Background to Deal • ‘Devolution already done’ – to Scottish Government • SG onward devolution to cities a complex picture • The Glasgow deal, 2014 – a mixed legacy • Projects not programmes, money not powers (in a time of austerity) • UKG and SG competencies concurrently clear and blurred • History of suspicion at working at the city regional level, and with changing labour and housing markets. • Strong national and local institutions, almost complete absence of regional strategy and capability • Strongly engaged HEI (with deep pockets)
Who is in this Deal?
Our Journey 2015 July 17-May 18 July 17 August 18-2033 2015-2017 Identify 2 3 5 1 4 Heads of Implementation Agree Negotiation Agree Detail potential Terms and Delivery Detail projects Establish Governance structure Detail on projects Establish communicated partnerships Present cases to Agree financials Governments Signing event Agree long list of Agree Negotiate projects implementation plan Business engagement Draft case for Agree package of Submit business Heads of Terms Signing: Governments projects Delivery cases 20 July 2017, Edinburgh Agree inclusive growth narrative 4
The Case for the Deal Housing Skills Culture Innovation Transport City Region Deal Improving prosperity in the region Addressing inclusion challenges through inclusive growth opportunities Inclusive Growth Innovation 5
What’s in the Deal? Housing Innovation Skills Transport Culture From £20m £65m £350m £25m £140m Govt: For an Integrated for DDI, food and for improvements at plus powers to kick for new concert hall drink innovation Regional A720 (Sheriffhall) start significant in Edinburgh city and industrial Employability and and West housebuilding centre estate Skills programme. Edinburgh focused in seven improvements strategic sites + partner contributions = > £1.3 bn + private sector leverage 6
Governance Structure
Who’s Who? Committee / Board Chair Organisation Joint Committee Cllr Adam McVey (2019) The City of Edinburgh Council (2019) Executive Board Andrew Kerr (2019) The City of Edinburgh Council (2019) Regional Enterprise Council Leeann Dempster Hibernian FC Claire Pattullo (Vice Chair) Edinburgh Social Enterprise Network DDI Delivery Board Hugh Edmiston University of Edinburgh Integrated Regional Angela Leitch East Lothian Counicl Employability and Skills (IRES) Board Transport Appraisal Board Grace Vickers Midlothian Council Regional Housing Board Andrew Kerr The City of Edinburgh Council
Regional Enterprise Council Membership Businesses Public Sector Robert Carr – Andrerson Strathern Steve Dunlop – Scottish Enterprise Leeann Dempster – Hibernian Football Club (Chair) Angela Leitch – ESESCR Deal IRES Board Steven Drost – CodeBase Damien Yeates – Skills Development Gavin Hamilton – Taylor Wimpey Scotland Stephen Ingledew – FinTech Scotland Nile Istephan- Eildon Housing Association Rob Mason – Forth Ports Higher/Further Education Sector Polly Purvis – Scotland IS Prof Gillian Hogg – Heriot-Watt David Thomson – Food and Drink Federation Scotland University Third Sector Project Management Office Ewan Aitken – Cyrenians (observers and secretariat) Claire Pattullo- Edinburgh Social Enterprise Network (Vice Chair) There are strong links with the five Chambers of Commerce that operate in the region .
Accountable Body Financial agreement between the UK Government, the Scottish Government, and the City of • Edinburgh Council as Accountable Body Regional Partners include - East Lothian Council, Fife Council, Midlothian Council, Scottish • Borders Council, West Lothian Council, Heriot-Watt University, Queen Margaret University, and the University of Edinburgh To implement and mange the financial procedures of the Deal through coordination and • management of the funding process including financial reporting; profiling and drawdown and actuals management monitoring income and expenditure performance against project delivery profiles, reporting • to the Joint Committee, Executive Board and Governments For 2018-19, £41.3million was draw down from Governments •
SG UKG Accountable Body Project (£m) (£m) Food and Drink Innovation Campus 1.42 28.58 UK Government’s and the • Data Driven Innovation – Bayes Centre 2.24 30.31 Scottish Government’s financial Data Driven Innovation – National Robotarium 1.43 21.04 contribution will be up to a Data Driven Innovation – Edinburgh Futures Institute 2.24 55.68 maximum of £300 million for Data Driven Innovation – Usher Institute 0.73 48.46 each Data Driven Innovation - World Class Data 0.67 78.93 Infrastructure Data Driven Innovation – Easter Bush 1.27 16.10 The majority is capital funding • Easter Bush Link Road 10.90 although there is some revenue Business Innovation – Fife 35.00 funding for the Employability & Business Innovation – Scottish Borders 15.00 Skills programme IMPACT Concert Hall 10.00 10.00 Integrated Regional Employability & Skills Programme 25.00 Regional Partner contributions • Sheriffhall Roundabout Upgrade* 120.00 will be up to a maximum of West Edinburgh Public Transport Infrastructure 20.00 £730 million New Housing Partnership** 15.00 Housing Infrastructure** 50.00 300.00 300.00 Total
Integrated Regional Employability and Skills
Regional Housing Programme Overview Supported by a regional housing programme Two key strategic aims Housing infrastructure funding & A step change in innovation and delivery inclusive growth in the housing & Housing 7 major construction sectors companies - strategic MMR & low housing sites cost MR £10bn investment 7,800 A step change in the supply of new permanent jobs homes across the South East of 40,000 homes Scotland accelerated Construction Maximising innovation, the public SME growth, sector estate skills & jobs Expanded affordable housing programme
Inclusion Challenges Slow Growth Regional disparity in job Housing, transport and density connectivity • Slow productivity growth in • Wide variations in job density • High House price to earnings recent years • 0.55 in East Lothian, 1.02 in ratios • Regional disparities in job and • Rapid growth in cost of private Edinburgh outputs growth • Strong cross region commuting rented accommodation • Forecast growth concentrated • Satisfaction with public flows in Edinburgh transport varies widely Skills inequality and Gender and age Low income and low pay • 22% of children live in low polarisation inequalities • High skilled jobs – varies from • Gender pay gap – men earn income households • Very wide local inequalities 55% in Edinburgh to 38% in 14% > women on average • 9 wards with poverty • Female participation rate – Scot Borders rates >30% • Projections – fastest growth in lower than male • 11 wards with poverty • Female employment rate – high skilled jobs, increased rate <15% ‘hollowing’ of labour market very low in Fife 14
City Region Deal Inclusive Growth Framework The Deal is focused on delivering accelerated inclusive growth, driven by construction Accelerating Inclusive activity in the short term, and sustained over the medium and long term by ongoing investment across the City Region Deal Programme. The DDI programme of investment is Growth viewed as a key driver in helping to deliver a step change in regional economic activity. Removing the barriers to Interventions to unlock current physical barriers to growth, including housing and transport connectivity. Investment over the medium to long term. Focus to be on improving growth accessibility to employment opportunities As a result of an agreed approach to City Region Deal procurement, Community Benefit Community benefits clauses will be used to target inclusive employment practices and other opportunities . through procurement A consistent approach will be taken to applying the principles laid out in the Scottish Government’s Business Pledge. Benefits to be felt in short, medium and long term. A programme of targeted skills interventions to widen access, address skills shortages Targeted skills and gaps, and deliver improvements to boost the flow of individuals from disadvantaged groups into good career opportunities. Impact will be felt over the short, medium and long interventions term. Social benefit through Recognising the potential presented by a significant investment in Data Driven Innovation, opportunities to drive out challenge-based social benefit across the region will be explored. Innovation Activities likely over medium and long term.
Progress Since Deal Signing • Governance established: o Joint Committee formed and Regional Enterprise Council appointed. o Thematic Boards established and meeting regularly (DDI, Skills, Transport, Housing). • Business cases developed: o 8 business cases and 7project propositions already approved. • Monitoring and evaluation framework (inc. inclusive growth measures) being co-produced with Governments. First Annual Conversation in September 2019. • Moving now towards regional economic and spatial City Region Deal Signing: 7 Aug 18, strategy to drive mainstream and future additional Bayes Centre, Edinburgh spending programme priorities.
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