of supply and development of the low carbon sector. 1

2 A devolution deal to drive our global competitiveness Our vision, as Place Leaders, is that the D2 and N2 areas will become more prosperous, better connected, and increasingly competitive to ensure there are resilient economies at the heart of the UK generating significant earnings for UK plc. We will do this through making a significant contribution to the UK economy through our seven priority sectors, especially in the areas of advanced manufacturing and life sciences where we already lead the way. The Core City LEP area, comprising Derby, Derbyshire, Nottingham and Nottinghamshire (D2N2), has already identified itself as the UK s Most Inspirational postcode and at the forefront of rebalancing the UK economy. Our economy is anchored by global giants such as Rolls Royce, Walgreen Boots Alliance, Toyota, Speedo, British Sugar, Thorntons, Capital One and Bombardier. However, SMEs are at the heart of our sustainable economic growth. Innovation and entrepreneurship is in our DNA, enabling our SMEs and start-ups to grow faster, access finance, innovate and export. Our Devolution Deal takes both the D2N2 Growth Deal and Nottingham City Deal to the next level by delivering: Increased productivity through a step change in matching skills to economic need-focused skills The roll-out of an integrated model that aligns business support and skills development through the D2N2 Growth Hub and approaches such as the Nottingham Employer Hub and the Derbyshire Guildhall Increased Foreign Direct Investment and exporting through clustering Accelerated delivery of new homes and the infrastructure to support this, creating more prosperous, sustainable communities Modelling place leadership through establishing the D2N2 area as the UK s smartest region Comprehensive roll-out of super-fast broadband to communities and businesses, and development of 4G technology and beyond This devolution deal will provide the D2 and N2 Combined Authorities with the powers and levers to deliver our ambition for sustainable Growth and Jobs. Our LEP s Strategic Economic Plan (SEP) focuses on our one overarching target to create 55,000 new jobs by This devolution deal will enable us to take our SEP to the next level and increase productivity in the D2 and N2 areas. delivered by a strengthened local partnership The two proposed Combined Authorities of D2 (Derby and Derbyshire) and N2 (Nottingham and Nottinghamshire) working intrinsically with the D2N2 LEP are making this proposal to Central Government to start the process of securing a substantial devolution of power, funding and responsibilities to deliver this ambition. We will continue to strengthen our collaborative governance arrangements, building on our welladvanced work to create the first model in the UK of two Combined Authorities and one LEP with the strong support of business leaders, universities and other partners. We recognised the strategic importance to the D2N2 area of the Sheffield City Region, Manchester City Region and Leicester and Leicestershire LEP area. We will maximise opportunities to collaborate with other key stakeholders such as HCA, Highways Agency, FE colleges and East Midlands Airport to create innovative partnership delivery models that secure robust solutions and will engage with them to develop coherent plans that address the needs of business and communities. We will explore new opportunities to engage our citizens and communities in the decisions that affect their prospects and prosperity. We respect the principle of subsidiarity; that decisions should be taken as close as possible to the people most affected. 2

3 Local areas should be the beneficiaries of local growth with increasing local control over the public revenues raised from sustainable growth. By acting locally we can compete globally. The devolution of powers, resources and appropriate alignment of accountability will ensure that our Place Leadership can create a great place to live, work and invest. and based on 5 strands which will raise productivity, stimulate sustainable growth and create jobs Building on our City Deal, Growth Deal, SEP and the offers in the two Combined Authority proposals, devolution will provide the tools and levers for our two Combined Authorities and LEP as Place Leaders to meet the diverse needs of our rural and urban communities in creating growth and jobs to significantly drive up productivity. The five strands of our prospectus set out our ambition which we will negotiate with Government. 1. Enterprise 2. Skills & Employment 3. Built Environment 4. Transport 5. SMART Infrastructure As well as the additional outcomes that each of our strands will deliver, the D2N2 area will also benefit from the ability to align and join up funding streams that are currently driven by disparate and disconnected policy. Devolution will allow joined-up local decision making, linking our investment in skills, enterprise, infrastructure and housing in ways that are not possible whilst powers and funding is held in Central Government departments. Devolution will also allow the D2 and N2 Combined Authorities to take a long-term perspective to addressing complex and deeprooted issues, rather than having to react to a constant churn of short-term initiatives. By taking a long term view across these strands, we can invest to create and unlock value over time as well as building the confidence of investors from across the private sector to locate, develop and thrive in the D2N2 area. 1. Enterprise A Free Trade Zone in association with the East Midlands Airport, with favourable tax treatment to maximise the opportunities for trade and supply chain development in the D2N2 area. Our goal is to drive forward the area s global market presence by attracting new businesses, growing indigenous businesses, supporting the growth of SMEs in the wider supply chain and capturing new foreign investments. This not only involves our ambition to develop the largest UK freight hub but also to secure international connectivity through the expansion of the airport with more global passenger reach. An Investment Fund to maximise access to the financial mechanisms needed to develop infrastructure and help businesses to grow. This would bring together devolved capital funding for economic development, transport and regeneration. Financed through existing funding in the British Business Bank and UKTI s overseas Regeneration Investment Fund and matched by European Investment Bank funding, we will look to maximise local private and public sector sources such as local government pension funds. Productivity gains in our seven priority sectors forming national/local task forces and associated supply chain programmes to focus on maximising the benefits for our SMEs in the supply chain from the competitiveness of our world-beating companies. 3

4 Helping business grow through a joined up approach that includes control over national and local programmes and funding streams to help D2N2 businesses to grow. Devolved business support budgets matched by local authority staffing would allow us to deliver a network of local, integrated Growth Hubs in priority areas of the two Combined Authorities providing local accountability for the impact of this activity. Providing locally-focused support to micro and SMEs, particularly in our most disadvantaged and economically challenged areas where structural change and rurality affect the ability of local economies to reach their full potential, is critical to sustaining successful growth. 2. Skills to Employment Skills Programmes; devolution of Adult Skills Budget, AGE grant and the responsibility to commission the national careers service through joint accountability with the Skills Funding Agency shared between national government and our two Combined Authorities. We will improve the impact of the FE system and co-commission activity from FE colleges and private training providers to meet the immediate and long term requirements of the labour market. Focus will be on our seven priority sectors to ensure the needs of economy and our employers are met. This will include filling the skills gaps in our priority and growing sectors and delivering enhanced apprenticeships that will make a real difference to our economy. This will allow us to use the flexibility of the devolution deal to create real and meaningful apprenticeships. We will build on our City Deal Apprenticeship Hub rolling out our brokerage service and targeted incentive scheme to micro and SMEs across the D2 and N2 areas. Employment Programmes; devolved Work Programme (or its successor), the Youth Contract and responsibility for locally delivered DWP services, allowing joined-up employability support to be delivered more effectively, particularly to those with the highest needs, including reducing the level of NEET across the D2 and N2 areas. We will build on our work to develop integrated support to families through our Early Intervention and Priority Families strategies. We will also develop further our existing integrated service provision with DWP through the roll out of the Employer Hub model established as part of the City Deal process and the 21 st Century Guildhall project. 3. Built Environment A Housing Investment Fund delivering our ambitious plans, including funds and guaranteed loans devolved from the Homes and Communities Agency (HCA) and assets owned by the HCA, including decontaminated sites, being fully devolved to the Combined Authorities. Social and affordable housing to lift the borrowing cap on the Housing Revenue Account, to provide the D2 and N2 areas with the flexibility to build the new social and affordable housing needed to meet the changing demands of our citizens across our diverse rural and urban areas. We seek to intervene in the private rented sector, as well as the affordable and market sale sectors. We can realise considerable savings on Housing Benefit for the Treasury by delivering affordable, good quality and well managed housing at below Local Housing Allowance rates. Crucially, we seek to unlock the housing market by facilitating the development of stalled, smaller sites by bringing vacant properties back into use, by generating affordable homes and by working collaboratively and strategically on housing land supply. Our planning authorities will explore opportunities to strengthen co-operative and strategic working both within the combined authorities of the D2N2 area and with adjacent LEPs and combined authorities such as Sheffield City Region, Greater Manchester City Region, Leicester and 4

5 Leicestershire. The complexities of differing planning responsibilities amongst local authorities within our unitary and two tier arrangements will be fully recognised through this approach. 4. Transport The creation of an integrated transport system that includes powers for bus franchising to better manage and rebalance our network; the devolution of traffic management powers to allow more efficient operation of local roads, and to take over the operation and maintenance of trunk roads in the area. This will be underpinned by a 10 year transport funding allocation to create certainty and stability through long term planning. Providing better connectivity, especially in our rural and hard to reach areas, will ensure better and more affordable access to employment for all our communities. Commitment to ensure the D2 and N2 Combined Authorities have influence over the investment plans for our strategic transport connections, including new rolling stock for an electrified Midland Mainline that with scheduling enhancements will achieve journey time reductions to London. Commitment to improve strategic road and rail links within the Midlands and to other Core Cities to make our economy work more efficiently. This would include improved connectivity to the East Coast Mainline through the Newark Interchange, more control over the planning and delivery for preparation of HS2 and the development of a mass transit strategy for the D2N2 area. 5. SMART Infrastructure Develop a SMART Commission that will drive the improvement of telecommunications infrastructure across D2 and N2 to provide universal connectivity and enable a smarter society.. Building on our experience of broadband and other communications projects, we believe that universal superfast broadband connectivity is within our grasp and that 4G coverage - and beyond - across our area can be achieved. This will provide a strong boost to our global competitiveness, ensuring that 100% of business and residential premises are connected, including our most remote areas where digital exclusion is a real barrier to economic growth and wellbeing. Working with telecommunications and mobile providers and our universities we can plan and deliver a rollout of advanced technology that will fit the specific challenges of our diverse areas. We want to work with Government and the industry to develop a model for 100% connectivity. Developing a Localised Energy Strategy taking local control of energy-efficiency funding and programmes to create a joined-up strategy for energy reduction and production through engagement the private, public and education sectors. A key component of the strategy will be the development of the high-value low carbon sector, including infrastructure development for electric vehicles. Devolution here will ensure all communities and businesses can contribute to and benefit from success within D2N2, grow new and emerging sectors of international significance and allow the development of sustainable local solutions to national problems. Public Sector Reform All local authorities that form the two Combined Authorities within D2N2 LEP area are clearly of the view that democratic decision makers are best placed to make decisions on public services that are required to meet the needs of local citizens. The different funding regimes and operating frameworks that apply to the various public sector disciplines do not allow for place making decisions. The D2 and N2 combined authorities want to use this devolution deal conversation to open up a long term dialogue about how aspects of the public sector, such as social care and health, can be replicated to a local governance model. 5

6 1. ENTERPRISE Rationale Through the Devolution Deal we will deliver an effective relationship between national and local resources, programmes and interventions that maximise the benefits from the productivity gains of our unique and globally competitive companies. Devolution gives us the opportunity to realise an economic step change, bringing about significant productivity and innovation gains through added value business growth. Our challenge is to unlock the potential of our geographic cluster of internationally significant companies by enhancing productivity and driving the growth and development of the indigenous micros and SMEs in our supply chains. Asks of Government and Powers to: 1. Establish a Free Trade Zone in association with East Midlands Airport, working in partnership with Government to define its form, location and development 2. Create a Local Investment Vehicle to channel resources and investment to businesses and projects that need it through pooling local and national funds 3. Establish a dedicated team combining national and local expertise and resources to drive productivity across our globally significant businesses and growth sectors, and support the competitiveness of local supply chains 4. Configure a seamless package of business support available to all D2N2 businesses, integrating the resources and capabilities of national programmes and partners matched with local commissioning and capacity Benefits Making the most of our most successful firms requires that they are supported and that their growth benefits the wider D2N2 economy. This in turn requires the resources used by national government (its network of embassies, supply chain programmes, funding for growth and for collaborative research, enabling legislation) be effectively integrated with the planning powers, skills development and understanding of local supply chains; with the power to support sectoral growth held more firmly in local hands. Unlocking this latent potential within the local ecology of 2 nd and 3 rd tier suppliers will not only drive up their productivity but match their competitiveness to that of the OEM s. This ask is a clear and natural extension of the combined authority proposals and will enhance our capacity and capability to secure growth in better quality and more sustainable jobs in key localities, enabled by technology and supporting prosperous. Proposals We will deliver this step change in economic prosperity through four strategic, integrated interventions, forging a new partnership with Government. In recognition of the unique role of Government, our Devolution Deal blends economies of scale and strengths of national programmes of business support including UKTI and MAS, and seeks to enhance local impact by focusing new interventions around solution specific opportunities of scale. Free Trade Zone (FTZ) D2N2 is located at the heart of manufacturing in the UK, and situated on the edge of East Midlands Airport (EMA) which is the second largest international freight airport in the country, after Heathrow which is struggling with capacity. Sea freight is now secondary to air freight. This general area is well served by the M1 and M42 motorways. Existing rail connectivity will be significantly enhanced with the development of new rail hubs in the area including the Roxhill Freight Interchange. In the future, it will also have access to HS2 via the East Midlands Rail Hub. 6

7 This is the best location in the UK to site a Free Trade Zone to support international trade and inward investment. There are specific site options to be considered that are in close proximity of the airport, all offering appropriate developable land for a designation of this scale and importance. A free trade zone would be sited on a bespoke delineated location(s) with good connection to road, rail and the airport. It would be available particularly for new Foreign Direct Investment and companies intending to radically expand their operations to encompass international trade. Particular targets for the zone would be tier one automotive and aerospace suppliers. It would therefore be necessary to link UKTI inward investment and trade activity to the zone. We recognise that free trade zones in the UK previously have not delivered to the level of expectation with concerns around displacement and loss of revenues to the Exchequer. We believe that the cluster of our OEM s and the strength of our local infrastructure assets (across road, rail and air) create the conditions for a successful designated Free Trade Zone. In a global market place, locations which offer added value services, are closer to the customer base, have close proximity to sources of innovations and centres of excellence, will be ideal for re-shoring and securing investment from business. Currently there is a disconnect across OEMs, their international customer base and supply chains, curtailing innovation and new market / product development. There is the need to further stimulate the supply chain and innovation within it to safeguard and drive future growth. EMA is the UK s premier airport for pure freight. Its proximity to the Roxhill Freight Rail terminal, M1 (wider strategic Road Network) new Business Park capacity and future HS2 development, makes it ideal for a nationally designated Free Trade Zone Hub. Coupled with this is EMA s ambition to double in passenger numbers rising to 10 million by The Free Trade Zone would become an internationally competitive location of choice for freight, OEM (and associated supply chains) and new carriers (long haul carriers). We are seeking dialogue with Government to consider future public policy and the specific opportunity to establishing a Free Trade Zone in association with EMA. Investment Fund Businesses, particularly micros and SMEs, continue to encounter difficulty in terms of accessing finance to help grow their business either the finance is not forthcoming or the terms and conditions are so prohibitive that the deal is constrained from the outset. We know from sector intelligence that 75% of all investment funding for Life Sciences is concentrated in the South East. In order to capture growth, in both economic and productivity terms, we need to undertake actions that help rebalance the UK economy. In this area we have already established very successful access to finance initiatives that have covered grants and loans to enable businesses to grow. Our proposal is to establish an Investment Fund and the creation of a local investment bank, bringing together devolved capital funding for economic development, transport and regeneration purposes. This innovative approach will pool both locally and nationally determined funds. Funding at a sufficient level, will enable a 1billion Regional Investment Bank to be developed and both private and public match-funding (including European and EIB funding and local partners through the Local Growth Fund, local authority reserves, non-domestic rates income and pension funds) to be secured to support further the commerciality and sustainability of the structure. In this way, a Regional Investment Bank will be able to properly address and target the local issues faced by businesses in accessing finance under a single umbrella, as well as providing investment 7

8 capital to bring forward infrastructure and regeneration projects further driving growth in the economy. Productivity Gains in priority sectors Developing a conducive environment for our world beating companies (often known as Original Equipment Manufacturers or OEMs) is a priority, ensuring they take advantage of global opportunities from the places in which they exist. Our focus will be on our micros and SMEs in their supply chain that need to be enabled to match the level of productivity and innovation within the OEM s, creating a resilient, internationally competitive and highly skilled local eco-structure. Enabling this eco-structure will require access to a suite of sector and bespoke wrap around programmes that will support new investment, collaborative research, highly skilled workforce development and physical infrastructure schemes. To deliver this we propose the development of dedicated Task Groups, incorporating national (Whitehall/BIS/UKTI) and local (D2N2, LA S Chamber, universities and business) partners to address sector specific opportunities and challenges. The focus will be to design and shape the next generation, fit for purpose, internationally competitive supply chains, starting with the Transport Equipment Manufacturing. Ensuring the greatest impact of Rolls Royce s ambitious plans in Derby and Nottinghamshire (Hucknall) would be the first priority followed by the other priority sectors in our SEP such as Life Sciences and Low Carbon. Integrated Business Growth Hub Businesses, micros and SMEs in particular, need to be able to access relevant and timely business support products in order to maximise their growth potential. National programmes through UKTI, MAS and Growth Accelerator provide much needed generic support but are not aligned or coordinated with local need. Local businesses also find it difficult to know what is available and how to access this provision.the D2N2 LEP and Nottingham City Council are already establishing an integrated Business Growth Hub that will act as a shop window for a range of business support interventions all coordinated and designed to help micros and SMEs achieve growth; this model will be rolled out to all areas in D2 and N2. Extension of the Growth Hub will form part of an integrated model that aligns business support and skills development through approaches such as the Nottingham Employer Hub and the Derbyshire Guildhall. This will overcome the ongoing problem of a lack of connectivity between national programmes and local need and the remoteness felt by businesses in terms of accessing the support to help them help themselves grow. In order to ensure real integration of support and a clarity of message the main partners will colocate, this will include the LEP, City Council, Chamber of Commerce and national providers such as MAS and UKTI, then further match from local authorities as the model is extended across D2 and N2. This brings further alignment, coordination and local targeting of support that also has an integral account management function for businesses in the strategic key growth sectors. Our proposal is about more than integration we want to be held accountable directly to National Government (BIS) for business growth and achieving business growth targets. There will be two phases to this the first will be to commission business support that will meet the needs of local micros and SMEs, including those in the supply chains of our primary OEMs and to ensure that growth is delivered. The second phase will be to take on the role of a full delivery partner, again being directly accountable for the resulting business growth to Government. 8

9 2. SKILLS to EMPLOYMENT Rationale In a local labour market where skill levels are already well below the national average, to enable the D2N2 economy to reach its maximum potential now and in the future, we need to improve the quality, reach and integration of education and employment so that it adequately prepares people for future work opportunities. We recognise that businesses must play a central role in developing and delivering improvements to our approach. Asks of Government and Powers for the: 1. The two Combined Authorities become responsible for reshaping and restructuring under performing local FE provision, and for co-commissioning the National Careers Service and a proportion of the Adult Skills Budget 2. The two Combined Authorities become responsible for local delivery of the Apprenticeship Grant for Employers (AGE) 3. The two Combined Authorities become responsible for commissioning the Work Programme (or its replacement) and the Youth Contract 4. The two Combined Authorities become responsible for local delivery of DWP services and commissioning of related activities Benefits These ask builds on the well-developed proposals of the combined authorities and by devolving these powers, funding and responsibilities to the Combined Authorities, Government will secure a locally coordinated, coherent approach to better align employers demands for existing and future workforce skills with local education, pre-employment training and in work training provision. The Combined Authorities will target funding, commission bespoke training programmes and deliver services to ensure businesses skills needs and skills gaps are filled. They will also provide the support and pathways for young people from their priority groups to ensure they can progress into employment. Proposals The challenges of the employment and skills agenda are twofold. Firstly, we need to ensure that everyone entering or re-entering the labour market has the skills needed by local businesses. Secondly, we must have clear co-ordinated strategies in place to ensure that people who experience high levels of disadvantage through urban deprivation and rural isolation, are able to benefit from the job opportunities created by wider economic growth. The D2N2 LEP has already set out its desire to agree a Skills Deal with Government. This devolution deal with the two Combined Authorities provides a governance mechanism to achieve the ambition through: Reshaping and Restructuring Local FE Provision and Local Commissioning of Skills Provision Through joint accountability for the Skills Funding Agency shared between national government and our two Combined Authorities, we will improve the quality of the local FE system where there is under performing FE provision having responsibility for implementing the recommendations of the current and future FE Commissioners review. We would also co-commission activity from FE colleges and private training providers to meet the immediate and long term requirements of the labour market, with particular focus on our seven priority sectors. By more closely aligning the education 9

10 and training offer to the needs of local employers, we will ensure our future and existing workforce develop the skills required to help grow businesses and the economy. Local Delivery of the AGE Grant Building upon our City Deal Apprenticeship Hub we will roll out an independent brokerage service to support employers (particularly small and medium enterprises and those in the Voluntary and Community Sector) to create additional Apprenticeship opportunities for young people. Alongside this service the Combined Authorities will deliver a targeted incentive scheme to micro and SMEs across the D2 and N2 areas, building on the lessons learnt from existing local incentive schemes. Local delivery of the AGE grant will enable us to vary the level of support according to the different types of learner, sector/subject area and level of apprenticeship. This will ensure that we drive up demand for apprenticeships, particularly within our target sectors, but also ensure that they are more accessible for all individuals within the local labour market. Commissioning of Work Programme and Youth Contract The policy and funding landscape for skills and employment activity is complex and often confusing for stakeholders and beneficiaries alike. There are numerous organisations involved in designing, commissioning and delivering services which aim to tackle skills and employment issues. Not only is the landscape complex but it is constantly changing and nationally driven this has its own consequences in terms of sustaining impacts and delivering more holistic services and programmes to tackle high levels of deprivation and disadvantage. Through local commissioning of the Work Programme (or its successor), and the Youth Contract we will implement joined-up employability support, which is aligned to locally delivered employment support, but also other local authority provision such as health and care services, education, and careers guidance. We will ensure provision is delivered more effectively, particularly to those with the highest needs, including reducing the level of NEET across the D2 and N2 areas. This new localised approach to coordinating support will contribute to the reduction of the number of long term unemployed in the area and deliver a reduction to the Welfare Bill Local Accountability for DWP Functions By devolving the responsibility to the Combined Authorities for delivery of DWP employment and benefit functions and funding, we will ensure that provision aiming to support people into employment is driven by local need and integrated with wider services, thereby reducing duplication and maximising value for money. By more closely aligning DWP funded provision to locally coordinated strategies and their programmes, the Combined Authorities will be able to minimise the conflict between local and national priorities. Building upon the success of the integrated employer functions delivered though the City Deal, we will develop further our existing integrated service provision with DWP through the roll out of the Employer Hub model established as part of the City Deal process and the 21 st Century Guildhall project and we will build on our work to develop integrated support to families through our Early Intervention and Priority Families strategies. We would also welcome the opportunity to discuss the development a locally coordinated approach to supporting ESA claimants back into work, in line with the Working Well Pilot established in Manchester. 10

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12 3. BUILT ENVIRONMENT Rationale Delivering housing development is central to supporting and facilitating all aspects of growth. The devolution asks and offers seek to bring about increased housing delivery as well as higher standards through a number of flexibilities and more effective use of existing resources and levers. We want Government to acknowledge the role that local authorities have in bringing about housing growth, so amply demonstrated by the recent Elphicke / House review. So much more could be achieved by lifting some of the restrictions upon the use of resources that currently exist. The Planning system is often experienced as complex with outcomes uncertain and presenting a block to development. It is reactive in nature and does not consistently deliver the good quality development that communities deserve. Building great places requires civic leadership and collaboration across the built environment disciplines; this is what we seek to bring through our proposals. Asks of Government and Powers to: 1. Consolidate existing and future HCA grant, loans and equity schemes into a single amount and flexibility of their use 2. Lift the borrowing cap on Housing Revenue Accounts and extending the scope of their use 3. Have greater flexibility on the use of Right To Buy receipts and the ability to negotiate packages of grant for Registered Providers to support a wider range of housing needs, ranging from social rent to intermediate and market products. 4. Create joint vehicles between the Government and each Combined Authority around the disposal of assets between public bodies including HCA assets including decontaminated sites to enable those best placed to fully realise their potential to do so. Benefits We believe that Government is not realising the full potential of its investment in housing because it is often allocated via national programmes which don t always meet the specific needs of more challenging localities. By channelling investment via our two Combined Authorities we can ensure that Government gets maximum delivery and value for money by ensuring the types of projects which are most relevant to the LEP area s needs are those which receive investment. The asks build on the proposals of the two combined authorities in securing a more affordable supply of housing and facilitating more appropriate land for development and redevelopment. Proposals Whilst our asks are fiscally neutral, one proposal is that Government helps to unlock private sector investment in housing by indemnifying private sector lease back schemes. There appears to be a strong appetite for such schemes, whilst all the risk remains with local authorities they will not realise their potential. Housing A Housing Investment Fund delivering our ambitious plans including funds and guaranteed loans devolved from the Homes and Communities Agency (HCA), with assets owned by the HCA, including decontaminated sites, being fully devolved to the Combined Authorities. This will enable the two Combined Authorities flexibility beyond the national programmes or deviation from set criteria to allow funding to be more appropriately being applied to the needs of the area, in turn getting more out of investment and producing a more sustainable and impactful result. Our approach will facilitate development of stalled, smaller housing sites through targeted remediation and 12

13 infrastructure work and bring vacant and underutilised properties back into residential use to assist the vitality and sustainability of market towns and more vulnerable settlements Social and affordable housing to lift the borrowing cap on the Housing Revenue Account, to provide the D2 and N2 areas with the flexibility to build the new social and affordable housing needed to meet the changing demands of citizens across our diverse rural and urban areas. The new build programmes will be self-funding through increased rental income streams. We seek to intervene in the private rented sector as well as the affordable and market sale sectors. We can realise considerable savings on Housing Benefit for the Treasury by delivering well managed housing of good quality at below Local Housing Allowance rates. Ideally, we would like to link the payment of Housing Benefit to the delivery of certain minimum housing standards, again improving outcomes for Government at both a fiscal and social level. We would also like to be able to use the appropriate levers for raising standards in the private sector more effectively. Interventions to improve the management of the existing PRS stock, combined with the opportunity to bring significant new investment into the sector for new private rented homes could transform the tenure into one which fully delivers for the local communities of the LEP, providing high quality, easy access housing for those working in a growing economy. Crucially, we seek to unlock the housing market by facilitating the development of stalled, smaller sites by bringing vacant properties back into use, by generating affordable homes and by working collaboratively and strategically on housing land supply. Place Leadership As part of the Devolution Deal and D2N2 s offer to Government, the planning authorities will explore opportunities to strengthen co-operative and strategic working both within the combined authorities of the D2N2 area and with adjacent LEPs/ combined authorities such as Sheffield City Region, Greater Manchester City Region, Leicester and Leicestershire. The complexities of differing planning responsibilities amongst local authorities within our unitary and two tier arrangements will be fully recognised through this approach. We will explore 3 areas for improving collaborative working: 1. Prioritising Employment Sites A collective approach with developers to bring forward sites that are exclusively or predominantly employment related. The ambition being to prioritise them for funding given a market influence and addressing barriers to development. The opportunity exists to set up an ongoing, structured fourway dialogue between the Combined Authorities, the local authority (planning) partners, developers and end-users / businesses in bringing forward employment land that is serviced, market-driven, reflects the (sector) opportunities and where barriers to development exist, targets resources financial and otherwise - accordingly. 2. Co-ordination over Section 106 / Developer Contributions A LEP / Combined Authority position on S106 and wider developer contributions. The ambition being to ensure co-ordination between the local authorities with developers to ensure sustainable and viable developments are secured. The current consultation on S106 Agreement relates in part. Section 106 requirements are often cited as late additional burdens prevailing against viability. 3. LEP-wide Planning Charter We would explore the option of creating a practical planning charter to demonstrate and facilitate a business friendly approach to the planning process. The ambition being to ensure that collectively we deal with employment / large mixed use sites etc in a timely, joined up and cost effective 13

14 manner. The Charter will have the core objective of creating sustainable economic growth within smarter, sustainable communities,, being a mutually agreed process between the respective local authorities and developers. In addition to these 3 areas we recognise that good design builds communities, creates quality of life, and makes places better for people to live, work and play in. A key component of new development in a thriving, successful region is quality: quality of design and materials; sustainable functionality for immediate users and the locality; sympathetic to existing heritage; but progressive enough to inspire. To secure this kind of development, the D2N2 region will embed the recommendations of the Farrell Review into a more proactive planning approach, integrating PLACE leadership and the development of a Built Environment Strategy. One Public Estate Maximising the release of surplus public sector land is critical to supporting the Government s ambitions to reduce the deficit, increase the number of homes being built and drive economic growth. This aligns with the D2N2 ambition to maximise the economic returns from public sector land assets. D2 and N2 Combined Authorities are seeking to work with Government to maximise the economic returns from public sector property assets. Economic return is defined as efficiency through significant rationalisation of the public sector estate; using surplus public sector property to deliver housing and commercial development and use the strength of the public sector covenant from its own occupation to stimulate economic growth. Both our Combined Authorities would seek to create a vehicle such as a Joint Asset Board with Government to influence asset development in a way that supports the growth of the local economy. The Board s primary aim will be to achieve a more integrated approach to how the public sector uses its assets in the two Combined Authority areas, to support growth and deliver better value for public money. Local setting of charges The Combined Authorities are asking for the freedom to set planning and licensing fees locally. Currently the fees payable for planning and licensing are set centrally by Government. Planning application fees form a very small proportion of development costs less than approx. 0.5% - and thus recovery of true costs would not impact upon the viability of developments. An average spend per application in 2013/14 in the N2 Combined Authority area was with an average fee income per application of resulting in an average subsidy per application of and therefore do not accurately reflect the cost of delivering these services. 14

15 4. TRANSPORT Rationale Good transport is a key driver of economic growth, however, with high levels of congestion and physical barriers to bus and rail connectivity across the region, we know more innovative travel and transport solutions are needed if we are to sustain and increase growth. Across the D2N2 area we need to better connect our communities to employment opportunities whilst ensuring we meet the demands of businesses and a challenging physical geography. We are keen to develop a very different vision about our place and our people; we want to demonstrate strong leadership in the better use of technology, in creating genuinely sustainable communities (with live/work opportunities at their heart) through better quality and better designed developments that enable people to make better choices about their need for travel; we want to make sure that any future investment in transport, traffic and highways is focused on improving the quality and experience of essential travel, but moreover, that through a more imaginative approach of integrating advance technology into new developments, we can significantly reduce the need to travel at all. In both rural and urban contexts we need coordination and local influence over decisions on investment and deployment of current and future resources if we are to achieve this.. We know this is deliverable as our approach builds upon the existing powers available to London and similar components to the Manchester and Sheffield Devolution Deals; but we are also keen to work with Government on developing a much more ambitious approach to travel and transport that could set the standard for development and spatial planning across the UK. Asks of Government and powers to The key proposals for the D2N2 area are: 1. A 10 year commitment to the devolving of Central Government funding for transport already not devolved consistent with other Deal areas. 2. London style powers and devolved funding to introduce bus franchising on a staged basis and to better manage and rebalance the network 3. Powers to better manage and more efficiently operate the local road network and take over the operation and maintenance of trunk roads; make and amend traffic and parking orders, and change local rights of way. 4. The ability to directly determine strategic infrastructure priorities to drive economic growth. Benefits Improvements to transport infrastructure, traffic and network management are inherent in the proposals of our two combined authorities. This devolution deal is a natural extension of these proposals. By securing long term funding commitments and devolving powers and funding decisions to the D2 and N2 Combined Authorities the area will be able to redress the underinvestment in transport and exploit the full potential of linking local transport decisions to sustainable economic growth. Ensuring investment is targeted at critical road corridors, particularly those with essential links to wider economic geographies in Sheffield, Manchester andthe West Midlands, will enhance connectivity and support growth. Better management of our bus system will allow us to ensure adequacy of service in rural areas whilst removing the negative impacts of destructive competition that undermines investments in quality improvements in urban areas, such as the expansion of the Nottingham Express Transit system. Better management of the local road network is more efficient than investing in infrastructure improvements in the first instance. 15

16 Proposals The D2 and N2 Combined Authorities believe that local decision making will bring significantly better use of the existing transport infrastructure and assets. This is not merely a case of spending more money although a rebalancing of national transport spending towards the area is requested. The premise of our asks are that local knowledge and control will lead to smarter decisions, reducing uneconomic competition and arbitrary decision making, thus saving the Government money in the future. A 10 Year Funding Commitment Being centrally located in the centre of the country, major strategic routes are key arteries for both movements within the area but also for transitional routes from and to areas beyond. As a result inefficiencies in the transport network here also adversely impact further a field. Early analysis through Midlands Connect identifies that large and widespread journey time savings can be achieved through improved strategic road improvements with rail improvements, achieving large savings for key population centres. Specific growth corridors are being identified based on economic connections. We are seeking a fair deal for local transport funding in the form of a 10 year commitment to devolving of Central Government funding for transport already not devolved consistent with other Deal areas. This would include: A D2N2 Local Growth Fund allocation (capital) Local transport block settlements for Integrated Transport Block and Maintenance (capital). D2N2 authorities to be recognised Cycle Ambition partners and secure an ongoing 10 per head per annum funding commitment (capital). Direct allocation of OLEV programme funding (capital). Local Sustainable Transport Fund long term continuation funding (capital and revenue). More flexibility over the use of concessionary fares budgets London Style Bus Franchising Powers The D2N2 area is diverse in its make-up, including high density urban centres predominately situated around two cities, a number of market towns and rural communities. The barriers and constraints of physical geography compounds the limited opportunities for improved connectivity and accessibility. In each of these places there are transport challenges which require bespoke solutions. In urban areas competition is stifling coordination and more efficient movement of passengers. In rural areas a lack of service provides challenges in connecting people with employment. A better regulated and rebalanced bus network will establish a stable high quality public transport network and allow a simpler, fairer integrated smart ticketing approach across the D2N2 area offering the potential to target discounted fares and other special offers opening up new employment opportunities and broadening travel horizons from areas where employment levels are significantly below the national average. In requesting these style powers and devolved funding to introduce bus franchising on a staged basis the D2 and N2 areas wish see: A streamlined process to introduce bus franchising within current legislation, in line with process recommended by the Passenger Transport Executive Group. Funding to effect this change business case, legal, procurement, set up costs for contract formulation and adherence. Devolution of traffic commissioner registration powers. Devolution of commercial BSOG incentive payments schemes for smartcard, real time and green bus investment. 16

17 Devolution of commercial bus service operators grants beyond current Better Bus Areas period (2018). Devolution of associated concessionary fares budgets. Powers to better manage the local road network The ability to better manage the local road network at the local level will lead to a reduction in road congestion and more efficient and reliable public transport network that will improve business productivity. Powers to better manage and more efficiently operate the local road network and take over the operation of some trunk roads, make and amend traffic and parking orders, and change local rights of way including: Transfer the powers and budgets for the operation and improvement of trunk roads in the area from the Highways England to the D2 and N2 Combined Authorities. Enable local moving traffic offence enforcement (Part 6 of the Traffic Management Act). Extend the existing statutory framework used in London to enable the introduction of Low and Ultra Low Emission Zones. Flexibility to allow changes to the Nottingham Workplace Parking Levy Order to be amended locally. To locally decide on consultation procedures for introducing traffic orders. Devolved powers to consider requests and to make orders to change local rights of way. Local determination of strategic infrastructure priorities Ability to directly determine strategic infrastructure priorities to drive economic growth. This means directly influencing decision making processes and securing the necessary investment to deliver the findings of Midlands Connect, more control over the planning and delivery of an East Midlands Hub Station at Toton (and Steveley depot) as part of an HS2 Phase 2 Eastern leg and support for the development of a mass transit strategy for the D2N2 area that also improves connections to the East Midlands Airport growth area. Specific elements to include: Commitment to new rolling stock for the Midland Mainline following electrification and more evenly spaced services to achieve consistent reductions between urban centres and London Journey time reductions for strategic rail connections particularly to Birmingham, Manchester, Sheffield and Leeds and connectivity to the East Coast Mainline through the Newark Interchange. Direct influence over the trunk road programme to support D2 and N2 major employment and housing development sites. Negotiation to include the potential for full detrunking of some routes. More control over the planning and delivery for the preparation of HS2 (both proposed East Midlands Hub Station and Staveley Depot). Support and funding for a mass Transit Strategy for the D2N2 area including improved connections to East Midlands Airport growth area focused on opening up access to the rapidly expanding employment opportunities. We would also like explore opportunities for a more streamlined approach to delivery of mass transit routes. We also wish to work with Network Rail to explore the tram-train potential for the LEP area. 17

18 5. SMART Infrastructure Rationale A central tenet of a devolution deal for D2N2 is to develop activity that future-proofs growth and prosperity for citizens and businesses. The delivery of Superfast Broadband is a high profile issue across the UK and is being addressed through several separate programmes. The rapid pace of technological change and advancement requires continued investment in this critical fourth utility if our communities are to be fully inclusive; if our businesses are to maintain a competitive advantage in a global economy; and if we are to achieve our ambitions to reduce travel and target transport investment more effectively. Creating a long-term plan for energy security, reduction and generation will be a key activity for any future Governments, with new models for meeting the energy needs of local businesses and communities Asks of Government and Powers to 1. Develop with Government a SMART Commission to include telecoms and mobile providers and working with our Universities to support the procurement and delivery of IT infrastructure and smart products and services to 100% 0f business and residential premises. 2. Develop a Localised Energy Strategy to take local control of energy-efficiency funding and programmes to create a joined-up strategy for energy reduction and production through engagement with private, public and education sector stakeholders. A key component of the strategy will be the development of the high-value low carbon sector Benefits D2N2 s central UK location has under-pinned industrial development over 250 years. Our physical connectivity with the rest of the UK and the world is a key strength. The A1, A50, M1 and A46 effectively mean we area central hub in national road networks. The Midland Mainline and East Coast mainline serve our area and HS2 will further strengthen national and international rail connectivity. East Midlands Airport is a key UK asset in global trade. These physical connections are critical for our future. Our proposals will create a competitive advantage for the UK through the expertise and innovative use of digital technology and tackling the digital divide particularly in our vulnerable and rural communities. Our proposals would also significantly reduce local CO2 emissions; improve energy efficiency, security and affordability. Proposals Digital connectivity will be a critical aspect of global competitiveness. Our aspirations are therefore beyond any current plans. We want to achieve 100% connectivity across D2N2, going beyond current broadband programmes to achieve universal connectivity, developing capacity for the highest speeds, achieving 4G and beyond mobile coverage by working with the industry through infrastructure sharing, developing public wifi access in urban centres and using creative resources to innovate in digital applications.. Creating smart communities supported by high quality development will provide D2N2 with an attractive economic advantage. Develop with Government a SMART Commission The delivery of Superfast Broadband is a high profile issue across the UK and is being addressed through several separate programmes. The rapid pace of technological change and advancement requires continued investment in this critical fourth utility if our communities are to be fully inclusive and our businesses are to maintain a competitive advantage in a global economy. The physical geography across D2N2 has created a dispersed social geography. As a result, digital coverage and connectivity is inadequate, leaving many businesses and more remote settlements at 18

19 serious risk of exclusion and economic disadvantage. Key not spots also exist in urban locations, such as Pride Park in Derby and areas within NG1 and NG2, as intervention programmes have focused on other priorities. Existing solutions seek to maximise increased digital speeds in the more easy to reach localities, further exacerbating the divide. National programmes aimed at rolling out broadband have lacked local knowledge and sensitivity to deliver the right outcomes. More imaginative and smarter solutions are needed to ensure the social and economic wellbeing in these areas is protected and enhanced. Our ambition is to achieve 100% connectivity across Nottinghamshire and Derbyshire, with a blend of technical solutions to address the hard-to-reach communities and a forward programme which recognises the potential for delivering hyperfast broadband through fibre infrastructure. This ambition also includes coverage of mobile networks offering high speed data services across Derbyshire and Nottinghamshire. Our ambition goes beyond providing infrastructure and includes the development of innovative uses of connectivity which will ensure that businesses are able to secure competitive advantage and public service reform can be supported. To address these issues we wish to work with Government to deliver affordable roll out of broadband and mobile networks through the release of funding streams or powers from Government. To do this we will establish a SMART Commission which will include telecoms and mobile providers and our Universities. We want Government to be an active and supportive participant in this SMART Commission and compel other partners to participate too. The SMART Commission will work to: Create competitive advantage through extensive and innovative use of digital technology, stimulating investment to drive growth Tackle inequality of opportunity ( the digital divide ), particularly in vulnerable and rural communities by developing a wide range of technological solutions, for example using small cell networks and use of a wider range of the radio spectrum Build smarter, sustainable communities by creating the required infrastructure and community based solutions Enable more joined up, effective and efficient delivery of public services through innovative use of advanced technology A SMART Commission will help the UK to develop an international exemplar, taking our traditional connectivity strengths into a new age. Localised Energy Strategy Creating a long-term plan for energy security, reduction and generation will be a key activity for any future Government, with new models for meeting the energy needs of local businesses and communities being a central part of this. D2N2 has a broad base of stakeholders involved in this agenda, including world leading university departments; energy producers and suppliers; highenergy-users; large stock-holding local authorities and other landlords; leading businesses in the burgeoning low-carbon sector. It is also home to the UK s largest District Heating Network, has a growing international reputation in the green-agenda and has ecological strengths such as access to local renewable energy, and existing power stations. Bringing these factors together, D2N2 will develop a localised energy strategy, taking a joined-up approach to energy usage, security, affordability, and the development of the low-carbon sector. 19

20 To enable this to happen, D2N2 seeks to take local control of energy-efficiency budgets, including the transfer of ECO obligation including carbon target to Local Authorities. This will be blended with other energy efficiency improvements/funding arrangements to deliver an area based energy strategy. In return for this D2N2 offers the expertise and partnerships within its broad-base of engaged stakeholders, including: world leading university departments; energy producers and suppliers; high energy users; large stock holding local authorities; leading businesses in the burgeoning low-carbon sector. Devolvement here will deliver: The development of technology models for improving energy-efficiency/reducing energy use that can be easily replicated in neighbouring authorities, creating a hub for investment, innovation and ability to share commercial business cases improvements in public health and reductions in associated bills; further development of international significance in the low-carbon sector; solutions to energy reduction and security concerns that can be rolled out across the rest of the country and sold to markets overseas. enhanced business growth and associated receipts due to reduced bills and greater energy security This strand will not only future-proof success, but will also see D2N2 lead the way in developing the technologies and processes of tomorrow, creating opportunities for sharing these across the rest of the United Kingdom and exporting them across the wider globe. 20