Agenda Document Pack - Economy and Regeneration Policy Board - 23/08/2022
Renfrewshire Council · 23 August 2022
Back to Economy and Regeneration Policy Board — 23 August 2022 and its agenda
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Notice of Meeting and Agenda Economy and Regeneration Policy Board Date Time Venue Tuesday, 23 August 2022 10:00 Council Chambers (Renfrewshire), Council Headquarters, Renfrewshire House, Cotton Street, Paisley, PA1 1AN MARK CONAGHAN Head of Corporate Governance Membership Councillor Andy Steel (Convener): Councillor Michelle Campbell (Depute Convener): Councillor Alison Ann-Dowling: Councillor Stephen Burns: Councillor Graeme Clark: Councillor Andy Doig: Councillor Neill Graham: Councillor Lisa-Marie Hughes: Councillor Colin McCulloch: Councillor Jamie McGuire: Councillor Marie McGurk: Councillor Iain McMillan: Councillor John McNaughtan: Councillor Iain Nicolson: Councillor Jim Paterson: Webcasting of Meeting This meeting will be filmed for live or subsequent broadcast via the Council’s internet site – at the start of the meeting the Convener will confirm if all or part of the meeting is being filmed. To find the webcast please navigate to https://renfrewshire.public-i.tv/core/portal/home Hybrid Meeting Please note that this meeting is scheduled to be held in the Council Chambers. However, it is a hybrid meeting and arrangements have been made for members to join the meeting remotely should they wish. Members of the Press and Public Members of the press and public wishing to attend the meeting should report to the customer service centre where they will be met and directed to the meeting. Page 1 of 32
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Apologies Apologies from members. Declarations of Interest Members are asked to declare an interest in any item(s) on the agenda and to provide a brief explanation of the nature of the interest. 1 Revenue & Capital Budget Monitoring Report Report by Chief Executive and Director of Finance & Resources. 5 - 12 2 Greater Renfrewshire and Inverclyde (GRI) LEADER / Community Led Local Development (CLLD) Update Report by the Chief Executive. 13 - 18 3 Invest in Renfrewshire: Start-Up Street Report by Chief Executive. 19 - 24 4 UK Shared Prosperity Fund Update Report by the Chief Executive. 25 - 32 Page 2 of 32
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To: Economy and Regeneration Policy Board On: 23 August 2022 Report by: Chief Executive and Director of Finance and Resources Heading: Revenue and Capital Budget Monitoring as at 24 June 2022 1. Summary of Financial Position 1.1. The projected revenue outturn at 31 March 2023 for those services reporting to the Economy and Regeneration Board is an underspend position of £0.020 million. 1.2. The projected capital outturn at 31 March 2023 for projects reporting to the Economy and Regeneration Policy Board is a £46.184 million breakeven position against the revised budget for the year. 1.3. This is summarised in the table below and further analysis is provided in the Appendices. Table 1: Revenue Division Revised Annual Budget £000 Projected Outturn Core £000 Total Projected Outturn £000 Budget Variance £000 Budget Variance % Economy and Development 2,983 2,963 2,963 20 0.7% Table 2: Capital Division Revised Annual Budget £000 Projected Outturn Core £000 Total Projected Outturn £000 Budget Variance £000 Budget Variance % Economy and Development 46,184 46,184 46,184 0 0% Item 1 ER 230822 Page 5 of 32
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2. Recommendations 2.1. Members are requested to: (a) Note the projected Revenue outturn position detailed in Table 1 above; (b) Note the projected Capital outturn position detailed in Table 2 above; and (c) Note the budget adjustments detailed at sections 4 and 6. 3. Revenue 3.1. The Revenue Budget Monitoring report at Appendix 1 identifies a projected underspend of £0.020 million (0.7% of total budget) for all services reporting to this Policy Board. Detailed division service reports can also be found here, together with an explanation of any significant projected variances. 3.2. The projected outturn is based on information currently available, and assumptions made by service budget holders. Any changes to these projections will be detailed in future reports to the Board. 3.3. The main reasons for the projected outturn position are indicated below the tables showing both the subjective analysis (what the budget is spent on) and the objective analysis (which division is spending the budget). 4. Revenue Budget Adjustments 4.1. Members are requested to note from Appendix 1 that, since the Budget was approved on 3rd March 2022, a budget adjustment (net nil impact) has been processed to increase both income and expenditure by £2.070 million to reflect funding secured from external sources to support the delivery of the employability programme over the course of financial year 2022/23. 5. Capital 5.1. The Capital Investment Programme 2022/23 to 2026/27 was approved by the Council on 3rd March 2022. For Economy and Regeneration the approved capital spend for 2022/23 is £46.184m 5.2. The Capital Monitoring report at Appendix 2 indicates net budget adjustments in the approved capital programme for Economy and Regeneration for the year of £0.313m largely as a result of additional funding offset by budget reprofiled into 2023-24 for updated cash flows. 5.3. Further detail, including reasons for significant variances (where applicable), can be found at appendix 2. Page 6 of 32
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6. Capital Budget Adjustments 6.1. Since the last report, budget changes totalling £0.313m have arisen which reflect the following: Budget Increases in 2022-23 (£3.617m): • Paisley Museum (£2.422m) reflecting grant award from Regeneration Capital Grant Fund (RCGF) and National Lottery Heritage Fund; • Place Based Fund (£1.195m) for Active Communities Grant from Scottish Government. Net budget brought forward from in 2021-22 into 2022-23 for updated cashflows (£1.123m): • Paisley Art centre (£0.230m); • Paisley Town Hall Refurbishment (£0.398m); • Town Centre Capital Fund (£0.193m); • Paisley Learning and Cultural Hub (£0.302m). Net budget carried forward into 2023-24 for updated cashflows (£4.427m): • Flexible Outdoor Facility (£1.223m); • Playing Fields and Sport Development (£0.860m); • Paisley Museum (£1.966m); • Paisley Junctions and Charging Hub (£0.185m); • THI/CARS 2 (£0.193m). ______________________________________________________________ Implications of this report 1. Financial – The projected budget outturn position for the revenue budget reported to the Economy and Regeneration Policy Board is an underspend of £0.020m. Income and expenditure will continue to be monitored closely for the rest of the financial year and, where necessary, steps will be taken to mitigate any overspend. The projected outturn position for capital budgets reported to the Economy and Regeneration Policy Board is breakeven. The Capital programme will continue to be monitored closely for the rest of the financial year. Any changes to current projections in either Revenue or Capital budgets will be reported to the board as early as possible, along with an explanation for the movement. Page 7 of 32
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2. HR and Organisational Development None directly arising from this report. 3. Community/Council Planning None directly arising from this report. 4. Legal None directly arising from this report. 5. Property/Assets 6. Information Technology None directly arising from this report. 7. Equality and Human Rights The recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report because for example it is for noting only. If required following implementation, the actual impact of the recommendations and the mitigating actions will be reviewed and monitored, and the results of the assessment will be published on the Council’s website. 8. Health and Safety None directly arising from this report. 9. Procurement None directly arising from this report. 10. Risk The potential risk that the Council will overspend its approved budgets for the year will be managed at a Council-wide level by the Chief Executive and Directors. 11. Privacy Impact None directly arising from this report. 12. 13. Cosla Policy Position N/a. Climate Risk None directly arising from this report. __________________________________________________________________ List of Background Papers __________________________________________________________________ Authors: Valerie Howie (Revenue) and Geoff Borland (Capital) Page 8 of 32
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Appendix 1 Objective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Core Business Total Projected Outturn £000 £000 £000 £000 £000 £000 % Economy and Regeneration Management 124 0 124 132 132 (8) (6.5%) Economic Development 1,926 0 1,926 1,907 1,907 19 1.0% Regeneration 933 0 933 924 924 9 1.0% NET EXPENDITURE 2,983 0 2,983 2,963 2,963 20 0.70% Objective Heading Economy and Regeneration Management Economic Development Regeneration RENFREWSHIRE COUNCIL REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 24 June 2022 Budget Variance (Adverse) or Favourable POLICY BOARD : ECONOMY AND REGENERATION Key Reasons for Projected Variance No significant projected year end variances to report. No significant projected year end variances to report. No significant projected year end variances to report. Page 9 of 32
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Appendix 1 Subjective Summary Approved Annual Budget Budget Adjustments Revised Annual Budget P3 Projected Outturn Core Business Total Projected Outturn £000 £000 £000 £000 £000 £000 % Employees 2,533 2,063 4,596 4,536 4,536 60 1.3% Premises Related 52 0 52 53 53 (1) (1.9%) Transport Related 3 0 3 3 3 0 0.0% Supplies and Services 30 (1) 29 30 30 (1) (3.4%) Third Party Payments 0 0 0 0 0 0 0.0% Transfer Payments 713 8 721 721 721 0 0.0% Support Services 39 0 39 40 40 (1) (2.6%) Depreciation and Impairment Losses 0 0 0 0 0 0 0.0% GROSS EXPENDITURE 3,370 2,070 5,440 5,383 5,383 57 1.0% Income (387) (2,070) (2,457) (2,420) (2,420) (37) (1.5%) NET EXPENDITURE 2,983 0 2,983 2,963 2,963 20 0.7% REVENUE BUDGET MONITORING STATEMENT 2022/23 1 April 2022 to 24 June 2022 Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL POLICY BOARD : ECONOMY AND REGENERATION Page 10 of 32
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Appendix 2 Prior Years Approved Budget Revised Projected Expenditure Budget Adjustments Budget Outturn Total Approved Projected to 31/03/2021* 2022-23 in 2022-23 2022-23 2021-22 Budget Outurn Project Title to 31-Mar-27 to 31-Mar-27 £000 £000 £000 £000 £000 £000 £000 ECONOMY & DEVELOPMENT Paisley Art Centre Redevelopment 574 1,774 230 2,004 2,004 0 0% 3,050 3,050 0 0% Paisley Town Hall Redevelopment 8,284 11,729 398 12,127 12,127 0 0% 22,050 22,050 0 0% Flexible Outdoor Facility/Travel & Accessibility Infrastructure 447 1,283 -1,223 60 60 0 0% 7,050 7,050 0 0% Playing Fields and Sports Development 779 1,040 -860 180 180 0 0% 5,600 5,600 0 0% Paisley Museum 12,117 20,109 456 20,565 20,565 0 0% 45,522 45,522 0 0% Town Centre Capital Fund 1,793 2,250 193 2,443 2,443 0 0% 4,237 4,237 0 0% Paisley Learning & Cultural Hub 2,755 3,642 302 3,944 3,944 0 0% 7,000 7,000 0 0% Place Based Fund 25 0 1,195 1,195 1,195 0 0% 4,427 4,427 0 0% Pailsey Junctions and Charging Hub 211 2,520 -185 2,335 2,335 0 0% 3,346 3,346 0 0% Townscape Heritage CARS 2 2,523 1,524 -193 1,331 1,331 0 0% 4,099 4,099 0 0% Total Economy & Development 29,508 45,871 313 46,184 46,184 0 0% 106,381 106,381 0 0% TOTAL ECONOMY & DEVELOPMENT 29,508 45,871 313 46,184 46,184 0 0% 106,381 106,381 0 0% *Rolling programmes have a prior year year expenditure of £0 as the expenditure is not directly linked from one year to the next as a singular project. Budget Variance (Adverse) or Favourable Budget Variance (Adverse) or Favourable RENFREWSHIRE COUNCIL CAPITAL INVESTMENT STRATEGY - NON-HOUSING SERVICES 1st April to 24th JUNE 2022 POLICY BOARD: ECONOMY & REGENERATION Current Year 2022-23 Full Programme - All years Page 11 of 32
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___________________________________________________________________ To: Economy and Regeneration Board On: 23 August 2022 ___________________________________________________________________ Report by: Chief Executive ___________________________________________________________________ Heading: Greater Renfrewshire and Inverclyde (GRI) LEADER / Community Led Local Development (CLLD) Update ___________________________________________________________________ 1. Summary 1.1 Following the conclusion of the Greater Renfrewshire and Inverclyde (GRI) LEADER programme for 2014 – 2020 this report advises Board of a request from Scottish Government to support delivery of a new Community Led Local Development (CLLD) programme for 2022/23, which replaces (in part) GRI LEADER. 1.2 The report outlines the proposed approach for Renfrewshire and the joint work required with other local authorities to meet CLLD requirements. 2. Recommendations 2.1 It is recommended that the Board: a) Note the conclusion of the Greater Renfrewshire and Inverclyde (GRI) LEADER 2014 – 2020 programme and the interim Communities Testing Change Fund. b) Note the offer from Scottish Government to award £115,520 to the Greater Renfrewshire and Inverclyde area for the delivery of the Community Led Local Development (CLLD) programme for 2022/23; c) Agree that Renfrewshire Council continues to act as Lead Partner and Accountable Body for the Greater Renfrewshire and Inverclyde area; d) Delegate authority to the Head of Economy and Development to deliver the programme requirements, as laid out in Sections 5 and 6. Item 2 ER 230822 Page 13 of 32
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3. Background: GRI LEADER Programme 2014 - 2020 3.1 LEADER is a European funded programme for rural areas which was administered in Scotland through the Scottish Rural Development Programme (SRDP). The aim of LEADER was to increase support to local rural community and business networks, to build knowledge and skills and encourage innovation and cooperation to tackle local development objectives. 3.2 The GRI LEADER Programme was previously awarded £2,188,244 to support local social and economic development projects in rural Renfrewshire, Inverclyde and East Renfrewshire through the 2014 – 2020 programme. This was the first time that the three local authorities had collaborated to develop a joint LEADER programme. 3.3 The vision for the GRI LEADER Programme was “To improve the quality of life in our rural areas by supporting local people and local businesses to realise the social, economic and environmental potential of their communities”. GRI Local Development Strategy, 2014– 2020. 3.4 A Local Action Group (LAG) supported delivery of the Local Development Strategy (LDS), with match funding provided to projects which addressed the key objectives and priorities. The LAG comprised representatives from the three local authorities, community council/groups, third sector, businesses, residents, and wider stakeholders. 3.5 The LAG decided which project applications met eligibility requirements and could therefore be funded. Over the period of the programme the LAG approved 25 projects, including two cooperation projects with other areas across Scotland. 4. Rural Communities Testing Change Fund 4.1 With the cessation of LEADER Scottish Government was interested in how the approach to rural support and intervention might be enhanced. During 2021 they invited submissions under its Rural Communities Testing Change (RCTC) Fund for projects to test new approaches to delivering community-led local development. 4.2 The GRI LEADER LAG, with officer support, submitted a bid to the RCTC Fund, which aimed to explore the development of community-led tourism in the rural, cross-boundary area (between authorities). The LAG was successful in securing funding of £50,000 and consultants were appointed to carry out the necessary research and consultations, on behalf of the LAG, and to compile a Rural Community Tourism Strategy. 4.3 The Strategy highlighted the opportunities for further community-led rural tourism development, aligned to the attributes and assets of the area, while addressing weaknesses or threats. Page 14 of 32
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The rural tourism approach catalogues what needs to be done by communities to generate economic value for the area, working with and encouraging investment by partner authorities and businesses. The Strategy also identified a number of potential projects, with indicative spending plans for Year One delivery. 4.4 The Strategy was submitted to Scottish Government for consideration regards any ongoing funding decisions to support rural economic development at end March 2022. This resulted in the offer of CLLD grant for 2022-23. 5. Community Led Local Development (CLLD) Programme 2022. 5.1 Following the submission of local strategies from rural areas across Scotland the Scottish Government introduced a Community Led Local Development (CLLD) Programme for rural areas. The geographical rural areas covered by CLLD will, in the main, replicate those same areas covered by LEADER. This will be the case for Greater Renfrewshire and Inverclyde. 5.2 The CLLD Programme will support communities to progress the local strategy and to tackle their own, local challenges through a local action plan. 5.3 Scottish Government has awarded £115,520 funding to deliver CLLD programme requirements for the GRI area to 31 March 2023. 5.4 An outline Community Led Vision (CLV) identifies two phases of development: Phase 1: September to December 2022 That work is required to reinvigorate the LAG and the group’s membership. Firstly, to increase numbers and ensure the right mix of required knowledge and skills within the group. Secondly, it is a key requirement of Scottish Government that the group fully reflects, and is inclusive of, the diverse range of individuals and organisations represented within rural communities and across all three local authority areas. that the initial work requirements are to engage and consult with local communities and groups, to assist them to understand their role within the LAG and the benefits to the community from their involvement. Phase 2: Jan – Mar 2023 The reinvigorated LAG will be supported to review and produce a more detailed community led vision and plan. The expectation will be for the plan to be delivered from April 2023, subject to appropriate funding being available for future years. Page 15 of 32
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6. CLLD Programme Management 6.1 Following discussions with Scottish Government and local authority colleagues it is proposed that roles and responsibilities will reflect those in place for the previous GRI LEADER programme i.e: Scottish Government (Scottish Rural Network) will be the Managing Authority and Paying Agency for the programme. Renfrewshire Council will act as Lead Partner and Accountable Body for the Greater Renfrewshire and Inverclyde area. Renfrewshire, East Renfrewshire and Inverclyde Councils will be represented on the Local Action Group (LAG). 6.2 As such Renfrewshire Council would accept and administer the £115,520 grant fund on behalf of the GRI area. Part of the funding would support staff costs. 7. Future Reporting 7.1 It is proposed that a further update report(s) be provided to Board at a date(s) to be agreed. _________________________________________________________________ Implications of the Report 1. Financial – No additional finance is sought. Funding of £115,520 has been allocated by Scottish Government for the 2022-23 period. 2. HR & Organisational Development – 1.4. FTE posts within Economic Development are currently financially supported through GRI LEADER Funds. These posts will continue to be partially supported through this new funding allocation with Employability funding supporting the remainder of the staff costs (the staff team are now managing the Employability Grants programme also). 3. Community/Council Planning – Partnership working is essential to the success of the GRI LEADER Programme. Economic Development colleagues from East Renfrewshire and Inverclyde Councils and from the Renfrewshire LEP will be significantly involved in the planning and delivery of programme requirements. 4. Legal – None. 5. Property/Assets – None. 6. Information Technology – None. 7. Equality & Human Rights (a) The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. Page 16 of 32
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8. Health & Safety – None. 9. Procurement – Phase 1 of the CLLD work will involve further consultancy work from the original Testing Change Fund commission. Procurement colleagues have discussed and agreed the work involved. 10. Risk – None. 11. Privacy Impact - None. 12. COSLA Policy Position – Not Applicable. 13. Climate Risk – Not Applicable. ___________________________________________________________________ List of Background Papers None. ___________________________________________________________________ Author: Michael Moran, Assistant Economic Development Manager Email: michael.moran@renfrewshire.gov.uk Page 17 of 32
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___________________________________________________________________ To: Economy and Regeneration Policy Board On: 23 August 2022 ___________________________________________________________________ Report by: Chief Executive ___________________________________________________________________ Heading: Invest in Renfrewshire: Start-Up Street 1. Summary 1.1 This report advises on the progress and further development of the Start-Up Street project and the partnership agreement for the Renfrew development. 1.2 Start-Up Street is an economic development initiative which aims to help grow the local economy by supporting start-up businesses looking to make their first step into commercial premises. ___________________________________________________________________ 2. Recommendations Board members are asked to: (i) Note and agree the proposed partnership agreement with Lanarkshire Enterprise Services Ltd [LESL] for Start-Up Street, 7-13 Dunlop Crescent, Renfrew. (ii) delegate authority to the Head of Economy and Development to conclude the agreement incorporating appropriate terms and conditions to protect the Council’s interest. Item 3 ER 230822 Page 19 of 32
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3. Background 3.1 Start-Up Street is an economic development initiative offering new and growing businesses low-cost, high-quality workspace and wraparound support. 3.2 Subsidised premises costs cover the workspace, wifi, utility bills and provide access to meeting space, with lease costs incrementally increased until the business owner is ready to move to an alternative Renfrewshire commercial space. 3.3 The initiative is already proving a success in Paisley where 30 small businesses are benefiting from first-class facilities and support at the refurbished Council Units at George Street, Paisley. With a focus on Youth Enterprise the Council works in partnership with local social enterprise Launch It, Paisley. 3.4 Due to the success, and the demand for places, two additional Start-Up Streets are opening in 2022. The first of these is in partnership with Active Communities in Johnstone where dilapidated garage units have been converted to modern and flexible business spaces. The second is in Dunlop Crescent, Renfrew, where long term vacant council units have been refurbished to provide new and additional business space. 3.5 This report outlines the proposed Partnership Agreement with social enterprise LESL (Lanarkshire Enterprise Services Ltd). LESL currently provide a range of Business Gateway services under contract to Renfrewshire Council and have been a provider to the Council for many years. Previously based at, and managers of, Hillington Innovation Centre the LESL team currently provide a wide range of Business Gateway workshops and expert help to Renfrewshire Businesses. 4. Partnership Approach 4.1 LESL (Lanarkshire Enterprise Services Ltd) and Renfrewshire Council share a common objective of supporting the development and growth of small to medium enterprises. LESL is a registered social enterprise which has been successfully offering business training and support to SME’s for over 35 years. LESLs objectives are to provide support that transforms businesses and helps lives and communities to thrive. 4.2 LESL have worked in partnerships within Renfrewshire through Renfrewshire Council’s Business Gateway service for almost 12 years supporting local SMEs to grow, providing advice, support and incubation facilities. Most recently 12 local female led businesses benefited through Renfrewshire Council’s Business Gateway service from LESLs bespoke Accelerator programme helping them to focus on growth. 4.3 The objective for the Start-Up Street Enterprise Hub in Renfrew is to identify up to 17 start-up businesses (at any one time) who will take space in the centre. Page 20 of 32
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LESL will provide full facilities management of the space and provide advisory support and a range of events aimed at supporting the young businesses to grow strongly. LESL add value to the Start Up Street development with their experience of operating Innovation Centres and providing incubation services and support for early stage, growing businesses across Scotland. 5. Overview of Partnership Agreement 5.1 A partnership agreement between the Council (RC) and LESL will be finalised in the coming weeks to outline the operational workings and responsibilities for both parties. 5.2 Start-Up Street Renfrew will provide a range of quality managed workspaces, of varying sizes and costs, to suit the needs of local start-up and early-stage businesses and self-employed people. There will be a particular focus on female entrepreneurs. The premises will offer ongoing support from a business advisor, a stagged reception, training room, good digital networking and access to the wider business supports available through the wider council Business Gateway service and business development team. 5.3 The space would be offered for a maximum of 2 years to small or early- stage businesses with a staged rental model which increases over the 2 years. At the end of the contract period the business will be paying the full rental value and can then move to an alternative commercial space in the Renfrewshire area. 5.4 A key feature of the proposal would be that a full-time business advisor, employed by LESL, would be based at the enterprise centre to offer ongoing advice and support, individually nurturing, and supporting the business tenants and organising group training and development. This support would assist with the growth and sustainability of the business and would help identify move on space at the right stage. Businesses will also have access to advice and support from a council Business Gateway Advisor who will hold regular business advisory surgeries in the centre. 5.5 LESL will take a lease over the units for a period of 5 years, including a break at 2.5 years. Rates will be the responsibility of LESL. They will provide full facilities management of the space and provide advisory support and a range of events aimed at supporting the businesses to grow. 5.6 RC will fully fund the cost of the refurbishment and fit out of the building providing LESL with a “turnkey” site excluding Wi-Fi. 5.7 RC (Economic Development) will fully cover the lease costs of the building from RC (Property) to LESL and will under-write the rent on any room vacancies (any gaps in filling a room when a business leaves). 5.8 RC and LESL will work in partnership on the joint development of the Start-Up Street business units and the ongoing support of the businesses that are within it. Page 21 of 32
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All businesses engaging with Start-Up Street will be registered with the councils Business Gateway service and will have full access to Business Gateway support. 5.9 Start-Up Street provides a new and innovative shared ownership model which helps to grow Renfrewshire’s commercial and third sectors. The initiative supports Community Wealth Building in Renfrewshire by utilising vacant council assets for the common good of local people, creating thriving local communities and economies. The Centres are operated by third sector partners who bring added value to the project with their experience and expertise of engaging and working with specific groups within the community. 5.10 The Board is requested to approve the outline partnership agreement with LESL and delegate authority to the Head of Economy and Development to conclude the agreement incorporating appropriate terms and conditions to protect the Council’s interest. Update reports will be brought back to board on progress. ___________________________________________________________________ Implications of the Report 1. Financial - No additional finance is sought for this proposal. Resources from the existing Business Start Up budgets (Invest in Renfrewshire / Business Gateway) and from LESL would ensure that the business support was available. The rental from the companies would support the ongoing running costs 2. HR & Organisational Development – None. 3. Community/Council Planning – Jobs and the Economy – The proposal would support additional business start- up growth and sustainment in Renfrewshire and would be an additional local service 4. Legal - Any formal partnership with LESL would be subject to legal documentation. 5. Property/Assets- Start-Up Street currently operates from 43-45 & 65-71 George Street, Paisley and work is currently underway to finalise properties 7, 9, 11 & 13 Dunlop Crescent, Renfrew to provide further incubation space. Start Up Street Johnstone has been developed with Active Communities at the former Police Station, Johnstone. 6. Information Technology – None. IT infrastructure and resource would be the responsibility of the third sector partner organisation. 7. Equality & Human Rights- The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. Page 22 of 32
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No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. 8. Health & Safety- None. 9. Procurement – None. 10. Risk- None. 11. Privacy Impact- None. 12. Cosla Policy Position- Not Applicable. _________________________________________________________ List of Background Papers (a) None. ___________________________________________________________________ Author: Ruth Cooper Economic Development Manager ruth.cooper@renfrewshire.gov Tel: 0141 618 7868 Page 23 of 32
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___________________________________________________________________ To: Economy and Regeneration Board On: 23 August 2022 ___________________________________________________________________ Report by: Chief Executive ___________________________________________________________________ Heading: UK Shared Prosperity Fund Update ___________________________________________________________________ 1. Summary 1.1 Following the paper to Board in June 2022, this report provides a further update on the development of detailed Shared Prosperity Fund (SPF) proposals, at a Renfrewshire level, which meet the Fund’s objectives. 1.2 The Renfrewshire proposals will be aggregated, with those of the other seven local authorities in the Glasgow City Region, to provide a Regional Investment Plan for the Glasgow City Region. 2. Recommendations 2.1 It is recommended that the Board: a) Note that the SPF Regional Investment Plan will be developed as a Glasgow City Region plan in conjunction with all 8 Member Authorities and with all necessary approvals at both regional and local level being in place prior to final submission at the end of August 2022. b) Approve the outline set of SPF funded proposals at Renfrewshire level as outlined in section 6 of the report and which meet the Fund’s objectives and c) Agree that the Invest in Renfrewshire budget continues to be used, where necessary, to cashflow the proposals to allow spend to take place prior to funding being released in year 3. ___________________________________________________________________ Item 4 ER 230822 Page 25 of 32
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3. Background 3.1 The Shared Prosperity Fund (SPF) is the UK Government response to the decision by the UK to leave the European Union. Previously, as part of the EU, parts of the UK (including Renfrewshire) were eligible for economic development funding as part of continent-wide support programmes. 3.2 SPF will provide £2.6 billion of funding for local investment by March 2025, with all areas of the UK receiving an allocation from the fund via a funding formula rather than a competition. 3.3 There are three SPF investment priorities: Communities and Place; Supporting Local Business; People and Skills. 3.4 In addition, a new programme “Multiply” has a specific budget within the UK SPF to support numeracy skills across all areas. This is the only Portfolio with a set budget and separate accountability. 3.5 Three years of funding have been announced and Renfrewshire Council have been awarded £6,290,987 for 2022-25. Within this figure £1,086,395 is specifically allocated to the Multiply Programme. 3.6 The programme is phased to increase financially over the 3 years with 12% of the Core budget in year 1, 24% in year 2 and the remainder in year 3. 3.7 The SPF rules dictate the Core fund is split between revenue and capital expenditure with capital increasing from 10.4% in 2022 to a minimum of 18% in 2024-25. 4. Funding Allocation for Glasgow City Region 4.1 Renfrewshire will be part of a wider Glasgow City Region proposition to the UK SPF and the full allocation to the GCR is set out below: Year 2022/23 2023/24 2024/25 Total Revenue £6,645,717 £12,979,919 £31,908,645 £51,534,281 Multiply £3,856,889 £4,450,258 £4,450,258 £12,757,405 Capital £771,378 £1,854,274 £6,956,940 £9,582,593 TOTAL £11,273,984 £19,284,451 £43,315,843 £73,874,279 4.2 Each local authority will prepare their own local proposition which will be aggregated to a Regional Plan, identifying the synergies and priorities across the whole area. The city region plan will be finalised during August, 5. Funding Allocations for Renfrewshire 5.1 It was previously reported that 4% of the SPF budget can be used for project management, administration and compliance costs per the SPF guidance. Page 26 of 32
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5.2 The costs below reflect the figures available to Renfrewshire. CORE Budget 22/23 23/24 24/25 3 year allocation Core Renfrewshire £631,625 £1,263,250 £3,309,716 £5,204,591 4% management fee £25,265 £50,530 £132,389 £ 260,230 Balance to allocate £606,360 £1,212,720 £3,177,327 £4,996,407 Of which minimum capital spend required 10.4% £65,689 12.5% £157,906 17.9% £592,439 £816,034 Multiply Programme 22/23 23/24 24/25 3 year allocation Multiply Renfrewshire £328,445 £378,975 £378,975 £1,086,395 5% Management Fee £13,137.80 £15,159.00 £15,159.00 £43,455.80 Balance to be allocated to Multiply Programme £315,307 £363,816 £363,816 £1,042,939 5.3 A Glasgow City Region Head of Shared Prosperity Fund has been appointed to develop the shared GCR Investment Plan and to support monitoring and reporting across the GCR. A working group of the UKSPF Officer leads in each local authority has been established and meets on a regular basis to take the Regional Investment Plan forward. 6. The Renfrewshire Proposal 6.1 The fund has a menu of interventions within each principal investment area that local areas can select from. Each intervention then relates to associated outputs and outcomes that must be recorded. 6.2 For Renfrewshire, interventions have been developed across all three investment priority areas and builds on current plans / strategies and existing commitments. 6.3 A key priority was to review existing activity where continuity beyond European Structural fund end dates is an issue and identify what can be supported through UKSPF. 6.4 The Renfrewshire Core Budget for allocation in 2022-25 is £4,996,407 and Multiply budget is £1,042,939 with proposed use set out below: Page 27 of 32
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Renfrewshire Core Budget 2022-25 £4,996,407 (to allocate) £5,204,591 (core budget) Priority: Communities and Place S1: Place based investments, regen & town centre improvements S2: Support/improve community assets & infrastructure projects S4: Design & management of the built & landscaped environment S5: Support sport, arts, cultural, heritage & creative activities S6: Active travel enhancements & small scale transport projects S8: Impactful volunteering and/or social action projects S11: Relevant feasibility studies £1,558,949 £206,316 £550,000 £150,000 £150,000 £150,000 £132,633 £220,000 30% of core Priority : Business S20: Expert business advice & support programmes, local & regional S22: Growing the local social economy. £1,583,097 £1,478,097 £105,000 30.4% of core Priority : People and Skills S31: Employment support for economically inactive people S32: Courses including basic skills for those not economically inactive S35: Employability programmes & advice - No One Left Behind agenda etc S39: Education & skills targeting the vulnerable leaving school £1,854,361 £184,361 £350,000 £1,080,000 £240,000 35.6% of core Renfrewshire Multiply Budget 2022-25 £1,042,939 (to allocate) £1,086,395 (full budget) Page 28 of 32
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Renfrewshire Core Budget 2022-25 £4,996,407 (to allocate) £5,204,591 (core budget) Multiply S48: Intensive& flexible courses targeted at those without Level 5 maths S49: Courses designed to help people use numeracy to manage money S51: Provision developed in partnership with community organisations £1,042,939 £197,640 £90,864 £754,435 96% of Multiply budget Management and Admin of combined budget: 4% Renfrewshire Council £314,549 £251,639.48 4% of core and Multiply budget Total £6,290,987 6.5 It was previously reported that the deadline set for the submission of a GCR Investment Plan for SPF was 1 August 2022 and given the summer recess the Board agreed to delegate authority to the Head of Economy and Development, in conjunction with the Convenor to develop SPF proposals at a Renfrewshire level which meet the Fund’s objectives and submit this to GCR ahead of the stated UKG deadline. 6.6 The figures above, alongside projected outcomes and outputs, were submitted to the GCR at the end of July. There does appear to be flexibility in approach, and it is anticipated that changes can be negotiated over the 3 years of the Programme. 6.7 The final GCR submission will now be submitted at the end of August to allow for the necessary approvals. 7. Funding Draw Down 7.1 Funding will be paid on 1st April 2023 (for the 2023-24 financial year) and 1st April 2024 (for the 2024-25 financial year). The 2023-23 allocation is expected to be released sometime in October or November 2022. 7.2 Previously, with the Councils EU funded projects, the Invest in Renfrewshire budget provided cashflow for the various ESF and ERDF activities as claims were paid retrospectively and often 3 years after expenditure occurred. Page 29 of 32
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It is proposed that a similar arrangement would be made for the UK SPF activities, allowing (for example) projects to commence immediately and to allow year 3 activities to be brought forward (if required) with funding then being drawn down after some expenditure has been defrayed. 8. Consultation 8.1 Consultation on the input to the Renfrewshire proposals has been carried out through the existing partnership networks. The Local Employability Partnership has played a key role in the People and Skills and Multiply themes and they will continue to oversee activity. 8.2 Part of the requirements of the submission includes consultation with MPs and MSPs and this will be co-ordinated at Glasgow City Region level. 9. Further Action 9.1 The full GCR Investment Plan is currently being written to incorporate all eight Council plans and to provide a framework of actions across the city region. A copy of the final plan will be sent to board members and further updates on progress will be brought back to the board. ________________________________________________________________ Implications of the Report 1. Financial – No additional finance is sought. Funding of £6,290,987 has been allocated to Renfrewshire by the UK SPF for the 2022-25 period. It is requested that the current Invest in Renfrewshire budget continues to be used to cashflow project activities as claiming, in some cases, will be retrospective. 2. HR & Organisational Development – Approximately 40 posts at Renfrewshire Council are currently financial supported through EU Structural Funds and this is a key consideration in proposals for SPF. 3. Community/Council Planning – Partnership working is essential to the success of the SPF. The Renfrewshire LEP will be significantly involved in the planning for Multiply and People and Skills. Similarly the other priorities of Business and Community and Place will require support from partners. 4. Legal – None. 5. Property/Assets – None. 6. Information Technology – None. 7. Equality & Human Rights (a) The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified arising from the recommendations contained in the report. Page 30 of 32
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8. Health & Safety – None. 9. Procurement – None. 10. Risk – None. 11. Privacy Impact - None. 12. COSLA Policy Position – Not Applicable. 13. Climate Risk – Not Applicable. ___________________________________________________________________ List of Background Papers None. ___________________________________________________________________ Author: Ruth Cooper, Economic Development Manager; Email: ruth.cooper@renfrewshire.gov.uk Page 31 of 32
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