External Funding Update
North Lanarkshire Council · 12 May 2023
Back to Enterprise and Fair Work Committee — 12 May 2023 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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North Lanarkshire Council Report Enterprise and Fair Work Committee Does this report require to be approved? ☐ Yes ☒ No Ref PH/DG Date 12/05/23 External Funding update From Pamela Humphries, Chief Officer (Place) E-mail GreerD@northlan.gov.uk Telephone David Greer, Growth Programme Manager, 07582 059816 Executive Summary This report updates Committee on the Council’s progress made in developing and securing external funding for physical regeneration and economic development projects across North Lanarkshire since the previous update in February 2023. Recommendations It is recommended that committee acknowledges: 1) The acceptance of UK Government Levelling Up Fund grant for Cumbernauld and work to secure funding for associated traffic management study. 2) The increase in, and reallocation of, European Regional Development Fund monies to provide increased grant funding for businesses. 3) The update on arrangements for distributing the Council’s UK Shared Prosperity Fund allocation in North Lanarkshire. 4) The submission of a final Green Growth Accelerator Business Case for the low carbon redevelopment of Strathclyde Park, for Scottish Government approval. 5) The council’s bid for funding for the heritage-led regeneration of Airdrie, which awaits a final decision 6) The submission of a bid to National Lottery Heritage Fund for the redevelopment of Summerlee Museum of Scottish Industrial Life. 7) Progress in developing funding bids for the Vacant and Derelict Land Investment Programme 8) The allocation of funds set out in the council’s Vacant and Derelict Land Fund Local Delivery Plan. The Plan for North Lanarkshire Priority Improve economic opportunities and outcomes Ambition statement (21) Continue to identify and access opportunities to leverage additional resources to support our ambitions
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1. Background 1.1 The Council aims to secure external funding to support the physical, social and economic regeneration of North Lanarkshire. This work is subject to regular reporting to committee, including an update at the last committee. 1.2 There has been significant recent activity across a range of funding streams, since the previous update to Committee in February 2023. This report provides an update on progress towards securing a range of funds to support the social, physical and economic regeneration of North Lanarkshire. 2. Report 2.1 This report provides an update on current external funding activity, including recent funding bid submissions and decisions. Levelling Up Fund 2.2 The council was successful in securing £9.225m from the UK Government Levelling Up Fund (LUF) to acquire The Centre Cumbernauld and demolish Fleming House, enabling the later redevelopment of Cumbernauld Town Centre in line with the Cumbernauld Town Vision. 2.3 The acquisition of The Centre Cumbernauld is progressing and the council has received £8.73m in funding towards the acquisition and associated fees. The balance of funding will be provided following the demolition of Fleming House, which is expected to take place during 2023/24. 2.4 The UK Government advises that a further round of LUF will be launched later in 2023. A fuller update will be provided to committee when further details are available. Strathclyde Partnership for Transport (SPT) Capital Programme 2.5 The council is currently liaising with SPT with the aim of securing funding to conduct traffic management surveys and to review the transport and travel impacts of the two current concept design proposals for the wider redevelopment of Cumbernauld Town Centre. A bid to secure funding for this work is likely to be submitted later in 2023. European Regional Development Fund 2.6 The Council has received European Regional Development Fund (ERDF) for economic development activity since October 2015. This support will continue until December 2023, when the Fund will formally close following the UK’s exit from the European Union. ERDF funds can be used for business advisory services, business grant schemes and related staffing costs. The Council acts as the delivery agent for both North and South Lanarkshire Councils and is seeking to maximise activity and drawn down of ERDF funding prior to its closure. 2.7 In November 2022, the council submitted a formal ‘Change Request’ on behalf of both Lanarkshire authorities, requesting a further £970,000 in funding (£497,739 for NLC) from earlier programme underspend. This underspend was a consequence of both Brexit and Covid, as services were unable to be delivered (and some salary costs were ineligible for the fund as staff were reassigned to work on Covid business grant schemes rather than ERDF). This change request was approved in February 2023. The
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Council is required to provide 60% match funding for all ERDF allocations, which means that it will match the additional funding during this period with its own contribution of £298,644. See Table 1 below for further information. Table 1: Original and revised ERDF budgets NLC Grants NLC Grants salaries* NLC Total budget Original £2,016,343 £257,318 £2,273,661 60% match £1,209,803 £154,393 £1,364,196 Revised £2,501,343 £270,057 £2,771,850 60% match £1,500,806 £162,034 £1,662,840 Increase in ERDF £485,000 £12,739 £497,739 Increase in match £291,003 £7,641 £298,644 *for staff posts related to administration of grants only 2.8 Additional match for salaries is being met from the existing staff budget, while the additional match for grants is provided from the Council’s Local Authority Covid-19 Economic Recovery (LACER) allocation. UK Shared Prosperity Fund 2.9 North Lanarkshire’s UK Shared Prosperity Fund (UKSPF) Investment Plan was approved as part of the Glasgow City Region (GCR) UKSPF Investment Plan in December 2022. A pass-down agreement and associated assurance framework between GCR and the eight member authorities was approved by GCR Chief Executive’s Group in March 2023 and signed by relevant parties in April, enabling the council to receive £2.116m of its total UKSPF allocation of £13.871m. 2.10 On 2nd May, GCR submitted a report to UK Government requesting that unspent funds are reprofiled from year 1 (2022/23) into year 2 (2023/24), as a result of the delayed approval from UK Government. The activities and the distribution of funds will remain in line with that previously approved by Committee. 2.11 Detailed reports on progress in developing and delivering North Lanarkshire’s UKSPF Investment Plan will be presented to Policy and Strategy Committee. Green Growth Accelerator 2.12 The Scottish Government’s Green Growth Accelerator (GGA) programme will support local authorities to deliver innovative green infrastructure projects which contribute to Net Zero objectives and can stimulate the green economy. 2.13 The Council made a successful application for GGA pathfinder support for the low- carbon redevelopment of Strathclyde Country Park during 2021, enabling the council to commission design works and technical support to inform a full application for up to £10m in GGA funding. 2.14 Following this work and further engagement with Scottish Government, the council submitted its application (by way of a full GGA Business Case) in February 2023. A decision on this application is expected by June 2023. Historic Environment Scotland/National Lottery Heritage Fund 2.15 The council awaits a formal decision on its bids to both Historic Environment Scotland’s (HES) Heritage and Place Programme and National Lottery Heritage Fund’s (NLHF)
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Grants for Heritage fund for a project aimed at delivering the heritage-led regeneration of Airdrie. It is expected that an announcement on successful projects will be made on 16 May. 2.16 The Council’s bids are for a combined £150,000 in ‘development phase’ funding, which will be used to support community engagement, feasibility works and pilot new approaches and enable the Council to develop full ‘delivery phase’ bids for £2.65m in external funding (£1.2m from HES, £1.45m from NLHF). If these bids are successful, the project will deliver a range of physical interventions in the historic built environment and community-based heritage activities between 2024 and 2028. In its ‘development phase’ bid the Council outlined a variety of projects which could be undertaken, and which will be subject to further development prior to submitting a delivery phase application, including: Celebrating Airdrie’s contribution to culture, literature and sport (for example, in the development of football, public libraries and the revival of the Scots language) Improving the Public Observatory at Airdrie Library, providing a ‘whole sky’ viewing platform Establishing a ‘Made in Airdrie’ brand, connecting with the town’s weaving past and supporting local makers to grow their businesses Repurposing historic buildings to establish new business hubs for the creative sector and for women in enterprise. 2.17 The council has also submitted a bid to NLHF for up to £3.49m in funding towards the redevelopment of Summerlee Museum of Scottish Industrial Life, comprising £90,000 ‘development phase’ funding and £3.4m at ‘delivery phase’. This funding will support community engagement (to develop the final proposals), with the development phase bid identifying establishing a new miners’ village (extending the collection and providing opportunities for social enterprises and SMEs to trade) and miners’ welfare hall (which will become a health and wellbeing hub for local groups) as key potential interventions. 2.18 Other match funders for the estimated £6.45m project have been identified and further bids will be taken forward, subject to NLHF award. A decision on the development phase bid is expected in June 2023. Vacant and Derelict Land Investment Programme 2.19 The Scottish Government’s Vacant and Derelict Land Investment Programme (VDLIP) provides funding to bring long-term vacant and derelict land sites back into productive use. 2.20 Following review of North Lanarkshire’s Vacant and Derelict Land Register and engagement with landowners, the council has identified three prospective projects for VDLIP located in Cumbernauld (to develop new wetland area, addressing flooding issues at Cumbernauld Village), Glenboig (to provide community greenspace) and in Wishaw (to enable the development of a social housing site). 2.21 These projects will be further developed, including through further feasibility work where required, prior to VDLIP Stage 1 deadline in June 2023. As with the Scottish Government’s Regeneration Capital Grant Fund (which NLC will also be preparing bids for this year), the VDLIP is a two-stage process. Both funds have broadly similar timescales, with decisions on Stage 1 bids expected in late summer, with deadlines for Stage 2 bids expected to be in mid-autumn with funding decisions to be announced next winter.
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Vacant and Derelict Land Fund 2.22 In February, Committee was advised of the Council’s allocation of £1.841m from the Scottish Government’s Vacant and Derelict Land Fund (VDLF) during 2023/24, subject to its approval of a Local Delivery Plan (LDP), and approved the submission of NLC’s LDP for three identified projects: Feasibility studies (including ground investigation works) to support the potential future development of vacant and derelict sites by Fusion Assets Further enabling works at Condor Park (at Eurocentral) to support the first phase of industrial development of the site Further enabling works at Ravenscraig Business Park to support the first phase of industrial development of the site 2.23 Committee was advised that a further update on the allocation of VDLF funding to each of these projects would be provided. Please be advised that the Council’s LDP for 2023/24 allocates VDLF funding as follows: £40,000 for feasibility studies £420,000 for Condor Park enabling works £1,381,000 for Ravenscraig Business Park enabling works. 3. Measures of success 3.1 The primary measure of success arising from the work and updates outlined in this report is to maximise external funding for investment in the regeneration of North Lanarkshire and its places. 4. Supporting documentation n/a Pamela Humphries Chief Officer (Place)
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5. Impacts ( http://connect/report-template-guidance ) 5.1 Public Sector Equality Duty and Fairer Scotland Duty Does the report contain information that has an impact as a result of the Public Sector Equality Duty and/or Fairer Scotland Duty? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The funding programmes outlined in this report are very much focused on promoting inclusive growth and a fairer Scotland and will do so by: Delivering physical regeneration projects that will improve the local environment and tackle problems which continue to constrain community regeneration Creating infrastructure that will help improve health and well-being and provide North Lanarkshire’s most disadvantaged communities with new leisure, learning and economic opportunity, and Ensuring that our place-based investments are shaped by the needs and aspirations of all of our local communities. Consideration will also be given to equalities issues as part of the bids and projects developed in response to the identified funding opportunities whilst the council will also work closely with ALEOs, partners and third-party organisations involved in the delivery of these to ensure that equality considerations remain core throughout. Delivery of support to strengthen local communities, support local businesses and support people to increase their employability and skills through the UKSPF. If Yes, has an assessment been carried out and published on the council’s website? https://www.northlanarkshire.gov.uk/your-community/equalities/equality-and-fairer- scotland-duty-impact-assessments Yes ☐ No ☒ 5.2 Financial impact Does the report contain any financial impacts? Yes ☒ No ☐ If Yes, have all relevant financial impacts have been discussed and agreed with Financial Solutions? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Any external funding applications are prepared in liaison with Financial Solutions, particularly where any match funding is required. 5.3 HR policy impact Does the report contain any HR policy or procedure impacts? Yes ☐ No ☒ If Yes, have all relevant HR impacts have been discussed and agreed with People and Organisational Development? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.4 Legal impact Does the report contain any legal impacts (such as general legal matters, statutory considerations (including employment law considerations), or new legislation)? Yes ☐ No ☒
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If Yes, have all relevant legal impacts have been discussed and agreed with Legal and Democratic Solutions? Yes ☐ No ☐ If Yes, please provide a brief summary of the impact? 5.5 Data protection impact Does the report / project / practice contain or involve the processing of personal data? Yes ☒ No ☐ If Yes, is the processing of this personal data likely to result in a high risk to the data subject? Yes ☒ No ☐ If Yes, has a Data Protection Impact Assessment (DPIA) been carried out and e- mailed to dataprotection@northlan.gov.uk Work is underway with Legal Services to complete a DPIA for the UKSPF Investment Plan Yes ☐ No ☒ 5.6 Technology / Digital impact Does the report contain information that has an impact on either technology, digital transformation, service redesign / business change processes, data management, or connectivity / broadband / Wi-Fi? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The UKSPF contains interventions which seek to improve connectivity for community organisation, support digital transformation for businesses and to delivery digital skills. Where the impact identifies a requirement for technology, has an assessment been carried out (or scheduled) by the Enterprise Architecture Governance Group (EAGG)? Yes ☐ No ☐ 5.7 Environmental / Carbon impact Does the report / project / practice contain information that has an impact on any environmental or carbon matters? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? Success in securing GGA, LUF, VDLF and other funding can enable environmental improvement. Subject to funding, the GGA project will provide a flagship low carbon project for North Lanarkshire. 5.8 Communications impact Does the report contain any information that has an impact on the council’s communications activities? Yes ☒ No ☐ If Yes, please provide a brief summary of the impact? The Council’s success in securing external funding for priority regeneration projects is promoted and coordinated by Corporate Communications.
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Strict guidelines are in place for the promotion of funding through the UKCRF and UKSPF. 5.9 Risk impact Is there a risk impact? Yes ☒ No ☐ If Yes, please provide a brief summary of the key risks and potential impacts, highlighting where the risk(s) are assessed and recorded (e.g. Corporate or Service or Project Risk Registers), and how they are managed? External funding programmes do bring a measure of risk to the council particularly in relation to potential budget overspend for projects and/or the requirement to repay funds due to failure to deliver projects properly (a risk which is increased where delivery is through a third party). To help reduce and mitigate risk, a full risk assessment is undertaken for all funding programmes and/or externally funded projects as part of the council’s project management process and where complex/high risk projects are being developed or delivered, risk workshops will be set up to ensure all service and partner risks are identified. 5.10 Armed Forces Covenant Duty Does the report require to take due regard of the Armed Forces Covenant Duty (i.e. does it relate to healthcare, housing, or education services for in-Service or ex- Service personnel, or their families, or widow(er)s)? Yes ☐ No ☐ If Yes, please provide a brief summary of the provision which has been made to ensure there has been appropriate consideration of the particular needs of the Armed Forces community to make sure that they do not face disadvantage compared to other citizens in the provision of public services.