External Funding Update
North Lanarkshire Council · 29 August 2022
Back to Enterprise, Growth and Fair Work Committee — 29 August 2022 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
North Lanarkshire Council Report Enterprise, Growth and Fair Work Committee Does this report require to be approved? ☐ Yes ☒ No Ref PH/DG Date 29/08/22 External Funding update From Pamela Humphries, Head of Planning and Regeneration E-mail GreerD@northlan.gov.uk Telephone David Greer, Growth Programme Manager 07583 059816 Executive Summary This report provides information on a range of external funding opportunities which are available for physical regeneration activity. In addition, this report will provide an update on the work which the council is currently undertaking to secure this funding or deliver strategic programmes and projects to ensure full spend of external funding secured. This includes updates on: the UK Government’s Levelling Up Fund; the Scottish Government’s Place Based Investment Programme (including the Regeneration Capital Grant Fund and Town Centre Demonstrator); the Scottish Government’s Vacant and Derelict Land Fund and Vacant and Derelict Land Investment Programme; and the Scottish Government’s Green Growth Accelerator. Recommendations It is recommended that committee acknowledges: 1) the update provided on both first and second round Levelling Up Fund applications 2) the funding allocation made through the Scottish Government’s Place Based Investment Programme, the council’s plans for using its allocation and current work aimed at securing additional funds from the Programme 3) the successful bids for the 2022-23 Regeneration Capital Grant Fund and Vacant and Derelict Land Investment Programme 4) the bids submitted for 2023-24 Regeneration Capital Grant Fund and Vacant and Derelict Land Investment Programme 5) the update provided on the Council’s 2022-23 ‘Local Delivery Plan’ for the Vacant and Derelict Land Fund
Page 2
1. Background Levelling Up Fund 1.1 The UK Levelling Up Fund (LUF) will provide £4.8bn worth of capital investment across the UK by 2025-26. Funding is expected to be made available across three rounds, the first of which took place during 2021-22. Local authorities are eligible to make a bid for each UK Parliament constituency in their areas, plus an additional bid for a transport infrastructure project. 1.2 The LUF supports town centre and other physical regeneration, culture and transport projects. Local authorities can bid for up to £20m in LUF support for each project, with the exception of large transport projects (up to £50m). The LUF will also provide more than £20m in funding for up to two large cultural projects. 1.3 The second round of the LUF, for 2022-23, closed for bids on 2 August 2022. UK Government has committed to spending 9% of all monies allocated from this round to projects in Scotland. Placed Based Investment Programme 1.4 The Scottish Government has established a Place Based Investment Programme (PBIP), linking and aligning place-based funding initiatives. The PBIP will provide £325m in funding for place-based regeneration projects over the lifetime of the current Scottish Parliament. 1.5 The main objectives of the PBIP are: to link and align place based initiatives and establish a coherent local framework to implement the Place Principle; to support place policy ambitions such as town centre revitalisation, community led regeneration, 20 minute neighbourhoods and Community Wealth Building; to ensure that all place based investments are shaped by the needs and aspirations of local communities; and to accelerate ambitions for net zero, wellbeing and inclusive economic development, addressing inequality and disadvantage and community involvement and ownership 1.6 £140M of this funding will be allocated directly to local authorities, which will be provided with annual allocations for spend in each of the five financial years from April 2021. 6) the development of a full business case which aims to secure Green Growth Accelerator support to deliver the low-carbon redevelopment of Strathclyde Country Park. The Plan for North Lanarkshire Priority Improve North Lanarkshire's resource base Ambition statement (21) Continue to identify and access opportunities to leverage additional resources to support our ambitions
Page 3
1.7 The PBIP also now incorporates the Scottish Government’s Regeneration Capital Grant Fund, committing up to £25M a year over each of the next 5 years, and other discrete funding schemes, including the £8m Town Centre Demonstrator fund which will support a small number of town centre regeneration projects. 1.8 RCGF provides capital grant funding for physical regeneration projects and is open to Scotland’s 32 local authorities and special purpose vehicles (SPVs) established by local authorities for the purpose of urban regeneration activity. Local authorities and SPVs can apply on behalf of ALEOs and other partners, including community groups, and will act as a conduit for grant funding. 1.9 The PBIP also includes a new £8m national Town Centre Demonstrator fund which was launched earlier in 2022 to support innovative projects which can provide lessons for similar towns across Scotland. This fund is being run as a closed competition, with only invited local authorities allowed to submit bids which will be considered by a Scottish Government panel. Vacant and Derelict Land Fund and Vacant and Derelict Land Investment Programme 1.10 The Vacant & Derelict Land Fund (VDLF) is a ring-fenced capital grant allocation which provides financial support from the Scottish Government to assist with the regeneration of registered vacant and derelict land sites across selected local authority areas. The Scottish Government has committed to maintaining the VDLF for 2022-23 but there is no guarantee of funding for those authorities (including the council) in subsequent years. 1.11 Funding provided through the VDLF programme is subject to the submission (and approval by the Scottish Government) of an annual Local Delivery Plan which sets out local authority investment proposals to meet the objectives of the VDLF programme. These objectives are to: tackle long term vacant and derelict land (and in particular sites which have been registered as vacant or derelict for at least 15 years); stimulate economic growth and job creation; develop a diverse sustainable environment with a focus on temporary and permanent greening; and support communities to flourish and tackle inequalities. 1.12 There is a range of activity which this fund cannot support including major infrastructure works, flood mitigation, retail and housing projects. 1.13 Whilst organisations other than local authorities and SPVs cannot apply directly to this fund, the council can apply on behalf of ALEOs and other partners and act as a conduit for this grant funding. 1.14 In addition to the existing VDLF programme, the Scottish Government launched their Vacant and Derelict Land Investment Programme (VDLIP) in early 2021, providing £50M over the five years between 2021 and 2026 to support placed based approaches for tackling persistent vacant and derelict land and delivering regeneration and sustainable growth as part of the green recovery.
Page 4
Green Growth Accelerator 1.15 The Green Growth Accelerator (GCA) aims to unlock £200 million of additional investment in infrastructure projects to support Scotland’s transition to an inclusive net- zero emissions economy. 1.16 The GGA is a financial tool where successful applicants invest initial capital in ‘green infrastructure’ with this investment repaid across future years based upon their success in meeting targets for carbon reduction and related measures. The successful applicant has discretion over how it funds the initial infrastructure investment, for example through capital grant, borrowing or receipts and flexibility over timescales for repayment. 1.17 The GGA was announced in the 2020-21 Budget and a call for ‘Pathfinder Projects’ launched in June 2021. The Scottish Government committed to provide successful pathfinder authorities with initial revenue funding to help develop business cases for submission for full funding awards during 2022-23. Where projects are approved, local authorities are eligible for revenue payments which meet up to £10m of initial capital investment (including any borrowing costs), subject to achieving agreed outcomes. 2. Report Levelling Up Fund 2.1 The first round of the LUF was launched in March 2021, for bid submissions by June of the same year. Due to the restricted timescales and resources available to develop bids, the council took forward only one bid to this round, for enabling works to kick-start the reshaping and renewal of Cumbernauld Town Centre in line with the recently approved Cumbernauld Town Centre Vision. This bid was unsuccessful however UK Government officials provided positive feedback to officers and encouraged the bid to be revised and resubmitted in future rounds. 2.2 The second round of LUF was launched in April 2022. As agreed at previous Enterprise and Growth committees in November 2021 and February 2022 the following bids have been developed and submitted by the revised deadline of 2 August 2022 for each of the four Westminster constituencies: Airdrie and Shotts: delivering town centre living by repurposing prominent vacant or derelict buildings and sites for mid-market rent homes in Airdrie. Coatbridge, Chryston and Bellshill: the redevelopment of Summerlee Museum of Scottish Industrial Life, which will be transformed into a world- class visitor destination and outstanding community asset. Cumbernauld, Kilsyth and Kirkintilloch East: enabling acquisition and demolition works to support the later development of a new Town Hub and reshaped, repopulated Cumbernauld town centre. Motherwell and Wishaw: enabling groundworks to support the development of new community facilities and affordable homes for Ravenscraig. 2.3 These bids were subject to engagement with local members, MPs and MSPs. The outcome of the bids is expected in the Autumn.
Page 5
Place Based Investment Programme 2.4 The council was allocated £2.436m for spend from the PBIP in 2022-23. Details of the projects to be funded which meet the PBIP criteria, including the requirement for funding to be spent or legally committed by 31 March 2023, and which align to the priorities set out in the Economic Regeneration Delivery Plan (ERDP) are outlined in Appendix 1. 2.5 The Regeneration Capital Grant Fund (RCGF) now also forms a separate part of the Scottish Government’s PBIP. 2.6 The council succeeded with bids to earlier rounds of RCGF, including funding in 2021- 22 for projects in Motherwell (Reeltime Community Music Facility) and Shotts (Springhill Community Hub). 2.7 The council was successful for its bid for £1.8m in RCGF funding during 2022-23 to support the low-carbon redevelopment of Braidhurst Industrial Estate. 2.8 The current round of RCGF sought initial ‘stage 1’ bids by 17 June 2022. Following a ‘call for bids’ advertised to community organisations and within the council, five bids were submitted for projects: ‘Active travel connections’, providing the ‘missing links’ in the active travel network to connect Bellshill, Motherwell and Wishaw. A new ‘community memory store’ for collections and social history at Summerlee Museum of Scottish Industrial Life. Development of a new health and wellbeing hub by Motherwell FC Community Trus.t Redeveloping a former NHS clinic to create a community hub in Croy Supporting the low-carbon redevelopment of Strathclyde Country Park (see Green Growth Accelerator for further information) 2.9 Decisions on these bids are expected in August 2022, with those succeeding at stage 1 invited to make stage 2 (award stage) bids in October, with funding decisions expected in December. 2.10 The council was invited to apply for Town Centre Demonstrator (TCD) funding and, after initial discussion with Scottish Futures Trust (which manages the competition on the Scottish Government’s behalf) on the types of projects which may be suitable for the TCD and its timescales for spend, the council submitted initial proposals for projects in both Airdrie and Motherwell. Following feedback, a full application for funding has been submitted for Airdrie, which aims to establish a land assembly and reuse fund which will enable both site acquisition and follow-on development in the town centre to support delivery of the town vision and help increase residential provision in the town centre. A decision on this proposal is expected in the autumn. Vacant and Derelict Land Fund and Vacant and Derelict Land Investment Programme 2.11 The Scottish Government allocated £1.938m from the Vacant and Derelict Land Fund (VDLF) to North Lanarkshire Council, subject to the submission and approval of a 2022/23 VDLF Local Delivery Plan (LDP). The proposed projects to be delivered from the 2022/23 VDLF were approved at Enterprise & Growth Committee in February 2022.
Page 6
2.12 This LDP was approved by the Scottish Government in July and the projects which will be delivered through the council’s VDLF Programme are: Ravenscraig Plot 1: £1.3m in enabling earthworks, including drainage, to allow for later access roads, services and utilities to be brought in to provide a development ready site. This project is expected to lever in £9m in private investment for 65,000 square feet of industrial development which will create 128 permanent new jobs. Ravenscraig Plot 1 Microgeneration feasibility study: £38,000 to review options for follow-on industrial development to meet the council’s aspirations for a Net Zero North Lanarkshire. Gartcosh Business Interchange Phases 3 and 4: £600,000 for enabling and remediation works to allow for follow-on development, building on the success of Phases 1 and 2. 2.13 In addition to VDLF, the council also made two Stage 1 applications to the second round of the Vacant and Derelict Land Investment Programme (VDLIP) for projects in 2022- 23. A bid for £230,911 to deliver ‘Glenmanor Greenspace’, a community greening project in Moodiesburn, was successful while an application for the second phase of the Ravenscraig Active Travel Link (RATL), connecting Craigneuk with New College Lanarkshire, was unsuccessful but has been held in reserve should any other funded projects not proceed. 2.14 The council has submitted stage 1 bids for phase two of the RATL and for a separate project which will deliver enabling groundworks to support the development of 21 new affordable housing on a long-term vacant and derelict site at Caledonian Road in Wishaw. Outcomes of these stage 1 bids is expected in August, with those bids succeeding at stage 1 invited to make stage 2 (award stage) bids in October, with funding decisions expected in December. 2.15 The council will continue to engage with local communities to develop projects that can be submitted to future rounds of both RCGF and VDLIP in 2023 and subsequent years. Green Growth Accelerator (GGA) 2.16 The council’s bid proposal for GGA support for the low-carbon redevelopment of Strathclyde Park was selected as one of five GGA Pathfinder projects in September 2021. NLC was awarded £120,000 in funding to help develop a business case for full support of up to £10m in funding to support capital investment. 2.17 Consultants were appointed to carry out extensive surveys and provide costed design proposals based around three key elements: The net zero redevelopment of the Park’s Watersports Centre and Bothwellhaugh Cottage, ‘retrofitting’ the existing buildings and installing solar photovoltaic array to meet energy demand The installation of a water source heat pump in Strathclyde Loch to meet the Park’s heat demand The installation of new renewable-fuelled EV charging points and street lighting.
Page 7
2.18 These proposals were received in early July and formed the basis of the council’s business case for GGA funding, which was submitted to the Scottish Government for consideration at the end of that month. A decision on funding the project is expected later in the year and officers have been preparing additional bids for support to meet any prospective funding gaps (see RCGF above). 3. Measures of success 3.1 The primary measure of success arising from the work and updates outlined in this report would be to: maximise the funding drawdown from the external funding opportunities outlined in this report; and ensure that the funding drawdown from these sources is used to best enable the council to achieve its wider goals for community and environmental regeneration and inclusive economic growth. 4. Supporting documentation Appendix One: Place Based Investment Programme List 2022/23 Pamela Humphries Head of Planning and Regeneration
Page 8
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. 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? Scottish Government external funding programmes such as PBIP, VDLF, RCGF and VDLIP can provide up to a 100% project funding and as such do not require match funding. However, challenge fund bids to programmes such as RCGF and VDLIP are more likely to be successful where match is provided to overall project costs. In these cases, where such funding is invested in council owned assets, it is likely that the Scottish Government would expect NLC to contribute funding to these (although there is no set percentage). The UKLUF provides up to a maximum of £20M per project and 90% of total project costs. As such, the development and delivery of these projects, unless already included as part of the Capital Programme, could result in the need to reprioritise budgets to ensure that the drawdown of this external funding can be maximised. It should also be noted that due to the complexity of bids and requirement for detailed costs, there will be a requirement for feasibility, design and site investigation works to support the UKLUF bids. However, the UK Government has provided a ‘one-off’ payment of £125,000 to manage Levelling Up projects and future bids to this
Page 9
fund, which has been used to support bid development. The GGA Pathfinder also gives rise to potential financial impact particularly in relation to how initial capital investment is met, how risk of ‘under repayment’ can be minimised or negated and timescales for repayment. The council will continue to work with the Scottish Government to minimise these risks, including through agreeing realistic outcomes for which revenue payments are based on. 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 ☒ 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 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? 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?
Page 10
The implementation of the programmes supported through capital programmes such as the VDLF, PBIP and the LUF provide significant opportunity for local environment improvements to greenspace, town centres and community facilities. Moreover, the proposals put forward as part of the GGA Pathfinder would bring forward significant carbon savings and develop a demonstrator project to help support the council to meet its future net zero carbon targets. 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 promotion of opportunities delivered through new funding programmes or success in gaining external funding for projects will continue to be managed and co- ordinated through Corporate Communications. 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.
Page 11
Appendix 1: North Lanarkshire’s Place Based Investment Programme 2022/23 THEME PROJECT DESCRIPTION TOTAL COST Match/ other funding Projected 22/23 PBIP Spend/ Commitment Town Centre Regeneration Braidhurst Industrial Estate New / refurbished industrial units and environmental improvements. Contribution will focus on micro generation £5,000,000 tbc £4,500,000 £500,000 Motherwell Library Immersive classroom/digital learning & access to be incorporated within Mother Library - this builds upon recently completed external works and rewiring recently contracted £414,778 £414,778 Orrs, Airdrie Contribution for the commercial units at the new development £3,200,000 £3,040,000 £160,000 Café Refresh, Motherwell Continuation of existing PBIP supported project £75,000 £0 £64,000 20 Minute Neighbourhoods Active Travel Ph2, Ravenscraig Continuation of existing PBIP supported project £1,100,000 £750,000 £350,000 Active Travel Hubs, Motherwell Continuation of existing PBIP supported project £144,000 £0 £115,000 Motherwell Station Active Travel Links City Deal Project – application being prepared and external match funding being sought for creation of active travel routes at Motherwell Station. £1,200,000 £700,000 £500,000 Placemaking/ Community Wellbeing Glenmanor, Moodiesburn PBIP contribution to community greenspace project being supported by VDLIP £298,000 £238,000 £60,000 Newmains Feasibility study and potential acquisition of commercial property in Newmains for future demolition and conversion to community garden. £150,000 £0 £150,000 Cumbernauld Community Allotments PBIP supported this project in 21/22. Due to an increase in groundworks, additional funds are required. £370,000 £350,000 £20,000 Other To Be Allocated Funding for projects under development. £0 £0 £102,222 Total £10,277,000 £7,841,000 £2,436,000