City Deal Business Plan 2020/21 - Cardiff Capital Region
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City Deal Business Plan 2020/21
Contents Foreword 3
Part 01: Purpose 4
Part 02: How Did We Do? 8
Part 03: The 2019/20 Delivery Programme Highlights 11
Part 04: Immediate Delivery Pipeline 12
Part 05: Gateway Review – One Year Out 14
Part 06: Priorities for 2020/21 and Beyond 15
Part 07: What We Will Do and Deliver in 2020/21 16
Part 08: How We Will Do It 17
2
Foreword The £1.3bn Cardiff Capital Region City Deal supporting more proposals to UK Research
(CCRCD) is growing, maturing and beginning to and Innovation (UKRI) than before. Key to this
scale outcomes - both in terms of its impact as has been a sense of focus, mobilising wider
an investment instrument and more importantly, resources and putting ‘money in’ before ‘money
in building a resilient future for the region. The out’ to build competitiveness and confidence.
CCRCD is distinctive in that unlike growth
or devolution deals – there are no prescribed Both of which are needed in greater supply than
projects. Instead, the last few years have been ever before. Post-cessation of EU funds, there is
characterised by laying essential foundations in little doubt that CCR will be required to compete
terms of a credible evidence base; developing for not just UKRI investment; but potentially,
an industry-led growth plan; establishing successor EU funds. With the prospect of a
an ‘evergreen’ investment framework and stronger connection between CCR and the SW
mobilising the wider resources, assets and local of England through the Great Western Gateway,
and global partners, to create the conditions for there are opportunities to build scale around the
sustainable delivery and success. prospects that will best serve the CCR economy
and community. There is a real opportunity for
All this means that as we exit the ‘start-up’ this to be reinforced and supported through
phase and head into ‘scale-up’ – we are new statutory joint committees and reporting
genuinely open for business – but not in a set to be enabled by WG which will cement
business-as-usual way. Our work to date has accountability and good governance.
been an investment in maximising the ways in
which industry, researchers, government and The Business Plan for 2020/2021 doesn’t thus
community partners can deliver. This has been just come at a time of political change and
embedded in an approach that feels right and economic flux – but in the year leading up to
authentic for our region. We are committed our first Gateway Review. We hope that our
to shaping an economy that is genuinely more thoughtful approach to laying the foundations
inclusive and meaningful to all parts of our for delivery of the right outcomes – and not just
region and the 1.5m people who live here. the easy ones – will be recognised. As political
leaders of 10 local authority areas, we stand
Our targets remain front and centre: GVA firm as a network and stand together as trusted
growth, high skills jobs, private leverage partners with a commitment to the future of the
and economic inclusion and, now we have Cardiff Capital Region.
a framework that makes sense of sectoral
priorities and has proper regard to place, we are
positioned to ramp up delivery right across
the Cardiff Capital Region (CCR).
This pivotal Investment and Intervention
Framework, was launched in June 2019, in
close collaboration with our Regional Economic
Growth Partnership. This signalled a workable
framework to guide investment, apply criteria
and assess the quality, scope and impact
of the schemes we want to support. With
an infrastructure, innovation and challenge Andrew Morgan
fund now all in operation, we have created a Chair, CCR City Deal Joint Cabinet
system-wide approach. With our commitment Committee and Leader RCTCBC
to strengthening priority sector ‘clusters’, this
3 year has seen CCR directly involved in and
Part 01: Purpose Market and Policy Context Our Policy Backdrop Ensuring no-one gets left behind – across the
ten local bodies that enact and deliver this
This business plan marks the fourth Annual With deadlock over exiting the EU, cessation of City Deal and in the ten communities that are
Business Plan of the Regional Cabinet, in EU funds and establishment of a successor fund represented in this programme – continues to
respect of the activities it will progress through (Shared Prosperity), the focus on maintaining inspire our strong sense of shared purpose
the Wider Investment Fund (WIF) – the last the Union and now upon us, a General Election
Plan being approved in February 2019. The – there are multiple complex factors shaping
WIF totals £495m and consists of HMT grant the macro-domestic policy agenda. Economic Inclusion by Design – Not Default
funding in the order of £375m over 20 years
and Council contributions of over £120m. The At a Wales-level, devolution offers We continue to design and iterate aspects of
Annual Business Plan must be prepared in opportunities and presents challenges – all our operating model. This is in response to the
the context of the overarching five-year Joint of which have to managed amidst a turbulent significant shifts, changes and disruption seen
Working Agreement Business Plan, which was backdrop. The EU-exit impasse and continued both locally and in the world around. From
approved by Regional Cabinet in February 2018 fiscal and economic uncertainty looks set to be huge shifts in domestic and global politics with
and all ten Councils in and around March 2018. a continuing feature. Added to this, is the new Brexit, global trade wars and a turbulent global
tax-raising power regime introduced in Wales. political backdrop – the operating environment
As the fourth iteration of the Annual Business Whilst this almost certainly brings opportunity, is complex and working effectively within
Plan, the format and structure is in keeping it brings challenges too. Like City Deal, it is it, requires the ability to respond to tough
with the evolution of the City Deal programme predicated on GVA growth at a time when well- challenges. Overall, the region in 2018/19 has
and its priorities and critical success factors. being and GVA alternatives are being supported seen some of the highest levels of relative GVA
This takes into account, the evidence base and promoted. growth in the UK. However parts of the region
and better data; the context of the regional remain stubbornly low in competitiveness with
Economic and Industrial Growth Plan, the The mood music is further influenced by public the UK Competitiveness Index showing Blaenau
Investment and Intervention Framework, the service reform via proposed new Statutory Gwent and Merthyr remaining at the bottom.
City Deal office team and resources and the Joint Committees, national frameworks and
emergent policy agenda. regional delivery; assessments of the quality It is for this reason, the approach taken through
of economic governance (The Organisation the Regional Economic and Industrial Plan and
for Economic Co-operation and Development the Investment and Intervention framework, is
Our Challenges {OECD}) and the more recent emergence focussed on what we will do – but perhaps most
of a UK Government-led venture ‘The Great importantly – where we will do it. Sustainable,
The challenges to which City Deal must Western Gateway’. inclusive and distributed growth is a key aim,
respond are well documented and understood. ensuring we make sincere attempts to share
In brief they include: Our role is to continue to deliver in the midst of and spread prosperity.
trying to making sense of this ever-complex and
— Low levels of competitiveness and dynamic environment. The introduction of a challenge fund, to drive
productivity experimentation, R&D and to ensure better
— Low levels of R&D investment and intensity The growing governance and political maturity answers are informed by better questions is key
— High growth and competitiveness areas of CCR offers something of a buffer to this to this. Compatible with the ‘economic contract’
cheek by jowl with some of the most external change. That is not to say its heads introduced in the Economic Action Plan by
deprived and impoverished places in the UK down – heads are up, informing, shaping and WG and the four grand challenges of the UK
— Dependency mind-set has limited choices engaging – but also staying focussed on core Industrial Strategy (Clean Growth, Future of
and eroded self-esteem priorities and aims. It could be easy to become Mobility, Ageing Society and AI and Data) –
distracted. It is harder but necessary to lock-in, CCR could play a pioneering role in shaping
finish what has been started and stay true to the and solving the big industrial and societal
commitments made. CCR continues to show challenges of the day.
ambition and whilst it has to have regard to risk
and issues – it will not be paralysed by them.
4
Part 01: Purpose Building Clusters and Eco-Systems
The ‘Priority Sectors’ work and the Industrial Growth Plan has informed a focus not just on the key
sectors present in the CCR, but on the opportunity to develop the ‘eco-system’ environment in which
companies, firms, the research base and entrepreneurs can connect, inter-act and spur each other on.
Key Principles
Cohesion Economic Inclusion
Policy collaboration and delivery partnerships Creating opportunity for all and to distribute
ensuring that there is cumulative impact to the dividends of increased prosperity fairly
the range of investments and interventions to encourage and enable participation in the
delivered by the City Deal. economic life of the region.
Leverage Scale
Maximise the City Deal investments by Limited number of significant interventions,
attracting co-investors with complementary rather than a disparate range of loosely
funding and resources. connected small-scale activities.
Ecosystem Development Return on Investment
Supporting the development of a strong Demonstrable impact and benefit will be
economic and innovation ecosystem to deliver expected from all investments and interventions.
the plan and develop clusters of excellence within
our region.
5
Part 01: Purpose Priority Sectors Investment and Intervention Framework
Having this clarity of purpose and focus is critical
to the way in which the Investment Framework, In brief, it provides the core mechanism
assesses, evaluates, prioritises and operates. through which CCR will do its business and
The Investment Panel has been established as an achieve its targets, preventing speculative and
advisory board to provide further assurance and misaligned ‘applications’ and giving confidence
safeguards for Regional Cabinet – the ultimate that operations are strategic, independent and
decision-makers in the process. evidence-based.
The Investment and Intervention Framework Without such an approach it is impossible to
was established to close the gap in the ‘size the wider pot’ and think beyond the £495m
Assurance Framework and provide a tool-kit Wider Investment Fund and build a growing
through which to guide operation of the Wider portfolio approach.
Investment Fund.
DOWNLOAD THE INVESTMENT FRAMEWORK
6
Part 01: Purpose Investment Guidelines
% Investment Indicative
Investment Priority CCR Targets ROI Audience Investment Leverage
(Indicative) Range
— Private sector led
Enhance
— R&D Organisations
Jobs, growth and Repayable Productivity
Direct — HE 10-30% £15-£50m
investment leverage
— FDI
Instruments and Economic
Innovation
Inclusion
Unique IP/Market
Leadership
— Public Sector led Repayable through
Leverage, jobs and — Public-private fiscal levers, income
indirect growth,
schemes
Reduce Economic
Indirect 10-50% £10-£50m streams, gain share,
Infrastructure address economic
— FE & HE (skills) other socio-economic Growth Inhibitors
Foundations to enable disparities
benefits
private sector success and
Civic Benefit
New market creation, — Innovation intensive
shaping places, Address Industrial
businesses Repayable and/or
IP Commercialisation, — HE/FE Challenges and
Enhanced 10-50% £2-£10m risk investment
Addressing identified
— Social Enterprise returns Place Based
Challenge regional challenges
— Foundational Disparities
Competitive, aligned and priorities
to CCR Priorities Economy
7
Part 02: How Did We Do? Self-assessment Against a 10-Point Plan
In 2019/20, a 10-point plan was set out to evolve A focus on data and evidence (sectors and place) guiding
CCR City Deal. A full self-assessment and report
on progress against these aims and objectives, 1 direction & decision-making:
corresponding with the goals and targets set — 3 main reports commissioned, received & published – Priority
out in the 2019/20 Business Plan is appended. In Sectors (Connected), State of Region (Competitive) and Economic
brief however, key areas of success against the Inclusion (Resilient)
ten priorities can be summarised as follows: — Data dashboard in development
— Adopted National Evaluation Framework, developed and agreed locality
evaluation framework and received first Baseline Report
— 2 KESS PhD studentships in data science and analysis secured
— LEV, EV, Taxi and on-site renewables studies for Metro Plus
2 3
A regional Industrial Plan. Delivery Pipeline and
Setting out competitive Investment framework –
strengths and strategic quality deal-flow:
interfaces: — Development of Investment and
— Business-led Regional Economic Intervention Framework
& Industrial Growth Plan — Establishment of three funds –
— Launched locally, nationally & Innovation, infrastructure
internationally and challenge
— Endorsed by Cabinet, CBI, IoD, — Evergreen, co-investment
FSB and Chambers and leverage
— Embeds sectors, clusters — Establishment of Investment Panel
and place — Common Assessment Framework
8
Part 02: How Did We Do?
4 5 6
Good governance – building Building a new Office of the Influence & Leverage:
a network & using skills and City Deal: — UKRI board relationships
assets in the right places: — Created City Deal office and representation
— New structure proposed agreed — Partnership with Global Welsh
— Regional Skills Partnership hosted — Input to Wales Office in London –
by Newport for region and funded
— External secondment branding and identity
— Second business plan produced — Wales in London Week
by Regional Business Council opportunities – CS Connected
and Innovate UK and Network
— Delegation provision to Regional — Great Western Gateway
Transport Authority for Metro Plus — Website updates
— Re-located in Tredomen – participation
— Performance reporting, business — Ser Cymru and Royal Society
planning and logics model for branded and clear identity
brought to Wales
Gateway Review aligned — Knowledge networks with
— WAO 2019/2020 governance UK regions
report ‘good’ — Contributions to networks,
— Investment Panel, Programme groups, conferences, panels
Board and Regional Investment and events
board synced
Develop industrial and local leadership: Develop the challenge, investment
7 — REGP leadership of evidence base, Industrial 8 and mission focus:
Plan and Investment Framework — Development of a Challenge Fund
— Business engagement improvement with — First challenge prize in development
sectors and clusters and SIPF sectoral bids — SBRI/ Govtech
— Business events and workshops — Submission to WEFO P5 – challenge fund
— Social media strategy and sentiment — Farday, Energy Revolution and support
improvement for Bridgend
9
Part 02: How Did We Do?
Strategy for Internalisation: Building a City Region:
9 — Contributions to WG International Strategy 10 — Governance maturity – SDP, skills and Valleys
— Sponsorship and participation in Wales in Regional Park
London Week — High volume of external investment
— Participation at MIPIM 2019 submissions
— Co-developed and delivered sessions with — Investor relationships building and growing
Dept. for International Trade — Early work commenced on fiscal levers
— Participation in Vanguard and Manumix
— CS Connected US, British American project &
Xiamen and Singapore
10Part 03: 2019/20 Delivery Programme Highlights CSC Foundry and the first schemes came forward for early Cardiff Metro Central Interchange
funding approvals in November 2019 (Cardiff,
Investment into our new compound semi- RCT and Monmouthshire). It must be borne in The c£200m Cardiff Metro Central Interchange
conductor foundry in Newport is going well. The mind however, that given the co-fund is Local project is underway linked to the comprehensive
facility is now in production with qualifications Transport Funds – which are annualised and redevelopment of Central Square and the
for new customers underway and the UK thus, time limited – priority will clearly be given Southside Quay area of the City. In principle
Government backed Catapult Centre has moved to utilising this up-front to ensure maximisation Outline Business Case (OBC) approvals were
in and is open for business. Financial drawdown of available resources. given by Department for Transport in September
on the CSC Foundry programme now stands at 2019, enabling City Deal to release further
£33m of the total project investment of £37.9m. feasibility funds to support full business case
To date 65 new jobs have been created at IQE LEV Strategy, Taxi Strategy and development.
with a further 545 existing positions safeguarded Infrastructure Charging Models
at IQE and NWF as a result of the project. A total
of 259 indirect jobs have been created off the Informing and shaping the above, reports CS Connected
back of the foundry through local supply chain commissioned on LEV Strategy, Taxi Strategy and
and household effects, with particular impacts Infrastructure Charging Models are complete. A c£45m final business plan submission was made
in the construction and higher education sectors The Taxi Strategy was approved by the RTA in by CCR consortium as a seed-corn fund recipient
and the catapult, along with the creation of a November. Discussions are taking place with to UKRI’s Strength in Places Fund for the build-out
further 8 apprenticeship opportunities. Transport for Wales and the UK Government’s of the CSC Cluster through CS Connected.
Electric Vehicle Infrastructure Investment
Advanced electronics will be one of the most Fund (managed by Zouk Capital) regarding
important features of global economies going development of a regional gain-share model. The Diagnostics and Devices Cluster
forward in the region and we are pleased to see Energy Savings Trust has further allocated £80k
our regional cluster developing apace, with a to CCR to support energy systems modelling Similarly, Expressions of Interest have been
further 697 jobs indirectly supported to date work which is currently underway to underpin the made by CCR industry-led consortium (led
within the semiconductor sector in SE Wales development of a Clean Growth Challenge. by Creo Medical and Cardiff University) for
since the commencement of the Foundry. a medical Diagnostics and Devices Cluster
(£40m) to Strength in Places fund with further
As of Oct 2019 it is estimated that IQE supports Graduate Scheme submissions supported by CCR on Creative
direct and indirectly around £22m of Welsh GVA Cluster (£20m) and Cyber (£30m) – hence
and with much of this supported in the Cardiff The one year prototype on the Graduate covering a number of priority sectors.
City Region. Over the same period the wider Scheme is underway with 42 placements being
semiconductor cluster has estimated to support advertised on behalf of local businesses across
direct and indirectly around £158m of GVA. the region to date. The anticipated take up of Welsh European Funding Office (WEFO)
The commercial fundamentals of the sector are graduate employment by April 2020 is 50. Against Building Institutional Capacity Bid
strong and we are fortunate to have so many a revenue outlay of £175k the private sector
good companies in this area with the potential leverage achieved to date is £1.4m. This equates A £8m bid to WEFO’s Building Institutional
for further job creation and enhanced GVA to £8 private sector leverage for every CCR £1 Capacity has been submitted by CCR, Cardiff
support for the region. invested. University and Nesta to support innovative future
service delivery in public services (InFuSe).
Metro Plus Local Full Fibre Network
Metro Plus has an approved Strategic A Local Full Fibre Network submission to the
Outline Case (SOC) and schemes are now Department of Digital Culture, Media and Sport
moving towards final stages of WeLTAG with (DCMS) to the value of c£7m has been secured
delegations for funding approvals to the on a CCR-wide basis
Regional Transport Authority. The Common
11 Assessment Framework has been approvedPart 04: Immediate Delivery Pipeline In relation to the Investment Framework Delivery Pipeline, the current status as at December 2019 is as follows:
Informal Engagement
28 known projects covering a range of areas across the
Project Pipeline investment priorities
15 sift questionnaires received and are at stage 1a or 1b:
FTTP Project - 300k premises, Public Services Testbed, Centre for Neurology, FTTP
Sift Questionnaire projects x2, Life Sciences Park, Aquaculture services, Tidal energy project, U220
project, Moving Forward project, 5G Testbed, AI and Data Science Centre, CS
campus & CS Connected, SME Competitiveness & Co-fund
CCR Cabinet Notification
3 projects currently in this phase:
Investment Officer & Investment Panel Review Metro Central, Core Valley Lines fibre project, and Strength in Places -
CS Connected
CCR Cabinet (Proceed/Reject)
4 projects currently in this phase:
Formal Engagement
Due Diligence Housing Catalyst Fund, Metro Plus (+ EV renewables), CCR Graduate Placement
Scheme, and LFFN DCMS scheme
Investment Panel
Regional Economic Growth Partnership
CCR Cabinet
1 project currently in this phase:
Legal Completion CSC Foundry
12Part 04: Immediate Delivery Pipeline Our focus for 2020 is on realising the potential of the pipeline. We have 4 areas of focus:
1. Progressing funded projects in delivery
CSC Foundry £37.9m (£412m inc. £375m of private sector leverage)
2. Progressing projects from Strategic Outline Case approved by Cabinet to Legal Completion
Project CCR Investment Total Project Investment/ Value
Housing Catalyst Fund £15-30m £30-60m
Metro Plus £15m £50m
Graduate Scheme £175,000 £1.65m
Cardiff Metro Central £40m £200m
Core Valley Lines Fibre £3.5m £7m
Strength in Places for CS Connected £3.5m £45m
Total Total
£77.2 - 92.2m £333.65 - 333.65m
3. Reviewing the 15 Sift Questionnaires and commencing the Investment Framework process as
appropriate. However given the criteria imposed by the framework and the requirement to
ensure we invest in the right projects, the ones that have the best chance of meeting the city deal
requirements, we anticipate that many will not make the cut. (NB the indicative combined range of
project values at this stage of the pipeline is c.£550m to £600m).
4. Working with the 28 projects in the top of the pipeline and bringing forward 3-6 for formal consideration.
13Part 05: Gateway Review – One Year Out From the National Evaluation Framework, CCR The work to inform the one-year out report was delivery, prioritising the right and not – random
working with SQW, has agreed and approved a due to start in December 2019, which signals – projects; the importance of money-in,
Local Evaluation Framework and from this, the the ‘cut-off point’ for evidence and information. leverage and money out – as opposed to ‘spend’
first Baseline Report was received and endorsed However SQW has brought this forward and assessments and risk profiling expenditure to
by Regional Cabinet in June 2019. The report work commenced in September 2019. place a focus on drawing down co-invested
establishes a contextual economic forecast and, funds – which are often time limited – ahead
that the CSC project will be the core focus of the Whilst the CSC Project is the substantive of City Deal investment. In the CCR context,
deep-dive impact work to inform the ‘One Year project in delivery, key messages must now be the significance attached to financial ROI and a
Report’ prepared by SQW in the year leading reinforced around the fit for future framework revolving fund has also been reinforced given it
up to Gateway Review. It further presented City Deal has in place in order to scale-up enables scale, deeper impact and reinvestment.
evidence and early views around capacity growth and development of the programme.
development and partnerships. In addition, key points and issues about the To inform the ‘what to expect’ from Gateway 1
process have been fed through to the UK approach, visits have also been made to City
Government’s Local Evaluation Steering Group. Deals currently going through the Gateway
Key messages in respect of the CSC These include the importance of recognising process – Greater Cambridgeshire Partnership
project stated: the need to build strong foundations for and Glasgow City Deal.
— The project is well underway, albeit spend
to date is lower than projected – but this is
starting to change
— The project is bigger than the Foundry and
is about the potential for the Cluster
— Job creation is underway and targets are
catching up with new roles being created
— Clarification is needed on jobs safeguarded
In terms of capacity building and
partnerships, stakeholder feedback key
messages included:
— General view that CCR City Deal and the Wider
Investment Fund HAS had a positive impact on
local economic development capacity
— Design of the Wider Investment Fund
is important in driving demand, better
evidence and decision making
— Scope exists for further engagement -
particularly with businesses. Engagement
with civic society is also referenced
— There is a sense the story is positive but it
not widely promoted
— It remains ‘early days for the Wider
Investment Fund: partnership and capacity
has grown as a result, but as one consultee
pointed out, the Compound Semiconductor
project is just the first investment in what
will need to develop as a wider
14 transformational programme’.Part 06: Priorities for 2020/21 and Beyond In October 2019, Regional Cabinet held a The key issues, challenges and objectives were — The need to complete the ‘trilogy’ of
planning and development day. The purpose of considered and prioritised: the Industrial Growth Plan, Investment
this was to reflect, take stock and prepare and Framework and Investment and Opportunity
plan for the next year and the medium-term. — The backdrop of emergent regional Prospectus, through establishing the latter.
development structures and the priority This will help bring together the work on
that should continue to be afforded to good digital, housing, sites and premises and
governance around ‘one member, one vote’; skills. It will also help drive focus on under-
— Recognition of the strong foundations built utilised assets such as the HoV Road;
There are a set of emerging clear by City Deal, stable and maturing political — Maintaining and strengthening the focus on
principles which overarch the leadership and making progress with inclusive growth and economic inclusion as
objectives, issues and priorities set influencing bodies such as Innovate UK in a core aspect of both narrative and delivery
out below, by Regional Cabinet: proactively seeking new investment; – showing through doing a commitment to
— Potential for cohesion and strengthening sharing and spreading prosperity. Driving
— From start-up to scale-up – we the regional framework built by City Deal productivity in the foundational economy is
have laid strong foundations through a new statutory Joint Committee key to this and development of alternative
and targeted delivery of the for the Economy (post April 2021), through GVA metrics;
Investment Framework pipeline is which to drive wider investment, policy and — Developing our approach to priority sectors
the clear priority local priorities; and clusters – as the basis from which to
— We will be Gateway Ready and — Opportunity to co-deliver the Shared drive the longer-term strategic approach –
will tell our story in compelling Prosperity Fund through such mechanisms and building upon the good work done on
and evidence-rich ways with Welsh Government and to broaden the CS Connected and Medical Devices and
— We will influence and engage scope, remit and influence of bodies such as Diagnostics and building the skills work
to leverage further opportunity, the Regional Economic Growth Partnership; around this;
investment potential and — In the light of Climate Crisis declarations – — Bringing to life the ‘challenge fund’
partnerships to prepare a comprehensive plan, vision and with thematic calls and priorities and in
— From City Deal to City Region. mission for energy and clean-growth; particular, reinforcing the focus on
We will begin to shift our efforts — Ensuring wider CCR partnerships are fit for SME growth;
and commitments beyond a future purpose in this context and ahead of — The need for synergies across programmes
funding programme to building Gateway 1, reviewing and assessing – in particular public investment funds that
the future of the region their impact; operate in the region – Valleys Task Force,
— Reinforcing the ‘no-one gets left behind’ Development Bank Wales funds & Tech
principle and the importance of City Deal Valleys are key examples which underline
being for all ten areas; the need for better co-ordination; and,
— Importance of ensuring City Deal isn’t — Ensuring programme impact is in line with
just doing ‘more of the same’ – but the Investment Framework and has regard
demonstrating how it is uniquely placed to to place and local priorities – this will help
solve problems the market won’t; ‘build in’ equality and recognise the limit and
— Addressing the current gap around public constraints of agglomeration in our region.
engagement and doing more to involve and
engage communities at a grass roots level;
— The need for a comprehensive
communications plan that addresses both
internal and external issues with a
regular newsletter;
— Planning ahead – taking longer-term view
and beginning to establish plans and
infrastructure proposals for the future –
now. This will be especially important for
15 sustainable transport;Part 07: What We Will Do and Deliver in 2020/21 In 2020/21, the WIF will support, directly and indirectly, the following areas of activity:
Connected. Competitive. Resilient.
To grow a competitive, connected and resilient economy and establish CCR as a place where prosperity is shared and wealth and
wellbeing are compatible goals
As measured by core City Deal Requirements: Additional Requirements:
5% GVA Growth ∙ Leverage of £4bn ∙ 25,000 new high skill jobs Demonstrate inclusion and contribute to inclusive economic growth
Rooftop Objectives and Key Results 2020/21
1 Leveraging the foundational capacity and resources in place to optimise pipeline throughout & delivery
2 Gateway ready - Telling the story
3 Influence and engage to leverage new partnership & investment opportunity
4 Beyond City Deal - Building the future of the region
Ready to Scale Gateway Ready Influence and Engage Beyond City Deal
Delivery Pipeline Evaluating Progress Leverage New Potential Building the Region
Improve quality deal-flow through Produce a robust self -evaluation Tell the story - Research and Develop a one region ethos and
ensuring investor readiness of progress and activity to date develop fresh new approach
Accelerate pipeline decision Progress the creation of an communications content Introduce a Statutory Joint
making and throughput In-house data and intelligence Produce an Investment & Committee for economy
hub opportunity Prospectus
Expedite delivery of approved Develop a suite of fiscal levers
projects Conduct a Partnership fitness check Endeavour to secure more UKRI & Co-develop a Climate Vision and
Provide expert implementation Conduct a self-assessment of external investment into the region Mission statement
resource to facilitate effective governance practices and Introduce targeted business
delivery procedures development activity
Introduce an implement a test, Review team capability & capacity Consider an international outlook
evaluate & iterate methodology to ensure fit for purpose
Provide Eco-system support for
priority clusters
16
NB: A comprehensive plan of detailed activity and tasks is contained within Appendix 1Part 08: How We Will Do It 2020/21 Annual Business Plan - Budgets Table 1: Proposed 2020/21 Wider Investment Fund Budget and Indicative Budgets to 2023/24
and Funding Strategy
2020/21 2021/22 2022/23 2023/24
Regional Cabinet have made a number of Indicative Programme Expenditure
£’000 £’000 £’000 £’000
decisions to date, which have resulted in
commitments against the Wider Investment
Fund (WIF) in 2020/21 and beyond. Table 1 Wider Investment Fund Top Slice 742.5 742.5 742.5 1,485.0
outlines the proposed 2020/21 budget and to
assist with medium planning, the indicative
budgets to financial year 2023/24 are also set- Approved Projects - Revenue* 161.0 0.0 0.0 0.0
out, along with the proposed funding strategy
over this period.
Approved Projects - Capital 1,381.6 0.0 0.0 0.0
Future Revenue Projects 2295.5 1,000.0 1,000.0 1,226.1
Future Capital Projects 57,435.0 42,964.0 45,663.0 63,878.0
Revenue to Support Capital Projects 0.0 0.0 0.0 4,323.1
Total Investment 62,015.6 44,706.5 47,405.5 70,912.2
Funded by:
HMT Contribution (Revenue) (2599.0) (1,742.5) (1,742.5) (7,034.2)
HMT Contribution (Capital) (0.0) (22,000.0) (22,000.0) (22,000.0)
Total HMT Contribution (2599.0) (23,742.5) (23,742.5) (29,034.2)
Council Contribution (15,490.9) (7,963.7) (7,963.7) (11,466.0)
CSC Loan Funding Repayment (1,800.0) (1,854.0) (4,553.0) (4,689.0)
Temp Borrowing ‘Cost of Carry’ (42,125.8) (11,146.3) (11,146.3) (25,723.0)
Total Funding (62,015.0) (44,706.5) (47,405.5) (70,912.2)
17 *NB: assumes approval of extension to the Graduate Scheme.Part 08: How We Will Do It WIF Top-Slice Budget Joint Committee’s Section 151 Officer (in Future Revenue and Capital Projects –
consultation) to establish an appropriate Indicative Allocations
Regional Cabinet have resolved that up to 3% mechanism for managing Programme
of the Wider Investment Fund (over a 20 year Development & Support resources (both on The Annual Business Plan also includes
period) is set aside to meet the costs associated annual and cumulative basis) within the 3% cap indicative allocations in respect of future
with Programme Development & Support and is previously agreed. revenue and capital projects which may come
referred to as the WIF ‘Top-Slice’. This equates forward during the year. However, approval
to an annual budget of £742,500, the details of The purpose of this mechanism is to provide against these allocations is subject to meeting
which are outlined in Table 2. additional resources in-year to supplement the requirements of the IIF.
the annual £742,500 budget, where required.
Current projections indicate that cumulative An indicative budget of £1.856 million has been
Table 2: Proposed 2020/21 WIF Top-Slice Budget resources amounting to £1.522 million will included in respect of new revenue expenditure,
be available to support the Programme whilst the capital allocation amounts to
Development & Support budget at the £57.435 million.
£ beginning of 2020/21.
At its meeting of the 15th January 2018,
Regional Cabinet made a decision to preserve
Contribution to Joint Committee Approved Projects the HM Treasury revenue funding. This amounts
151,166
Revenue Budget to £40 million over the first four years of the
The 2020/21 Annual Business Plan will also fund to 31st March 2020. Therefore, whilst
Regional Economic Growth need to meet the Year 3 costs of the approved the indicative sum included within the Annual
16,000
Partnership Support Compound Semi-Conductor Foundry Site Business Plan for new revenue projects is just
which have been slipped forward from the under £2 million, Regional Cabinet have the
previous year. These are budgeted at a cost of ability to increase this sum (if required), by
MIPIM Costs 70,000 £1.382 million and consist of project delivery approving further HM Treasury grant funding
and implementation costs. In addition, the during the year, providing always that funding
‘Approved Projects’ budget line also includes terms and conditions are met.
Regional Business Council 24,100 revenue expenditure in respect of the extension
of the Graduate Pilot Scheme, which is the
subject of a separate report to Regional Cabinet
Project Pipeline Support 481,234 at its meeting of the 19th December 2019.
Table 3: 2020/21 Budget - Approved Projects
Total 742,500
£’000
Regional Cabinet has approved ‘In-Principle’
commitments in respect of a number of
Graduate Pilot Scheme (Revenue) 161.0
projects to date. These projects are in the
process of developing their business cases for
in-line with the Investment and Intervention
Framework (IIF). The financial commitments CSC Foundry Site Funding (Capital) 1,381.6
associated with this work will be largely met
from the budget outlined above.
Total 1542.6
Regional Cabinet, at its meeting 12th
18 February 2018, delegated authority to thePart 08: How We Will Do It Affordability Envelope and WIF
Funding Strategy
The sums allocated represent the amounts
available to be spent in 2020/21, with future
year budget allocations being updated
accordingly to reflect each new approval’s
overall spend profile. This will ensure that the
fund remains affordable and within its approved
envelope at all times, as decisions to approve
projects are made through the year.
The total expenditure for the 2020/21
Annual Business Plan is £62,015 million.
It is proposed that this level of expenditure is
funded as follows:
— Draw down of HM Treasury Revenue Grant -
£2.599 million
— CSC Loan Repayment - £1.800 million
— Draw down of Council Contributions -
£15.491 million (as per the funding ratio)
— Temporary Borrowing – ‘Cost of Carry’ -
£42.126 million
Finally, it should be noted that the actual funding
applied will be dependent on the nature and
timing of project expenditure and may differ from
the proposed sums outlined above. Regional
Cabinet will be provided with regular project
performance reports, supplemented by quarterly
budget monitoring statements, where matters
such progress against delivery plans and budgets
can be assessed and the proposed funding
arrangements can be reviewed as appropriate.
19Part 01: Section
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