NEWCASTLE-UNDER-LYME BOROUGH COUNCIL

EXECUTIVE MANAGEMENT TEAM’S

REPORT TO CABINET

04 December 2019

Report Title:	Town Deals

Submitted by:	Head of Housing, Regeneration and Assets

Portfolios:	Corporate and Service Improvement, People and Partnerships

Ward(s) affected:	All but primarily Newcastle Town and Kidsgrove

Purpose of the Report To outline that the Council has been invited to develop proposals for the Government’s Town Deal for Newcastle and Kidsgrove. As part of this the Council has been awarded funding to develop proposals in line with the Town Deal Prospectus.
Recommendation 1) That the Council supports the establishment of a Town Deal Board for Newcastle and a Town Deal Board for Kidsgrove. 2) That the Executive Director - Commercial Development and Economic Growth in conjunction with the Leader and Portfolio Holder for Corporate and Service Improvement, People and Partnerships is authorised to establish the membership of the Boards. 3) That the Executive Director - Commercial Development and Economic Growth in conjunction with the Portfolio Holder for Finance and Efficiency is authorised to appoint project management support and procure consultancy support for the development of proposals for the Town Deals. 4) The Council works with the Town Boards to develop proposals for Newcastle and Kidsgrove Investment Plans.
Reasons On 1st November 2019 MHCLG published the Town Deal Prospectus for which the Council is invited to develop proposals for Newcastle and Kidsgrove. The Prospectus asks communities, businesses and local leaders to draw up ambitious plans to transform their town’s economic growth prospects. As part of this it is necessary to establish Town Boards by the end of January 2020 and develop Town Investment Plans by Summer 2020.

1.	Background
1.1 1.2 1.3 1.4	On 6 September 2019 the government invited 100 places to develop proposals for a Town Deal, as part of the £3.6 billion Towns Fund. This is a fantastic opportunity for the Borough with both Newcastle and Kidsgrove being invited to participate. It is a competitive process whereby towns can bid for up to £25m to drive long term economic growth in their area. On 1st November 2019 the Government released the Town Deal Prospectus this set out a 2 stage process: Stage 1 – providing capacity support to places to put the structures and vision in place in order to move to the next stage of agreeing a town deal. Stage 2 – places to use their locally–owned Town Investment Plan to put together a business case to apply for funding for interventions. (Further guidance will be published on this in due course). The objective of the Towns Fund is to drive long-term economic growth and resilience, and to improve living standards and productivity sustainably in these areas. It will support the long-term transformation of towns through investment in connectivity, place, enterprise and skills. Urban regeneration, planning and land use: ensuring towns are thriving places for people to live and work, including by: increasing density in tow centres; strengthening local economic assets including local cultural assets; site acquisition, remediation, preparation, regeneration; and making full use of planning tools to bring strategic direction and change. Skills and enterprise: driving private sector investment and ensuring towns have the space to support skills and small business development. Connectivity: developing local transport scheme that complement regional and national networks, as well as supporting the delivery of improved digital connectivity. MHCLG have launched the MyTown campaign https://www.gov.uk/guidance/mytown-campaign which gives people a say in how a new generation of Town Deals, each worth up to £25 million, should transform the place they call home. Working with our local communities to develop high quality Investment Plans will be essential to ensuring success to the second stage.
2. 2.1 2.2 2.3	Issues There are a number of issues to be considered quickly in order to progress from this initial stage to development of the Investment Plans. Key to this will be the establishment of the Town Board for each of the towns by the end of January 2020. The Board membership must include public, private and voluntary sector representation. As the Board will be responsible for shaping the proposals for the area, it is essential that the governance and operation is effective. Officers are also in discussions with MHCLG representatives over the boundaries of the two town deal areas. The Town Boards need to consider a range of issues for the Investment Plans: Urban Regeneration - The Prospectus recognises that perception of place is an important pull factor in business location decisions and can affect a place’s capacity to attract and retain workers. Investing in cultural assets as part of an integrated regeneration strategy can rejuvenate places, leading to positive economic outcomes by retaining skilled workers and attracting tourism. There are also opportunities to redevelop vacant sites for new business and leisure uses. By aligning with other complementary investment, including transport, the town deals can ensure that developments support the economy into the future and create wider strategic benefits. Town Boards should work with public and private landowners to identify and unlock land across the town and its periphery, thus creating a sustainable land supply for the town’s future. Skills - Challenges still exist with businesses securing employees with the right skills. Equally town centre employment sites are not always well connected to workers or attractive to business. Universities, college and other skills providers already often play a significant role in many communities and collaborating with local businesses on skills and economic development and education providers is important to deliver a more highly skilled workforce. The Prospectus highlights that investment in buildings that provide both office space and areas for training could be achieved, alongside improving business support facilities to enable effective collaboration in delivering business support, trade and investment advice. The Prospectus highlights that addressing the skills that local employers need is essential and Town Boards should consider how additional support to young people can help them access traineeships or apprenticeships. Connectivity – Improving speed and reliability of transport connectivity or ensuring internet speeds are fit for the needs of business, infrastructure investment will be key to spreading prosperity in towns. The Town Board will need to consider disconnection between where people live and where jobs and leisure can be found. This will include road networks including cycle and walkway as prioritised in Local Authority Local Cycling and Walking Infrastructure Plans. The Prospectus highlights the need to reduce barriers to deployment of new gigabit-capable connectivity, including 5G and fibre connectivity to support our businesses to compete globally. It is recognised that the provision of reliable digital infrastructure is a key determinate of some business location and therefore digital infrastructure could underpin a new wave of entrepreneurialism.
3.	Proposal
3.1	The Council does not have the necessary capacity to develop two Investment Plans therefore it is proposed to bring in additional project management support and to procure external support utilising the allocated capacity funding. A key element will also be public engagement and officers are looking into options to have specialist communication support.
4.	Reasons for Proposed Solution
4.1	Progressing to Investment Plan stage does not guarantee any funding as this is a competitive process where plans may not develop to the second stage of business case. It is therefore crucial that the Council expedites the commissioning of external support to ensure that the Council can meet the MHCLG deadlines.
5. 5.1	Options Considered The MHCLG wants to see that areas have good partnerships which are able to deliver within the Town Deal deadlines. If the Council wants to have successful Town Deals then there is no other option but to push forward with the establishment of Boards and appointment of additional support.
6. 6.1	Legal and Statutory Implications The Council’s financial regulations and standing orders set out that services over £50,000 should be competitively procured through a tender process. Due to the tight timescales officers have commenced investigations to secure external support with the Investment Plans Proposals. Officers have commenced a review of the ESPO 664-17 Consultancy Service Framework which contains Lot 8g (Regeneration & Regional Development) and the Homes England Framework. A direct award could be made through these frameworks.
7.	Equality Impact Assessment
7.1	The nature of the project is intended to seek benefits for all residents of the Borough.
8.	Financial and Resource Implications
8.1	The Council has been allocated £335,048 capacity funding; this comprises £173,029 for Newcastle Town and £162,019 for Kidsgrove Town. This funding will be paid via a s31 grant to the Council, to support the development of a Town Deal Board and development of the Investment Plans for the areas.
9.	Major Risks
9.1 9.2	The Council will need to show clear leadership and ambition to work with partners, local businesses and local communities to develop Investment Plans. Without effective Town Boards there is a major risk that Newcastle and Kidsgrove will not progress to the second stage. There is a risk that if the Council went to open procurement that the Council would not be able to secure a suitably qualified consultancy able to deliver within the Government timescales. Equally without procuring additional management support the Council will not be able to meet partner or community expectations or Government deadlines.
10.	Sustainability and Climate Change Implications
10.1	There are no implications at this stage.
11.	Key Decision Information
11.1	This is a key decision as it involves the expenditure of more than £50,000.
12.	Earlier Cabinet/Committee Resolutions
12.1	None.
13.	List of Appendices
13.	None.
14.	Background Papers
14.1	The Towns Fund Prospectus is available at https://www.gov.uk/government/publications/towns-fund-prospectus