Devolution Prospectus- D2N2

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DEVOLUTION PROSPECTUS D2N2 MARCH 2015

Transcript of Devolution Prospectus- D2N2

DEVOLUTION PROSPECTUSD2N2MARCH 2015

CONTENTS02

CONTENTS

03 Executive Overview

10 Enterprise

16 Skills to Employment

20 Built Environment

24 Transport

30 SMART Infrastructure

34 Summary of Proposals

DEVOLUTION PROSPECTUSD2N2MARCH 2015

DEVOLUTION PROSPECTUS D2N2

EXECUTIVE OVERVIEW

We offer a unique devolution deal between Governmentand the two Combined Authorities of the D2N2 LEP area.

The first deal in a two-tier area with significant physical,social and geographic challenges. This deal represents anationally scalable model of sustained economic growthin partnership with cities, counties and districts.

Using the two Combined Authorities as the platform forstrong cohesive delivery, we are resolute in ensuring that ourdevolution ambitions drive sustainable economic growthacross the D2N2 LEP area. Detailed in this prospectus is ourapproach of robust local collaboration and firm commitmentto work in partnership with Government. Our key proposalsthat demonstrate this ambition are to establish:

1. A Free Trade Zone in association with East Midlands Airport. We will work with Government to develop a fully costed business case, and 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 devolutionof traffic management powers to allow more efficient operation of local roads and direct influence over the management and programming of enhancements to the motorway and trunk road network.

Through this Devolution Prospectus, D2N2 makes theoffer 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 the 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.

03

01 ENTERPRISE

04 TRANSPORT

03 BUILTENVIRONMENT

05 SMART INFRASTRUCTURE

02 SKILLS TO EMPLOYMENT

D2N2DEVOLUTION

EXECUTIVE OVERVIEW04

A devolution deal to drive our global competitiveness...

Our vision, as Place Leaders, is that the D2 and N2 areaswill become more prosperous, better connected, andincreasingly competitive to ensure there are resilienteconomies at the heart of the UK generating significantearnings for UK PLC. We will do this through making asignificant contribution to the UK economy through ourseven priority sectors, especially in the areas of advancedmanufacturing and life sciences where we already leadthe way.

The Core City LEP area, comprising Derby, Derbyshire,Nottingham and Nottinghamshire (D2N2), has alreadyidentified 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 asRolls-Royce, Walgreen Boots Alliance, Toyota, Speedo,British Sugar, Thorntons, Capital One and Bombardier.However, SMEs are at the heart of our sustainableeconomic growth. Innovation and entrepreneurship is in our DNA, enabling our SMEs and start-ups to growfaster, access finance, innovate and export.

Our Devolution Deal takes both the D2N2 GrowthDeal and Nottingham City Deal to the next level bydelivering:

• 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 N2Combined Authorities with the powers and levers todeliver our ambition for sustainable “Growth and Jobs”.Our LEP’s Strategic Economic Plan (SEP) focuses on ourone overarching target to create 55,000 new jobs by 2023.This devolution deal will enable us to take our SEP to thenext level and increase productivity in the D2 and N2areas.

DEVOLUTION PROSPECTUS D2N205

...delivered by a strengthened local partnership...

The two proposed Combined Authorities of D2 (Derby and Derbyshire) and N2 (Nottingham andNottinghamshire) working intrinsically with the D2N2LEP are making this proposal to Central Government tostart the process of securing a substantial devolution ofpower, funding and responsibilities to deliver thisambition.

We will continue to strengthen our collaborativegovernance arrangements, building on ourwell-advanced work to create the first model in the UKof two Combined Authorities and one LEP with thestrong support of business leaders, universities and otherpartners. We recognise the strategic importance to theD2N2 area of the Sheffield City Region, Manchester CityRegion and Leicester and Leicestershire LEP area. Wewill maximise opportunities to collaborate with otherkey stakeholders such as the HCA, Highways England,Transport for the North, FE colleges and East MidlandsAirport to create innovative partnership delivery modelsthat secure robust solutions and will engage with them todevelop coherent plans that address the needs of businessand communities. We will explore new opportunities toengage our citizens and communities in the decisionsthat affect their prospects and prosperity. We respect theprinciple of subsidiarity; that decisions should be takenas close as possible to the people most affected.

Local areas should be the beneficiaries of local growthwith increasing local control over the public revenuesraised from sustainable growth. By acting locally we cancompete globally. The devolution of powers, resourcesand the appropriate alignment of accountability willensure that our Place Leadership can create a great placeto 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 theoffers in the two Combined Authority proposals,devolution will provide the tools and levers for our twoCombined Authorities and LEP as Place Leaders to meetthe diverse needs of our rural and urban communities increating growth and jobs to significantly drive upproductivity.

The five strands of our prospectus set out ourambition which we will negotiate with Government.

01 ENTERPRISE02 SKILLS TO EMPLOYMENT03 BUILT ENVIRONMENT04 TRANSPORT05 SMART INFRASTRUCTURE

As well as the additional outcomes that each of ourstrands will deliver, the D2N2 area will also benefit fromthe ability to align and join up funding streams that arecurrently 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 CentralGovernment departments. Devolution will also allow the D2 and N2 Combined Authorities to take along-term perspective to addressing complex anddeep-rooted issues, rather than having to react to aconstant churn of short-term initiatives. By taking a long-term view across these strands, we can invest tocreate and unlock value over time as well as building theconfidence of investors from across the private sector tolocate, develop and thrive in the D2N2 area.

EXECUTIVE OVERVIEW06

01 ENTERPRISE

A Free Trade Zone in association with East MidlandsAirport, with favourable tax treatment to maximise theopportunities for trade and supply chain development inthe D2N2 area. Our goal is to drive forward the area’sglobal market presence by attracting new businesses,growing indigenous businesses, supporting the growth ofSMEs in the wider supply chain and capturing newforeign investments. This not only involves our ambitionto develop the largest UK freight hub but also to secureinternational connectivity through the expansion of theairport with more global passenger reach. We will workwith Government to develop a fully costed business caseto define its form, location and development, mappingthe implications for the UK and the D2N2 economy.

An Investment Fund to maximise access to the financialmechanisms needed to develop infrastructure and helpbusinesses to grow. This would bring together devolvedcapital funding for economic development, transport andregeneration. Financed through existing funding in theBritish Business Bank and UKTI’s overseas RegionalInvestment Organisation (RIO) funds, including therecently announced Legal and General Investment Fund;and matched by European Investment Bank funding. It isenvisaged that the D2N2 Accountable Body will managethese funds. We will also look to maximise local privateand public sector sources such as local governmentpension funds.

Productivity gains in our seven priority sectors, formingnational/local task forces and associated supply chainprogrammes to focus on maximising the benefits for ourSMEs in the supply chain from the competitiveness ofour world-beating companies.

Helping business grow through a joined-up approachthat includes control over national and local programmesand funding streams to help D2N2 businesses to grow.Devolved business support budgets matched by localauthority staffing would allow us to deliver a network oflocal, integrated Growth Hubs in priority areas of thetwo Combined Authorities providing local accountabilityfor the impact of this activity. Providing locally-focusedsupport to micro and SMEs, particularly in our mostdisadvantaged and economically challenged areas wherestructural change and rurality affect the ability of localeconomies to reach their full potential, is critical tosustaining successful growth.

DEVOLUTION PROSPECTUS D2N207

02 SKILLS TO EMPLOYMENT

Skills Programmes: devolution of Adult Skills Budget,AGE grant and the responsibility to commission thenational careers service through joint accountabilitywith the Skills Funding Agency shared between nationalgovernment and our two Combined Authorities. We willimprove the impact of the FE system and co-commissionactivity from FE colleges and private training providersto meet the immediate and long-term requirements ofthe labour market. Focus will be on our seven prioritysectors to ensure the needs of the economy and ouremployers are met. This will include filling the skills gapsin our priority and growing sectors and deliveringenhanced apprenticeships that will make a real differenceto our economy. This will allow us to use the flexibility ofthe devolution deal to create ‘real’ and meaningfulapprenticeships. We will build on our City DealApprenticeship Hub, rolling out our brokerage serviceand targeted incentive scheme to micro and SMEs acrossthe D2 and N2 areas.

Employment Programmes: devolved Work Programme(or its successor), the Youth Contract and responsibilityfor locally delivered DWP services, allowing joined-upemployability support to be delivered more effectively,particularly to those with the highest needs, includingreducing the level of NEET across the D2 and N2 areas.We will build on our work to develop integrated supportto families through our Early Intervention and PriorityFamilies strategies. We will also develop further ourexisting integrated service provision with DWP throughthe roll-out of the Employer Hub model established aspart of the City Deal process and the 21st CenturyGuildhall project.

03 BUILT ENVIRONMENT

A Housing Investment Fund delivering our ambitiousplans, including funds and guaranteed loans devolvedfrom the Homes and Communities Agency (HCA) andassets owned by the HCA, including decontaminatedsites, being fully devolved to the Combined Authorities.

Social and affordable housing to lift the borrowing capon the Housing Revenue Account, to provide the D2 andN2 areas with the flexibility to build the new social andaffordable housing needed to meet the changingdemands of our citizens across our diverse rural andurban areas.

We seek to intervene in the private rented sector, aswell as the affordable and market sale sectors. We canrealise considerable savings on Housing Benefit for theTreasury by delivering affordable, good-quality andwell-managed housing at below Local HousingAllowance rates.

Crucially, we seek to unlock the housing market byfacilitating the development of stalled, smaller sites bybringing vacant properties back into use, by generatingaffordable homes and by working collaboratively andstrategically on housing land supply.

Our planning authorities will explore opportunities tostrengthen co-operative and strategic working bothwithin the combined authorities of the D2N2 area andwith adjacent LEPs and combined authorities such asSheffield City Region, Greater Manchester City Region,Leicester and Leicestershire. The complexities ofdiffering planning responsibilities amongst localauthorities within our unitary and two-tier arrangementswill be fully recognised through this approach.

ENTERPRISE08

04 TRANSPORT

The creation of an integrated transport system thatincludes powers for bus franchising to better manageand rebalance our network; the devolution of trafficmanagement powers to allow more efficient operation oflocal roads, and direct influence over the managementand programming of enhancements to the motorwayand trunk road network. 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 moreaffordable access to employment for all our communities.

Commitment to ensure the D2 and N2 CombinedAuthorities have influence over the investment plans forour strategic transport connections, informed byinitiatives such as One North and Midlands Connect.This commitment must include new rolling stock for anelectrified Midland Mainline that with schedulingenhancements will achieve journey time reductions toLondon. Commitment to improve strategic road and raillinks within the Midlands and to other Core Cities tomake our economy work more efficiently. This wouldalso include improved connectivity to the East CoastMainline through the Newark Interchange, more controlover the planning and delivery for preparation of HS2and the development of a mass transit strategy for theD2N2 area.

05 SMART INFRASTRUCTURE

Develop a SMART Commission that will drive theimprovement of telecommunications infrastructure acrossD2 and N2 to provide universal connectivity and enable a‘smarter society’. Building on our experience of broadbandand other communications projects, we believe thatuniversal superfast broadband connectivity is within ourgrasp and that 4G coverage - and beyond - across our areacan be achieved. This will provide a strong boost to ourglobal competitiveness, ensuring that 100% of businessand residential premises are connected, including ourmost remote areas, where digital exclusion is a real barrierto economic growth and wellbeing. Working withtelecommunications and mobile providers and ouruniversities we can plan and deliver a rollout of advancedtechnology that will fit the specific challenges of ourdiverse areas. We want to work with Government and theindustry to develop a model for 100% connectivity.

Developing a Localised Energy Strategy taking localcontrol of energy-efficiency funding and programmesto create a joined-up strategy for energy reduction andproduction through engagement with the private, publicand education sectors. A key component of the strategywill be the development of the high-value low-carbonsector, including infrastructure development for electricvehicles. Devolution here will ensure all communities andbusinesses can contribute to and benefit from successwithin D2N2, grow new and emerging sectors ofinternational significance and allow the development ofsustainable local solutions to national problems.

DEVOLUTION PROSPECTUS D2N209

Public Sector Reform

All local authorities that form the two CombinedAuthorities within the D2N2 LEP area are clearly of theview 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 forplace-making decisions. The D2 and N2 combinedauthorities want to use this devolution deal conversationto open up a long-term dialogue about how aspects of the public sector, such as social care and health, can bereplicated to a local governance model.

ENTERPRISE10

ENTERPRISE RationaleThrough the Devolution Deal we will deliver an effectiverelationship between national and local resources, programmesand interventions that maximise the benefits from theproductivity gains of our unique and globally competitivecompanies. Devolution gives us the opportunity to realise aneconomic step-change, bringing about significant productivityand innovation gains through added value business growth.Our challenge is to unlock the potential of our geographiccluster of internationally significant companies by enhancingproductivity and driving the growth and development of theindigenous micros and SMEs in our supply chains.

01

DEVOLUTION PROSPECTUS D2N211

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.

BenefitsMaking the most of our most successful firms requiresthat they are supported and that their growth benefits the wider D2N2 economy. This in turn requires theresources used by National Government (its network ofembassies, supply chain programmes, funding for growthand collaborative research, enabling legislation) beeffectively integrated with the planning powers, skillsdevelopment and understanding of local supply chains -with the power to support sectoral growth held morefirmly in local hands. Unlocking this latent potentialwithin the local ecology of 2nd and 3rd tier suppliers willnot only drive up their productivity but will also matchtheir competitiveness to that of the OEM’s (OriginalEquipment Manufacturers). This ‘ask’ is a clear andnatural extension of the combined authority proposals and will enhance our capacity and capability to securegrowth in better quality and more sustainable jobs in key localities, enabled by technology and supportingprosperity .

ProposalsWe will deliver this step-change in economic prosperitythrough four strategic, integrated interventions, forging anew partnership with Government. In recognition of theunique role of Government, our Devolution Deal blendseconomies of scale and strengths of national programmesof business support including UKTI and ManufacturingAdvisory Service (MAS), and seeks to enhance localimpact by focusing new interventions aroundsolution-specific opportunities of scale.

ENTERPRISESTART-UPS(2013)

START-UPS PER 10K POPU.AGED 16-64 YRS

DERBY DERBYSHIRE NOTTINGHAM NOTTINGHAMSHIRE D2N2 ENGLAND

70 66.9 61.5 63.8 65.2 89.9

ENTERPRISE12

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 inthe country, after Heathrow, which is struggling withcapacity. Sea freight is now secondary to air freight. This general area is well-served by the M1 and M42motorways. Existing rail connectivity will be significantlyenhanced with the development of new rail hubs in thearea including the Roxhill Freight Interchange. In thefuture, it will also have access to HS2 via the EastMidlands Rail Hub.

This is the best location in the UK to site a Free TradeZone to support international trade and inwardinvestment. There are specific site options to be consideredthat are in close proximity to the airport, all offeringappropriate 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 connectionto road, rail and the airport. It would be availableparticularly for new Foreign Direct Investment andcompanies intending to radically expand their operationsto encompass international trade.  Particular targets for thezone would be tier one automotive and aerospace suppliers.It would therefore be necessary to link UKTI inwardinvestment and trade activity to the zone. 

We recognise that free trade zones in the UK previouslyhave not delivered to the level of expectation withconcerns around displacement and loss of revenues to theExchequer. We believe that the cluster of our OEM’s andthe strength of our local infrastructure assets (across road,rail and air) create the conditions for a successfuldesignated Free Trade Zone.

In a global market place, locations which offer addedvalue services, are closer to the customer base, have closeproximity to sources of innovations and centres ofexcellence, will be ideal for re-shoring and securinginvestment from business. Currently there is a disconnectacross OEMs, their international customer base andsupply chains, curtailing innovation and new market /product development. There is the need to furtherstimulate the supply chain and innovation within it tosafeguard and drive future growth.

EMA is the UK’s premier airport for pure freight. Itsproximity to the Roxhill Freight Rail terminal, M1 (widerstrategic Road Network) new Business Park capacity andfuture HS2 development, makes it ideal for a nationallydesignated Free Trade Zone ‘Hub’. Coupled with this isEMA’s ambition to double passenger numbers, rising to10 million by 2040. The Free Trade Zone would becomean internationally competitive location of choice forfreight, OEM (and associated supply chains) and newcarriers (long-haul carriers). We are seeking dialoguewith Government to consider future public policy andthe specific opportunity of establishing a Free Trade Zonein association with EMA.

DEVOLUTION PROSPECTUS D2N213

Investment FundBusinesses, particularly micros and SMEs, continueto encounter difficulty in terms of accessing financeto help grow their business – either the finance is notforthcoming or the terms and conditions are soprohibitive that the deal is constrained from the outset.We know from sector intelligence that 75% of allinvestment funding for Life Sciences is concentratedin the South East. In order to capture growth, in botheconomic and productivity terms, we need to undertakeactions that help rebalance the UK economy.

In this area we have already established very successful“access to finance” initiatives that have covered grantsand loans to enable businesses to grow. Our proposal isto establish an Investment Fund and the creation of aLocal Investment Bank, bringing together devolvedcapital funding for economic development, transportand regeneration purposes. This innovative approachwill pool both locally and nationally determined funds.

Funding at a sufficient level will enable a £1billionRegional Investment Bank to be developed and bothprivate and public match-funding (including Europeanand EIB funding and local partners through the LocalGrowth Fund, local authority reserves, non-domesticrates income and pension funds) to be secured tosupport further the commerciality and sustainabilityof the structure.

In this way, a Regional Investment Bank will be able toproperly address and target the “local” issues faced bybusinesses in accessing finance under a single umbrella,as well as providing investment capital to bring forwardinfrastructure and regeneration projects – furtherdriving growth in the economy.

PRODUCTIVITY

GVA GROSS VALUE ADDED

PER HOUR WORKED (2

012)

D2N2 24.8DERBY 30.2EAST DERBYSHIRE 21.4SOUTH & WEST DERBYSHIRE 23.4NOTTINGHAM 25.1NORTH NOTTINGHAMSHIRE 23.8SOUTH NOTTINGHAMSHIRE 25.8ENGLAND 28.3

££££

ENTERPRISE14

Productivity Gains in priority sectorsDeveloping a conducive environment for our world-beating companies Original EquipmentManufacturers (OEM) is a priority, ensuring they takeadvantage of global opportunities from the places inwhich they exist. Our focus will be on our micros andSMEs in their supply chains that need to be enabled tomatch the level of productivity and innovation within theOEM’s, creating a resilient, internationally competitiveand highly-skilled local eco-structure. Enabling thiseco-structure will require access to a suite of sector andbespoke wrap-around programmes that will support newinvestment, collaborative research, highly-skilledworkforce development and physical infrastructureschemes.

To deliver this we propose the development of dedicatedTask Groups, incorporating national (Whitehall / BIS /UKTI) and local (D2N2, LA’s, Chamber, universities and business) partners to address sector-specificopportunities and challenges. The focus will be to design and shape the next generation, fit for purpose,internationally competitive supply chains, starting withRolls-Royce’s Transport Equipment Manufacturing.Ensuring the greatest impact of Rolls-Royce’s ambitiousplans in Derby and Nottinghamshire (Hucknall) wouldbe the first priority followed by the other priority sectorsin our SEP such as Life Sciences and Low Carbon.

Integrated Business Growth HubBusinesses, micros and SMEs in particular need to beable to access relevant and timely business supportproducts in order to maximise their growth potential.National programmes through UKTI, ManufacturingAdvisory Service (MAS), and Growth Acceleratorprovide much-needed generic support but are notaligned or coordinated with local need. Local businessesalso find it difficult to know what is available and how toaccess this provision. The D2N2 LEP and NottinghamCity Council are already establishing an integratedBusiness Growth Hub that will act as a shop window for arange of business support interventions – all coordinatedand 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 anintegrated model that aligns business support and skillsdevelopment through approaches such as theNottingham Employer Hub and the Derbyshire Guildhall.This will overcome the ongoing problem of a lack ofconnectivity between national programmes and local needand the remoteness felt by businesses in terms of accessingthe support to help them help themselves to grow.

DEVOLUTION PROSPECTUS D2N215

In order to ensure real integration of support and aclarity of message the main partners will co-locate. This will include the LEP, City Council, Chamber ofCommerce and national providers such as MAS andUKTI and further match from local authorities as themodel is extended across D2 and N2. This brings furtheralignment, coordination and local targeting of supportthat also has an integral account management functionfor businesses in the strategic key growth sectors.

Our proposal is about more than integration – we wantto be held accountable directly to National Government(BIS) for business growth and achieving business growthtargets. There will be two phases to this – the first will beto commission business support that will meet the needsof local micros and SMEs, including those in the supplychains of our primary OEMs and to ensure that growth isdelivered. The second phase will be to take on the role ofa full delivery partner, again being directly accountablefor the resulting business growth to Government.

SKILLS TO EMPLOYMENT16

SKILLS TO EMPLOYMENTRationaleIn 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 sothat it adequately prepares people for future work opportunities. We recognise thatbusinesses must play a central role in developing and delivering improvements to ourapproach.

Asks of Government and Powers that:

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.

02

DEVOLUTION PROSPECTUS D2N217

THE PROPORTIONOF THE RESIDENT POPULATION AGED 16-64 YEARS WITH

QUALIFICATIONSD2N2 10.5%ENGLAND 9.1%DERBY 10.9%NOTTINGHAM 12.9%DERBYSHIRE 8.5%NOTTINGHAMSHIRE 11.3%

NO

BenefitsThis ‘ask’ builds on the well-developed proposals of the combined authorities and by devolving these powers, funding and responsibilities to the CombinedAuthorities, Government will secure a locallycoordinated, coherent approach to better alignemployers’ demands for existing and future workforceskills with local education, pre-employment training andin-work training provision. The Combined Authoritieswill target funding, commission bespoke trainingprogrammes and deliver services to ensure businesses’skills needs and skills gaps are filled. They will alsoprovide the support and pathways for young people fromtheir priority groups to ensure they can progress intoemployment.

ProposalsThe challenges of the employment and skills agenda aretwofold. Firstly, we need to ensure that everyone enteringor re-entering the labour market has the skills needed bylocal businesses. Secondly, we must have clearco-ordinated strategies in place to ensure that peoplewho experience high levels of disadvantage throughurban deprivation and rural isolation are able to benefitfrom the job opportunities created by wider economicgrowth. The D2N2 LEP has already set out its desire toagree a Skills Deal with Government. This devolutiondeal with the two Combined Authorities provides agovernance mechanism to achieve the ambition through...

Reshaping and Restructuring Local FE Provisionand Local Commissioning of Skills ProvisionThrough joint accountability for the Skills FundingAgency shared between National Government and ourtwo Combined Authorities, we will improve the qualityof the local FE system where there is under-performingFE provision, having responsibility for implementing therecommendations of the current and future FECommissioners’ review. We would also co-commissionactivity from FE colleges and private training providersto meet the immediate and long-term requirements ofthe labour market, with particular focus on our sevenpriority sectors. By more closely aligning the educationand training offer to the needs of local employers, we willensure our future and existing workforce develop theskills required to help grow businesses and the economy.

SKILLS TO EMPLOYMENT18

Local Delivery of the AGE GrantBuilding upon our City Deal Apprenticeship Hub we willroll out an independent brokerage service to supportemployers (particularly small and medium enterprisesand those in the Voluntary and Community Sector) tocreate additional Apprenticeship opportunities for youngpeople. Alongside this service the Combined Authoritieswill deliver a targeted incentive scheme to micro andSMEs across the D2 and N2 areas, building on thelessons learnt from existing local incentive schemes.Local delivery of the AGE grant will enable us to vary thelevel of support according to the different types oflearner, sector/subject area and level of apprenticeship.This will ensure that we drive up demand forapprenticeships, particularly within our target sectors,but also ensure that they are more accessible for allindividuals within the local labour market.

Commissioning of Work Programme and Youth ContractThe policy and funding landscape for skills andemployment activity is complex and often confusing for stakeholders and beneficiaries alike. There arenumerous organisations involved in designing,commissioning and delivering services which aim totackle skills and employment issues. Not only is thelandscape complex but it is constantly changing andnationally driven – this has its own consequences interms of sustaining impacts and delivering more holisticservices and programmes to tackle high levels ofdeprivation and disadvantage.

Through local commissioning of the Work Programme(or its successor), and the Youth Contract we willimplement joined-up employability support, which isaligned to locally delivered employment support, butalso other local authority provision such as health andcare services, education, and careers guidance. We will ensure provision is delivered more effectively,particularly to those with the highest needs, includingreducing the level of NEET across the D2 and N2 areas.

This new localised approach to coordinating support willcontribute to the reduction of the number of long-termunemployed in the area and deliver a reduction to theWelfare Bill.

THE PROPORTIONOF THE RESIDENT POPULATION AGED 16-64 YEARS WITH

LEVEL 4 AND ABOVED2N2 29.8%ENGLAND 35%DERBY 29.5%NOTTINGHAM 29.3%DERBYSHIRE 29.5%NOTTINGHAMSHIRE 30.4%

DEVOLUTION PROSPECTUS D2N219

Local Accountability for DWP FunctionsBy devolving the responsibility to the CombinedAuthorities for delivery of DWP employment andbenefit functions and funding, we will ensure thatprovision aiming to support people into employment isdriven by local need and integrated with wider services,thereby reducing duplication and maximising value formoney.

By more closely aligning DWP-funded provision tolocally 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 employerfunctions delivered though the City Deal, we willdevelop further our existing integrated service provisionwith DWP through the roll-out of the Employer Hubmodel established as part of the City Deal process andthe 21st Century Guildhall project and we will build onour work to develop integrated support to familiesthrough our Early Intervention and Priority Familiesstrategies.

We would also welcome the opportunity to discuss thedevelopment of a locally coordinated approach tosupporting ESA claimants back into work, in line withthe Working Well Pilot established in Manchester.

D2N2 10

.5%

ENGLAND 9

.8%

DERBY1

1.7%

NOTTINGHAM

14.8%

DERBYSHIRE

9.1%

NOTTINGHAM

SHIRE 9

.7%

THE PROPORTIONOF THE RESIDENT POPULATION

OUT-OF-WORKBENEFITS

AGED 16-64 YEARS CLAIMING

(OF ANY TYPE: JSA, ESA, LONE PARENTS ETC)

BUILT ENVIRONMENT20

BUILT ENVIRONMENTRationaleDelivering housing development is central to supportingand facilitating all aspects of growth. The devolution asksand offers to bring about increased housing delivery as wellas higher standards through a number of flexibilities andmore effective use of existing resources and levers. We want Government to acknowledge the role that localauthorities 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 therestrictions upon the use of resources that currently exist.The Planning system is often experienced as complex withoutcomes uncertain and presenting a block to development.It is reactive in nature and does not consistently deliver thegood-quality development that communities deserve.Building great places requires civic leadership andcollaboration across the built environment disciplines; this is what we seek to bring through our proposals.

03

DEVOLUTION PROSPECTUS D2N221

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.

BenefitsWe believe that Government is not realising the fullpotential of its investment in housing because it is oftenallocated via national programmes which don’t alwaysmeet the specific needs of more challenging localities. By channelling investment via our two CombinedAuthorities we can ensure that Government getsmaximum delivery and value for money by ensuring thetypes of projects which are most relevant to the LEParea’s needs are those which receive investment. The asksbuild on the proposals of the two Combined Authoritiesin securing a more affordable supply of housing andfacilitating more appropriate land for development andredevelopment.

ProposalsWhilst our asks are fiscally neutral, one proposal is thatGovernment helps to unlock private sector investment inhousing by indemnifying private sector lease-backschemes. There appears to be a strong appetite for suchschemes, whilst all the risk remains with localauthorities, they will not realise their potential.

HousingA Housing Investment Fund delivering our ambitiousplans including funds and guaranteed loans devolvedfrom the Homes and Communities Agency (HCA), withassets owned by the HCA, including decontaminatedsites, being fully devolved to the Combined Authorities.This will enable the two Combined Authorities flexibilitybeyond the national programmes or deviation from set criteria to allow funding to be more appropriatelyapplied to the needs of the area, in turn getting more out of investment and producing a more sustainable and impactful result. Our approach will facilitatedevelopment of stalled, smaller housing sites throughtargeted remediation and infrastructure work and bringvacant and underutilised properties back into residentialuse – to assist the vitality and sustainability of markettowns and more vulnerable settlements

Social and affordable housing to lift the borrowing capon the Housing Revenue Account, to provide the D2 andN2 areas with the flexibility to build the new social andaffordable housing needed to meet the changingdemands of citizens across our diverse rural and urbanareas. The new-build programmes will be self-fundingthrough increased rental income streams.

BUILT ENVIRONMENT22

We seek to intervene in the private rented sector as wellas the affordable and market sale sectors. We can realiseconsiderable savings on Housing Benefit for the Treasuryby delivering well-managed housing of good quality atbelow Local Housing Allowance rates. Ideally, we wouldlike to link the payment of Housing Benefit to thedelivery of certain minimum housing standards, againimproving outcomes for Government at both a fiscal andsocial level. We would also like to be able to use theappropriate levers for raising standards in the privatesector more effectively. Interventions to improve themanagement of the existing PRS stock, combined withthe opportunity to bring significant new investment intothe sector for new private rented homes could transformthe tenure into one which fully delivers for the localcommunities of the LEP, providing high-quality,easy-access housing for those working in a growingeconomy.

Crucially, we seek to unlock the housing market byfacilitating the development of stalled, smaller sites bybringing vacant properties back into use, by generatingaffordable homes and by working collaboratively andstrategically on housing land supply.

Place LeadershipAs part of the Devolution Deal and D2N2’s offer toGovernment, the planning authorities will exploreopportunities to strengthen co-operative and strategicworking both within the Combined Authorities of theD2N2 area and with adjacent LEPs / CombinedAuthorities such as Sheffield City Region, GreaterManchester City Region, Leicester and Leicestershire.The complexities of differing planning responsibilitiesamongst local authorities within our unitary and two-tier arrangements will be fully recognised throughthis approach.

We will explore three areas for improving collaborativeworking:

1. Prioritising Employment SitesA collective approach with developers to bring forward sites that are exclusively or predominantlyemployment-related. The ambition being to prioritisethem for funding given a market influence andaddressing barriers to development. The opportunityexists to set up an ongoing, structured four-way dialoguebetween 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 / DeveloperContributionsA LEP / Combined Authority position on S106 andwider developer contributions. The ambition is to ensure co-ordination between the local authorities with developers to ensure sustainable and viabledevelopments are secured. The current consultation on S106 Agreement relates in part. Section 106requirements are often cited as late additional burdensprevailing against viability.

3. LEP-wide Planning CharterWe would explore the option of creating a practicalplanning charter to demonstrate and facilitate a businessfriendly approach to the planning process. The ambitionis to ensure that collectively we deal with employment /large mixed use sites etc in a timely, joined-up and cost-effective manner. The Charter will have the coreobjective of creating sustainable economic growth withinsmarter, sustainable communities, being a mutuallyagreed process between the respective local authoritiesand developers.

DEVOLUTION PROSPECTUS D2N223

In addition to these three 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 ofdesign and materials; sustainable functionality forimmediate 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 EstateMaximising the release of surplus public sector land iscritical to supporting the Government’s ambitions toreduce the deficit, increase the number of homes beingbuilt and drive economic growth. This aligns with theD2N2 ambition to maximise the economic returns frompublic sector land assets.

D2 and N2 Combined Authorities are seeking to workwith Government to maximise the economic returnsfrom public sector property assets. Economic return isdefined as efficiency through significant rationalisationof the public sector estate, using surplus public sectorproperty to deliver housing and commercialdevelopment and using the strength of the public sectorcovenant from its own occupation to stimulate economicgrowth. Both our Combined Authorities would seek tocreate a vehicle such as a Joint Asset Board withGovernment to influence asset development in a way thatsupports the growth of the local economy. The Board’sprimary aim will be to achieve a more integratedapproach to how the public sector uses its assets in thetwo Combined Authority areas, to support growth anddeliver better value for public money.

Local setting of chargesThe Combined Authorities are asking for the freedom toset planning and licensing fees locally. Currently the feespayable for planning and licensing are set centrally byGovernment. Planning application fees form a very smallproportion of development costs – less than approx. 0.5%– and thus recovery of true costs would not impact uponthe viability of developments. An average spend perapplication in 2013/14 in the N2 Combined Authorityarea was £1069.90 with an average fee income perapplication of £584.36 resulting in an average subsidy perapplication of £485.54 and therefore do not accuratelyreflect the cost of delivering these services.

TRANSPORT24

TRANSPORTRationaleGood transport is a key driver of economic growth, however, with high levels ofcongestion and physical barriers to bus and rail connectivity across the region, we know more innovative travel and transport solutions are needed if we are tosustain and increase growth. Across the D2N2 area we need to better connect ourcommunities to employment opportunities whilst ensuring we meet the demandsof businesses and a challenging physical geography. We are keen to develop avery different vision about our place and our people; we want to demonstratestrong leadership in the better use of technology, in creating genuinelysustainable communities (with live/work opportunities at their heart) throughbetter-quality and better-designed developments that enable people to makebetter choices about their need for travel; we want to make sure that any futureinvestment in transport, traffic and highways is focused on improving the qualityand experience of essential travel, but moreover, that through a more imaginativeapproach of integrating advance technology into new developments, we cansignificantly reduce the need to travel at all. In both rural and urban contexts we need coordination and local influence over decisions on investment anddeployment of current and future resources if we are to achieve this.

04

DEVOLUTION PROSPECTUS D2N225

We know this is deliverable as our approach builds uponthe existing powers available to London and similarcomponents to the Manchester and Sheffield DevolutionDeals; but we are also keen to work with Government ondeveloping a much more ambitious approach to traveland transport that could set the standard fordevelopment 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 directly influence the management and programming of enhancements to the motorway and trunk road network; make and amend traffic and parking orders, and change local rights of way. We seek a coversation regarding the potential for de-trunking specific strategic roads within the D2N2 area.

4. The ability to directly determine strategic infrastructure priorities to drive economic growth.

EAST MIDLANDS HAS 9% OF THE POPULATION BUT ONLY 6% OF TRANSPORT SPEND THIS COMPARES TOLONDON THAT HAS 16% OF THE POPULATION BUT 32%OF TRANSPORT SPEND

EAST MIDLANDS

6%9%

LONDON

32%16%

TRANSPORT26

BenefitsImprovements to transport infrastructure, traffic andnetwork management are inherent in the proposals ofour two Combined Authorities. This devolution deal is a natural extension of these proposals. By securinglong-term funding commitments and devolving powersand funding decisions to the D2 and N2 CombinedAuthorities, the area will be able to redress theunderinvestment in transport and exploit the fullpotential of linking local transport decisions tosustainable economic growth. Ensuring investment istargeted at critical road corridors, particularly those with essential links to wider economic geographies inSheffield, Manchester and the West Midlands, willenhance connectivity and support growth. Bettermanagement of our bus system will allow us to ensureadequacy of service in rural areas, whilst removing thenegative impacts of destructive competition thatundermines investments in quality improvements inurban areas, such as the expansion of the NottinghamExpress Transit system. Better management of the localroad network is more efficient than investing ininfrastructure improvements in the first instance.

ProposalsThe D2 and N2 Combined Authorities believe that localdecision-making will bring significantly better use of theexisting transport infrastructure and assets. This is notmerely a case of spending more money, although arebalancing of national transport spending towards thearea is requested. The premise of our asks are that localknowledge and control will lead to smarter decisions,reducing uneconomic competition and arbitrarydecision-making, thus saving the Government money in the future.

A 10-Year Funding CommitmentBeing located in the centre of the country, majorstrategic routes are key arteries for both movementswithin the area but also for transitional routes from and to areas beyond. As a result inefficiencies in thetransport network here also adversely impact furtherafield. Early analysis through Midlands Connectidentifies that large and widespread journey time savings can be achieved through improved strategic road improvements with rail improvements, achievinglarge savings for key population centres. Specific growth corridors are being identified based on economic connections. We are seeking a fair deal forlocal transport funding in the form of a 10-yearcommitment to devolving Central Government fundingfor transport already not devolved, consistent with otherDeal areas.

DEVOLUTION PROSPECTUS D2N227

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 PowersThe D2N2 area is diverse in its make-up, including high-density urban centres predominately situatedaround two cities, a number of market towns and ruralcommunities. The barriers and constraints of physicalgeography compound the limited opportunities forimproved connectivity and accessibility. In each of theseplaces there are transport challenges which requirebespoke solutions. In urban areas competition is stiflingcoordination and more efficient movement ofpassengers. In rural areas a lack of service provideschallenges in connecting people with employment.

A better-regulated and rebalanced bus network willestablish a stable high-quality public transport networkand allow a simpler, fairer integrated smart ticketingapproach across the D2N2 area, offering the potential totarget discounted fares and other special offers, openingup new employment opportunities and broadeningtravel horizons from areas where employment levels aresignificantly below the national average.

In requesting these style powers and devolved fundingto introduce bus franchising on a staged basis the D2and N2 areas wish to 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

• Devolution of commercial bus service operators’ grants beyond current Better Bus Areas period (2018)

• Devolution of associated concessionary fares budgets.

THE COST OF CONGESTION IS EQUIVALENT TO AROUND £300 PER EMPLOYEE IN NOTTINGHAM AND DERBY, AND WILL MORE THAN DOUBLE BY 2025

77

TRANSPORT28

Powers to better manage the local road networkThe ability to better manage the local road network atthe local level will lead to a reduction in road congestionand a more efficient and reliable public transportnetwork that will improve business productivity. Powersto better manage and more efficiently operate the localroad network and take over the operation of some trunkroads, make and amend traffic and parking orders, andchange local rights of way including:

• Directly influence the management and programming of enhancements to the motorway and trunk road network to support major employment and housing development sites

• 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 infrastructureprioritiesAbility to directly determine strategic infrastructurepriorities to drive economic growth. This means directlyinfluencing decision-making processes and securing thenecessary investment to deliver the findings of MidlandsConnect, more control over the planning and delivery ofan East Midlands Hub Station at Toton (and Staveleydepot) as part of an HS2 Phase 2 Eastern leg and supportfor the development of a mass transit strategy for theD2N2 area that also improves connections to the EastMidlands Airport growth area.

DEVOLUTION PROSPECTUS D2N229

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 the 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 to 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.

SMART INFRASTRUCTURE30

SMART INFRASTRUCTURERationaleA central tenet of a devolution deal for D2N2 is to developactivity that future-proofs growth and prosperity for citizensand businesses. The delivery of Superfast Broadband is a high-profile issue across the UK and is being addressedthrough several separate programmes. The rapid pace oftechnological change and advancement requires continuedinvestment in this critical “fourth utility” if our communitiesare to be fully inclusive; if our businesses are to maintain acompetitive advantage in a global economy; and if we are toachieve our ambitions to reduce travel and target transportinvestment more effectively. Creating a long-term plan forenergy security, reduction and generation will be a key activityfor any future Government, with new models for meeting theenergy needs of local businesses and communities.

05

DEVOLUTION PROSPECTUS D2N231

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% of 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.

BenefitsD2N2’s central UK location has under-pinned industrialdevelopment over 250 years. Our physical connectivitywith the rest of the UK and the world is a key strength. The A1, A50, M1 and A46 effectively mean we are a centralhub in national road networks. The Midland Mainline andEast Coast mainline serve our area and HS2 will furtherstrengthen 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 theUK through the expertise and innovative use of digitaltechnology and tackling the digital divide particularly inour vulnerable and rural communities. Our proposalswould also significantly reduce local CO2 emissions andimprove energy efficiency, security and affordability.

ProposalsDigital connectivity will be a critical aspect of globalcompetitiveness. Our aspirations are therefore beyondany current plans. We want to achieve 100% connectivityacross D2N2, going beyond current broadbandprogrammes to achieve universal connectivity,developing capacity for the highest speeds, achieving 4G and beyond mobile coverage by working with theindustry through infrastructure sharing, developingpublic wifi access in urban centres and using creativeresources to innovate in digital applications. Creating‘smart communities’ supported by high qualitydevelopment will provide D2N2 with an attractiveeconomic advantage.

Develop with Government a SMART CommissionThe delivery of Superfast Broadband is a high-profileissue across the UK and is being addressed throughseveral separate programmes. The rapid pace oftechnological change and advancement requirescontinued investment in this critical “fourth utility” if our communities are to be fully inclusive and ourbusinesses are to maintain a competitive advantage in a global economy.

SMART INFRASTRUCTURE32

The physical geography across D2N2 has created adispersed social geography. As a result, digital coverageand connectivity is inadequate, leaving many businessesand more remote settlements at serious risk of exclusionand economic disadvantage. Key ‘not spots’ also exist inurban locations, such as Pride Park in Derby and areaswithin NG1 and NG2, as intervention programmes have focused on other priorities. Existing solutions seek to maximise increased digital speeds in the moreeasy-to-reach localities, further exacerbating the divide.National programmes aimed at rolling out broadbandhave lacked local knowledge and sensitivity to deliver theright outcomes. More imaginative and ‘smarter’ solutionsare needed to ensure the social and economic wellbeingin these areas is protected and enhanced.

Our ambition is to achieve 100% connectivity acrossNottinghamshire and Derbyshire, with a blend oftechnical solutions to address the hard-to-reachcommunities and a forward programme which recognisesthe potential for delivering hyperfast broadband throughfibre infrastructure. This ambition also includes coverageof mobile networks offering high speed data servicesacross Derbyshire and Nottinghamshire. Our ambitiongoes beyond providing infrastructure and includes thedevelopment of innovative uses of connectivity which willensure that businesses are able to secure competitiveadvantage and public service reform can be supported.

To address these issues we wish to work with Governmentto deliver affordable roll-out of broadband and mobilenetworks through the release of funding streams orpowers from Government. To do this we will establish aSMART Commission which will include telecoms andmobile providers and our Universities.

We want Government to be an active and supportiveparticipant in this SMART Commission and compelother 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 aninternational exemplar, taking our traditionalconnectivity strengths into a new age.

Localised Energy StrategyCreating a long-term plan for energy security, reductionand generation will be a key activity for any futureGovernment, with new models for meeting the energyneeds of local businesses and communities being a central part of this. D2N2 has a broad base ofstakeholders involved in this agenda, including:world-leading university departments; energy producersand suppliers; high-energy-users; large stock-holdinglocal authorities and other landlords and leadingbusinesses in the burgeoning low-carbon sector. It is alsohome to the UK’s largest District Heating Network, has agrowing international reputation in the green agenda andhas ecological strengths such as access to local renewableenergy and existing power stations.

Bringing these factors together, D2N2 will develop alocalised energy strategy, taking a joined-up approach toenergy usage, security, affordability, and the developmentof the low-carbon sector.

To enable this to happen, D2N2 seeks to take local control of energy-efficiency budgets, including thetransfer of ECO obligation including carbon target toLocal Authorities. This will be blended with other energy-efficiency improvements/funding arrangements to deliver an area-based energy strategy.

DEVOLUTION PROSPECTUS D2N233

In return for this D2N2 offers the expertise andpartnerships within its broad base of engagedstakeholders, including: world-leading universitydepartments; energy producers and suppliers; highenergy users and large stock holding local authoritiesand leading businesses in the burgeoning low-carbonsector.

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 thetechnologies and processes of tomorrow, creatingopportunities for sharing these across the rest of theUnited Kingdom and exporting them across the widerglobe.

SUPERFAST BROADBAND CONNECTIVITY% CONNECTED

DERBY

NOTTINGHAM

DERBYSHIRE

NOTTINGHAMSHIRE79.9%

95.9%

92.9%

54.7%

SUMMARY OF PROPOSALS34

1. FREE TRADE ZONE In association with East Midlands Airport(EMA) work with Government to define theform, location and development of a FreeTrade Zone.

e goal for the zone will be to drive forwardthe area’s global market presence by attractingnew businesses, growing indigenousbusinesses and capturing new foreigninvestments.

D2N2 is at the centre of the UKgeographically and the strategic east-west andnorth-south routes.

Within an hour’s drive of seven million peopleand two hours or less by train from Londonand six of the seven other core cities.

Studies indicate a positive connectionbetween increasing air traffic and the numberof firms in a region – the establishment of aFree Trade Zone (FTZ) will maximise thisconnection by providing additional stimuli toeconomic growth and benefits to businesses.

Businesses and Supply Chains.

Government benefit from increased tradeJobs at the Free Trade Zone and within thesupply chain across the LEP area.

2. INVESTMENT FUND Create an Investment Vehicle to maximisemarket success through finance required todevelop infrastructure and help business grow.

To work with Government to pool fundingmade available through national programmes,through sources such as the British BusinessBank, Innovate UK and Regional GrowthFund, is devolved to LEPs and localauthorities.

is will provide funding at a sufficient level toenable a £1 billion Regional Investment Bankto be developed and both private and publicmatch-funding (including Europe and EIBfunding and local ‘partners’) to be secured tofurther support the commerciality andsustainability of this structure.

Entrepreneurship and innovation constrainedby limited access to finance.

25% business say access to finance is affectingbusiness growth.

Since the 2008 financial crash, lending tobusinesses has fallen and remains low, whichhas had knock-on effects on business growth.Whilst there are positive signs of recovery andbanks are responding to the growing demandfor finance, the supply of credit remainssubdued.

Business.

Micro and SMEs.

01 DEVOLUTION SUMMARY OF PROPOSALS – ENTERPRISE 1

THEME PROPOSAL RATIONALE BENEFICIARIES

LEP-wide. Increased global competitiveness.

Increased economic growth.

Connectivity across key infrastructure hubs ofEMA, Roxhill, Donington and HS2.

To provide the expertise and capacity acrossthe public and private sector in supporting thedesign, development and designation of theFree Trade Zone.

Designation, on application, of a Free TradeZone in association with EMA.

Work with D2N2 to develop a fully costedbusiness case.

is funding would address and target the‘local’ issues faced by 25% of businesses in theregion who have indicated that accessingfinance is a barrier to their growth aspirations.

e commerciality and sustainability of thesedevolved structures at a regional / pan-regiongeography would be proven.

Combined Authorities resources, time andtechnical support.

Businesses and commercial funders to bringforward suitable structures.

Funding from British Business Bank andInnovate UK devolved.

SMEs.

DEVOLUTION PROSPECTUS D2N235

GEOGRAPHY OUTCOMES D2N2 COMMITMENTS GOVERNMENT COMMITMENTS

3. PRODUCTIVITY GROWTH IN PRIORITY SECTORS

Establish a dedicated task force combiningnational and local expertise and resources todrive productivity across our globallysignificant businesses and growth sectors,and support the competitiveness of localsupply chains.

Utilising national business supportprogrammes (UKTI, MAS, Accelerator), inorder to build on economies of scale and takeadvantage of the USP of NationalGovernment contacts (Commercial Sectionsof the FCO).

Within the D2N2 area there are a number ofmajor, world-beating companies and UKhead offices, including Rolls-Royce, WalgreenBoots Alliance, Toyota, Speedo, British Sugar,orntons, Capital One and Bombardier. Weneed to shape the next generation of supplychains to maximise innovation andproductivity, retaining and growing thestrengths of the cluster of major OEMs in theD2N2 area.

Additionally, an important factor relates to theexisting strengths in the area’s research basethrough its three Universities and their linkswith these major employers. Much of thisresearch is recognised globally and based onstrong links with employers such as Rolls-Royce.

Increased competitiveness throughinnovation in the supply chain of these OEMs incorporating increased numbers of collaborations, R&D and spin-outs.

Rebalancing the growth in themanufacturing base whilst increasing thegrowth of SMEs in sub-sectors.

Collaboration and increased competitivenessof SMEs across the East and West Midlands.

4. INTEGRATED BUSINESS SUPPORT Configure a joined-up package of businesssupport, including control over national andlocal programmes, integrating the resourcesand capabilities of these programmes andpartners matched with local commissioningand capacity.

Design and commissioning of businessprovision to be carried out by expanding theremit of the Growth Hub network across D2and N2 , tailored to address localrequirements through co-location and anintegrated service to local businesses.

Business support is too complex and does notaddress local needs, yet D2N2 has a large anddiverse collective business base that is notachieving its full growth potential.

Many business people find the businesssupport landscape too complicated andtime-consuming to navigate.

Businesses.

01 DEVOLUTION SUMMARY OF PROPOSALS – ENTERPRISE 2

THEME PROPOSAL RATIONALE BENEFICIARIES

SUMMARY OF PROPOSALS36

LEP-wide. Increased competitiveness and economicgrowth across OEMs, matching their levels ofinnovation and productivity across the SMEs’supply chain.

Higher levels of R&D and University spin-outs– all adding value to the knowledge economy.

Slowing the decline of high-valuemanufacturing base in the country.

GVA and GDP nationally and regionally. R&Dactivity nationally and regionally. Numbersemployed. IP and Patent registrations.

Use of business rates upli to providesupport to SMEs in the supply chains.

Staff (secondments from LAs andUniversities) and funding resource toestablish a small task group to facilitate links,directly or through existing intermediaries,with SMEs, Universities and OEMs.

Funding through the Integrated BusinessSupport Growth Hub for specific AccountManagement activity and bespoke businesssupport as identified through the TaskGroup.

Establishment of dedicated resource (peopleand support programmes) to specific OEM /Supply Chain development.

Apprenticeship funding to be used forsupporting apprentices in SMEs in the supplychain.

LEP-wide. Increased business growth.

Increased GVA.

Increased employment.

Integrated business facing support.

D2 N2 Combined Authorities will becontributing time and technical support fromlocal authority officers, business people andbusiness support providers to deliver theGrowth Hub concept which will greatlyenhance the accessibility and integration ofbusiness support.

Control over UKTI, MAS and GrowthAccelerator provision, and nationallydetermined business support programmes.

GEOGRAPHY OUTCOMES D2N2 COMMITMENTS GOVERNMENT COMMITMENTS

DEVOLUTION PROSPECTUS D2N237

1. RESHAPING AND RESTRUCTURING UNDER-PERFORMING LOCAL FE PROVISION, CO-COMMISSIONING OF NATIONAL CAREERS SERVICE AND ADULT SKILLS BUDGET

Combined Authorities to: have powers toimplement and deliver the recommendationsof FE Commissioner’s reports;

receive proportionate SFA Adult SkillsBudget contract and commission delivery tofill the skills gaps of local employers;

have joint role with DWP in commissioningfuture NCS contracts and related activities.

FE Commissioner reviews of underperforming FE provision.

Current system driven by learner demandcausing mismatches between supply anddemand from employers.

Bespoke programmes commissioned to meetlocal needs.

Colleges.

Training providers.

Employers.

Learners.

Schools.

2. AGE GRANT Combined Authorities to take onresponsibility for the local delivery ofApprenticeship Grant for Employers (AGE).

Differentiated grant allows funding to betargeted at priority geographic areas, groupsand sectors.

Small and Micro Employers in prioritydistricts / wards, sectors.

Young people from disadvantaged / prioritygroups and geographical hotspots.

02 DEVOLUTION SUMMARY OF PROPOSALS – SKILLS TO EMPLOYMENT 1

THEME PROPOSAL RATIONALE BENEFICIARIES

SUMMARY OF PROPOSALS38

3. WORK PROGRAMME AND YOUTH CONTRACT

Combined Authorities to commission WorkProgramme (or its replacement post 2016)and Youth Contract.

Long-term unemployed claiming benefits.

High proportion of work programmereturning to JCP.

Not engaging hardest to reach.

Long-term unemployed.

Government (DWP) reduction in benefitpayments.

LEP-wide. All FE colleges graded two or above.

All Employers skills gaps and needs met.

Better alignment of supply and demand forskills.

Support and brokerage for ways to secureincreased investment leading torationalisation of FE footprint.

Employer led governance body. Alignment ofASB, ESIF and Growth deal funding.

Local delivery structures providing localintelligence, engagement of schools,employers and jobseekers.

Combined Authorities responsible forcontrol over and accountability for fundingrelating to structural changes to FE landscape.

Combined Authorities become accountablebody with commissioning role for proportionof SFA budget.

Combined Authorities have jointcommissioning role and are accountable forNCS funding and contract.

LEP-wide. Increased uptake of Apprenticeships andtake-up of AGE grant funding. SMEinvolvement in Trailblazers.

Progression from Traineeships toApprenticeships.

Reduced NEET and Youth unemployment inhotspots.

Localised delivery structures to deliverbrokerage and support service offer to SMEs.

Administration support for AGE grantapplication process.

Financial management of the budget.

A proportionate share of the £85 millionnationally allocated AGE grant budget.

Ability to create differentiated offer in D2N2.

Combined Authorities to become theaccountable body for AGE funding.

GEOGRAPHY OUTCOMES D2N2 COMMITMENTS GOVERNMENT COMMITMENTS

DEVOLUTION PROSPECTUS D2N239

LEP-wide. Reduction in long-term unemployed ratesand Government’s welfare bill.

Increases in progression rates and skills levelsof Work Programme participants.

Integration with locally-delivered servicesand programmes producing coherent localoffer.

Combined Authorities responsible for jointcommissioning role and become accountablebody for WP & YC funds.

4. LOCAL DWP SERVICES AND FUNDING Combined Authorities responsible fordelivery of DWP employment services andcommissioning of related activities.

Plethora of support available creates acrowded landscape and confusing foremployers and unemployed.

Unemployed.

Employers.

5. IMPLEMENTATION OF WORKING WELL PILOT

Combined Authorities Working Wellprogramme for ESA claimants in N2 and D2.

6.4% of the working age population claimeither ESA or IB with Work Related ActivityGroup representing one-third of the ESAcohort.

Unemployed.

Government (DWP) reduction in benefitpayments.

02 DEVOLUTION SUMMARY OF PROPOSALS – SKILLS TO EMPLOYMENT 2

THEME PROPOSAL RATIONALE BENEFICIARIES

SUMMARY OF PROPOSALS40

LEP-wide. Reduction in unemployment, duplication ofservices and welfare bill and ESA rates

Increased alignment of funding, elibility andoutcomes.

Co-ordination of locally delivered services tocreate integrated pathway into work for thosefurthest away from the labour market.

Combined Authority to become accountablebody for DWP benefits and low levelprocurement funds including FlexibleSupport Funds and Community WorkPlacement provision.

LEP-wide. ESA claimants leaving the Work Programmeinto sustained work and bringing severalmillion pounds of benefits.

Combined Authority staff to supportfinancial management of the pilot, includinginvestment.

Combined Authority to become accountablebody for DWP funding aimed at supportingESA claimants and have commissioning rolein delivering the pilot.

GEOGRAPHY OUTCOMES D2N2 COMMITMENTS GOVERNMENT COMMITMENTS

DEVOLUTION PROSPECTUS D2N241

1. HOUSING INVESTMENT FUND To consolidate existing HCA grant, loan andequity schemes into a single amount,allocated outside of the bidding process (es)and allow the authorities to flex the boundsof the contributory funding streams within amore inclusive, single framework.

Allowing authorities flexibility beyondnational programmes or deviation from setcriteria would allow funding to be moreappropriately applied to the needs of the area,in turn getting more out of investment andproducing a more sustainable and impactfulresult.

Citizens: Increased supply of housing.

Local Authorities: flexibility to concentratefunding where it is needed and where it willhave the most impact, unlock overlooked assets.

Government: Fiscally neutral, unlockoverlooked assets, deliver more, and moreappropriate, schemes.

2. HRA BORROWING FLEXIBILITY To increase the borrowing cap on theHousing Revenue Account and provideflexibility as to the products/tenures whichcan access this borrowing.

Liing this cap will enable authorities tomeet the changing housing demand byinvesting in further new house-buildingprogrammes.

e new build programmes will beself-funding through increased rental incomestreams.

Citizens.

Agencies delivering housing.

Businesses.

03 DEVOLUTION SUMMARY OF PROPOSALS – BUILT ENVIRONMENT 1

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SUMMARY OF PROPOSALS42

3. LOCAL AUTHORITY CONSENTS To provide the freedom to local authorities totransfer land and buildings held withinHousing Revenue Accounts to other publicsector owned organisations and theirsubsidiaries without the need for Secretary ofState approval.

e LA is limited to five disposals in any oneyear to other public sector bodies and theirsubsidiaries.

e freedom to dispose of more assets toother public sector bodies will further ensurethat the LA asset management strategy willensure that the properties can be managedand owned by the most appropriateorganisation without having to requestSecretary of State approval. is links closelyto theme four, as there is the potential to useunviable HRA properties for this use.

Agencies delivering housing.

Businesses.

LEP-wide. Increase supply and tenure mix. To work with the HCA to establishprogramme flexibilities and scope ofamended criteria.

To consolidate all relevant allocations intoone sum to be transferred to the LEPauthority and to extend a degree of discretionover how it is spent.

LEP-wide, where housing stock has beenretained.

Increased and improved housing stock tomeet the needs of the local community.

Local employment and trainingopportunities through house buildingprogramme.

Delivery of affordable housing. Flexibility over borrowing against the HRAand its uses.

GEOGRAPHY OUTCOMES D2N2 COMMITMENTS GOVERNMENT COMMITMENTS

DEVOLUTION PROSPECTUS D2N243

LEP-wide, where housing stock has beenretained.

Greater flexibility on the ownership andcontrol of public assets within the LA area.

Strategically considered use of assets to makemaximum use for housing delivery.

To negotiate separately, outside the currentdisposal rules with asset holders.

4. REDUCING HOUSING BENEFIT / LOCAL HOUSING ALLOWANCE EXPENDITURE (LB/LHA)

To use the relevant financial and borrowingcapabilities to purchase homes outside theHRA to enable the delivery of long-term,good quality, well managed, market rentedhousing, offered at rents below the existingLHA rates in the Broad Rental Market Area(BRMA) concerned.

Provides an opportunity to deliver savings inLHA expenditure by demonstrating ability tobring good quality rented property to themarket at cheaper rents.

Government via reduced HB/LHA expenditure.

Ability of local authority to share inproportion of HB/LHA saved.

Citizens via increased choice ofaccommodation to rent, better quality ofaccommodation to rent, and via lower rents.

5. RIGHT TO BUY (RTB) RECEIPT SPENDING FLEXIBILITIES TO SUPPORT A WIDE RANGE OF HOUSING NEEDS

To allow greater flexibility in the spending ofRTB receipts in support of a wide range ofhousing needs ranging from social rent toimmediate and market products. To allowdelivery of affordable housing by partnerorganisations and to invest in preparation ofsites and facilitation of affordable housingdelivery by other organisations, leading tohigher numbers of homes replacing thosesold under the RTB.

e current rules on the use of RTB receiptsare restrictive and are preventing thisresource being used as fully and effectively asit could be. Having greater flexibility as to thedelivery organisations, affordable productsand delivery elements it can be spent on andwill better tailor affordable housing deliveryto the need of the LEP authorities.

Business: Viable sites for developers. Increasein custom for local businesses. Increase inhousing available to workforce for existingand prospective businesses.

Authorities: Increase in housing delivery,better housing balance, ability to spendreceipts and maximise their impact.

Government: Increase in housing delivery,increase in business activity andemployment, no additional funding required.

03 DEVOLUTION SUMMARY OF PROPOSALS – BUILT ENVIRONMENT 2

THEME PROPOSAL RATIONALE BENEFICIARIES

SUMMARY OF PROPOSALS44

6. DE RISKING ENGAGEMENT WITH LEASEBACK SCHEMES

To allow the relevant authorities to de-riskengagement with private sector leasebackschemes by requesting that Governmentindemnifies the leaseback payments.

Leaseback schemes involve the establishmentof a fixed schedule of payments or return tothe investor, meaning any risk caused bymarket rent fluctuation (and subsequentlythe value of affordable rents) is absorbedsolely by the leasing authority. e ability toconfidently guarantee contingency wouldallow effective engagement with suchschemes.

Citizens: Increased supply of rental housingand increased standards and choice in therental market.

Local council: De-risks engagement withinnovative schemes, increasing investmentstreams, increasing supply and standards inthe rental market.

Government: Increased supply of housing,fiscally neutral.

Broad Rental Market Area (with pilot schemecarried out within the area).

Levels of rent below existing LHA rates.Monitoring of impact on LHA expenditureduring pilot scheme.

Monitoring of impact on households (e.g. toexamine extent of changed / reduced welfarebenefit claiming).

To deliver higher quality private rentedhomes for those on low incomes at a savingto the Government.

Government might consider financialsupport to set up the scheme which will berecouped through savings plus savings ontop.

LEP-wide where housing stock has beenretained.

Sites developed that would likely otherwisehave remained vacant.

Increase in housing supply and better marketbalance; direct and indirect employmentstimulus.

Identify sites and commission remediationworks.

Work with HCA to market sites.

Local variation on RTB receipts agreement toallow greater flexibility of use.

GEOGRAPHY OUTCOMES D2N2 COMMITMENTS GOVERNMENT COMMITMENTS

DEVOLUTION PROSPECTUS D2N245

Areas of high private rental demand,predominantly cities and immediate suburbs.

Increase delivery of affordable andintermediate tenure homes.

Increase £ for £ affordable home delivery.

To oversee the establishment of leasebackschemes and guarantee the successfulcompletion of payment schedules.

To provide an indemnity fund to reduce riskto local authorities of entering into leasebackagreements.

7. IMPROVING PRIVATE RENTED STANDARDS AND PROMOTING VALUE FOR MONEY FOR LOCAL HOUSING ALLOWANCE

Increasing standards and quality of privaterented sector accommodation by linkingpayment of housing benefit (or housingcomponent of Universal Credit) to thedelivery of minimum housing qualitystandards by landlords. HB could be used asan incentive to improve housing conditions.In addition, the ability to apply a local qualityframework to organisations claimingsupport-related HB.

Greater devolution, to the LEP authorities, ofpowers to introduce compulsory localschemes designed to increase and sustainstandards in private rented accommodation.

At present, there is no ability to restrictaccess to HB where landlords are offeringpoor quality accommodation or high cost butpoorly delivered tenancy support.

e current powers to introduce schemes toensure minimum standards across an area(usually Licensing schemes) oen require anoverly onerous process to be undertaken,despite local people and local authoritiesknowing that they could readily improvehousing standards, the broaderneighbourhood and deliver better value formoney for the taxpayer.

Government via savings on HB which is notbeing spent appropriately nor deliveringvalue for money.

Local authorities, communities and citizensbenefit from improved standards and ease ofscheme introduction.

Government benefits from increased valuefor money and savings on health and socialcare services.

Landlords of good quality accommodationbenefit from improved sector reputation.

8. PLACE LEADERSHIP AND BUILDING GREAT PLACES

We will adopt the recommendations of theFarrell Review into a more proactively gearedplanning approach integrating PLACEleadership and the development of a BuiltEnvironment Strategy.

To create better quality development andbetter places by providing a BuiltEnvironment Strategy and making theplanning system more proactive to supportthe development and growth needs of theCombined Authority areas.

Good design builds communities, createsquality of life and makes places better forpeople to live, work and play in. However,the planning process is oen experienced ascomplex, with outcomes uncertain andpresenting a block to development. It isreactive in nature and it does not consistentlydeliver good quality development for thecommunities it affects. Building great placesrequires civic leadership and collaborationacross the built environment.

Business (particularly the development /house building industry), citizens, statutoryagencies, infrastructure providers.

03 DEVOLUTION SUMMARY OF PROPOSALS – BUILT ENVIRONMENT 3

THEME PROPOSAL RATIONALE BENEFICIARIES

SUMMARY OF PROPOSALS46

is could be introduced across a BroadMarket Rental Area, or across a localauthority area, to bring about consistentminimum standards of private rentedaccommodation.

Improved private rented sectoraccommodation standards, measured viaparticipation in standards schemes, numbersof interventions in relation to substandardaccommodation, clear evidence of taxpayers’money not paid in respect of poor qualityaccommodation.

Higher standards of private rentedaccommodation, driving poor performinglandlords out of the market, resulting inbetter value for money for Government.

To use accreditation and licensing schemesjudiciously to drive up standards and providea PRS fit for the growing economy it issupporting.

Powers to prevent payments of public fundsto providers of housing / accommodationthat fails to meet certain standards.

Devolution of certain HB powers to be ableto withhold payment.

Flexibility or devolved powers for the easierintroduction of schemes defining minimumhousing standards across a geographical area.

LEP-wide . A Built Environment Strategy to support thedelivery of our growth needs.

A more proactive and efficient planningsystem.

Greater certainty for applicants / developersSupport the delivery of more homes.

Better quality developments and places andimproved public perception.

Support the recommendations of the FarrellReview.

Staff from partner organisations. No ask of Government this is an offer.

GEOGRAPHY OUTCOMES D2N2 COMMITMENTS GOVERNMENT COMMITMENTS

DEVOLUTION PROSPECTUS D2N247

10. LOCALLY SETTING OF PLANNING AND LICENSING CHARGES

To allow the Combined Authorities to setplanning and licensing fees locally.

Currently the fees payable are set centrally byGovernment and therefore do not accuratelyreflect the cost of delivering these services.Consequently local authorities and theircouncil tax payers are providing a subsidy toapplicants.

Combined Authorities control of planningand licensing fees will mean that we caneffect full cost recovery thus ending thecurrent inequitable subsidy and be properlyfunded to deliver good quality planning andlicensing functions to facilitate economicgrowth and vibrant places including ourtown centres.

Government - through growing the economytherefore supporting UK as a whole.

Government – provide the process for otherareas in the country to be given the samefreedoms.

Council tax payers who will no longer besubsidising these commercial applicants.

Local authorities who will be better able todeliver good quality planning and licensingfunctions.

03 DEVOLUTION SUMMARY OF PROPOSALS – BUILT ENVIRONMENT 4

THEME PROPOSAL RATIONALE BENEFICIARIES

SUMMARY OF PROPOSALS48

9. ONE PUBLIC ESTATE e two Combined Authorities to work withGovernment to create a joint vehicle withGovernment to influence public sector assetdisposals in a way that supports the localeconomy.

is would include HCA assets anddecontaminated sites to enable those bestplaced to fully release their potential to do so.

e need for a more integrated approach tohow the public sector uses its assets in the twoCombined Authority areas, to support growthand deliver better value for public money.

Maximising the release of surplus publicsector land is critical to supporting theGovernment’s ambitions to reduce the deficit,increase the number of homes being builtand drive economic growth.

Business.

Local Authorities Government.

LEP-wide. Transparent process that Government isentirely comfortable with.

To develop a robust and transparent systemfor setting planning and licensing fees locally.

Allow the freedom for the NottinghamshireCombined Authorities to establish the rate offees and charges.

GEOGRAPHY OUTCOMES D2N2 COMMITMENTS GOVERNMENT COMMITMENTS

DEVOLUTION PROSPECTUS D2N249

LEP-wide . Maximise the economic returns from publicsector land assets.

Expertise from the two CombinedAuthorities.

Commitment to create a joint vehicle.

1. A 10 YEAR FUNDING COMMITMENT 10 year local transport settlement fortransport including:

• D2N2 Local Growth Fund (capital)• LTP Integrated Transport Block andMaintenance (capital)• Cycle Ambition £10 per head settlement(capital)• OLEV programme funding (capital)• Sustainable Transport Fund continuationfunding (capital and revenue).

Transport investment in D2N2 issubstantially lower than in London and mostother Core City regions.

e stop start nature of existing fundingstreams is an inhibitor to growth and makeslong term planning extremely difficult.

is was secured in the deals for bothManchester and Sheffield.

Confidence for private sector publictransport operators to invest in new vehiclesand infrastructure.

Developers to bring forward employmentand housing sites within known timescales.

Allow expertise in sustainable transportsector to be retained within the area and notdissipate away.

2. LONDON STYLE BUS FRANCHISING POWERS

Powers and devolved funding to introduceBus Franchising on an incremental basis:

• Streamlined process to introduce busfranchising• Funding to effect this change • Devolution of traffic commissionerregistration powers• Devolution of commercial BSOG incentivepayments schemes and other grants• Devolution of associated concessionaryfares budgets.

ere has been a significant shi in thederegulated bus market over the past threeyears with an increase in the number ofcompeting operators. is has led tosignificant problems of market failure andinefficiency which work against the public’sinterest and wider local council policies interms of raising the quality of provision.

Improved offer to the travelling public.

Opportunities for more discounts and offersfor unemployed citizens.

Benefits for other road users.

04 DEVOLUTION SUMMARY OF PROPOSALS – TRANSPORT 1

THEME PROPOSAL RATIONALE BENEFICIARIES

SUMMARY OF PROPOSALS50

LEP-wide. Increased investment certainty.

Accelerated infrastructure delivery.

Increase the scale of private sectorinvestment by public transport operators.

Bring forward employment and housingdevelopment sites.

Increase inward investment.

Long term costed infrastructure strategy tobe pinned down setting out pipeline ofinfrastructure projects to support the LEParea economy.

D2N2 area to promote itself as a nationalexemplar for sustainable transport deliveryset alongside Nottingham’s pioneeringWorkplace Parking Levy scheme.

Government to commit to a 10 year capitaland revenue funding settlement.

D2N2 authorities to be designated as CycleAmbition partners.

An appropriate level of local determinationwould be required and a model of separateN2 and D2 franchising processes may besensible, with a protocol dealing with areas ofjoint interest.

Also interface issues with Manchester andSheffield City regions.

Increase in public transport passengernumbers.

Improvement in punctuality and reliability.

Reduction in traffic congestion.

Increase in accessibility to employment sites.

Reduction in unemployment.

Improved air quality.

Provision of high quality bus infrastructure :‘Network Bus’:

• Regional real time information displaysystem at all bus stops and interchanges• Regional ‘oystercard’ style smartcard andintegrated ticketing• High quality bus stations and waitinginfrastructure• High quality bus / tram / train / cycleinterchanges• Ultra Low Carbon low floor bus fleets(electric, hybrid, gas etc) and associatedcharging infrastructure• Network of Park & Ride • Fully enforced network of bus lanes andother bus priority measures• Network of traffic signal priorities for laterunning tracked buses, integrated to UrbanTraffic Control Centres.

Devolution of traffic commissionerregistration powers and of commercial BSOGincentive payments schemes.

Funds to independently monitor and enforceall conditions within a statutory partnership.

Streamlined process of bus franchising tointroduce this within current legislation, inline with process recommended by thePassenger Transport Executive Board.

Funding to effect this change.

Devolution of commercial bus serviceoperators’ grant beyond Better Bus Areas.

GEOGRAPHY OUTCOMES D2N2 COMMITMENTS GOVERNMENT COMMITMENTS

DEVOLUTION PROSPECTUS D2N251

3. TRAFFIC MANAGEMENT AND HIGHWAY SAFETY – BETTER MANAGE THE LOCAL ROAD NETWORK

Following range of items:

• Transfer the powers and budgets for theoperation and maintenance of trunk roads inthe area• To enable local moving traffic offenceenforcement (Part 6 of Traffic Management Act)• To extend the existing statutory frameworkused in London to enable the introduction ofLow and Ultra Low Emission Zones• Flexibility to allow changes to NottinghamWorkplace Parking Levy Order locally• To locally decide on consultationprocedures for introducing traffic orders• Devolved powers to consider requests andto make orders to change local rights of way.

Opportunity to integrate the operation andmaintenance of trunk roads with local roads.

Local experience of bus lane enforcementshows that reduced violations of trafficregulations improves public transportreliability which is a key determinant ofencouraging greater public transport use.

Better management of the local network ismore efficient and oen achieves better valuefor money than investment in infrastructure toincrease highway capacity. Trials of technologycapable of detecting moving traffic offencesshow that there are regular offences of thisnature that are not currently addressed.

All road users.

Improved reliability for public transportservices.

Greater empowerment of local communities.

Significant cost savings for local authoritiesin streamlining order making processes.

4. LOCAL DETERMINATION OF STRATEGIC INFRASTRUCTURE PRIORITIES

To directly determine strategic infrastructurepriorities and service improvementsincluding:

• A commitment for new rolling stock for theMidland Mainline linked with evenly spacedservices and journey time reductions toLondon • A focus on achieving other journey timereductions for strategic rail connections suchas to Birmingham, Leeds, Sheffield andManchester and to the East Coast Mainline• Direct influence over the trunk roadprogramme• More control over the planning anddelivery for the preparation of HS2• Mass transit strategy including improvedconnections to EMA and exploration of amore streamlined implementation process.

Midlands Connect is the Midlands proposalto ensure future transport investmentdelivers economic growth and furthersupports our successful growing exportmarkets.

Substantial investment in road and railinfrastructure is taking place including theelectrification of the MML by 2020.Currently, poor rail connectivity is a majorconstraint on interaction for business andother activity.

e development of a D2N2 mass transitstrategy (tram, tram-train and bus transitcorridors) are central to our plans forunlocking growth and promotingregeneration across the D2N2 area.Benefits to public transport operators.

Reductions in traffic congestion.

Travelling public.

Reduction in road accident levels and inenvironmental and health benefits.

Improved integration between differentmodes of transport.

04 DEVOLUTION SUMMARY OF PROPOSALS – TRANSPORT 2

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LEP-wide although initial take up likely to befocussed on larger urban areas.

Integrated management of local and strategicroads.

Use of the TMA in line with LondonAuthorities and Wales.

Local experience of enforcement of bus laneshas shown a clear pattern of increasingcompliance across the whole network.

Simplify process to amend WPL Order toallow discounts for electric vehicles or otherchanges.

Collaboration between the D2N2 authoritieswill allow further significant efficiencysavings to be achieved.

Improved air quality.

Efficiency savings for the operation andmaintenance of trunk roads.

Enforcement resources and infrastructure.

To promote rights of way that meet localcommunity needs.

Direct influence over the management andprogramming of enhancements to themotorway and trunk road network.

Enact Part 6 moving traffic enforcement ofthe Traffic Management Act.

Enactment of statutory powers for LEZs.

Changes to WPL Order to be made locally.

Allow decisions on advertisement andconsultation arrangements for TROs to bemade locally.

Devolved powers to change local rights ofway.

LEP-wide Increase in Business Growth. Increase in passenger numbers.

Reductions in congestion.

Increased accessibility to employment sites.

Reduced unemployment.

Improvements in air quality.

Reduced carbon emissions.

Increased housing growth.

Coordinated response to key nationalinfrastructure decisions.

Integrated planning and transportdevelopment.

Coordination of communication activity tosupport infrastructure investment.

Opportunities to integrate strategic and localroad management and achieve efficiencysavings.

Early decision on new rolling stock for theMidland Mainline.

Meaningful dialogue with the DfT on futurerail service specifications focused onachieving journey time reductions.

Agree to direct influence over trunk roadplanning.

Agreement to East Midlands Hub StationGrowth plan and practical measures to speedup delivery processes for HS2.

Identify source of funding to commenceD2N2 wide mass transit strategy. Explorepotential for more streamlined delivery.

Joint working with Network Rail to exploretram-train potential.

GEOGRAPHY OUTCOMES D2N2 COMMITMENTS GOVERNMENT COMMITMENTS

DEVOLUTION PROSPECTUS D2N253

1. SMART COMMISSION To develop with Government a SMARTCommission to support the procurement anddelivery of IT infrastructure and ‘smart’products and services to 100% of businessesand residential premises.

Working with government and the industryto develop a model for affordable roll out ofbroadband, mobile and other smartinfrastructure.

Super-fast broadband is a fundamentalrequirement for doing business in today’sworld. However, the physical geographyacross D2N2 has resulted in many businessesand more remote settlements unable toaccess super-fast broadband, leaving them ata social and economic disadvantage. Key ‘notspots’ also exist in urban locations asintervention programmes have focused onother priorities. Existing solutions seek tomaximise increased digital speeds in themore easy to reach localities, furtherexacerbating the divide. More imaginativeand ‘smarter’ solutions are needed.

Businesses – greater productivity andcompetitiveness.

Residents – access to modern IT connectivityto access services, information and goods,reducing the need to travel.

Public sector – ability to deliver qualityservices in a more cost effective manner.

2. LOCALISED ENERGY STRATEGY Taking local control of energy-efficiencyfunding and programmes to create anddeliver a joined-up localised energy strategyfor energy reduction and production.

is will be enabled by devolvement ofenergy-efficiency budgets, including thetransfer of ECO obligation including carbontarget. is will be blended with other energyefficiency improvements / fundingarrangements.

Creating a long-term plan for energysecurity, reduction and generation will be akey activity for any future Government.D2N2 has a broad base of stakeholdersinvolved in this agenda and existing expertiseand reputation. It is also home to aburgeoning low-carbon sector and the UK’slargest District Heating Network.

Utilising these, alongside devolvedenergy-efficiency budgets, D2N2 will be ableto address these energy issues, creating ajoined-up, localised energy strategy thatsupports reductions in energy-usage, createsconfidence in energy security, and boostsgrowth in a sector of international importance.

Local residents and businesses within theD2N2 region, including social, private sectoras well as private landlords.

Businesses in the low-carbon sector,technology providers and local supply chains.

Wider local economy as a pipeline of energyefficiency projects will create local jobs andinvestment opportunities.

Individuals who are currently in fuel povertyand / or who currently suffer with healthissues linked to poorly insulated homes.

05 DEVOLUTION SUMMARY OF PROPOSALS – SMART INFRASTRUCTURE

THEME PROPOSAL RATIONALE BENEFICIARIES

SUMMARY OF PROPOSALS54

LEP-wide with particular emphasis on thoseareas – rural / disadvantaged areas that areaffected by the “digital divide” eithergeographically, socially or economically.

Key business clusters across the area,including industrial estates, business parksand ‘not-spots’ that exist within urban areas.

Creating competitive advantage throughextensive and innovative use of digitaltechnology, stimulating investment to drivegrowth.

Tackling inequality of opportunity (“thedigital divide”) particularly in vulnerable andrural communities.

Building smarter, sustainable communitiesby using s106 and CIL funds to create therequired infrastructure and communitybased solutions.

Enabling more joined up, effective andefficient delivery of public services throughinnovative use of advanced technology Growth Deal funding.

Growing Places Fund (GPF).

LPA Developer Contributions (s106 / CIL)ERDF.

Integrate existing programmes behind acoherent approach to:

Infrastructure development (BDUK)

Demand stimulation (vouchers)

Business digital readiness (business support).

Devolution of future Government investmentin broadband to local level (as opposed to viathe BDUK programme).

Extension of Town & Country Planning Actrelaxation of planning legislation for afurther five years (currently due to end May2018).

Greater powers to LPAs to set planningconditions at pre-planning / design stage onnew housing and employment developments.

LEP-wide. A significant reduction on local CO2 emissions.

e development of easily replicatedtechnology models for improvingenergy-efficiency.

An increase in locally generated energy.

Improvements in public health andreductions in associated bills.

Development of businesses and IP in theinternationally significant low-carbon sector.

Enhanced business growth and associatedreceipts due to reduced bills and greaterenergy security .

Expertise and partnerships within itsbroad-base of engaged stakeholders,including: world leading universitydepartments; energy producers andsuppliers; high-energy users; largestock-holding local authorities and otherlandlords and leading businesses in theburgeoning low-carbon sector.

To transfer ECO obligation and carbontargets to the local level, alongside associatedenergy-efficiency budgets.

GEOGRAPHY OUTCOMES D2N2 COMMITMENTS GOVERNMENT COMMITMENTS

DEVOLUTION PROSPECTUS D2N255

DEVOLUTION PROSPECTUSD2N2MARCH 2015