Agenda Document Pack - Community and Enterprise Resources Committee - 23/04/2024
South Lanarkshire Council · 23 April 2024
Back to Community and Enterprise Resources Committee — 23 April 2024 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Council Offices, Almada Street Hamilton, ML3 0AA Monday, 15 April 2024 Dear Councillor Community and Enterprise Resources Committee The Members listed below are requested to attend a meeting of the above Committee to be held as follows:- Date: Tuesday, 23 April 2024 Time: 14:00 Venue: Hybrid - Committee Room 1, Council Offices, Almada Street, Hamilton, ML3 0AA The business to be considered at the meeting is listed overleaf. Yours sincerely Paul Manning Chief Executive Members Robert Brown (Chair), Maureen Devlin (Depute Chair), Joe Fagan (ex officio), John Anderson, Ralph Barker, Walter Brogan, Andy Carmichael, Gerry Convery, Poppy Corbett, Andrea Cowan, Margaret Cowie, Colin Dewar, Gladys Ferguson-Miller, Ross Gowland, Graeme Horne, Cal Johnston-Dempsey, Susan Kerr, Martin Lennon, Richard Lockhart, Hugh Macdonald, Ian McAllan, Kenny McCreary, Davie McLachlan, Carol Nugent, Helen Toner, David Watson Substitutes Alex Allison, Ross Clark, Margaret Cooper, Allan Falconer, Alistair Fulton, Lynsey Hamilton, Ross Lambie, Lesley McDonald, Elaine McDougall, Mark McGeever, Richard Nelson, Graham Scott, David Shearer 1
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BUSINESS 1 Declaration of Interests 2 Minutes of Previous Meeting Minutes of the meeting of the Community and Enterprise Resources Committee held on 6 February 2024 submitted for approval as a correct record. (Copy attached) 5 - 18 Monitoring Item(s) 3 Community and Enterprise Resources - Revenue Budget Monitoring 2023/2024 Joint report dated 6 March 2024 by the Executive Directors (Finance and Corporate Resources) and (Community and Enterprise Resources). (Copy attached) 19 - 28 4 Community and Enterprise Resources - Capital Budget Monitoring 2023/2024 Joint report dated 3 April 2024 by the Executive Directors (Finance and Corporate Resources) and (Community and Enterprise Resources). (Copy attached) 29 - 32 5 Community and Enterprise Resources – Workforce Monitoring – December 2023 to February 2024 Joint report dated 13 March 2024 by the Executive Directors (Finance and Corporate Resources) and (Community and Enterprise Resources). (Copy attached) 33 - 40 Item(s) for Decision 6 Hagshaw Energy Cluster - Retention of Economic Development Officer Joint report dated 28 March 2024 by the Executive Directors (Finance and Corporate Resources) and (Community and Enterprise Resources). (Copy attached) 41 - 44 7 Community Benefit Funds – Renewable Energy Fund Grant Applications Report dated 28 March 2024 by the Executive Director (Community and Enterprise Resources). (Copy attached) 45 - 48 8 Scottish Mines Restoration Trust - Mainshill Report dated 28 March 2024 by the Executive Director (Community and Enterprise Resources). (Copy attached) 49 - 52 9 Centre West Shopping Centre, East Kilbride - Transfer of Ownership to South Lanarkshire Council Report dated 27 March 2024 by the Executive Director (Community and Enterprise Resources). (Copy attached) 53 - 58 10 Glasgow City Region City Deal - Stewartfield Way - East Kilbride Town Centre Report dated 27 March 2024 by the Executive Director (Community and Enterprise Resources). (Copy attached) 59 - 64 2
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11 Glasgow City Region - Electric Vehicle Charging Infrastructure (EVCI) Collaboration Report dated 26 March 2024 by the Executive Director (Community and Enterprise Resources). (Copy attached) 65 - 74 Item(s) for Noting 12 South Lanarkshire Economic Strategy Update Report dated 28 March 2024 by the Executive Director (Community and Enterprise Resources). (Copy attached) 75 - 84 13 South Lanarkshire Tourism Strategy - Update Report dated 28 March 2024 by the Executive Director (Community and Enterprise Resources). (Copy attached) 85 - 92 14 Local Transport Strategy 2024 to 2034 - Update Report dated 28 March 2024 by the Executive Director (Community and Enterprise Resources). (Copy attached) 93 - 96 15 Scottish Aggregate Tax - Consultation Report dated 28 March 2024 by the Executive Director (Community and Enterprise Resources). (Copy attached) 97 - 102 Urgent Business 16 Urgent Business Any other items of business which the Chair decides are urgent. For further information, please contact:- Clerk Name: Elizabeth-Anne McGonigle Clerk Telephone: 07385 403101 Clerk Email: elizabeth-anne.mcgonigle@southlanarkshire.gov.uk 3
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COMMUNITY AND ENTERPRISE RESOURCES COMMITTEE Minutes of meeting held via Confero and in Committee Room 1, Council Offices, Almada Street, Hamilton on 6 February 2024 Chair: Councillor Robert Brown Councillors Present: Councillor John Anderson, Councillor Ralph Barker, Councillor Walter Brogan, Councillor Andy Carmichael, Councillor Gerry Convery, Councillor Poppy Corbett, Councillor Andrea Cowan, Councillor Margaret Cowie, Councillor Maureen Devlin (Depute), Councillor Colin Dewar, Councillor Gladys Ferguson-Miller, Councillor Ross Gowland, Councillor Graeme Horne, Councillor Cal Johnston-Dempsey, Councillor Susan Kerr, Councillor Richard Lockhart, Councillor Hugh Macdonald, Councillor Ian McAllan, Councillor Kenny McCreary, Councillor Davie McLachlan, Councillor Carol Nugent, Councillor Helen Toner, Councillor David Watson Councillors' Apologies: Councillor Joe Fagan, Councillor Martin Lennon Attending: Community and Enterprise Resources D Booth, Executive Director; A Brown, Head of Enterprise and Sustainable Development Services; F Carlin, Head of Planning and Regulatory Services; K Carr, Head of Facilities, Waste and Grounds Services; K Lean, Economic Development Manager (Funding and Rural); C Park, Head of Roads, Transportation and Fleet Services Finance and Corporate Resources J Davitt, Public Relations Team Leader; N Docherty, Administration Assistant; L Harvey, Finance Manager; E-A McGonigle, Administration Officer; E McPake, Human Resources Business Manager; L O’Hagan, Finance Manager (Strategy); M M Wilson, Legal Services Manager Chair’s Opening Remarks The Chair advised that, in terms of Standing Order No 4(c), he had agreed to an item of urgent business in relation to the response to the recent winter storms. Order of Business The Committee decided: that the items of business be dealt with in the order minuted below. 1 Declaration of Interests No interests were declared. 2 Item of Urgent Business – Response to Winter Storms The Head of Roads, Transportation and Fleet Services provided a verbal update on the recent response by the Roads, Transportation and Fleet Services and the Grounds Service to the recent winter storms. 2 5
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The powerful storms that had affected South Lanarkshire, and Scotland as a whole, had presented challenges. Staff from Roads and Grounds Services had worked around the clock to keep roads opened and communities connected. Over the course of the 2 recent storms there were:- 45 roads closures due to fallen trees 11 roads closures due to flooding 350 sites with fallen trees requiring to be cleared A balance had to be found in terms of deploying staff under dangerous conditions whilst keeping roads opened. The work carried out during this period had been resource-intensive but had to be prioritised. There were lessons learned with regards to the need for an agile workforce. Officers responded to members’ questions on various aspects of the update. The Chair, on behalf of the Committee, expressed appreciation to those colleagues involved in the response to the recent storms. The Committee decided: that the update be noted. Councillors Carmichael and Watson entered the meeting during consideration of the above item business 2 Minutes of Previous Meeting The minutes of the meeting of the Community and Enterprise Resources Committee held on 7 November 2023 were submitted for approval as a correct record. The Committee decided: that the minutes be approved as a correct record. 3 Community and Enterprise Resources - Revenue Budget Monitoring 2023/2024 A joint report dated 15 January 2024 by the Head of Finance (Strategy) and Executive Director (Community and Enterprise Resources) was submitted comparing actual expenditure at 1 December 2023 against budgeted expenditure for 2023/2024 for Community and Enterprise Resources and providing a forecast for the year to 31 March 2024. Following the probable outturn exercise, the Resource was reporting a breakeven position after approved transfers to reserves of £0.240 million as at 31 March 2024. The breakeven position was due to underspends, as detailed at paragraph 5.2 of the report, which had been offset by a marginal over recovery of income from Planning and Building applications. The Resource position as at 1 December 2023 was a breakeven position after approved transfer to reserves, as outlined in Appendix A. The breakeven position reflected underspends in employee costs and costs within Roads, Transportation and Fleet Services in relation to transport costs and an under recovery in parking income. Details were also provided in appendices B to F on proposed budget virements in respect of Community and Enterprise Resources to realign budgets. 6
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Section 6 of the report detailed an exercise which had been completed to look at the payment arrangement for utility costs for council owned, South Lanarkshire Leisure and Culture (SLLC) operated assets. The exercise had considered the ability of the Council to reclaim the VAT costs that were incurred on expenditure on gas and electricity. The proposal was that the Council would be responsible for, contract for and pay the utility costs for SLLC properties. Since SLLC would no longer be responsible for the expenditure, the management fee payable to SLLC would reduce by the same amount. For 2022/2023, the costs of utilities would have been £5.516 million. Costs to the Council would change every year due to price and consumption changes, therefore, an annual review of the management fee would be required to ensure that there was no detriment to the Council’s financial position in relation to consumption risk, as this would remain with SLLC. The net financial impact for SLLC would change every year, however, was expected to be in the region of £0.300 million. The new arrangement would require changes to be made to the leases the Council held with SLLC for the use of facilities (to specify that the obligation to pay for utilities costs would lie with the Council as the landlord) and to the level of management fee payable to SLLC. The change would be effective from 2024/2025 and reflected in the 2024/2025 budget for Community and Enterprise Resources. The Committee was asked to approve the approach. The Finance Manager responded to a member’s questions in relation to the proposed changes to the payment of utilities by the Council on behalf of SLLC to deliver a VAT saving. The Committee decided: (1) that the forecast to 31 March 2024 of a breakeven position after approved transfers to reserves, as detailed in Appendix A of the report, be noted; (2) that the breakeven position as at 1 December 2023 on Community and Enterprise Resources’ revenue budget, as detailed in Appendix A of the report, be noted; (3) that the approach to the proposed changes to the payment of utilities by the Council on behalf of SLLC, as detailed in section 6 of the report, to deliver a VAT saving, be approved; and (4) that the proposed budget virements, as detailed in appendices B to F, be approved. [Reference: Minutes of 7 November 2023 (Paragraph 3)] 4 Community and Enterprise Resources - Capital Budget Monitoring 2023/2024 A joint report dated 17 January 2024 by the Head of Finance (Strategy) and Executive Director (Community and Enterprise Resources) was submitted advising of progress on the Community and Enterprise Resources’ capital programme 2023/2024 and summarising the expenditure position at 1 December 2023. The revised Capital Programme for 2023/2024 amounted to £38.577 million and this reflected a net decrease of £1.025 million which was approved by the Executive Committee on 22 November 2023 (£0.115 million increase) and 24 January 2024 (£1.140 million decrease). Details on those amendments were provided at Appendix A to the report. At the 24 January 2024 meeting, the Executive Committee was asked to approve a separate exception on the Glasgow City Region City Deal, Greenhills Road project. Adjustments to the 2023/2024 capital programme for the Greenhills Road project would be made subject to approval of the Change Control Request from Glasgow City Region Cabinet. 7
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As at 1 December 2023, expenditure was £17.094 million, which was £0.114 million behind programme. The underspend reflected timing of project expenditure on the Roads Carriageway programme, with recharges still to be processed for works completed to date. The projected outturn for the financial year was £34.100 million. This represented an underspend of £4.477 million and the majority of the variance was due to timing of spend on a number of projects which resulted in budget required in 2024/2025 rather than 2023/2024. Details of those projects which would underspend in 2023/2024 were provided at paragraph 5.3 of the report. The Committee decided: (1) that the Community and Enterprise Resources’ capital programme of £38.577 million, and expenditure to date of £17.094 million, be noted; and (2) that the projected outturn of £34.100 million be noted. [Reference: Minutes of the Executive Committee of 22 November 2023 (Paragraph 4) and 24 January 2024 (Paragraphs 4 and 13) and Minutes of 7 November 2023 (Paragraph 4)] 5 Community and Enterprise Resources - Workforce Monitoring – September to November 2023 A joint report dated 21 December 2023 by the Chief Executive and Executive Director (Community and Enterprise Resources) was submitted on the following employee information for Community and Enterprise Resources for the period September to November 2023:- attendance statistics occupational health statistics accident/incident statistics disciplinary hearings, grievances and Dignity at Work cases analysis of leavers and exit interviews staffing watch as at 9 September 2023 The Human Resources Business Manager responded to a member’s question in relation to staffing watch data. The Committee decided: that the report be noted. [Reference: Minutes of 7 November 2023 (Paragraph 5)] 6 Community and Enterprise Resource Plan – Quarter 2 Progress Report 2023/2024 A report dated 11 January 2024 by the Executive Director (Community and Enterprise Resources) was submitted on the Community and Enterprise Resource Plan Quarter 2 Progress Report 2023/2024 for the period 1 April to 30 September 2023. The Resource Plan measures were rated using a traffic light system of red, amber or green as well as blue (BRAG) which indicated that an action had been completed. 8
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Details were provided on:- progress made in implementing the priority projects identified in the Resource Plan Quarter 2 2023/2024, as detailed in Section 5.2 and attached as Appendix 2 to the report key achievements made by the Resource to date, as detailed in Section 5.3 of the report areas for improvement and the fact that none had been identified, as detailed in Section 5.4 of the report The Head of Enterprise and Sustainable Development Services responded to a member’s question in relation to the number of jobs created or sustained per annum as a direct result of Economic Development intervention. The Committee decided: (1) that the Community and Enterprise Resource Plan Quarter 2 Progress Report 2023/2024, as summarised in paragraph 5.2 and attached as Appendix 2 to the report, be noted; (2) that the key achievements made by the Resource up to Quarter 2, as detailed at paragraph 5.3 of the report, be noted; and (3) that it be noted that there were no areas identified for improvement, as detailed at paragraph 5.4 of the report. [Reference: Minutes of 29 August 2023 (Paragraph 11)] 7 Renewable Energy Fund – Strengthening Links to Rural Priorities A report dated 22 December 2023 by the Executive Director (Community and Enterprise Resources) was submitted outlining proposed changes to the Renewable Energy Fund (REF). Since 2004, the Council had collected and administered Community Benefit funding through the Enterprise and Sustainable Development Service. The Service was responsible for securing contributions from windfarm developers, advising potential applicants, assessing applications and the monitoring of projects to ensure that the community benefits associated with each project were delivered. Processes were reviewed continuously to ensure best practice in grant provision and monitoring was undertaken to ensure the necessary support was delivered to eligible communities. The Council administered the Community Benefit element of REF for 42 windfarms within South Lanarkshire as well as the Community Benefit for Clyde Windfarm Fund (CWFF). Between the various funds, £3,111,584 of income was received in 2022/2023 which was split between REF (£2,020,682) and CWFF (£1,090,902). The funds, as currently administered, covered a range of programmes which were detailed at paragraph 3.3 of the report. Over the last 15 years, £10 million had been awarded and invested within communities closest to the windfarms with each £1 of grant generating on average £3 of additional funding. Over the 15 years, over 500 grants had been awarded and, of those, over 110 had been grants of over £20,000. The overall themes of the REF complemented both Council and community plans. Those themes erre detailed below and a comprehensive list of investment priorities for each theme was provided in Appendix 2 to the report:- build stronger communities build prosperous communities 9
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develop healthy and active communities create sustainable and environmental communities The number of windfarms, scale and community benefit income generated was increasing. The income had approximately doubled in 5 years to an estimated £2.5 million in 2023/2024. This allowed a review on how the funds could best support local communities and the strategic outcomes from the funds. There were several reasons to consider if the Community Benefit funds were delivering the maximum benefit to rural communities and those were detailed at paragraph 4.1 of the report. The annual income from windfarm community benefits varied between communities and within wards, dependent on scale and proximity of windfarms, but was concentrated on 6 rural wards which formed the Rural Task Force. Some wards within East Kilbride and Larkhall also had access to the REF. All wards in the Council area were eligible for microgrants. The table at paragraph 4.2 of the report summarised the annual income available for rural wards, and selected communities, at the higher and lower range. Additionally, some communities in wards 3 and 4 were eligible for funding from the CWFF which was administered by the Council, however, eligibility and funding decisions were made by a community panel and advised by SSE Renewables. The proposed REF changes did not extend to the CWFF. Through the work of the rural Community Led Local Development Programme (CLLD), funded by the Scottish Government, and community engagement, such as the Rural Conference in March 2023, several strategic priorities had been identified which were not fully addressed via REF. Those priorities were as follows in order of community importance:- transport and connectivity recreation and community facilities rural entrepreneurial activity and business infrastructure jobs, training and employability environmental and net zero sustainability rural poverty and wellbeing tourist and visitor infrastructure to support tourism It was proposed that the criteria for REF grants be amended to align and deliver on the challenges and to provide increased benefit for communities. The proposed amendments were outlined at paragraph 4.7 of the report and as detailed below:- an ability to fund revenue projects in addition to capital projects increase the small grants level to 100%, funding up to £20,000 increase the large grants maximum grant to 75% and, in specific areas and with conditions, up to 100% grants would be available introduce a Rural Facilities Sustainability Fund to help communities consider asset ownership and retain facilities for a period of up to 3 years in consultation with communities, Community and Enterprise Resources would develop larger, more complex community projects on behalf of local communities and local needs Further details and a comparison of changes were provided in Appendix 1 to the report. The proposed changes had been developed following consultation with the Council’s Rural Task Force on 15 November 2023. Discussions had also taken place with the rural Community Planning Partnership (CPP), third sector interface and windfarm operators. The proposed changes, if endorsed, would be referred to the next meeting of the Executive Committee for approval. Thereafter, application decisions would be made under the revised criteria. The changes would allow communities more scope to develop local initiatives and projects while reducing the Council’s involvement and funding. 10
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The Economic Development Manager (Funding and Rural) responded to a member’s question in relation to windfarm operators and revenue funding. The Committee decided: (1) that the key challenges for the rural area, as identified at paragraph 4.6, be noted; and (2) that the proposed amendments to the REF criteria, as set out at paragraph 4.7, be endorsed. The Committee recommended to the Executive Committee: that the proposed amendments to the REF criteria be approved. [Reference: Minutes of 30 October 2018 (Paragraph 6) and Minutes of the Executive Committee of 31 March 2004 (Paragraph 12), 1 December 2010 (Paragraph 9) and 21 November 2018 (Paragraph 4)] Councillor Toner left the meeting during this item of business 8 Community Benefit Funds Middle Muir: Connect2Renewables Programme Extension A report dated 22 December 2023 by the Executive Director (Community and Enterprise Resources) was submitted seeking approval for the Community Benefit from Middle Muir Windfarm to continue to support the Connect2Renewables employability programme. At the Enterprise Services Committee of 17 January 2017, approval had been given for the use of Community Benefit funds generated from Middle Muir Windfarm operated by Banks Renewables. This approval had included an allocation of £127,500, or 50% of the Community Benefit income per annum, to the Council to deliver Connect2Renewables (C2R) employability programme with the remaining 50% administered through the Council’s Renewable Energy Fund (REF) programme. This agreement was to operate until 2023 with further allocations to the C2R programme to be subject to review and agreement. The windfarm was located between the villages of Douglas and Crawfordjohn and comprised of 15 turbines. In 2017, this generated £255,000 of Community Benefit and, with inflationary Retail Price Index, this had increased to £348,906 in 2023. The eligible area for use of the Community Benefit from the funds was shown in Appendix 1 to the report. The C2R employability support programme delivered help to unemployed people and/or people who required support for skills development within the eligible area of the windfarm to get into study or work. The 5 categories of support available from the fund were detailed at paragraph 3.3 of the report. A study had been commissioned by Banks Renewables in early 2023 on the outcomes of the Community Benefit funds and C2R, and the results were summarised in the table at paragraph 3.4 of the report. The study concluded that the initiative had been a success and had significantly benefited the target groups within the area. Following agreement with Banks Renewables and the Council’s Employability Service, it was proposed that Middle Muir Windfarm C2R programme be extended for a further 5 years to 2028 and that the contribution from the Community Benefit fund be increased to a maximum of £174,453 per annum, calculated as 50% of the annual income as at 2023. 11
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Currently, one FTE post at Grade 3, Level 2 was funded through the C2R programme and this post would continue using the Community Benefit fund. Additional staffing needs would be reviewed as required. The Committee decided: that it be approved that the funding support for the Connect2Renewables employability programme be extended for a further 5 year period to 2028, and the contribution to the programme be increased to a maximum of £174,453. [Reference: Minutes of Enterprise Services Committee of 17 January 2017 (Paragraph 7) and Minutes of the Executive Committee of 31 March 2004 (Paragraph 12)] 9 Lanark Racecourse Masterplan and Wider Racecourse Update A report dated 22 December 2023 by the Executive Director (Community and Enterprise Resources) was submitted:- informing of the work that had been undertaken to prepare the Lanark Racecourse Masterplan seeking approval to publicise the Masterplan document informing of the next steps in implementing the Masterplan informing on progress to deliver the Lanark Community Workshop Lanark Racecourse and surrounding woodland, part of Lanark’s Common Good, sat on the edge of the market town and adjacent to Lanark Loch. Formerly a racecourse, the area now performed an important role as an open space for the town. As well as there being formal uses such as equestrian centre, grass and artificial sports pitches, the area was popular for walking, trail cycling and other outdoor leisure activities. The extensive nature and flexibility of the site also lent itself to one off events, such as horse and dog shows, caravan conventions, sports competitions and the occasional concert. Lanark’s Common Good was ‘heritable and moveable property’ which was owned by the Council and passed down through local government reorganisations from the former Burgh. Common Good assets were owned by the Council and managed for the benefit of the citizens of the former Burgh. Common Good funds were held separately from other local authority funds for accounting purposes. New rules in relation to Common Good were introduced by the Community Empowerment (Scotland) Act 2015 and, although the Lanark Racecourse Masterplan would form the foundation for external funding applications, the relevant legislation would require the community to be formally consulted prior to the delivery of any project where a property transaction would take place. Following a competitive procurement process, Ironside Farrar had been commissioned to develop the Lanark Racecourse Masterplan and Priority Project Report. The Masterplan had been prepared under the guidance of officers within Enterprise and Sustainable Development Services, Property Services and South Lanarkshire Leisure and Culture (SLLC), in consultation with the community of Lanark. The process also had input from Historic Environment Scotland and NatureScot. Development of the Masterplan involved engagement with the local community since the asset formed part of the Common Good and was predominantly used by local people. The Masterplan set out the process which was undertaken in its preparation and outlined the results of community and stakeholder engagements as detailed at paragraph 4.3 of the report. The initial consultation exercise had identified the racecourse’s strengths and weaknesses, as detailed at paragraph 4.4 of the report, which had allowed the team to focus on how those could be improved or enhanced. 12
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The Masterplan set out a range of recommendations as guided by the community and stakeholder engagement exercise. The main recommended actions/investments focused on building the site’s quality, distinctiveness and appeal, as fully detailed at paragraph 4.5 of the report. An Action Plan summary formed part of the Masterplan and was provided in Appendix 1 of the report. The Action Plan, which would remain a live document, set out 26 actions, together with associated timescales and potential partners/lead organisations. The Masterplan was intended to support the development and delivery of projects and would assist in securing funding to deliver projects led by a range of partners. The Masterplan would be the basis to move forward, however, approvals relating to specific projects, including funding, delivery and individual business plans would be taken to the appropriate committee for approval. The next steps and timescales were set out at section 5 of the report, whereby the Lanark Racecourse Masterplan would be taken to the Finance and Corporate Resources Committee and Clydesdale Area Committee for noting. Thereafter, the document would be published and made available for all parties with an interest in the site to guide future investment and management. When the Masterplan was commissioned, the site of the equestrian centre buildings (Scottish Equestrian Centre and Hotel) was explicitly omitted due to ongoing lease negotiations. As a result of those negotiations, the current tenant had been given notice to quit and the Council would have vacant possession of the equestrian centre as of July 2025 and not July 2024, as detailed in paragraph 5.3 of the report. It was proposed that the window of opportunity to July 2025 be taken to test the market and find a new tenant for the buildings. A continuity of occupier would minimise any burden on the Council and the Common Good Fund. The first stage would be to appoint an appropriate property consultant to market test the viability of the facility as an equestrian centre or for an alternative use, releasing the grazing to support the delivery of the Masterplan. Section 6 of the report detailed wider Lanark Racecourse related projects. In 2016, the Council had secured funding of £807,000 from the Scottish Government’s Regeneration Capital Grant Fund to develop a Clydesdale Rural Development Centre. However, this project could not be delivered due to difficulties securing a site within the town. Work had been progressing since autumn 2022 to deliver a dual building project on the racecourse site. During the design process, it had become clear that the funding available would not allow the project to be delivered in its original form. Despite detailed enquiries, it had not been possible to secure sufficient additional funding streams either by the Council or the identified occupiers of the business space, Healthy Valleys. In agreement with the Scottish Government, the project had been reduced in scope to develop only the community workshop at this time. The Council had offered to work with Healthy Valleys to assist in identification of new premises or site where a building project could be taken forward to meet its needs. The development of the Lanark Community Workshop had secured planning permission for a location close to the existing car park. The contract had been awarded and work would commence in spring 2024. The tenant of the Workshop was the Lanimer Committee. The costs to the Council in preparing the Masterplan had been funded through external sources, with support from the Place Based Investment Programme (PBIP) approved at the 9 August 2022 meeting of the Committee. Each of the actions and projects identified in the Masterplan would require funding and would be considered on an individual basis. The Lanark Common Good Fund, supported by revenues attracted from the Common Good Estate, would continue to support activities related to the upkeep of Common Good assets. The use of those Funds to support new investment would only be considered where revenues allowed and approvals would be required. It was intended that external funding would lead the delivery of investment on the Racecourse and not Common Good Funds. Council management of the site would continue within existing identified budgets. 13
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The Committee decided: (1) that the Lanark Racecourse Masterplan be endorsed as the guiding document for future management and investment at the racecourse site; (2) that the Lanark Racecourse Masterplan be reported to the Finance and Corporate Resources Committee and Clydesdale Area Committee for noting, and that it be approved for publication thereafter and made available to parties with an interest in the site; and (3) that the progress being made to deliver the Lanark Community Workshop be noted. [Reference: Minutes of 9 August 2022 (Paragraph 13)] 10 Inward Investment Strategy A report dated 22 December 2023 by the Executive Director (Community and Enterprise Resources) was submitted providing an update on the work being undertaken to refresh the Council’s approach to Inward Investment within South Lanarkshire. Inward investment made a distinct and significant impact on Scotland’s economy at both a national and regional level. The term ‘inward investment’ described both foreign direct investment (FDI) and similar investment from the rest of the UK into Scotland. Inward investment companies made a positive and significant impact on Scotland’s economy. They were typically more productive and paid higher than average wages compared to domestic businesses. They were more likely to operate in export sectors and to have higher proportion of spend on research, development and innovation. Scotland’s Inward Investment Plan: Shaping Scotland’s Economy set out the national approach to targeting and attracting inward investment. Scottish Development International (SDI) was Scotland’s trade and inward investment agency. They engaged with major businesses and investors from around the world to encourage them to do business in or with Scotland. Over the last 12 months, the Council had sought to strengthen its relationship with key SDI representatives to be able to tap into the inward investment opportunities they provided. It was apparent that more could be done to strengthen the Council’s approach to inward investment. The Inward Investment Strategy consisted of 5 workstreams as follows:- establishment of a cross resource in-house team to drive forward investment in South Lanarkshire creation of a cross resource property enquiry database to track enquiries which could be monitored and analysed development of a stand-alone South Lanarkshire Inward Investment website to promote Council and key stakeholder sites development of a South Lanarkshire Inward Investment proposition document or ‘pitch book’ foster closer relationships with SDI, Scottish Enterprise, property agents, developers and investors Those workstreams were detailed more fully in paragraphs 4.2 to 4.6 of the report. 14
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The Enterprise and Sustainable Development Service had commissioned commercial property consultants, Ryden, to undertake a review of the commercial and industrial property supply in a number of areas across South Lanarkshire. This work was concluding and would be reported to the Committee in a separate report at a future meeting. The information would inform the market capacity to satisfy requests from inward investors as well as assisting expanding local companies to source suitable accommodation. Several issues had been identified that constrained the ability of the area to satisfy inward investment enquiries and those were detailed at paragraph 5.2 of the report. Whilst the creation of an inward investment website would be important to accommodate new inward investment enquiries and meet the needs of expanding local companies, there was a need to have a supply of development ready sites. Sites owned by developers at Shawfield and Conexus at Poneil were development ready, however, key sites owned by the Council at Langlands in East Kilbride and Canderside in Larkhall, required investment to undertake structural works before those were market ready. Proposals were currently being developed for those sites. It was intended that the new website would go live in April 2024. Marketing materials and a programme of targeted events during 2024 would help raise the profile of South Lanarkshire as an area to invest in. It was also intended to have presence at relevant exhibitions where South Lanarkshire could be promoted to a wider audience. The development and implementation of the Inward Investment Strategy would be taken forward by officers within the Enterprise and Sustainable Development Service. A budget of £50,000 had been identified for the initial activity from the ‘Get South Lanarkshire Working’ budget and more limited funding for future activity would be met from existing revenue budgets. The Head of Enterprise and Sustainable Development Services responded to members’ questions on various aspects of the report. The Committee decided: that the approach to Inward Investment within South Lanarkshire be approved. 11 UK Levelling Up Fund – Round 3 A report dated 22 December 2023 by the Executive Director (Community and Enterprise Resources) was submitted on the outcome of round 3 of the UK Levelling Up Fund (UKLUF) and an overview of the next steps. The UKLUF was a capital fund which could award up to £20 million for regeneration, town centre and cultural investments, and awards of up to £50 million for transport investments. Match funding of 10% was required. The UKLUF had a budget of £4.8 billion, of which £800 million was ring fenced for Scotland, Wales and Northern Ireland. The UKLUF Round 1 was launched in March 2021 and successful bids had been announced in November of that year. Round 2 was launched in March 2022 and successful bids were announced in January 2023. The bids submitted by South Lanarkshire Council in the first 2 rounds of the UKLUF had been unsuccessful. Details of the bids were provided at paragraph 3.3 of the report. In November 2023, the UK Government’s Department for Levelling Up, Housing and Communities announced that, following feedback from local authorities and in line with the principles set out in the Funding Simplification Plan, Round 3 would see funding being awarded to high quality bids that had been submitted in Round 2 which was a move away from the competitive approach of the previous rounds. 15
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On 20 November 2023, the Council received formal notification that UKLUF Round 3 awards would be allocated based on bids submitted in round 2, and that the following 2 bids had been shortlisted for an allocation:- National Business District: Shawfield Remediation and Development – a partnership project with Clyde Gateway Urban Regeneration Company (URC) Three Rivers Active Tourism: Clydesdale Way – a partnership project with Dumfries and Galloway Council and Scottish Borders Council Full details of the project values, UKLUF grant requested and match funding requirements were provided in the table at paragraph 4.3 of the report. UK Government officials had confirmed that the provisional award of funding was for those specific projects and that the money could not be used to support activity that was substantially different. Additionally, the award was subject to project validation, subsidy control checks and UK Government departmental sign-off. Initial validation checks on both awards, which had a total value of £23,814,000, had been completed by the Enterprise and Sustainable Development Service (ESDS) in December 2023. Details were awaited of the next, more detailed validation and onboarding process. Project outlines and next steps for the 2 bids were detailed fully in sections 5 and 6 of the report. The ESDS was working with colleagues across the Council to develop a Resource schedule which would identify staffing and support requirements within all Services involved and inform planning and work programmes. Match funding from the Council for the Three Rivers project was in place. There followed a lengthy discussion during which members expressed concerns about the regrettable withdrawal of £5 million of capital funding from the Scottish Government to Clyde Gateway Urban Regeneration Company (URC), the partner of the Shawfield Remediation and Development project. Members were concerned about the impact this could have on the project. Officers responded to members’ questions in relation to:- the concerns expressed about the Shawfield Remediation Development project and Clyde Gateway URC due to the Scottish Government withdrawal of funding situation the Three Rivers Active Tourism project the UKLUF and whether it was a replacement to funding previously received from the European Union The Committee decided: (1) that the outcome of the UKLUF Round 3 be noted; and (2) that the next steps be noted. [Reference: Minutes of 30 May 2023 (Paragraph 11)] 12 Community and Enterprise Resources – Notification of Contracts Awarded – 1 April to 30 September 2023 A report dated 11 January 2024 by the Executive Director (Community and Enterprise Resources) was submitted on contracts awarded by Community and Enterprise Resources in the period 1 April to 30 September 2023. 16
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In terms of Standing Order Nos 21.8 and 22.5 of the Standing Orders on Contracts, Resources were required to notify the relevant Committee of contracts awarded. Details of the contracts awarded by Community and Enterprise Resources were provided in the appendix to the report. The Head of Roads, Transportation and Fleet Services responded to a member’s question in relation to the contract with Scottish Borders Council for the supply and application of tanker applied road surface coatings. The Committee decided: that the report be noted. [Reference: Minutes of 7 November 2023 (Paragraph 12)] 13 Urgent Business There were no items of urgent business. 17
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Report Agenda Item Report to: Community and Enterprise Resources Committee Date of Meeting: 23 April 2024 Report by: Executive Director (Finance and Corporate Resources) Executive Director (Community and Enterprise Resources) Subject: Community and Enterprise Resources - Revenue Budget Monitoring 2023/2024 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide information on the actual expenditure measured against the revenue budget for the period 1 April 2023 to 26 January 2024 for Community and Enterprise Resources provide a forecast for the year to 31 March 2024 [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- (1) that the forecast to 31 March 2024 of a breakeven position after approved transfers to reserves, as detailed in Appendix A of the report, be noted. (2) that the breakeven position as at 26 January 2024 on Community and Enterprise Resources’ revenue budget, as detailed in Appendix A of the report be noted. (3) that the proposed budget virements, as detailed in appendices B to F, be approved. [1recs] 3. Background 3.1. This is the fourth revenue budget monitoring report presented to the Community and Enterprise Resources Committee for the financial year 2023/2024. 3.2. The Resource has completed its formal probable outturn exercise for the year identifying expected spend to the 31 March 2024. Details are outlined in section 5 below. 3.3. The report details the financial position for Community and Enterprise Resources in Appendix A and the individual services’ reports in appendices B to F, including variance explanation. 4. Employee Implications 4.1. None 3 19
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5. Financial Implications 5.1. Probable Outturn: Following the Council’s probable outturn exercise, the Resource is reporting a breakeven position after approved transfers to reserves of £0.240 million at 31 March 2024. The Resource position is detailed in Appendix A and the transfers to reserves by service area are noted in appendices B to F where relevant. 5.2 The breakeven position is due to underspends in employee costs across all services, overspend within Roads, Transportation and Fleet services in relation to transport costs, depots, charging of electric vehicles, and an under recovery in parking income, the cost of bin replacement with the Waste Service, cleaning materials in Facilities, medicals and IT costs across all services, offset by a marginal over recovery of income from Planning and Building applications. 5.3 Position as 26 January 2024: The Resource position as at 26 January 2024 is a breakeven position after approved transfers to reserves. Appendix A outlines this position and the break-even position in the main reflects underspends within employee costs and these are supporting costs within Roads, Transportation and Fleet services in relation to transport costs and an under recovery in parking income. Detailed variance explanations by service area are included in appendices B to F. 5.4 Virements are proposed to realign budgets across budget categories and with other Resources. These movements are detailed in the appendices B to F of this report. 6. Climate Change, Sustainability and Environmental Implications 6.1 There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 7. Other Implications 7.1. The main risk associated with the Council’s revenue budget is that there is an overspend. There are inflationary and budget pressures including utilities (as well as general inflation pressures) this year which increase the risk of overspend, however, additional funding has been provided in this year’s budget strategy. There are underspends in employee costs which are also supporting increasing inflationary pressures. 7.2. We will also continue to monitor the actual impact through four weekly budget monitoring meetings at which any variance is analysed. In addition, the probable outturn exercise ensures early warning for corrective action to be taken where appropriate. 8 Equality Impact Assessment and Consultation Arrangements 8.1 This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. 8.2 There is also no requirement to undertake any consultation in terms of the information contained in this report. 20
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Jackie Taylor Executive Director (Finance and Corporate Resources) David Booth Executive Director (Community and Enterprise Resources) 6 March 2024 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Previous References None List of Background Papers Financial ledger and budget monitoring results to 1 December 2023. Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Louise Harvey, Finance Manager Ext: 2658 (Tel: 01698 452658) E-mail: louise.harvey@southlanarkshire.gov.uk 21
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Appendix A SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Community and Enterprise Resources: Period 11 Ended 26 January 2024 (No. 11) Community and Enterprise Resources Summary Annual Budget Forecast for Year BEFORE Transfers Annual Forecast Variance BEFORE Transfers Annual Forecast Variance AFTER Transfers Budget Proportion 26/01/24 Actual BEFORE Transfers 26/01/24 Variance 26/01/24 % Variance 26/01/24 Note £000 £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 101,903 97,843 4,060 4,060 81,693 78,316 3,377 under 4.1% Property Costs 5,302 5,502 (200) (200) 3,490 3,680 (190) over (5.4%) Supplies & Services 19,273 20,387 (1,114) (1,154) 13,592 14,340 (784) over (5.5%) Transport & Plant 23,030 23,944 (914) (914) 18,710 19,668 (958) over (5.1%) Administration Costs 818 1,022 (204) (204) 554 675 (121) over (21.8%) Payments to Other Bodies 13,121 13,223 (102) (102) 8,097 8,218 (121) over (3.7%) Payments to Contractors 47,516 50,190 (2,674) (2,874) 39,022 40,457 (1,435) over (3.7%) Transfer Payments 617 617 0 0 617 617 0 - 0.0% Financing Charges 185 230 (45) (45) 19 22 (3) over (15.8%) Total Controllable Exp. 211,765 212,958 (1,193) (1,433) 165,794 165,993 (199) over (0.1%) Total Controllable Inc. (72,470) (73,903) 1,433 1,433 (53,731) (54,134) 403 over recovered 0.8% Net Controllable Exp. 139,295 139,055 240 0 112,063 111,859 204 under 0.2% Transfer to Reserves (as at 26/01/24) - 240 (240) - - 204 (204) - n/a Position After Transfers to Reserves (as at 26/01/24) 139,295 139,295 0 0 112,063 112,063 0 - 0.0% Variance Explanations Detailed in Appendix B to F. Budget Virements Budget virements are shown in Appendices B to F. Approved Transfers to Reserves Detailed in Appendix B to F 22
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Appendix B SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Community and Enterprise Resources: Period 11 Ended 26 January 2024 (No. 11) Facilities, Waste and Grounds Services Annual Budget Forecast for Year BEFORE Transfers Annual Forecast Variance BEFORE Transfers Annual Forecast Variance AFTER Transfers Budget Proportion 26/01/24 Actual BEFORE Transfers 26/01/24 Variance 26/01/24 % Variance 26/01/24 Note £000 £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 65,079 63,219 1,860 1,860 52,419 50,949 1,470 under 2.8% 1,b Property Costs 2,132 2,259 (127) (127) 1,430 1,539 (109) over (7.6%) 2 Supplies & Services 9,339 9,973 (634) (634) 6,336 6,801 (465) over (7.3%) 3,b Transport & Plant 9,263 9,040 223 223 7,570 7,444 126 under 1.7% 4 Administration Costs 192 250 (58) (58) 97 157 (60) over (61.9%) 5,a Payments to Other Bodies 55 49 6 6 36 38 (2) over (5.6%) Payments to Contractors 17,642 18,422 (780) (780) 13,454 13,901 (447) over (3.3%) 6,b Transfer Payments 0 0 0 0 0 0 0 - n/a Financing Charges 45 60 (15) (15) 10 10 0 - 0.0% Total Controllable Exp. 103,747 103,272 475 475 81,352 80,839 513 under 0.6% Total Controllable Inc. (20,531) (20,383) (148) (148) (17,310) (17,216) (94) under recovered (0.5%) 7,b Net Controllable Exp. 83,216 82,889 327 327 64,042 63,623 419 under 0.7% Transfer to Reserves (as at 26/01/24) - - - - - - - - n/a Position After Transfers to Reserves (as at 26/01/24) 83,216 82,889 327 327 64,042 63,623 419 under 0.7% Variance Explanations 1. The variance is due to vacancies that are being actively recruited within all services. 2. The overspend is due to higher than anticipated spend on cleaning materials within Facilities. 3. The overspend is mainly due to higher than anticipated expenditure on bin purchases within Waste, higher than anticipated expenditure on equipment repairs and a payment for the cashless system within Facilities. In addition, there are higher than anticipated costs for materials under Grounds and commemorative items under Bereavement services. 4. The underspend mainly relates to Streets, where leasing costs are less than budget due to the timing of replacing vehicles and fuel. 5. The overspend is mainly due to an overspend on medical costs within the service and printing costs within Facilities Management. 6. The overspend is mainly due to greater than budgeted disposal costs within Waste services. This is being managed within the Resource overall. 7. The under recovery of income mainly relates to the decrease in uptake of the Care of Gardens Service and no income recovered from adoption monies within Grounds, partially offset by an over recovery within Waste and Streets as a result of additional service requests from Housing and Technical Resources. Budget Virements a. Transfer from reserves in respect of legal cost for Waste contracts. Net effect £0.016m: Administration £0.016m. b. Realignment of budget to reflect service provision within Amenity and Facilities. Net effect £0.000m: Employees (£0.523m), Supplies and Services £0.441m, Payment to Contractors £0.055m, Income £0.027m. 23
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Appendix C SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Community and Enterprise Resources: Period 11 Ended 26 January 2024 (No. 11) Planning and Regulatory Services Annual Budget Forecast for Year BEFORE Transfers Annual Forecast Variance BEFORE Transfers Annual Forecast Variance AFTER Transfers Budget Proportion 26/01/24 Actual BEFORE Transfers 26/01/24 Variance 26/01/24 % Variance 26/01/24 Note £000 £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 7,845 7,625 220 220 6,293 6,062 231 under 3.7% 1 Property Costs 38 33 5 5 14 14 0 - 0.0% Supplies & Services 183 304 (121) (121) 148 180 (32) over (21.6%) 2 Transport & Plant 126 206 (80) (80) 100 103 (3) over (3.0%) Administration Costs 131 147 (16) (16) 95 106 (11) over (11.6%) Payments to Other Bodies 275 182 93 93 120 78 42 under 35.0% Payments to Contractors 1,145 1,750 (605) (605) 991 1,591 (600) over (60.5%) 3 Transfer Payments 0 0 0 0 0 0 0 - n/a Financing Charges 46 62 (16) (16) 3 3 0 - 0.0% Total Controllable Exp. 9,789 10,309 (520) (520) 7,764 8,137 (373) over (4.8%) Total Controllable Inc. (4,407) (5,291) 884 884 (3,133) (3,787) 654 over recovered 20.9% 4 Net Controllable Exp. 5,382 5,018 364 364 4,631 4,350 281 under 6.1% Transfer to Reserves (as at 26/01/24) - - - - - - - - n/a Position After Transfers to Reserves (as at 26/01/24) 5,382 5,018 364 364 4,631 4,350 281 under 6.1% Variance Explanations 1. The variance is due to vacant posts within the services which are being recruited. 2. The variance represents greater than budgeted costs on an IT system upgrade within Planning and Building Standards. 3. The variance is mainly due to an increase in demand for clinical waste services, this is offset by an over recovery of income within Environmental Services. 4. The over recovery relates to income received for clinical waste which offsets the expenditure overspend within payment to contractors. There is also an over recovery which reflects the higher demand for Planning and Building Standard Applications. Budget Virements No budget virements to report 24
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Appendix D SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Community and Enterprise Resources: Period 11 Ended 26 January 2024 (No. 11) South Lanarkshire Leisure and Culture Annual Budget Forecast for Year BEFORE Transfers Annual Forecast Variance BEFORE Transfers Annual Forecast Variance AFTER Transfers Budget Proportion 26/01/24 Actual BEFORE Transfers 26/01/24 Variance 26/01/24 % Variance 26/01/24 Note £000 £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 4 6 (2) (2) 4 5 (1) over (25.0%) Property Costs 98 108 (10) (10) 98 112 (14) over (14.3%) Supplies & Services 0 0 0 0 0 0 0 - n/a Transport & Plant 0 0 0 0 0 0 0 - n/a Administration Costs 8 8 0 0 8 8 0 - 0.0% Payments to Other Bodies 80 93 (13) (13) 0 0 0 - n/a Payments to Contractors 23,048 22,848 200 0 22,346 22,176 170 under 0.8% 1 Transfer Payments 0 0 0 0 0 0 0 - n/a Financing Charges 0 0 0 0 0 0 0 - n/a Total Controllable Exp. 23,238 23,063 175 (25) 22,456 22,301 155 under 0.7% Total Controllable Inc. (11) (19) 8 8 (11) (12) 1 over recovered 9.1% Net Controllable Exp. 23,227 23,044 183 (17) 22,445 22,289 156 under 0.7% Transfer to Reserves (as at 26/01/24) - 200 (200) - - 170 (170) over Position After Transfers to Reserves (as at 26/01/24) 23,227 23,244 (17) (17) 22,445 22,459 (14) over (0.1%) Variance Explanations 1. The underspend relates to Community Led Activities Fund Investment. This is being carried forward to 24/25 for Community Fightback initiative. Budget Virements No budget virements to report Approved Transfers to Reserves (£0.200m): i. Community Led Investments (£0.200m) 25
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Appendix E SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Community and Enterprise Resources: Period 11 Ended 26 January 2024 (No. 11) Enterprise and Sustainable Development Annual Budget Forecast for Year BEFORE Transfers Annual Forecast Variance BEFORE Transfers Annual Forecast Variance AFTER Transfers Budget Proportion 26/01/24 Actual BEFORE Transfers 26/01/24 Variance 26/01/24 % Variance 26/01/24 Note £000 £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 5,599 5,238 361 361 4,504 4,199 305 under 6.8% 1 Property Costs 1,234 1,233 1 1 584 584 0 - 0.0% Supplies & Services 245 248 (3) (3) 98 104 (6) over (6.1%) Transport & Plant 47 44 3 3 45 43 2 under 4.4% Administration Costs 89 85 4 4 27 28 (1) over (3.7%) Payments to Other Bodies 6,836 6,839 (3) (3) 2,129 2,129 0 - 0.0% a Payments to Contractors 369 469 (100) (100) 138 155 (17) over (12.3%) 2 Transfer Payments 0 0 0 0 0 0 0 - n/a Financing Charges 44 47 (3) (3) 3 3 0 - 0.0% Total Controllable Exp. 14,463 14,203 260 260 7,528 7,245 283 under 3.8% Total Controllable Inc. (8,490) (8,539) 49 49 (3,744) (3,766) 22 over recovered 0.6% a Net Controllable Exp. 5,973 5,664 309 309 3,784 3,479 305 under 8.1% Transfer to Reserves (as at 26/01/24) - - - - - - - - n/a Position After Transfers to Reserves (as at 26/01/24) 5,973 5,664 309 309 3,784 3,479 305 under 8.1% Variance Explanations 1. This variance is mainly due to vacant posts within the services which are being recruited. 2. The overspend is mainly due to repairs at car parks that require specialist contractors. Budget Virements a. Establish further budget in respect of UK Shared Prosperity funding. Net effect £0.000m: Payment to Other Bodies £0.129m, Income (£0.129m). 26
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Appendix F SOUTH LANARKSHIRE COUNCIL Revenue Budget Monitoring Report Community and Enterprise Resources: Period 11 Ended 26 January 2024 (No. 11) Roads, Transportation and Fleet Services Annual Budget Forecast for Year BEFORE Transfers Annual Forecast Variance BEFORE Transfers Annual Forecast Variance AFTER Transfers Budget Proportion 26/01/24 Actual BEFORE Transfers 26/01/24 Variance 26/01/24 % Variance 26/01/24 Note £000 £000 £000 £000 £000 £000 £000 Budget Category Employee Costs 23,376 21,755 1,621 1,621 18,473 17,101 1,372 under 7.4% 1 Property Costs 1,800 1,869 (69) (69) 1,364 1,431 (67) over (4.9%) 2 Supplies & Services 9,506 9,862 (356) (396) 7,010 7,255 (245) over (3.5%) 3 Transport & Plant 13,594 14,654 (1,060) (1,060) 10,995 12,078 (1,083) over (9.8%) 4 Administration Costs 394 532 (134) (134) 327 376 (49) over (15.0%) 5 Payments to Other Bodies 5,875 6,060 (185) (185) 5,812 5,973 (161) over (2.8%) 6 Payments to Contractors 5,312 6,701 (1,389) (1,389) 2,093 2,634 (541) over (25.8%) 7 Transfer Payments 617 617 0 0 617 617 0 - 0.0% Financing Charges 50 61 (11) (11) 3 6 (3) over (100.0%) Total Controllable Exp. 60,524 62,111 (1,583) (1,623) 46,694 47,471 (777) over (1.7%) Total Controllable Inc. (39,031) (39,671) 640 640 (29,533) (29,353) (180) under recovered (0.6%) 8 Net Controllable Exp. 21,497 22,440 (943) (983) 17,161 18,118 (957) over (5.6%) Transfer to Reserves (as at 26/01/24) - 40 (40) - - 34 (34) over n/a Position After Transfers to Reserves (as at 26/01/24) 21,497 22,480 (983) (983) 17,161 18,152 (991) over (5.8%) Variance Explanations 1. The variance relates to staff turnover and vacancies within Roads and Fleet which are being recruited. 2. The overspend is mainly due to higher than anticipated costs in the upkeep of the Roads depots. 3. The overspend is due to IT costs in respect of a system upgrade within the Fleet and increased costs for annual subscriptions for computer licences and general materials within the Roads service 4. The variance is mainly due to the timing of efficiencies and greater than anticipated expenditure in the workshop within Fleet services. In addition, within the Roads Service there are greater costs in respect of an increased level of usage of pool cars and the hire of external winter plant. 5. The overspend is due to a greater than budgeted spend on printing & stationery, advertising of road closures and medical costs. 6. The overspend is mainly due to payments in respect of WoSLA for winter weather forecasts being greater than anticipated. 7. The overspend results from an increased level of sub-contractors being used within Roads Construction due to staff turnover during the year and, also the level of specialist works required. In addition, overspends within the Hamilton area and Lighting for routine maintenance and Traffic Management for the upkeep of traffic signals. 8. The under recovery reflects less than anticipated income from maintenance works within Roads Construction and within Parking where actual income from Parking charges are less than budget. This is partially offset by an over recovery within the Roads service within HQ Operations for inspection fees, and rechargeable street lighting works. Fleet is also reporting an over recovery for additional vehicle maintenance income. Budget Virements No budget virements to report. Approved Transfers to Reserves (£0.040m): ii. Fleet Sinking Fund contribution (£0.025m) iii. Year 3 of 4 of Electric Vehicle Payback (£0.015m) 27
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Report Agenda Item Report to: Community and Enterprise Resources Committee Date of Meeting: 23 April 2024 Report by: Executive Director (Finance and Corporate Resources) Executive Director (Community and Enterprise Resources) Subject: Community and Enterprise Resources - Capital Budget Monitoring 2023/2024 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide information on the progress of the capital programme for Community and Enterprise Resources for the period 1 April 2023 to 26 January 2024 [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the Community and Enterprise Resources’ capital programme of £45.177 million, and expenditure to date of £18.907 million, be noted; and (2) that the projected outturn of £40.700 million be noted. [1recs] 3. Background 3.1. This is the fourth capital monitoring report presented to the Community and Enterprise Resources Committee for the financial year 2023/2024. 3.2. The revised budget for Community and Enterprise Resources is £45.177 million. This reflects the budget of £38.577 million reported to the last meeting of this Committee in February 2024, adjusted to reflect an increase of £6.600 million. This is an adjustment in relation to the Glasgow City Region City Deal – Greenhills Road project which was approved by the Executive Committee on 24 January 2024 as a separate exception. This was incorporated into the Capital Programme on 21 February 2024, following approval by the Glasgow City Region City Deal Cabinet at its meeting on the 13 February 2024. This amendment is shown in Appendix A. 3.3. This report details the financial position for Community and Enterprise Resources in Appendix A. 4. Employee Implications 4.1. There are no employee implications as a result of this report. 5. Financial Implications 5.1. 2023/2024 Budget The total capital programme for Community and Enterprise Resources is £45.177 million, as detailed in Section 3.2. 4 29
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5.2. 2023/2024 Outturn As reported previously to this Committee, the predicted spend position for this financial year for Community and Enterprise Resources suggested an outturn of £40.700 million (£34.100 million updated to reflect the adjustment for Greenhills Road of £6.600 million), resulting in an underspend of £4.477 million. The majority of the variance is due to the timing of spend on a number of projects resulting in budget required in 2024/2025 rather than 2023/2024. 5.3. The projects which will underspend in 2023/2024 include: the extension of Philipshill Cemetery, East Kilbride; Renewal of Play Parks; White Bridge design (Chatelherault Country Park); Larkhall Leisure Centre design; heating replacement at TACT Hall, Blantyre; Priory Changing Pavilion, Blantyre; Rural Development Centre, Lanark; various projects within the Place Based Investment Programme; Cuningar Allotments; and City Deal Community Growth Area junction improvement project at Woodfoot Road / Wellhall Road, Hamilton. Funding for these projects will carry forward into next financial year. 5.4. The year-end position is currently being finalised and this will be reported to the Executive Committee on the 26 June 2024. The final position for the Community and Enterprise Resources’ programme will be reported to the next Committee thereafter, on 17 September 2024. 5.5. Period 11 Position Anticipated spend to date was £19.146 million and spend to 26 January 2024 amounts to £18.907 million, resulting in the Community and Enterprise Resources being £0.239 million behind programme. This primarily reflects the timing of project expenditure on the Roads Carriageway programme, with recharges still to be processed for works completed to date. 6. Climate Change, Sustainability and Environmental Implications 6.1. There are no implications for climate change, sustainability or the environment in terms of the information contained in this report. 7. Other Implications 7.1. The main risk associated with the Council’s Capital Programme is that there is an overspend. The risk has been assessed as low given the detailed project management plans prepared and monitored for each project. The risk of overspend is managed through four weekly Investment Management Meetings. 8. Equality Impact Assessment and Consultation Arrangements 8.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. 8.2. There is also no requirement to undertake any consultation in terms of the information contained in the report. Jackie Taylor Executive Director (Finance and Corporate Resources) David Booth Executive Director (Community and Enterprise Resources) 30
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3 April 2024 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Previous References Community and Enterprise Resources Committee, 6 February 2024 Executive Committee, 24 January 2024 Executive Committee, 21 February 2024 List of Background Papers Financial ledger to 26 January 2024 Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Lorraine O’Hagan, Finance Manager (Strategy) Ext:- 2601 (Tel: 01698 452601) E-mail:- lorraine.o’hagan@southlanarkshire.gov.uk 31
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Appendix A South Lanarkshire Council Capital Expenditure 2023/2024 Community and Enterprise Resources Programme For Period 1 April 2023 – 26 January 2024 Community and Enterprise Resources Base Budget £000 Budget Adjustments £000 Slippage £000 Total Budget £000 Anticipated Spend £000 Actual Expenditure £000 Facilities, Waste and Grounds 2,762 545 - 3,307 1,269 1,274 Enterprise and Sustainable Development 9,685 2,559 (2,265) 9,979 2,214 2,245 Roads, Transport and Fleet 25,763 9,431 (3,303) 31,891 15,663 15,388 TOTAL 38,210 12,535 (5,568) 45,177 19,146 18,907 For Information Only Budget Adjustments approved by Executive Committee, 21 February 2024: Budget Adjustments Greenhills Road Total Budget Adjustments £6.600m £6.600m 32
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Report Agenda Item Report to: Community and Enterprise Resources Committee Date of Meeting: 23 April 2024 Report by: Executive Director (Finance and Corporate Resources) Executive Director (Community and Enterprise Resources) Subject: Community and Enterprise Resources – Workforce Monitoring – December 2023 to February 2024 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide employment information for December 2023 to February 2024 relating to Community and Enterprise Resources [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the following employment information for December 2023 to February 2024 relating to Community and Enterprise Resources be noted:- attendance statistics; occupational health; accident/incident statistics; discipline, grievance and Dignity at Work cases; analysis of leavers and exit interviews; staffing watch as at 9 December 2023 [1recs] 3. Background 3.1. As part of the Council’s performance management arrangements, regular workforce monitoring reports are submitted to Committee. This report for Community and Enterprise Resources provides information on the position for December 2023 to February 2024. 4. Monitoring Statistics 4.1. Attendance Statistics (Appendix 1) Information on absence statistics is analysed for the month of February 2024 for Community and Enterprise Resources. The Resource absence figure for February 2024 was 7.2%, this figure has increased by 0.3% when compared to last month and is 0.8% higher than the Council-wide figure. Compared to February 2023, the Resource absence figure has increased by 0.3%. Based on the absence figures at February 2024 and annual trends, the projected annual average absence for the Resource for 2023/2024 is 6.3%, compared to a Council-wide average figure of 5.4%. 5 33
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Managers follow the procedures outlined in the Maximising Attendance Policy to support employees to remain at work, or to return to work after a sickness absence. There are comprehensive employee supports in place and additionally, Personnel Services work in close partnership with line managers and Resource Management Teams on a case management basis to ensure that appropriate actions are taken. 4.2. Occupational Health (Appendix 2) In terms of referrals to occupational health, which include medical examinations and physiotherapy, overall, 395 referrals were made this period. This represents an increase of 79 when compared with the same period last year. 4.3. Accident/Incident Statistics There were 61 accidents/incidents recorded within the Resource this period, an increase of 25 when compared to the same period last year. 4.4. Discipline, Grievance and Dignity at Work (Appendix 2) During the period, 20 disciplinary hearings were held within the Resource, a decrease of 21 when compared to the same period last year. During the period 2 appeals were heard by the Appeals Panel, this figure has increased by 2 when compared to the same period last year. One Appeals Panel was pending, this figure has increased by 1 when compared to the same period last year. No grievance hearings were raised within the Resource, this figure has decreased by 3 when compared to the same period last year. No Dignity at Work complaints were raised within the Resource, this figure remains unchanged when compared to the same period last year. 4.5. Analysis of Leavers (Appendix 2) There were a total of 53 leavers in the Resource this period eligible for an exit interview. This figure has increased by 19 when compared with the same period last year. Eleven exit interviews were conducted in this period, this figure remains unchanged when compared to the same period last year. 4.6. When processing an employee termination, managers were asked to identify whether they intended to replace the employee who had left the Council. If they indicated that they did not intend to replace the employee, they were asked to select from the following options:- plan to hold for savings fill on a fixed term basis pending savings transfer budget to another post end of fixed term post 4.7. Appendix 2a provides a breakdown of vacant posts and whether these are being replaced or held for savings. In the period December 2023 to February 2024, 198 employees (141.06 FTE) in total left employment. Managers indicated that 142 posts (88.97 FTE) were being replaced, 3 posts (1.63 FTE) are being filled on a temporary basis, 49 posts (48.00 FTE) were due to the end of fixed term contracts and 4 posts (2.46 FTE) are being held pending service reviews. 5. Staffing Watch 5.1. There has been a decrease of 26 in the number of employees in post from 9 September 2023 to 9 December 2023. 34
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6. Employee Implications 6.1. There are no implications for employees arising from the information presented in this report. 7. Financial Implications 7.1. All financial implications are accommodated within existing budgets. 8. Climate Change, Sustainability and Environmental Implications 8.1. There are no Climate Change, Sustainability and Environmental Implications in terms of the information contained within this report. 9. Other Implications 9.1. There are no implications for sustainability or risk in terms of the information contained within this report. 10. Equality Impact Assessment and Consultation Arrangements 10.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. 10.2. There was no requirement to undertake any consultation in terms of the information contained in this report. Jackie Taylor Executive Director (Finance and Corporate Resources) David Booth Executive Director (Community and Enterprise Resources) 13 March 2024 Link(s) to Council Values/Priorities/Outcomes Accountable, effective, efficient and transparent Fair, open and sustainable Ambitious, self aware and improving Excellent employer Focused on people and their needs Working with and respecting others Previous References Community and Enterprise Resources – 6 February 2024 List of Background Papers Monitoring information provided by Finance and Corporate Resources Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Elaine Maxwell, HR Business Manager Ext: (Tel: 01698 454647) E-mail: Elaine.Maxwell@southlanarkshire.gov.uk 35
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2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 2021 / 2022 2022 / 2023 2023 / 2024 % % % % % % % % % % % % April 2.3 4.4 3.6 April 5.7 7.3 6.3 April 5.2 6.9 6.0 April 4.3 5.6 5.1 May 2.7 3.9 3.7 May 6.4 6.8 6.3 May 5.9 6.3 5.9 May 4.9 5.4 5.1 June 2.8 3.5 4.3 June 6.6 7.2 5.9 June 6.0 6.7 5.7 June 4.7 5.3 4.7 July 2.9 3.9 2.3 July 5.3 5.9 4.6 July 4.9 5.6 4.3 July 4.0 4.6 3.8 August 2.9 3.4 3.0 August 6.4 6.6 5.2 August 5.9 6.1 4.9 August 4.7 4.4 4.1 September 3.4 3.1 2.5 September 8.2 7.9 7.1 September 7.5 7.1 6.4 September 6.4 5.4 5.3 October 3.8 5.1 2.0 October 7.9 7.5 7.0 October 7.3 7.1 6.3 October 6.3 5.8 5.1 November 3.5 4.2 2.6 November 8.0 8.3 8.1 November 7.3 7.7 7.3 November 6.9 6.5 6.2 December 4.2 3.7 3.0 December 8.0 8.8 7.5 December 7.4 8.0 6.8 December 6.9 7.0 6.6 January 3.6 2.6 3.6 January 9.6 7.4 7.4 January 8.6 6.7 6.9 January 7.0 5.8 6.1 February 4.4 3.6 4.0 February 9.5 7.4 7.8 February 8.7 6.9 7.2 February 6.6 5.9 6.4 March 6.0 3.9 March 11.0 7.9 March 10.2 7.3 March 7.9 6.4 Annual Average 3.5 3.8 3.2 Annual Average 7.7 7.4 6.8 Annual Average 7.1 6.9 6.3 Annual Average 5.9 5.7 5.4 Average Apr-Feb 3.3 3.8 3.1 Average Apr-Feb 7.4 7.4 6.7 Average Apr-Feb 6.8 6.8 6.2 Average Apr-Feb 5.7 5.6 5.3 531 2904 3435 16199No of Employees at 29 February 2024 No of Employees at 29 February 2024 No of Employees at 29 February 2024 No of Employees at 29 February 2024 Appendix 1 Absence Trends - 2021/2022, 2022/2023 & 2023/2024 Community and Enterprise Resources APT&C Council WideManual Workers Resource Total 36
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COMMUNITY AND ENTERPRISE RESOURCES Dec - Feb Dec - Feb 2022 / 2023 2023 / 2024 MEDICAL EXAMINATIONS Number of Employees Attending EMPLOYEE COUNSELLING SERVICE Total Number of Referrals PHYSIOTHERAPY SERVICE Total Number of Referrals REFERRALS TO EMPLOYEE SUPPORT OFFICER 100 115 REFERRALS TO COGNITIVE BEHAVIOUR THERAPY 0 0 TOTAL 316 395 Dec - Feb Dec - Feb 2022 / 2023 2023 / 2024 Specified Injuries* 0 2 Over 7 day absences 6 6 Over 3 day absences** 1 1 Minor 17 40 Near Miss 3 2 Violent Incident: Physical**** 3 7 Violent Incident: Verbal***** 6 3 Total Accidents/Incidents 36 61 Dec - Feb Dec - Feb 2022 / 2023 2023 / 2024 Total Number of Hearings 41 20 Total Number of Appeals 0 2 Appeals Pending 0 1 Time Taken to Convene Hearing December 2023 - February 2024 0-3 Weeks 4-6 Weeks Over 6 Weeks 9 5 6 Dec - Feb Dec - Feb 2022 / 2023 2023 / 2024 Number of Grievances 3 0 Number Resolved at Stage 2 3 0 Dec - Feb Dec - Feb 2022 / 2023 2023 / 2024 Number of Incidents 0 0 Dec - Feb Dec - Feb 2022 / 2023 2023 / 2024 Career Advancement 5 1 Poor Relationship with Manager/Colleagues 3 3 Moving Outwith Area 0 1 Travelling Difficulties 1 0 Dissatisfaction With Terms and Conditions 1 3 Other 1 3 Number of Exit Interviews conducted 11 11 Total Number of Leavers Eligible for Exit Interview 34 53 Percentage of interviews conducted 32% 21% ****Physical violent incidents and ***** Verbal Violent Incidents are included in the "Over 3-day or Over 7-day" figures, where applicable, to provide the "Total Over 3-day or Over 7-day" figures. ****Physical Violent Incidents and ***** Verbal Violent Incidents are included in the "Minor" figures, where applicable, to provide the "Total Minor" figures. ANALYSIS OF REASONS FOR LEAVING RECORD OF DISCIPLINARY HEARINGS RECORD OF GRIEVANCE HEARINGS RECORD OF DIGNITY AT WORK CAUSE OF ACCIDENTS/INCIDENTS 91 *A Specified Injury is any fracture (other than to the fingers, thumbs or toes), amputation, loss of sight, serious burns, crushing injury, scalping, loss of consciousness caused by asphyxiation/ head injury, a chemical or hot metal burn to the eye or penetrating injury as defined by the HSE. **Over 3 day / over 7day absence is an injury sustained outwith specified injury category that results in a period of absence of absence as defined by the HSE. ***Near Miss - Any unexpected, unplanned occurrence (except Dangerous Occurrences) that does not lead to injury of persons, damage to property, plant or equipment but may have done so in different circumstance. ****Physical violent incidents are included in the "Specified" figures, where applicable, to provide the "Total Specified" figures. 148 APPENDIX 2 111 129 14 3 37
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FTE H/C FTE H/C Terminations/Leavers 141.06 198 322.89 509 Being replaced 88.97 142 260.22 441 Filling on a temporary basis 1.63 3 3.63 5 Plan to transfer this budget to another post 0.00 0 0.00 0 End of fixed term contract 48.00 49 54.58 57 Held pending service Review 2.46 4 4.46 6 Plan to remove for savings 0.00 0 0.00 0 Appendix 2a Reason Dec 2023 - Feb 2024 Cumulative total 38
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As at 9 December 2023 Total Number of Employees F/T P/T F/T P/T 1222 269 202 1421 Chief Officer Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Fixed SCP Teacher TOTAL 5.00 1514.30 359.98 244.18 44.05 15.70 0.00 5.00 0.00 2188.21 As at 9 September 2023 Total Number of Employees F/T P/T F/T P/T 1248 260 204 1428 Chief Officer Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Fixed SCP Teacher TOTAL 5.00 1535.63 371.38 236.50 44.05 16.00 0.00 5.00 0.00 2213.56 *Full - Time Equivalent No of Employees Salary Bands MALE FEMALE TOTAL 3140 Appendix 3 JOINT STAFFING WATCH RETURN COMMUNITY AND ENTERPRISE RESOURCES *Full - Time Equivalent No of Employees Salary Bands 3114 MALE FEMALE TOTAL 39
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Report Agenda Item Report to: Community and Enterprise Resources Committee Date of Meeting: 23 April 2024 Report by: Executive Director (Community and Enterprise Resources) Executive Director (Finance and Corporate Resources) Subject: Hagshaw Energy Cluster – Retention of Economic Development Officer 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] seek approval for 1 Full Time Equivalent (FTE) Economic Development Officer to be extended in the Enterprise and Sustainability Services establishment for a further 24 months [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that 1 FTE Economic Development Officer post on Grade 3, Level 2 - 4 (£37,867 to £43,615) to the Enterprise and Sustainability Services establishment, be extended to June 2026 using funds from Douglas West Windfarm community benefit contributions as set out at paragraphs 4.2 and 4.3 of the report. [1recs] 3. Background 3.1. In March 2022, the Council’s Executive Committee approved that the annual income from the Douglas West Windfarm community benefit payments estimated at £117,000 per annum were used to fund an Economic Development Officer for up to 23 months with the remainder of the contribution to go to the Renewable Energy Fund (REF) for use in the local area. 3.2. That report approved the use of up to £98,000 over 23 months to support the development of larger more complex community led development initiative in the area of Douglas, Rigside, Glespin and Lesmahagow. 3.3. The post was filled in June 2022 and has been successful in progressing the Hagshaw Energy Cluster Development Framework bringing together communities, landowners and windfarm operators to progress a local vision and maximise the potential from the windfarm developments and repowering in the area. The post helped establish the Douglas Valley Advisory Group bringing local communities together to agree local strategic priorities and steer the use of future Community Benefit Funds. 3.4. The Hagshaw Energy Cluster Development Framework was approved by the Planning Committee in October 2023 and reported to the Community and Enterprise Resources Committee in August 2023. In December 2023, the Framework won the Scottish Green Energy Award in sustainable development and was shortlisted in the 6 41
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Landscape Institute Awards in the Excellence in Climate, Environment and Social Outcomes in November 2022. 4. Economic Development Officer Hagshaw Energy Cluster 4.1. The post has been successful in commencing scoping on larger more ambitious projects such as adventure tourism, rural housing, circular economy, and active travel connections in the area. The post is supporting communities within the Douglas Valley area develop larger more ambitious and strategic projects, which it is recognised this growth will take time. The windfarm developers of the Hagshaw Energy Cluster Developers Group (3R Energy, ScottishPower Renewables, EnergieKontor, Baywa R.E., Ventient, Greencoat, Renantis and Octopus Renewables) have requested the post be continued beyond the initial 23 month contract. 4.2. The income to the Douglas West Windfarm Community Benefit Fund in 2023/2024 was £141,000 with a further uncommitted balance of £331,000. The post at Grade 3 Level 2 – 4 as shown at 5.1 would cost a maximum of £57,000 per annum. It is recommended the post is extended for 2 further years from June 2024 to June 2026 using funds from the Douglas West Windfarm to support the ambitions within the Hagshaw Energy Framework and local communities. 4.3. Within the Hagshaw Energy cluster there is potential for over £2 million of Community Benefit Funds per annum if all developments progress. Not all developments may choose to contribute to the REF but it is recommended that as new windfarm, developments within the Hagshaw Energy Cluster contribute to the REF that the cost of the post is shared proportionately between developments reducing over time the maximum level deducted from Douglas West Windfarm. 5. Employee Implications 5.1. It is proposed that the post is retained on the Enterprise and Sustainability establishment for a further 24 months. Post title Number of Posts Grade/SCP Hourly rate Annual salary (excluding on-costs) Gross salary (Including on-costs 30.3%) Economic Development Officer 1 Grade 3 Level 2 – 4 SCP 63 - 74 £20.75 £23.90 £37,867 £43,615 £49,341 £56,830 Maximum Total (24 month) £98,682 - £113,660 6. Financial Implications 6.1. The annual contribution from the Douglas West Windfarm received in September each year will cover all costs of the post, including national pay rises. The remaining contributions will be awarded to projects through the REF and can only be dispersed to projects located within the eligible area’s shown on Appendix 1. The post holder’s duties will include identifying match funding opportunities to ensure maximisation of windfarm contributions for the area. 7. Climate Change, Sustainability and Environmental Implications 7.1. The REF has as one of its 4 key themes Sustainable Environmental Communities and encourages and funds projects that contribute to sustainability objectives. The post 42
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has commenced work with Zero Waste Scotland regarding developing circular economy opportunities around windfarm developments and local communities. 8. Other Implications 8.1. There is no risk to the Council in supporting this proposal. By not proceeding the Council would not be acting consistently in support of its community benefit policy and there would be a risk that the funds would not be distributed efficiently and equitably to eligible community organisations operating in the area. 9 Equality Impact Assessment and Consultation Arrangements 9.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and, therefore, no impact assessment is required. 9.2. The windfarm developers of the Hagshaw Energy Cluster Developers Group (3R Energy, Scottish Power Renewables, EnergieKontor, Baywa R.E., Ventient, Greencoat, Renantis and Octopus Renewables) have been consulted and have requested the post be continued beyond the initial 23 month contract. 9.3. An update has been provided to the Trade Union through the local JCC process. David Booth Executive Director (Community and Enterprise Resources) Jackie Taylor Executive Director (Finance and Corporate Resources) 28 March 2024 Link(s) to Council Values/Priorities/Outcomes Values Focused on people and their needs Working with and respecting others Accountable, effective, efficient and transparent Ambitious, self-aware and improving Fair, open and sustainable Excellent employer Priorities We will work to put people first and reduce inequality We will work towards a sustainable future in sustainable places We will work to recover, progress and improve Outcomes Good quality, suitable and sustainable places to live Caring, connected, sustainable communities Previous References Executive Committee 2 March 2022 Community Benefit Funds – New Contributions Douglas West Windfarm 43
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Community and Enterprise Resources Committee - 29 August 2023 - Hagshaw Energy Cluster Development Framework A Development Framework for the Hagshaw Energy Cluster List of Background Papers Executive Committee 3 March 2004, “Community Benefit: Establishment of a Renewable Energy Fund” Executive Committee 1 December 2010, Renewable Energy Developments and Community Benefit Enterprise Services Committee, 1 April 2014, Scottish Government Consultation on Good Practice Principles for Community Benefits from Onshore Renewable Energy Developments Community and Enterprise Resources Committee, 30 October 2018 Renewable Energy Fund Community Benefits Fund Proposed Updates and Amendments Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Kenny Lean Economic Development Manager Tel:- 07469027925 E-mail:- Kenny.lean@southlanarkshire.gov.uk 44
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Report Agenda Item Report to: Community and Enterprise Resources Committee Date of Meeting: 23 April 2024 Report by: Executive Director (Community and Enterprise Resources) Subject: Community Benefit Funds – Renewable Energy Fund Grant Applications 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] consider a grant application to Black Law Windfarm Renewable Energy Fund (REF) from Auchengray Church Centre Trust consider a grant application to Kype Muir Windfarm REF from Lesmahagow Community Council [1purp] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s): - [recs] (1) that a grant be awarded to Auchengray Church Centre Trust of up to £57,858 from the Black Law Windfarm REF to create an activities shelter and install photovoltaic panels; and (2) that a grant be awarded to Lesmahagow Community Council of up to £100,689.48 from the Kype Muir Windfarm REF to facilitate the upgrade of McKirdy Park community space. 3. Background 3.1. Since 2004, the Council has collected and administered Community Benefit funding through the Enterprise and Sustainable Development Service. The Service is responsible for securing the contributions from windfarm developers, advising potential applicants, assessing applications and monitoring projects to ensure that the community benefits associated with each project are delivered. Processes are continuously reviewed to ensure the best practices in grant provision and monitoring are undertaken to ensure the necessary support is delivered to eligible communities. 3.2. Grant awards above £20,000 require approval from Committee. Awards below this level are approved by the Head of Enterprise and Sustainable Development under delegated authority. All grants awarded are reported annually to the Community and Enterprise Resources Committee. 4. Grant Recommendation 4.1. Application Number 1013 Auchengray Church Centre Trust – project value £136,616 Proposed Grant award £57,858 intervention rate of 42% The proposed grant of £57,858 will be funded from Black Law Windfarm which contributed to the REF 7 45
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4.2. Auchengray Church Centre Trust (ACCT) in Carnwath, is an established charity which has 2 charitable objectives: to provide a community church and a recreational community facility. ACCT has a 16-member management committee and 25 regular volunteers. The Church Centre property was transferred to the Trust in February 2014. 4.3. ACCT provides meeting and recreational facilities for local organisations and individuals including, Auchengray and District Community Church, The Wee Church Café, Auchengray Primary School, Auchengray Flower Show, Caring Knitters and Craft Group, Sew’n’chat, Singergie Singing Group, Tarbrax, Woolfords, Auchengray and District Community Council and Woollfords Auchengray and Tarbax Improvement Foundation. (Local Development Trust) 4.4. The desire for an outdoor activities/cycle shelter was first identified in 2016 when it was included in an outline grounds’ development plan to reflect the ACCT community plan. In February 2022, following the COVID-19 pandemic, the ACCT felt the shelter would now be particularly beneficial and agreed that detailed plans should be drawn up and submitted to the Council. 4.5. The grant will allow ACCT to proceed with the construction of an outdoor recreation facility which will incorporate a BBQ/picnic facility, a meeting space/outdoor theatre, cycle/e-bike parking space and associated footpaths. 4.6. The project will also include the installation of 54 photovoltaic panels to reduce dependency on the electricity grid, 21 of which will be installed on the roof of the shelter with a further 33 as ground array. Battery storage and metering will also be included. 4.7. Planning permission for the project was granted on 3 September 2023 and a tender process has been undertaken. 4.8. The project responds to community demand which will improve carbon footprint, reduce energy costs and create a community space to support community events for the surrounding area. 4.9. All REF awards are subject to suitable match funding being secured. The REF grant sought is 74% of the project value with the match funding as set out below. Funder Stage Value Levenseat Trust To be confirmed £44,000 CARES (Local Energy Scotland) Confirmed £34,758 SLC Renewable Energy Fund Grant (42%) For approval £57,858 Total project value £136,616 4.10. The project is scheduled to commence in May 2024 and be completed by October 2024. Officers will work with the applicant to monitor progress and any impact on the timescales. 4.11. The lead in time to the project start date of May 2024 will allow officers to confirm Levenseat Trust funding has been secured. 5. Grant Recommendation 5.1. Application Number 676 Lesmahagow Community Council – project value £225,329.48 Proposed grant award £100,689.48 intervention rate of 45% 46
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The proposed REF grant of £100,689.48 will be funded from Kype Muir Windfarm which contributes into the REF. 5.2. Lesmahagow Community Council (LCC) is an established community council with its purpose being:- To represent the community to the local authority, LCC facilitate a wide range of activities which promote the well-being of their community. They bring local people together to help make things happen, hold social events and protect and promote the identity of the village community. 5.3. LCC Management Committee has 5 members and provides a forum where local residents can bring their issues, complaints and ideas with LCC endeavouring to assist by providing support, feedback and promoting the wellbeing of all residents. 5.4. The grant will allow LCC to redevelop and enhance the existing play area within the Council owned McKirdy Park Lesmahagow, which will promote healthy leisure time activities. The project requires capital funding to meet the cost to improve pedestrian and disabled access, provide additional play equipment and create a new outdoor exercise area with equipment for older residents. 5.5. The project also includes the creation of raised beds and a planting area which is intended will be maintained by local groups. If agreement is not reached with local groups, this element of the project will be omitted. The Council’s Grounds Maintenance team will maintain the play equipment and footpaths. The project will be managed by SLC. A partnership agreement between the SLC and LCC will be entered on successful funding award. 5.6. The project has been established in response to community demand which will improve existing facilities and encourage inclusion. 5.7. All REF awards are subject to suitable match funding being secured. The REF grant sought is 45% of the project value with the match funding as set out below. Funder Stage Value Broken Cross Wind Farm Community Benefit Confirmed £50,000 Lesmahagow Development Trust Confirmed £40,000 Kype Muir Community Benefit Confirmed £25,000 Auchrobert Wind Farm Community Benefit Confirmed £3,000 LCC Community Fundraising Confirmed £6,640 SLC Renewable Energy Fund Grant (45%) For approval £100,689.48 Total project value £225,329.48 5.8. The project is scheduled to commence in June 2024 and be completed by December 2024. Officers will work with the applicant to monitor progress and any impact on the timescales. 6 Employee Implications 6.1. There are no employee implications arising from this report. 47
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7. Financial Implications 7.1. The awards will come from Black Law and Kype Muir Windfarms which contributes to the REF. The Funds have sufficient resources to meet the proposed grant award commitments detailed in this report. 7.2. REF funding is subject to all other funding being secured. 8. Climate Change, Sustainability and Environmental Implications 8.1. The grants will help deliver sustainability and help reduce carbon emissions in different ways. The projects will support local village facilities and reduce the requirement for transport to reach good quality community facilities. The grant to ACCT will fund the installation of energy efficient photovoltaic panels, which will help minimise future running costs for the community hall. 9. Other Implications 9.1. The risks associated with the project are focused on the potential for cost overruns, delays to the projects or match funding not being secured. Work will continue with the applicants to ensure match funding is secured and that projects are delivered broadly on time and within budget. 10. Equality Impact Assessment and Consultation Arrangements 10.1. This report does not introduce a new policy, function or strategy and, therefore, no impact assessment is required. 10.2. Projects have been brought forward following consultation within the communities. David Booth Executive Director (Community and Enterprise Resources) 28 March 2024 Link(s) to Council Values/Priorities/Outcomes Focused on people and their needs We will work towards a sustainable future in sustainable places We will work to recover, progress and improve Caring, connected, sustainable communities Previous References None List of Background Papers Completed REF Grant Application Form for application number 890 Completed REF Appraisal Scoring Sheet for application number 890 Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Colin McFarlane, Project Development Officer Enterprise and Sustainable Development Services E-mail:- colin.mcfarlane@southlanarkshire.gov.uk 48
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Report Agenda Item Report to: Community and Enterprise Resources Committee Date of Meeting: 23 April 2024 Report by: Executive Director (Community and Enterprise Resources) Subject: Scottish Mines Restoration Trust – Mainshill 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] seek approval for the funds received from the Scottish Mines Restoration Trust Limited to be managed by Community and Enterprise Resources in accordance with the conditions of the grant [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that it be approved that the £105,000 grant from the Scottish Mines Restoration Trust be used to deliver active travel paths, as detailed at section 4.3. [1recs] 3. Background 3.1. The Scottish Mines Restoration Trust (SMRT) was established as a charity in 2013 with the charitable aims of advancing environmental, conservation and/or improvements at or within a 10-mile boundary of any former opencast coal mining site at any time owned by the Mines Restoration Limited. 3.2. Following the demise of Scottish Coal, SMRT undertook site restoration works at Mainshill opencast mine near Douglas creating Mainshill Wood and passed ownership to Forestry and Land Scotland. 4. SMRT Grant 4.1. In late 2022, SMRT notified the Council of its intentions to cease operations and disburse remaining funds to suitable organisations for future use of the funds in line with the Trust’s charitable aims. The Council entered discussions with SMRT in 2023 and under delegated authority accepted a payment of £105,000 in August 2023. 4.2. The Environmental Improvement Agreement between SMRT and the Council was agreed in August 2023 with the following terms approved:- The “Grant Project” means the construction and improvement of paths, and associated environmental improvements works, which are both (a) in and around Douglas, Glespin and Coalburn in South Lanarkshire and (b) at, or within 10 miles of the boundary of the former Mainshill opencast coal mining site which was owned by SMRT. The Council hereby undertakes to agree with SMRT that (a) the Council shall use SMRT Grant for meeting the costs and expenses of on-site construction or 8 49
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improvement work and related on-site landscaping work and, (b) no amount of SMRT Grant shall be used by the Council to meet the costs or expenses of assessing the feasibility of any path or path construction or improvement or scoping, design, planning or developing any path or path construction or improvement. The Council herby undertakes to, and agrees with SMRT, that the Council shall endeavour to ensure that all the SMRT Grant is used and spent no later than 31 March 2025 by the Council for the purposes of and in furtherance of the Grant project. 4.3. External funding is currently being sought from Paths for All for delivery of 2 active travel path projects in the Douglas Valley area:- Douglas to Coalburn estimated at £600,000 Coalburn to NCN74 estimated at £176,000 4.4. Renewable Energy Funding (REF) will also be sought as a contribution to the projects with a delivery planned later in 2024. It is recommended that the SMRT grant of £105,000 is used as contribution to one or both of these projects depending on progress with securing grant funding. 5. Employee Implications 5.1. There are no employee implications arising from this report. 6. Financial Implications 6.1. The SMRT grant will act as match funding, helping to secure additional external grant funding for the area and reducing the call on the REF. 6.2. The Council will be responsible for the costs of future maintenance of the paths constructed. The Council will mitigate those costs through volunteer maintenance strategies, funded by the REF and other external funding sources. Volunteer strategies are currently being consolidated between Coalburn Action Group and Douglasdale Recreation-Environment-Access-Leisure (REAL) Group. 7. Climate Change, Sustainability and Environmental Implications 7.1. The grant’s purpose is to improve the environment with proximity to a former opencast coalmine. The identified projects will support the delivery of active travel increasing walking and wheeling between villages and providing alternatives to vehicle use thereby supporting carbon reduction. 8. Other Implications 8.1. The projects contribute to the Clydesdale Way proposals, offering links between Douglas and Coalburn and onward links to New Lanark and the Clyde Walkway. They align with a long-term ambition as outlined in the Development Framework for the Hagshaw Energy Cluster, for enhanced active travel and recreational routes alongside the sensitive development of adventure tourism, with a focus on sustainable growth and health and wellbeing of local residents. 9. Equality Impact Assessment and Consultation Arrangements 9.1. This report does not introduce a new policy, function or strategy and, therefore, no impact assessment is required. 9.2. The development of the projects has been subject to community consultation. 50
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David Booth Executive Director (Community and Enterprise Resources) 28 March 2024 Link(s) to Council Values/Priorities/Outcomes Values Focused on people and their needs Working with and respecting others Accountable, effective, efficient and transparent Ambitious, self-aware and improving Fair, open and sustainable Priorities We will work to put people first and reduce inequality We will work towards a sustainable future in sustainable places We will work to recover, progress and improve Outcomes Good quality, suitable and sustainable places to live Caring, connected, sustainable communities People live the healthiest lives possible Previous References None List of Background Papers Environmental Improvement Agreement between SMRT and the Council Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Kenny Lean Tel: 07469027925 E-mail: Kenny.lean@southlanarkshire.gov.uk 51
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Report Agenda Item Report to: Community and Enterprise Resources Committee Date of Meeting: 23 April 2024 Report by: Executive Director (Community and Enterprise Resources) Subject: Centre West Shopping Centre, East Kilbride – Transfer of Ownership to South Lanarkshire Council 1. Purpose of Report 1.1. The purpose of the report is to:- provide an update on the current position of Centre West Shopping Centre, East Kilbride seek endorsement for the proposed approach to ensure the smooth handover of Centre West to the Council 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- recs] (1) that the position in relation to the administration of Centre West Shopping Centre, East Kilbride and the associated risks to the Council be noted; (2) that entering into a Heads of Terms with Interpath, for the transfer of Centre West Shopping Centre, East Kilbride, to South Lanarkshire Council be endorsed; (3) that the appointment of a professional team to manage the transfer of ownership of Centre West Shopping Centre, East Kilbride to the Council, and the subsequent demolition of the site, be endorsed; and (4) that the recommendations be referred to Executive Committee for approval. 3. Background 3.1. Like most town centres across the UK, East Kilbride has faced a number of challenges over recent years resulting in significant voids throughout the shopping centre. Approximately a third of all vacant units in the shopping centre have been empty for more than 3 years. The challenges of the retail environment resulted in the centre being put in to administration on 16 November 2022. The administrator, Interpath, appointed a team of specialists to consider the future of the town centre. This was led by Scoop Asset Management and included 360 Architecture and Savills property agents who worked closely with officers to undertake a masterplanning exercise for the town centre. The East Kilbride Town Centre Masterplan was approved at Executive Committee on 13 September 2023. 3.2. Following approval at the Executive Committee, a 6-week period of public consultation was undertaken. Over 3,000 questionnaires were completed with feedback being largely positive with most consultees accepting that the face of retail has changed, and significant intervention is needed in order to allow the town centre to adapt to the needs of today. 9 53
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3.3. Despite being the most recently developed part of the town centre, Centre West has several challenges which make it commercially unviable:- Centre West relied on long-term leases which were put in place at the outset. These have come to a natural end and there are no longer sufficient occupiers for this type of space. Centre West has had limited investment. There is now a significant backlog of repairs and maintenance required totaling £11.07 million. It is unlikely that any incoming investor would take on this level of liability. Centre West is held under a ground lease from the Council for which the Council receives £600,000 per annum. The Administrators have advised that future payments will not be forthcoming due to the levels of debt associated with Centre West. It is understood that Centre West is running at a loss of £426,000 per annum. 3.4. The Masterplan identifies Centre West as a new residential neighbourhood following the demolition of the Centre. 4. Current Position 4.1. East Kilbride Shopping Centre is held in split ownership. Centre West is owned by Sapphire 15 and the rest of the asset (Olympia, Plaza and Princes Malls) by Sapphire 16. Despite being the newest part of the centre, Centre West has never reached full occupancy and, as noted above, has several maintenance issues. 4.2. The remainder of the shopping centre held by Sapphire 16 (Princes, Plaza and Olympia Malls) will be marketed for sale over the coming months. The Asset Managers, working with 360 Architecture, have developed proposals for the remaining parts of the town centre including a new 45,000 square foot food store, a budget hotel, enhanced food offering and a range of general improvements to the centre. By consolidating the retail offer by 42% across all malls and attracting new anchors, Sapphire 16 becomes a much more viable and attractive option for market. It is expected that the Sapphire 16 site will be put on the market in April/May 2024. 4.3. Potential alternative uses for Centre West, were considered as part of the masterplanning exercise, however, residential development was identified as the preferred use due to the size of the site and the opportunity it affords to create a new neighbourhood in the heart of the town. 4.4. Given the stark financial position highlighted above existing owners, Sapphire 15, have confirmed their intention to hand back Centre West to the Council, who retains the ground lease. The existing owners are expecting a legal agreement to facilitate this as early as summer 2024 with transfer of ownership taking place in December 2025/January 2026. With this in mind, a proactive approach to the transfer of ownership is required alongside progression of the masterplanning process. The Council’s external advisers, Knight Frank, have undertaken an options appraisal and the clear recommendation is that the Council progress continued engagement with owners to prepare for ownership of the site and progression of Masterplan proposals within the timescales indicated above. 4.5. When ownership is transferred and vacant possession achieved, site demolition will be progressed quickly. Ongoing maintenance costs, empty property rates liabilities, security costs and the loss of ground rent are the catalysts for quickly progressing activity. 54
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4.6. Demolition of Centre West will allow early delivery of elements of the East Kilbride Town Centre Masterplan. This part of the Masterplan will bring new residents to the town centre and support remaining masterplan projects. The development of a ‘Civic Hub’ Council facility will also be progressed and the detail of this element of the project will be subject to a future report to the Committee. 5. Professional Expertise 5.1. In order to take control of Centre West in a managed and controlled a way, a variety of arrangements need to be put in place and advice sought. It is proposed that a professional team is put in place as detailed below:- Interim/ongoing property management advice:- an independent adviser acting on behalf of the Council should be appointed to oversee property management decisions by Scoop/any new owner. Appointment of independent technical consultants:- consultants will advise on the current condition of Centre West, the preferred approach to splitting of services including mechanical and electrical, access routes/ servicing, formation of a new ‘end piece’ to the Plaza Mall and other potential costs to separate the assets. Advice will also be sought on the demolition of Centre West. Legal Advisers:- external advice is required on the rights/obligations/liabilities the Council will inherit upon taking control. Advice is also required regarding termination/relocation of the remaining occupier leases to ensure vacant possession. Burness Paull LLP are currently being procured. Project Management Team:- a project management team is required to lead technical delivery of the project for elements such as the demolition of Centre West. 5.2. By appointing this team of experts, the Council will be in the best possible position to manage the transfer and mitigate potential future liabilities. 6. Next Steps and Timescales 6.1. Subject to endorsement by this Committee and subsequent approval by the Executive Committee, officers will commence the procurement of the external professional team to advise on the transfer process over the course of the next 18 months. It is expected that ownership of Centre West will be transferred December 2025/January 2026. The appointment of technical consultants allows background work for demolition of the site to be prepared in tandem with the transfer process. This allows for demolition works to begin when ownership is transferred. 7. Employee Implications 7.1. There are no employee implications as a result of the proposals set out in this report. The project will be led by officers within Enterprise and Sustainable Development Services in consultation with officers across Planning, Roads, Property, Housing, Legal, Finance and Procurement Services. 8. Financial Implications 8.1. It is proposed that the costs of the project will be met through City Deal funding for East Kilbride. A separate report to this Committee sets out the proposals to revise the Stewartfield Way City Deal project via a Change Control process to veer some funding to support intervention within the town centre. It will also support the development of a Civic Hub facility. 8.2. Subject to Executive Committee and City Deal Cabinet approval, the City Deal funding will cover the costs of the professional teams set out above, demolition of Centre West and utility and infrastructure works to facilitate a new residential neighbourhood for 55
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East Kilbride. A further report will be presented to Committee in due course providing further details of the funding package. 9. Climate Change, Sustainability and Environmental Implications 9.1. The masterplan has sustainability at the forefront and projects will be taken forward in line with the Council’s sustainability objectives. Site demolition strategies will focus on recycling and reusing materials wherever possible. New housing developments on the Centre West site will take all measures to ensure sustainability. 10. Other Implications 10.1. Not agreeing Heads of Terms with Interpath and appointing a professional team of experts brings a number of significant risks. 10.2. Not agreeing Heads of Terms, there is a risk that Interpath could extract itself from Sapphire 15 and hand back possession of the Centre to the Council in the very near future. The Council would then be liable for day-to-day management of the shopping centre, ongoing maintenance, rate liabilities, security costs, and achieving vacant possession of the remaining retail units. Costs would be considerable. 10.3. Agreeing Heads of Terms would also protect the Council from any differing aspirations of new owners and will show intent to the wider community. 11. Equality Impact Assessment and Consultation Arrangements 11.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy and therefore, no Impact Assessment is required. 11.2. The East Kilbride Town Centre Masterplan consultation was held in September 2023. Officers were available in person in East Kilbride Shopping Centre for 3 weeks and an online consultation was open for 6 weeks. Feedback for the project was largely positive. Consultation and cooperation will continue throughout the duration of the initiative. David Booth Executive Director (Community and Enterprise Resources) 27 March 2024 Links to Council(s) Values/Priorities/Outcomes Focused on people and their needs Accountable, effective, efficient and transparent We will work towards a sustainable future in sustainable places Good quality, suitable and sustainable places to live Thriving business, fair jobs and vibrant town centres Caring, connected, sustainable communities Previous References Executive Committee Report – 13 September 2023 List of Background Papers None 56
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Contact for Further Information If you would like to inspect the background papers or want further information, please contact: - Victoria Nelson, Enterprise and Sustainable Development Services E-mail: victoria.nelson@southlanarkshire.gov.uk 57
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Report Agenda Item Report to: Community and Enterprise Resources Committee Date of Meeting: 23 April 2024 Report by: Executive Director (Community and Enterprise Resources) Subject: Glasgow City Region City Deal – Stewartfield Way/East Kilbride Town Centre 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] update the Committee on the proposed next steps in developing and delivering the Stewartfield Way/East Kilbride Town Centre Infrastructure project 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the proposed next steps in developing the Outline Business Case (OBC) and delivering the project be endorsed and referred to the Executive Committee for approval; and (2) that a report be submitted to the Glasgow City Region (GCR) Programme Management Office, following endorsement by the Committee and approval by the Executive Committee, to seek permission to rescope the project and develop the OBC for a Stewartfield Way and East Kilbride Town Centre project. 3. Background 3.1. The Stewartfield Way project was approved at Executive Committee on 26 August 2015 as one of the original 20 City Deal projects. Several iterations have been considered since this approval with the Strategic Business Case being updated periodically in line with the governance arrangements of City Deal. The challenges in delivering the original scheme, in terms of the engineering challenges and difficulties around land ownership put the deliverability of this option in question. Subsequent updates refined the project scope based on the public consultation of late 2019, the priorities identified and the benefits which were achievable. An augmented Strategic Business Case was approved by the Executive Committee on 10 March 2021 and, thereafter, by City Deal Cabinet in June 2021. 3.2. To date the project has focused on the transportation challenges across the town and how improvements to the road and wider sustainable transport network could accelerate and unlock development potential, improve access to existing facilities and improve journey times. While these issues remain at the heart of the proposals, a refined approach bringing together a combination of transportation improvements and direct town centre interventions is now considered the best way to bring sustainable economic growth to the town. 3.3. This report provides an update to members on the proposals for the project. The project has been subject to several updates to the Committee detailing the progression 10 59
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of the design and changing travel patterns of the public. This report further develops on the challenges facing East Kilbride and the way in which the available funding can have the broadest benefit to the economy of East Kilbride. 3.4. The East Kilbride Town Centre Masterplan was approved by the Executive Committee on 13 September 2023 and sets the strategic direction of the town centre for the next 20 years. The delivery of the Masterplan has begun with officers working closely with the representatives of the town centre owner’s administrators and the Council’s professional advisors. The Council will require to directly deliver significant elements of the Masterplan, particularly in relation to the redevelopment of Centre West and the development of a new ‘Civic Hub’ facility. A separate report to this Committee seeks endorsement for intervention in Centre West. 4. Current Position 4.1. The economic climate and the challenges facing the town centre has worsened considerably since City Deal projects were established and approved in 2015. The City Deal process allows for projects to be rescoped by revaluating the challenges faced in order to maximise the benefits achievable from the investment. 4.2. The economy of East Kilbride is reliant on a strong town centre and access to a vibrant and accessible jobs market. The increase in retail space vacancies, the reduction in national retailers, the loss of key anchors throughout the centre and the centre being put into administration in November 2022, places the town centre in a weak position. This combination of factors has made it clear that it will be necessary for public sector intervention to deliver the transformational change required. 4.3. The original proposals for the Stewartfield Way project sought to improve connectivity within the Glasgow City Region through infrastructure investment. The emerging and developing project will continue to deliver targeted interventions to the transport network to provide capacity and in turn support and accelerate development, to ensure that it will not have an adverse impact on existing businesses and residents using the wider East Kilbride transport network. In addition, when supported by other ongoing sustainable transportation investment workstreams, it is anticipated that the project will provide increased choice of travel methods. 4.4. The project comprised the following key elements which reflects the approval of the Executive Committee on 10 March 2021 and those which emerged from the consultation undertaken in 2019:- 1. Consideration of the development of a dedicated/segregated cycleway/walkway along the northern side of Stewartfield Way linking into key destinations along the route; providing feeder links from key areas (for example, Town Centre) and an overall enhanced active travel network. As well as supporting a shift to more sustainable travel this will also improve access to the planned improvements associated with the East Kilbride Rail Enhancement Project. 2. The accelerated implementation of the wider East Kilbride Active Travel Plan, with the intention of reducing car journeys while also realising the environmental and personal health benefits of active travel. This will include on and off-road cycle routes and infrastructure. 3. Development of proposals to relieve and manage existing traffic congestion at the western end of Stewartfield Way (Philipshill), to provide increased capacity (for example, possible traffic signals). This would assist in improving access to the proposed relocated Hairmyres Station/strategic regional park and ride interchange. 60
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This should encourage a shift from those using private car for journeys into the City Region to more sustainable rail travel. 4. Enhanced bus infrastructure (for example, bus shelters, real time information, new pedestrian crossing points) along the Stewartfield Way corridor and beyond, specifically creating bus lay-by bays where possible to minimise existing congestion when passengers are boarding and alighting. 5. From the above, engage with bus operators to encourage and provide more frequent local, strategic, and ‘orbital’ services, again encouraging a modal shift from private car to bus. 6. Enhanced facilities for low-carbon transport for example, provision of electric vehicle charging infrastructure to ensure that those who choose to continue with their private car journeys are encouraged to do so in more sustainable ways. This will include the creation of off-street hubs with rapid and fast charging infrastructure and potential opportunities for on-street infrastructure in some locations. 7. Development of proposals to relieve and manage existing traffic congestion at the eastern end of Stewartfield Way and around the Kingsgate/Mavor Avenue corridor to provide increased capacity to cater for future growth arising from site development. This will include a new dual carriageway from The James Hamilton Heritage Loch junction eastwards to the Kingsgate junction along with significant reconfiguration/upgrading of existing junctions and possible new and enhanced access to the Kingsgate Retail Park. 4.5. In light of the position set out above and the latest proposals for the transportation interventions on Stewartfield Way, it is proposed that the project be split into 2 component parts, delivering both transportation improvements and accelerating the town centre redevelopment infrastructure works. 4.6. The rescoped proposals will retain many of key transportation elements outlined above which will bring benefits to the transport network, although it will be necessary to scale back some of these. It will also be necessary to take advantage of other ongoing external infrastructure investment funding in relation to the delivery of active travel infrastructure and the provision of electric vehicle charging infrastructure will be delivered by way of a commercial partner as included in a separate report to this Committee. 4.7. Considerable investment in the town centre will be required to react to the change in ownerships and control of different parts of the centre. This is likely to include the demolition of Centre West and infrastructure and utility works to support future residential development and the rescoped proposals include for this. The development of a ‘Civic Hub’ Council facility will also be progressed and the detail of this element of the project will be subject to a future report to the Committee. 4.8. As the rescoped project moves to the OBC stage, a further report will be brought to the Committee prior to submission to the GCR Programme Management Office in November 2024. 5. Proposal 5.1. Following a positive discussion with the GCR Programme Management Office, a report will be considered by the City Deal Cabinet on 11 June 2024 seeking permission to amend the project in the way set out above and realign the approved project budget of £62.2 million. It is now intended that £30 million will be directed to the Stewartfield 61
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Way Transport Infrastructure project with £32.2 million directed to town centre activity. This will allow the project to be realigned to reflect the updated position and for work to be progressed on the delivery of both aspects of the City Deal project. 5.2. The transportation infrastructure elements are at various stages of development and a delivery timeline including necessary planning approvals is being developed taking cognisance of available resources and other infrastructure priorities. 5.3. The delivery of the town centre work will be a major project which will require a level of resource and expertise which the Council does not have internally. It is, therefore, proposed that a Project Management led team be procured with immediate effect to put all matters in place to deliver the objectives of the city deal project in line with the ambitions set out in the masterplan. It is expected this team will include, but not be limited to:- project management design engineering cost consultants specialist consultants as required to inform the design process. 5.4. The process will allow the City Deal funding to be used to support the work associated with the town centre and the next stage of design development progressed with a view to both transportation and town centre elements being captured in a revised OBC to be approved by the City Deal Cabinet towards the end of the calendar year. 5.5. The project is still intended to address local issues and challenges and deliver the same level if not better economic benefit/net additional jobs, salaries and Gross Value Added (GVA), across the GCR. The revised approach recognises the significant challenges that East Kilbride Town Centre faces post COVID-19 and a project that comprises both transport and direct physical intervention with the town centre has been identified as the preferred way forward. 6. Project Development/Delivery Timeline/Next Steps 6.1. The emerging and developing project will deliver interventions to the transport network to provide capacity and in turn support development, to ensure that it will not have an adverse impact on existing businesses and residents using the wider East Kilbride transport network. 6.2. In addition, it is anticipated that the project along with other improvements across East Kilbride will improve the transportation network and provide increased choice of travel methods. These improvements are consistent with those reported to the Executive Committee in March 2021 6.3. A revised timeline to progress through each stage in both the approval process and on-site delivery is as follows: Milestone Date Change Report approval by City Region Cabinet 11 June 2024 Completion/approval of OBC 5 November 2024 Planning Permission for component projects summer 2024 – spring 2026 Detailed project development work autumn 2025 - 2028 Completion/approval of FBCs spring 2025 - 2027 Phased Procurement spring 2025 – 2027 Phased Construction spring 2025 - 2028 62
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Project Monitoring ongoing to 2035 6.4. The above timescales for delivery will be refined as the project progresses through the business case process and elements become more defined. This will allow the phased construction period to be finalised and as such the above dates should be considered as being indicative at this point in time, nonetheless it does set out a timeframe for taking this project from design development to delivery. 7. Employee Implications 7.1. There are no current employee implications from this project as existing resources within Community and Enterprise Resources are tasked with the management and delivery of this City Deal project. 7.2. As noted above external resources will be added to the project teams to ensure effective delivery in line with internal and City Deal governance requirements. 7.3. The transportation elements of the project is expected to be undertaken internally with specialist skills brought in from technical consultants, as necessary. 8. Financial Implications 8.1. The total cost of the Stewartfield Way and Town Centre project is expected to be £62.2 million. Over the lifetime of the project, grant totalling £53.5 million (86%) is expected from City Deal with the balance of funding £8.7 million (14%) being met by the Council. These figures remain in line with existing proposals and approvals. 8.2. Consideration will also be given to how other sources of external funding can add value and increase the scope of specific elements of the works. This will be considered at the Full Business Case stage for each sub-project element. These sub-projects, which will form the key elements of the total project, will be developed in partnership with other Council Resources/Partners and brought forward for Committee consideration as part of the Full Business Case(s) (FBCs). 8.3. A full and robust monitoring process will be put in place following approval of projects by the City Deal Cabinet. 8.4. The City Deal Assurance Framework allows grant to be awarded at each Business Case stage (Strategic, Outline and Full) to meet the costs incurred by the Council leading up to the approval of the FBC and the formal award of contracts associated with capital expenditure. 8.5. Previous approval from the City Deal Cabinet to incur expenditure of up to £1.205 million on the project was received in August 2015. To date £0.580 million has been incurred in developing the project and it is anticipated that additional project spend of up to £0.750 million will be incurred up to OBC stage at which point additional funding can be released on request. 9. Climate Change and Sustainability and Environmental Implications 9.1. Environmental impacts of the project will be considered by the completion of any necessary Environmental Impact Assessment (EIA) with mitigation implemented through the design and construction process where required. 9.2. Any project of this size will have varying degrees of impact on the local area, including the environment, wildlife, flora and fauna and potential noise and air quality. However, in developing the project detailed design will seek to mitigate any such impacts. 63
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10. Other Implications 10.1. The City Deal Cabinet has a Risk and Issues Management Strategy to be applied across all City Deal projects. The purpose of this strategy is to provide a systematic and effective method by which risks can be consistently managed. It adopts a best practice approach, describes the specific risk management techniques and standards to be applied and the responsibilities for achieving effective risk management. 10.2. The Council is required to apply this strategy across each of its City Deal projects to ensure consistency across all City Deal projects. This will be a key tool in mitigating project risks and thereby limiting our financial risk associated with our share of City Deal project costs. 11. Equality Impact Assessment and Consultation Arrangements 11.1. This report does not introduce a new policy, function or strategy or recommend a significant change to an existing policy, function, or strategy, and, therefore, no impact assessment is required. 11.2. Consultation will continue to take place with relevant Resources within the Council. David Booth Executive Director (Community and Enterprise Resources) 27 March 2024 Links to Council(s) Values/Priorities/Outcomes Focused on people and their needs Accountable, effective, efficient and transparent We will work towards a sustainable future in sustainable places Good quality, suitable and sustainable places to live Thriving business, fair jobs and vibrant town centres Caring, connected, sustainable communities Previous References Executive Committee, 26 August 2015 Executive Committee, 25 March 2020 Executive Committee, 10 March 2021 List of Background Papers Stewartfield Way/East Kilbride Sustainable Transport Capacity Enhancements Strategic Business Case Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Iain Ross, Economic Development Manager, Enterprise and Sustainable Development E-mail:- Iain.Ross@southlanarkshire.gov.uk 64
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Report Agenda Item Report to: Community and Enterprise Resources Committee Date of Meeting: 23 April 2024 Report by: Executive Director (Community and Enterprise Resources) Subject: Glasgow City Region: Electric Vehicle Charging Infrastructure (EVCI) Collaboration 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide the Committee with an update on work undertaken to develop a collaborative approach to expanding the public electric vehicle charging infrastructure (EVCI) network across the 8 local authorities of the Glasgow City Region (GCR) seek approval for the next steps required to progress towards a commercial delivery arrangement [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to:- [recs] (1) note the content of the report and the collaborative work undertaken to date; (2) approve the participation of South Lanarkshire Council in a collaborative procurement to engage a commercial partner via a concession type contract through a partnership with all 8 local authorities in Glasgow City Region, to deliver the benefits set out in the report; (3) agree, in principle, to entering an Inter Authority Agreement (IAA) among the 8 local authorities, and authorise the subsequent nomination of lead authority, as well as procurement and commercial decisions relating to the commencement and conclusion of the procurement process, to the Executive Director (Community and Enterprise Resources), in consultation with the Head of Administration and Legal Services, and in line with the approach set out in the report; (4) agree that the Glasgow City Region Programme Management Office (PMO), through Glasgow City Council, will utilise available local authorities’ Electric Vehicle Infrastructure Fund (EVIF) allocations to engage programme management and expert technical consultancy support, that will assist in taking a GCR proposition to market and subsequent appointment of a commercial partner; and, (5) note that officers will provide update reports on the progress of the work to the relevant committees as required throughout the development of the project. [1recs] 3. Background 3.1. This section summarises the work that has been undertaken to date to support the expansion of the EVCI network across the local authorities in the GCR. 11 65
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3.2. In January 2022, the Scottish Government launched the Electric Vehicle Infrastructure Fund (EVIF) with the objective of unlocking private sector investment to expand the publicly accessible charging network on local authority land and assets. 3.3. Transport Scotland has engaged with the Scottish Futures Trust to support local authorities in the development of their EVCI strategies and is also actively encouraging local authorities to collaborate in their strategy and delivery activity to expand the charging network. 3.4. In December 2021, the Glasgow City Region Cabinet agreed to progress an initial report into current electric vehicle charging provision, tariffs, and forecast future needs of the 8 GCR local authorities, jointly funded using the EVIF allocations from Transport Scotland for each local authority. The report was concluded in June 2022. 3.5. It was further agreed by the GCR Cabinet in August 2022 that the GCR Programme Management Office (‘the PMO’) would engage consultants on behalf of the local authorities to develop more detailed Strategy and Expansion Plans (SEP). 3.6. Building upon the SEP, presented to the GCR Cabinet in May 2023, the GCR Electric Vehicle Senior Officers’ Group (‘the Senior Officers’ Group’) was established, chaired by Colin Park, Head of Roads, Transportation and Fleet Services at South Lanarkshire Council, and with senior officer representation from each of the 8 GCR Member Authorities (MAs). 3.7. The Senior Officers’ Group oversaw a Prior Information Notice (PIN), published in June 2023, to engage with the Charge Point Operators (CPOs), explore market appetite and inform GCR’s approach to the expansion of EVCI. There was significant private sector interest with 33 responses received and a clear preference expressed by most CPOs to engage collaboratively with all 8 GCR local authorities as part of a planned and strategic approach. 3.8. In August 2023, GCR Cabinet agreed that a collaboration between the local authorities to expand the EVCI network should be based upon a clear set of agreed principles:- a) To deliver a just transition, we must ensure equitable access to electric vehicle charging infrastructure, with a clear recognition of geographical characteristics and the different solutions that may be applicable. b) Ensure that all residents are able to access electric vehicle charge points close to their home. c) Align with the priorities of the Sustainable Travel hierarchy to ensure that public transport, walking, wheeling, and cycling options are prioritised wherever possible. d) Collaborate across the GCR member authorities to identify cost savings and ways to deliver a high standard of customer experience. e) Work together to identify and overcome grid capacity issues. f) Identify opportunities to develop joint public and fleet EVCI projects, and where there are opportunities to align with HGV, hydrogen refuelling and the introduction of rapid and ultra-rapid charging stations. 3.9. At the request of the GCR Chief Executives’ Group (CEG), further commercial and financial analysis was undertaken during summer 2023, to more fully understand the risks and opportunities of the different commercial arrangements that local authorities could use to expand EVCI. On 7 November 2023, the Cabinet was advised of the conclusion of this stage of the work, and that the CEG proposed a preferred approach 66
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to progress through continued collaboration among the 8 local authorities based on a concessionary-type commercial model. 4. Objectives and Benefits of GCR Collaboration 4.1. The work to date indicates clear advantages of progressing with the expansion of the public EVCI network as a collaboration of GCR’s 8 local authorities. 4.2. Collaborating to expand the EVCI Infrastructure offers a range of benefit for the local authorities’ wider policy objectives, and these are described in the following headings: 4.3. Leveraging Private Sector Investment Proceeding with a collaborative concession type contract provides the opportunity to maximise the amount of private sector investment to pay for the majority or totality of the new EVCI. The PIN exercise (see 3.7 above) indicated an appetite from several chargepoint operators to fully fund the expansion of the network, with none of the capital costs being provided by the local authorities (this was dependent on other contract conditions, such as the contract term). 4.4. The additional chargepoints forecast in the Strategy and Expansion Plan indicated a total capital cost of £71 million across the City Region. There will be an amount of capital grant available from the EVIF to assist in the delivery, but the amount has not yet been agreed by Transport Scotland. The intention is to develop a proposal that can be fully funded by the commercial partner along with EVIF grant from Transport Scotland with no requirement upon the local authorities to fund the infrastructure and service delivery costs. 4.5. Financial and Commercial Risks A concession-type commercial arrangement would allow the local authorities to transfer the potentially significant commercial, financial, technical, and regulatory risks to a commercial partner. It is proposed that a private sector partner would be invited to take on the operation, maintenance, and ownership of the existing network of 600 (approximately) local authority owned chargepoints in GCR, as well as providing the investment required to significantly expand the number and location of chargepoints equitably across the City Region. 4.6. Generating an Income Stream Allowing a commercial partner to operate EVCI on local authority land and assets has the potential to generate an income stream for the GCR local authorities. This could be through a variety of different arrangements – for example, income share, revenue share, a rental fee, or a combination. The amount and type of income stream will be influenced by the broader commercial arrangements of a contract, such as the contract term and where the risks and responsibilities are assigned between the local authorities and private partners. 4.7. Collaborating regionally will allow the GCR local authorities to pool resources generated through revenue to meet ongoing contract management costs, as described later in this report. However, as detailed within paragraph 4.5 above, the intention would be to transfer most of the risk to the private partner and consequently the level of income potential for each local authority must take this into account. 4.8. Although it is not possible to determine at this stage what level of income could potentially be delivered, what must be recognised is that the principal intention of this proposal is to increase, at pace, the level of EVCI across the GCR which in turn will encourage the shift to electric vehicles. This will assist with the net zero ambitions and not necessarily plug any budget or savings gap. 67
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4.9. Economies of Scale and Reduced Duplication of Effort While the objective of this project is to expand the EVCI network at no/minimal cost to the local authorities, collaboration offers significant economies of scale and financial savings during the developmental and delivery phases. The cost of technical consultancy support, procurement, and programme management will be shared among the 8 local authorities. Discussions between the PMO and consultants during initial soft market testing prior to going to the market indicate that this saving could be in the region of £500,000 across the authorities. 4.10. There will be other, currently unquantified, savings in an arrangement where one lead local authority, acting on behalf of all 8, enters a contract with a commercial partner, avoiding the need for 8 individual procurement and contracting exercises and the costs associated with this. It is also proposed that the long-term contract management arrangements could be undertaken by a central team, with the ongoing costs of this met through the pooling of an element of the local authority income stream generated by the contract. 4.11. Ensuring All Communities Can Access the Chargepoint Network Through collaboration we can take a strategic approach to locating EVCI. CPOs will be able to make commercial decisions looking across a much larger number of chargers and will be able to balance high usage sites against lower usage areas. The scale of a GCR collaboration will enable private investment in the network where individual local authority initiatives on their own may be too small to be commercially attractive. 4.12. Collaborating will also offer benefits to service users through opportunities to establish a consistent approach across GCR to service delivery and ‘back-office’ functions such as payment mechanisms, charging policy, etc. 4.13. Taking a package of sites across all local authority areas to the market will also avoid a situation where local authorities are going individually and competing for CPOs – a situation where GCR local authorities were competing to secure engagement with CPOs would disadvantage those areas seen as less attractive and wouldn’t meet the objective of making EV chargers available to all, especially more disadvantaged communities within the City Region. Taking a GCR collaborative approach will allow GCR to go to the market at scale, giving a stronger voice in the sequencing of installation and the locations in which chargers are sited, ensuring that no communities are neglected. 4.14. Community and Supply Chain Benefits Responses to the PIN, issued in June 2023, indicated that given the scale and commercial attractiveness of a GCR collaboration, some CPOs were explicit in their intention to work with local supply chains during the installation and the ongoing maintenance of such a large EVCI network. These opportunities will be explored during the procurement process. As with all major contracts, there will be a requirement for the inclusion of community benefit clauses in the tender and procurement process. 4.15. Charge Place Scotland: At present the back office support e.g. (payments, fault reporting, mapping etc) for all the current publicly owned EVCI is managed by the publicly funded Charge Place Scotland. The Scottish Government have made it clear that this funding will cease December 2025 and all back-office support will be removed. It is critical, therefore, that an appropriate solution is in place for this time and the consortium approach being 68
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proposed would include the provision of this support and avoid each individual local authority delivering their own back office solution. 5. Potential Shape of a GCR EVCI Collaboration 5.1. In early January 2024, the Scottish Futures Trust (SFT) and officers from GCR Programme Management Office undertook a series of workshops with officers from each of the 8 local authorities. The workshops were structured around discussion of key issues relating to potential:- commercial arrangements with a private sector partner joint working arrangements between the local authorities procurement options and routes to market 5.2. Several of the key technical aspects of a future commercial arrangement with the private sector were discussed at the workshops, providing a firm basis to develop joint tender documents that would be used in the procurement process to identify a private partner. 5.3. The total number of residential, destination, and journey chargepoints that were forecast in the GCR SEP are set out in the table below and broken down by local authority. Residential AC (7kW) Destination AC (7 – 22kW) Journey - Rapid DC (50kW +) East Dunbartonshire 105 66 17 East Renfrewshire 143 122 29 Glasgow City 1,317 207 53 Inverclyde 172 93 36 North Lanarkshire 481 276 34 Renfrewshire 405 258 51 South Lanarkshire 467 242 33 West Dunbartonshire 141 81 9 GCR Totals 3,231 1,345 262 5.4. Following discussions among the local authorities, SFT and Transport Scotland, and informed by the consultation with the market through the PIN issued in June 2023, the proposed approach discussed with the EV Senior Officers’ Group and the GCR Chief Executives’ Group, is to split the total number of forecast chargepoints into a series of phases. This pragmatic approach will help to align EVCI installation with the capacity of the market and of local authorities to deliver across the proposed sites. Prior to going to market we are unable to put a time on when works will be completed but anticipate that works will be completed over a 3 year period from commencement. 5.5. The proposed approach, based on discussions with officers from the local authorities, is that the first lot of chargepoints should include:- 69
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all existing EVCI (approximately 600) all destination AC (7-22kW) chargepoints (approximately 1,345) all rapid DC (50kW) chargepoints (approximately 262) 20 to 25% of the forecast residential chargepoints (approximately 650 to 800) 5.6. In addition, it is also proposed that the first phase will also include sites where there is the opportunity to install Ultra Rapid Charging (100kW to 350kW). The SEP identified potential sites that met a set of basic criteria where they may be attractive as ultra- rapid charging stations. Further work will be required to identify which of these sites can be progressed within South Lanarkshire. 5.7. The exact number of EVCI locations and chargepoints will be determined during the site selection process. Each local authority will require to undertake their own analysis about the suitability of the proposed locations for EVIF included in the SEP and to provide a list of sites within their area to be included in the package that is offered to a commercial partner. Each local authority will also be asked to prioritise these sites. 5.8. CPOs may suggest alternative sites based upon experience in delivering EV Hubs and this may assist the local authorities in identifying and agreeing alternative charging locations as required. 5.9. It is anticipated that subsequent lots will be weighted towards the remaining residential charging infrastructure, and any additional journey and destination sites that are identified. During the development of the procurement documents a strategy for bringing future phases to the market will also be considered. 6. Joint Working and Procurement Options 6.1. The feedback from the officer workshops demonstrated support for a collaboration across GCR through the planning, procurement, and delivery stages. There was also a recognition of the need to put in place an IAA to facilitate this collaboration. 6.2. There was a consensus view expressed in the workshops that one local authority should contract with a commercial partner on behalf of all 8 local authorities, with a preference for a single procurement, rather than establishing a framework for local authorities to draw down from. 7. Draft Timeline 7.1. If the approach to progress the collaboration is approved by then the GCR PMO will work with the EV Senior Officers’ Group to monitor the operational timeline for delivery of the project. Current key dates are set out below: Action/Milestone Estimated Date/Timescale Finalise EVIF arrangements for consultancy support. February 2024 Engage Consultancy Support for the Procurement Stage February to April 2024 Secure Local Authority Agreements to Collaborate on EV March to May 2024 Appoint Consultants to Support Development of Tender and GCR Proposal May/June 2024 Preparation of Tender Documents June to November 2024 Commence Procurement December 2024/January to April 2025 70
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Action/Milestone Estimated Date/Timescale Evaluation of Tenders May to June 2025 Contract Awarded to CPO July to August 2025 Charge Place Scotland Transition Network Planning and Mobilisation September to December 2025 New Chargepoint Installations January 2026 onwards 7.2. The most pressing issue is Transport Scotland’s decision not to renew the Charge Place Scotland (CPS) contract. This will require all local authorities (and other chargepoint owners currently using the CPS system) to put in place an alternative arrangement for the back-office and maintenance of their chargepoints before December 2025. GCR’s ambition is to have these 600 (approximately) existing chargepoints included within the scope of the first lot, however, there is a significant risk that the timing of this new arrangement being in place will fail to align with Transport Scotland’s ending of the Charge Place Scotland service. The GCR PMO is consulting closely with Transport Scotland to identify potential mitigations for this risk. The concession approach is a key opportunity for GCR to deal with the requirement for a new ‘back-office’ system for CPS. 8. Governance and Support Arrangements 8.1. A collaboration of the 8 GCR local authorities will require a clear governance and decision-making process. In addition to endorsement by the GCR Cabinet, the key decisions will require the approval through the relevant local governance structures of each of the 8 authorities. 8.2. The collaboration will also require an IAA to be put in place and signed off by all 8 GCR local authorities. To allow the project to meet the proposed timeline set out above, this report proposes that the Executive Director (Community and Enterprise Resources), in consultation with the Head of Administration and Legal Services, is authorised to progress the following:- the approval of the IAA issuing of the tender documents approval of the preferred bidder and agreement to enter a contract 8.3. All 8 local authorities will require to approve the proposed approach through their own local governance structures prior to any contract being entered into. A longer-term agreement between the 8 GCR local authorities will be finalised at the point of entering a contract with a commercial partner – this will include the ongoing contract management arrangements. 8.4. To support the development of the tender documents, site selection process, and development of the GCR EVCI proposal, Glasgow City Region PMO will continue to provide support to the EV Senior Officers’ Group. Expert technical consultancy support will be engaged by the GCR PMO and funded by contributions from each local authority through their allocations from Transport Scotland’s EVIF. 8.5. To ensure each local authority is engaged in the development process and able to influence the development of the tender, officer support groups will be established to provide expert advice and to update their own organisations as required. In addition to the existing EV Senior Officers’ Group, it would also require groups with a focus on legal, procurement, and technical aspects. 71
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9. Next Steps 9.1. The next steps that will be progressed if the recommendations in this report are approved are:- a) Finalise an IAA among the 8 local authorities with sign off authorised to the Executive Director (Community and Enterprise Resources), in consultation with the Head of Administration and Legal Services. b) GCR PMO will secure expert external consultancy support to draft the tender and technical documents and oversee the site selection process. c) Put in place a procurement strategy to go to the market to identify a commercial partner. d) Undertake a site selection process with each local authority to identify their preferred sites for the location of EVCI. e) Commence a procurement process with Glasgow City Council, on behalf of the 8 local authorities, acting as the Lead Authority for the procurement stage. f) Evaluate the responses to the tender and appoint a commercial partner. 10. Employee Implications 10.1. Significant employee resources will be required, however, partnership working with other Glasgow City Region local authorities to expand the charge point network as outlined in the strategy and expansion plan will minimise this requirement. 11. Financial Implications 11.1. The intention is to utilise Transport Scotland’s EVIF to meet the costs of the development of the GCR proposal, development of the procurement documents, specialist external legal advice, and other costs associated with the development of the collaboration. Each local authority will contribute a portion of their grant award which will be pooled by the GCR PMO who will engage the required consultancy and advice services on behalf of the 8 local authorities as required. 11.2. The overarching aim of the approach set out in this report is to leverage private sector investment so that no/or minimal capital investment is required from the local authorities to deliver the expansion in EVCI. On this basis there is not anticipated to be any requirement for capital investment. 11.3. It is anticipated that the long-term contract management of the commercial arrangement will be met by the collective income stream that is generated. It is suggested that the income stream from a commercial partner is pooled to meet the central contract management costs, with the surplus income then being distributed among the local authorities based upon an agreed formula. 11.4. Overall, there should be no cost to the local authorities from this proposed approach. However, this will depend on the market appetite to engage with GCR and can only be confirmed on conclusion of the procurement process 12. Climate Change, Sustainability and Environmental Implications 12.1. The transition from petrol/diesel vehicles to electric vehicles will provide benefit in terms of climate change, sustainability, and environmental impacts. 13. Other Implications 13.1. The main legal requirement will be the establishment of an IAA that allows one local authority to function as lead in the process to procure and contract with a commercial partner on behalf of the other 8 authorities. 72
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13.2. There will be a requirement for expert external legal and procurement advice to support the development of the GCR proposal and this will be engaged by the GCR PMO. 13.3. A legal support group, consisting of solicitors from each of the 8 local authorities, will be established to support the development of the project. 14. Equality Impact Assessment and Consultation Arrangements 14.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function, or strategy and, therefore, no impact assessment or consultation arrangements are required. David Booth Executive Director (Community and Enterprise Resources) 26 March 2024 Link(s) to Council Values/Priorities/Outcomes Values Focused on people and their needs Working with and respecting others Accountable, effective, efficient, and transparent Ambitious, self-aware, and improving Fair, open and sustainable Priorities We will work to put people first and reduce inequality We will work towards a sustainable future in sustainable places We will work to recover, progress, and improve Outcomes Good quality, suitable and sustainable places to live Thriving business, fair jobs and vibrant town centres Caring, connected, sustainable communities People live the healthiest lives possible Inspiring learners, transforming learning, strengthening partnerships Previous References Climate Change and Sustainability Committee 29 November 2023 – Electric Vehicle Charging Infrastructure. List of Background Papers South Lanarkshire Public Electric Vehicle Charging Strategy and Expansion Plan Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Colin Park, Head of Roads, Transportation and Fleet Services Tel:- 01698454484 E-mail:- colin.Park@southlanarkshire.gov.uk 73
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Report Agenda Item Report to: Community and Enterprise Resources Committee Date of Meeting: 23 April 2024 Report by: Executive Director (Community and Enterprise Resources) Subject: South Lanarkshire Economic Strategy Update 1. Purpose of Report 1.1. The purpose of the report is to:- provide an update on progress in the delivery of the South Lanarkshire Economic Strategy 2022 to 2027 and associated Action Plan 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the progress in the delivery of the South Lanarkshire Economic Strategy 2022 to 2027 and associated Action Plan be noted. 3. Background 3.1. The South Lanarkshire Economic Strategy 2022 to 2027 was approved at Executive Committee held on 30 November 2022. 3.2. The Economic Strategy and associated Action Plan continues to respond to a rapidly changing economy at international, national, and local levels which is increasingly influenced by a number of key economic policies and emerging funding streams at UK Government, Scottish Government and City Region level. 4. Economic Strategy 2022 to 2027 Summary 4.1. In the Strategy ‘Our Vision’ for South Lanarkshire is:- To make South Lanarkshire a flourishing, green, dynamic and equitable place for all. 4.2. The Strategy promotes the unique selling points (USP) of South Lanarkshire as an outstanding place to live, work and visit, with thriving towns and villages, good transport links, a wide range of good quality, affordable housing and a varied supply of employment land and commercial and industrial property. 4.3. South Lanarkshire has a unique economic identity that is influenced by factors such as demographics, health and wellbeing, key employment sectors, educational attainment, productivity levels and the opportunities that exist to drive growth and future prosperity. 12 75
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4.4. The Strategy includes the following key messages:- The Strategy in Context – South Lanarkshire has launched a suite of key strategies and plans including our Council Plan ‘Connect’, our Community Plan, our Community Wealth Building Strategy, our Sustainable Development and Climate Change Strategy and our Tourism Strategy, all of which are inherently linked and informed by our communities. Our Council Plan priorities are:- People – we need to put people first and reduce inequality Progress – we need to recover, progress and improve Planet – we need to work towards a sustainable future in sustainable places Our Economic Strategy details with these priorities and seeks to promote inclusive growth, maximise opportunities across all our communities as we intensify our activity on the journey to net zero. Our Key Themes – Key themes of People, Place and Business, define our ambitions for the future, make a series of bold ‘We Will’ action statements and explain the difference these actions will make as we seek to meet the strategic goals. Delivering on our Ambitions: The Council cannot, by itself, direct all of the activities set out in the Strategy and will rely on partners and stakeholders to lead on some aspects of its delivery. The action plan is a dynamic document, designed to be agile and updated using an evidence and data driven approach to recognise and meet changing economic circumstances. 4.5. Monitoring Framework - Progress in delivering the action plan is assessed by ‘measurements of success’ which is collated annually. The Strategy refers to other associated strategies and action plans. Existing monitoring and reporting arrangements to monitor those action plans will remain in place to avoid duplication and ensure consistency. 5. Measuring Progress 5.1. This is the first annual update on measuring the progress of the Strategy and Action Plan. It is recognised that the Strategy and Action Plan will need to continually respond to ever changing economic challenges that are influenced by national and international factors and consider how the Council can enhance the level of activity, subject to constraints in resources available, in any of the key thematic areas to mitigate negative economic impacts to the local economy. 5.2. The Strategy dovetails with current activity on promoting South Lanarkshire as an inward investment destination which will be strengthened with the imminent launch of the Inward Investment website – InvestSouthLanarkshire. The Strategy will be published on the new website to ensure it is available to the widest audience both home and abroad. 5.3. The key actions and areas of activity are set out in the Strategy’s Action Plan (attached in Appendix 1) which defines the priorities, outcomes, actions and how success is being measured. Although still in the early stage of its implementation, good progress is already being demonstrated across each of the strategies themes and priorities. 76
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6. Employee Implications 6.1. There are no direct employee implications. Existing resources within Enterprise and Sustainability Development Services are being utilised to promote the Strategy, deliver the action plan and measure its success going forward. 7. Financial Implications 7.1. External revenue and capital will also be sought from UK Government and Scottish Government funding streams to maximising the impacts of the activity across the People, Place and Business themes. 8. Other Implications 8.1. The key risk associated with the promotion, delivery and monitoring of the Strategy is the potential for further national and/or international economic shocks. This could constrain recovery and economic growth both locally and nationally. 9. Equality Impact Assessment and Consultation Arrangements 9.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function or strategy, therefore, no Impact Assessment is required. 9.2. Council Resources and external partners have been consulted during the preparation of the Strategy and fed in to the Action Plan results. 10. Climate Change, Sustainability and Environmental Implications 10.1. The action plan identified in this report will be delivered having regard to best practice both in terms of how we deliver those actions and our commitment to net zero. 10.2. A pre-screening statement was prepared and submitted to the statutory Consultation Authorities. It was agreed that the South Lanarkshire Economic Strategy was unlikely to have significant environmental effects and, therefore, a full Strategic Environmental Assessment was not required. David Booth Executive Director (Community and Enterprise Resources) 28 March 2024 Link(s) to Council Values/Priorities/Outcomes Promote economic growth and tackle disadvantage Supporting the local economy by providing the right conditions for inclusive growth Work with communities and partners to promote high quality, thriving and sustainable communities Support our communities by tackling disadvantage and deprivation and supporting aspiration Previous References South Lanarkshire Economic Strategy, Executive Committee, 30 November 2022 South Lanarkshire Inward Investment Strategy, Community and Enterprise Resources Committee, 6 February 2024 77
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List of Background Papers South Lanarkshire Economic Strategy 2022 to 2027 Contact for Further Information If you would like to inspect the background papers or want further information, please Contact: - Iain Ross, Economic Development Manager, Planning and Economic Development Services Email:- Iain.Ross@southlanarkshire.gov.uk 78
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Appendix 1; Economic Strategy Action Plan Update THEME PRIORITY OUTCOME ACTION HOW WE MEASURE SUCCESS PEOPLE Employability Deliver on our No One Left Behind Employability Delivery Plan to support progression to Fair Work for unemployed key client groups and disadvantaged communities. Including: - School Leavers - Under 25’s - Over 25’s - Those with disabilities - Care experienced young people - Those at risk of homelessness - Those within the criminal justice system - Those who reside within the worst 20% SIMD areas - Parents/families within the priority child poverty groups - Deliver responsive employability support aligned with labour market priorities - We measure the number and percentage of employability participants supported to progress to positive outcomes of employment, education and further training. - Measure the proportion of school leavers being supported into positive post-school destinations - Measure the proportion of 16-19 year olds participating in education, training or employment (Annual Participation Measure for 16/19- year olds) - Measure the number of employed people supported through employment training, skills development and keyworker support to increase their incomes Total - 1687 Into Employment – 584 Into FE/T – 536 Positive Outcomes – 66% 96.2% 92.3% 131 people supported through the upskilling programme - Promote opportunities and careers to parents, young people and those facing redundancy. - Increase digital access, maximise digital training opportunities and creativity in our deprived communities to address educational and digital inequalities. - Promote social value from Council and other public sector contracts - Measure and report on the impact of our Community Wealth Building Strategy as it implements a people centred approach towards the creation of fair and resilient communities. Reported via Community Wealth Building Commission - Increase the level of procurement spend with local business and social enterprises and support local recruitment by local businesses and social enterprises. Workforce Skills Development - Train individuals to develop and grow their skills, to be more productive and prosperous in the workplace to benefit both employers and workers and - Influence activity and skills investment to address skills gaps and the skills needs that have been identified as our economy grows and evolves. - Measure the number of local residents we have assisted through employment training and skills development who have then secured employment or acquired Following a transformational review of employability services, provision in 12 79
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Appendix 1; Economic Strategy Action Plan Update thereby create, sustain and retain a viable workforce. - Support those in precarious employment including low skilled/low-income jobs to progress within the workplace leading to enhanced employment terms and condition additional skills to progress into ‘better’ jobs. - Measure increased income/ earnings/hours - Measure number of completed accredited qualifications - Measure number entering promoted positions - Measure number moving from precarious to secure employment this area has been reviewed and redesigned in accordance with external funding requirements. This priority is now incorporated into the Employability section of the Action Plan. - Respond to the latest labour market and demand led data to plan and develop our skills and knowledge training - Engage with SDS as they develop a programme of skills alignment to match skills provision with the needs of learners, employers, and industry to drive sustainable and inclusive growth - Promote and support in-work training with local businesses and social enterprises that we engage with to encourage upskilling and progression to release entry level jobs. - Deliver responsive in work support to employees in the workplace who are low skilled or in receipt of low incomes Improved Health & Wellbeing - Improve people’s health and reduce health inequalities that exist in our society. - Consider the health needs of our population and how those needs impact the ability of our residents to participate in our economic growth. - Measure and report on the impact of our participation in the Mental Health & Wellbeing Strategy for Lanarkshire across our communities. Activity in this area is reported via the South Lanarkshire Health & Social Care Partnership, the Community Planning Partnership and the Integrated Joint Board. The current Strategy comes to an end in 2024. - Influence and facilitate activity that tackles key health issues, particularly where we are performing worse than the national average. 80
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Appendix 1; Economic Strategy Action Plan Update - Work with partners to improve resilience, particularly in areas of greatest deprivation. - Promote opportunities for people who have suffered mental health problems to train for or return to employment. PLACE Support New and Established Business Locations - Improve employment and entrepreneurial activity in key business sectors at key locations. - Utilise our property assets and work with private sector land owners and developers to maximise sustainable development opportunities in our area. - Measure the level of uptake and occupation of premises within the SLC business / industrial property portfolio and our levels of engagement with private sector property owners who seek to develop their assets in South Lanarkshire Business Centres - 73% occupation. Industrial Yards - 98% occupation. Industrial Units . 88% occupation. Offices - 93% occupation. Retail - 94% occupation - Measure the volume of traffic/enquires coming via the new ‘InvestSouthLanarkshire‘ digital platform. 50 enquiries received between October 2023 and March 2024 for industrial / business land and property. Monitoring of outcomes ongoing - Launch new digital marketing tools and promote South Lanarkshire as an exceptional location for inward investment and expansion. Successful development of our Town Centres and the role they - Help create town centres that offer a social, cultural and economic heart to a community and contain shared built environment, heritage and spaces that, with the right conditions, provides inclusive and sustainable centres. - Adopt more flexible regulatory approaches that seek to maximise the sustainability and potential of our town centres to generate positive social, environmental and economic outcomes and reduce inequalities. - Implement the '20-minute neighbourhood' concept and measure increased usage of our town centres by local residents and visitors. Development of town centre plans (e.g. Larkhall/ Blantyre/Rutherglen) and masterplans for EK and Hamilton reflecting this action 81
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Appendix 1; Economic Strategy Action Plan Update play in our society - Measure the impacts of our collaborative working arrangements with local business, social enterprises and community-based organisations. Renewal of BID’s reflects collaborative working. Social Enterprise activity reported via Social Enterprise Strategy updates to Committee - Work with local business, social enterprise and community-based organisations to address issues and support initiatives to create the right conditions for our town centres to thrive. Maintain and increase capital spending programmes through attracting external funding - Deliver council and community planning partners’ strategic projects to enable economic development and sustainable growth. - Secure sufficient financial resources through our External Funding team with specific focus on emerging Scottish and UK Government funding streams. - Increase and maintain the level of resources within our External Funding Team and measure the level of additional external funding into our capital investment programmes. £5.49m Grow the visitor, leisure and tourism economy in our area - Promote South Lanarkshire as a leisure and tourism destination and realise the potential our tourism, heritage and cultural attractions and outstanding natural environment have in contributing to the economic wellbeing of the area. - Deliver an updated Tourism Strategy and work with tourism-based operators and communities to develop a membership-led forum for South Lanarkshire based tourism businesses. - Measure and report the impact of actions contained within our new South Lanarkshire Tourism Strategy Tourism Strategy reported separately to C&E Committee BUSINESS Digitally empower businesses - Work with business to become digitally confident, highlighting the need to utilise digital tools to grow and the benefits of a digitally empowered workforce. - Influence and work with broadband and digital providers to improve and extend our digital infrastructure. - Increase the availability of superfast5.49m broadband across South Lanarkshire. 96.9% - Reduce the number of properties with no broadband access or those with low broadband speeds. 1.6% - Increase digital participation, confidence, competence and creativity in our communities. 82
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Appendix 1; Economic Strategy Action Plan Update Increase and sustain new business survival rates as we transition to a net zero economy - Create and build collaborative partnerships between local government, public sector partners, businesses, social enterprises and business organisations as we embark on our journey to net zero, to enable the creation of sustainable businesses that thrive, innovate and support our local communities - Maximise engagement with Business Gateway and local business sectors (incl. social enterprises) to provide advice and professional support as well as access to financial assistance in key sectors and activities. - Improve our Enterprise Rate, Business Birth and Business Survival rates in South Lanarkshire. - Measure and report on the impact of our actions within the green economy theme of the council’s Sustainable Development and Climate Change Strategy New Business Starts (2022) - 1175 Business Survival Rate 2019-22 - 56.3% Develop resilient, local supply chains - Establishment of a responsible, resilient, equitable and locally based procurement framework that maximises opportunities for local, third sector and social enterprise businesses to bid for and win contracts in our area. - Collaborate with anchor institutions to effectively grow capacity and capability in targeted local supply chains. Review our procurement practice and identify routes to increase local spend with SME’s and social enterprises. - Measure the annual increase in the proportion of contract spend we place with local SME's. Reported through the Community Wealth Building Commission - Promote Community Wealth Building plans and ensure procurement supports the delivery of meaningful community benefits to improve community outcomes. - Measure the impact of new community benefits through our monitoring systems to demonstrate improvements in the scope and quality of benefits being delivered. Reported through the Community Wealth Building Commission Link business success, fair work and improved productivity - Recognition that fair work drives success, wellbeing and prosperity for individuals, businesses, organisations and society. - Work with business to improve productivity and innovation through progressive workplace policies. - Increase the number of organisations accredited as Living Wage Employers. 178 – an increase of 83
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Appendix 1; Economic Strategy Action Plan Update - Deliver Fair Work webinars to employers. - Measure the number of participants at Fair Work seminar events Activity on the Fair Work agenda is currently focussed on ensuring that suppliers to the Council are aware of the Fair Work agenda and will, or have, put in place Fair Work policies in their workplace. - Measure the number of employers and employees participating and completing Upskilling programmes – leading to improvements in salary and/or hours. See Employability Section - Promote opportunities to deliver employee development, skills development and lifelong learning. 84
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Report Agenda Item Report to: Community and Enterprise Resources Committee Date of Meeting: 23 April 2024 Report by: Executive Director (Community and Enterprise Resources) Subject: South Lanarkshire Tourism Strategy - Update 1. Purpose of Report 1.1. The purpose of the report is to:- provide an update on activity in the tourism sector during 2022/2023 and 2023/2024 following the launch of the South Lanarkshire Tourism Strategy 2022 to 2025 2. Recommendation 2.1. The Committee is asked to approve the following recommendation(s):- (1) that the updates provided in sections 3 to 6 of the report be noted. 3. Background 3.1. As a key sector in South Lanarkshire, it is important to support and nurture growth in the tourism sector. The South Lanarkshire Tourism Strategy 2022 to 2025 was approved by the Committee on 13 December 2022, and the Strategy and associated Action Plan took account of a rapidly changing sector at international, national, and local levels and sits alongside the South Lanarkshire Economic Strategy 2022 to 2027. 3.2. Tourism is a key employer in South Lanarkshire, and in 2022 was responsible for employing 3,483 full-time equivalent (FTE) jobs and in the same year the area welcomed around 1.46 million tourism visits with a total of £266 million generated within the local economy through visitor and tourism business expenditure (Scottish Tourism Economic Activity Monitor - STEAM). 3.3. Despite this, the tourism sector in South Lanarkshire is still to fully recover to pre- pandemic levels, with many businesses in the sector struggling to trade viably. Recognition of this is evident in the efforts undertaken in the months leading up to and during the initial implementation period, as outlined in this document. 3.4. It was intended that the Lanarkshire Economic Forum would have been the forum for partners to coordinate the delivery of the Action Plan. Unfortunately, the forum is no longer operational. Nonetheless, the Tourism Officer in the Enterprise and Sustainable Development Service has been actively pursuing many of the outlined actions, engaging in consultations with specific businesses and groups on an individual basis to drive the initiatives forward. 13 85
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4. 2022/2023 Update 4.1. There are several key areas of work that took place during 2022/2023 to benefit the sector, covering the 6 key priorities outlined in the Strategy: people, place, business, marketing, responsible tourism, and partnership working, as detailed below. 4.2. Sector Collaboration 4.2.1. As part of the Get South Lanarkshire Working budget approved by members in 2021 an allocation was set aside to establish a tourism cooperative body. An online consultation was held in February 2022 to establish demand for such a group ahead of the final draft of the Tourism Strategy being produced. This highlighted that many towns already have individual groups such as Business Improvement Districts (BIDs), that businesses were already involved in, and in some cases, paying an annual levy. Only 16 businesses voted in favour of a tourism group being set up, with 8 subsequently stating that they would not be prepared to join a group if it were set up. The South Lanarkshire Tourism Strategy 2022 to 2025 was then launched at the end of 2022 and the actions around a group being created were still framed around establishing demand and buy in for such a collaborative group. 4.2.2. In October 2022, a Scottish network of enterprise hubs known as E3 set up the South Lanarkshire Tourism Collaboration Programme which took place over 6 weeks and was delivered by Rural Dimensions, a tourism, collaboration and stakeholder engagement consultancy. The programme was attended by individuals from approximately 10 businesses and in the final session they concluded that they would like to get involved in a tourism group. Those that took part, however, were mostly from small, rural businesses and not all operating primarily as tourism businesses. For example, farm shops and local community focused businesses. 4.2.3. Following on from the E3 programme, the Tourism Officer has continued to support and engage with businesses in the sector to establish the views of those who did not attend the initial consultation or the programme. Some of the key players in the sector remain unconvinced of the benefits of a tourism group and would not be willing to participate. 4.2.4. VisitScotland has confirmed that tourism businesses generally are very much in survival mode and do not have the capacity to take time out of their operation to attend such meetings. It has also been mentioned on numerous occasions that the Lanarkshire Tourism Association (which was wound up during the pandemic) was similar to the cooperative proposal being explored and was considered to be unproductive. 4.2.5. Given the feedback, it is recommended that a tourism co-operative should not proceed at this time and instead officers will continue to deliver alternative projects and initiatives to support the sector. This approach has already proved successful with the following projects:- Collaborative working at Topgolf, having received various forms of support since opening in South Lanarkshire. The Tourism Officer connected Topgolf with New Lanark, a site that regularly hosts school groups, and as a result, New Lanark hosted Topgolf staff for a day fostering collaboration and sharing best practices between the two establishments. David Livingstone Birthplace, which sought support in bringing their cafe operations in-house. Simultaneously, Manorview Group was in search of assistance in recruiting volunteers for their new charity arm. Recognising the 86
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strength of David Livingstone in volunteer management, the Tourism Officer facilitated introductions, encouraging both organisations to learn from each other and exchange valuable support. 4.3. VisitLanarkshire Website 4.3.1. As identified in the Strategy, the destination marketing site for VisitLanarkshire was outdated and needed a refresh and following a period of six months working with website developers, the new website launched in January 2023. The site has been well received and is continuously being updated with information to attract visitors to the area. The refreshed website acts as an effective portal for planning days out and overnight stays and all businesses who operate primarily in the tourism sector are encouraged to take up a free listing on the website. 4.4. VisitLanarkshire Marketing 4.4.1. VisitLanarkshire is a partnership initiative with North Lanarkshire Council, and most of the work under the brand is jointly funded and focuses on promoting the whole of Lanarkshire. Alongside North Lanarkshire Council, the Tourism Officer works closely with VisitScotland to ensure marketing evolves in a manner to attract South Lanarkshire target markets. 4.4.2. Primary tools for directing individuals to the website include the VisitLanarkshire social media channels. VisitLanarkshire already has a well-established following on X (formerly known as Twitter), and Facebook and this year has also joined Instagram to share visual stories and engage with a broader audience, inspiring them to explore the experiences that Lanarkshire has to offer. Instagram plays a crucial role in destination marketing due to its visual-centric platform, enabling it to showcase Lanarkshire’s unique attractions, experiences, and culture. 4.4.3. During the spring and autumn months, resources have been targeted to amplify the reach through above-the-line advertising campaigns spanning Glasgow and Central Scotland. This currently takes the form of outdoor and radio advertising to increase the target audiences’ opportunities. Paid advertising was strategically placed on train passenger panels, in subway carriages, digital screens within train, bus, and subway stations, billboard sites on railway platforms, and floor graphics in train stations. Additionally, paid advertisements were launched on Radio Clyde, featuring new radio advertisements to further promote Lanarkshire and paid social media campaigns were also conducted across Radio Clyde's social platforms. 4.4.4. To market outwith the central belt, a brochure has been created and distributed to various outlets across Scotland, aiming to highlight the attractions of Lanarkshire to individuals exploring different regions of the country. 4.5. Staff Recruitment and Retention Support 4.5.1. The pandemic has left a lasting impact on the recruitment and retention of staff in the tourism sector across the whole of Scotland. Businesses report ongoing significant challenges around hiring and the retention of staff. 4.5.2. The possibility of hosting a recruitment day for the sector was explored in 2022 but it became apparent that businesses were looking for more of a tailored approach. Instead meetings were held with businesses to discuss support on a case-by-case basis. Many businesses received referrals to the Council’s employability team, who assisted in delivering tailored support. 87
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4.6. Tourism Education 4.6.1. Adding to the recruitment challenges faced by employers in the sector, engagement with local education institutions has revealed an unprecedented decline in applications for courses related to tourism and hospitality. Notably, the University of the West (UWS) of Scotland, which typically enlists students who come from the third year of a college tourism course, has witnessed such a decline in interest. This is as a result of Glasgow Clyde College discontinuing its events programme, along with the University of Highlands, and New College Lanarkshire terminating their hospitality courses. Consequently, UWS is now compelled to recruit students from first year. 4.6.2. Discussions have taken place with the Tourism Officer who has introduced UWS to Developing Young Workforce Scotland, to join up efforts to change the perception of the sector and encourage young people to pursue further education and career opportunities. Early discussions are taking place to host an event at UWS’s Blantyre campus, in partnership with Developing the Young Workforce (DYW) Scotland, to support this initiative. 4.7. Expenditure in 2022/2023 4.7.1 Due to the Strategy being approved in December 2022, spend in this period was limited to £42,000. 5. 2023/2024 Update 5.1. The approval of the Strategy in December 2022 was a catalyst for further projects to take place in 2023/2024 with further progress detailed within this section. 5.2. VisitScotland Connect 5.2.1. The Tourism Officer attended ‘VisitScotland Connect’ in April 2023 to present Lanarkshire to the travel trade and create leads for travel trade ready businesses across the area. Pre-event engagement took place with businesses in South Lanarkshire that have a travel trade ready offering to collate a brochure for trade buyers at the event. The Tourism Officer conducted over 60 one to one meetings with international travel trade buyers over two days to raise awareness of Lanarkshire’s travel trade offering. 5.2.2. South Lanarkshire Council was able to support one tourism business to attend the event and after consulting with VisitScotland, New Lanark was invited to attend the event given they are South Lanarkshire’s biggest travel trade-ready asset. Following the event, New Lanark has generated weekly bookings throughout July to October this year, along with over £13,000 in pre-bookings for 2024 and one sold out month already. 5.2.3. The event is scheduled for April 2024 and 6 travel trade ready businesses will also attend alongside VisitLanarkshire, with the aim of replicating the success of New Lanark at last year’s event. 5.3. Signage Improvements 5.3.1. The M74 trunk road operator Auto Link, advised in spring 2023 that the condition of the sign posts for the Clyde Valley Tourist Route and New Lanark World Heritage Site were in an unsafe condition and this matter has been highlighted over recent years inspections. 5.3.2. It is current practice that new tourist directional signage requires accreditation from VisitScotland, as well as approvals by the roads authority. Such requests require the attraction to enter into an agreement where costs associated with the 88
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erection/maintenance and removal of tourist signs are met by the attraction and not the roads authority. However, the current directional signage at M74 Junction 5 was erected as part of the construction of the M74 in the early 1990’s, therefore, no agreements are in place. As a result, the signage will be funded through the SLC Tourism Support budget. 5.3.3. Given the importance of both the Clyde Valley Tourist Route and New Lanark World Heritage Site, it was agreed that part of the tourism budget would be used to replace these signs in the interests of enhancing the tourism infrastructure. 5.4. Green Tourism 5.4.1. As members are aware, the growing emphasis on sustainable business practices holds significant importance. An agreement is being finalised with Green Tourism, a recognised authority in sustainable tourism practices, to develop business support resources to host on VisitLanarkshire.com. These resources will be designed to help tourism businesses to get started on their sustainability journey and assist VisitLanarkshire to adopt a credible and supportive role. Plans are also in place for Green Tourism to conduct a workshop aimed at inspiring businesses in the tourism sector to embrace sustainable practices. 5.5. VisitScotland Partnership Marketing 5.5.1. In previous years, tourism marketing efforts were exclusively in collaboration with North Lanarkshire Council under the VisitLanarkshire brand. However, recognising the importance of destination marketing, an exclusive South Lanarkshire-only social media campaign took place for winter and spring, in partnership with VisitScotland. These campaigns strategically target specific audiences throughout the central belt, aiming to inspire them to plan their getaways in South Lanarkshire whilst continuing to utilise the VisitLanarkshire brand due to it being well established and recognisable to consumers. The spring campaign is currently ongoing and has been successful in driving increased traffic to the VisitLanarkshire website. 5.6. VisitLanarkshire Marketing 5.6.1. As per 2022/2023, VisitLanarkshire marketing efforts were distributed across Central Scotland during the Spring and Autumn months, with marketing also continuing on Radio Clyde and via the distribution of leaflets to various outlets across Scotland. 5.7. Accessibility 5.7.1. The Tourism Officer is working to improve the accessibility of the area by working with AccessAble to create access guides for local tourism venues with accessible information for those who are disabled and their carers. 5.8. Lanark and Hamilton Business Improvement Districts 5.8.1. Funding will also support events organised by Lanark and Hamilton Business Improvement Districts (BID). Projects are taking place in Hamilton to deliver a calendar of events to increase visitors to the area, whilst in Lanark the BID is working to create new promotional materials for the area. 5.9. South Lanarkshire Tourism Advertising 5.9.1. Advertising campaigns have been developed to be placed within the stadiums of local professional sporting teams to get the VisitLanarkshire brand in front of sporting fans. Marketing is taking place with Caledonia Gladiators, who are the only Scottish team in the British Basketball League and whose games are streamed live in America and Hamilton Academical Football Club. Both sporting venues have regular visitors, along with televised games, allowing us to get the brand in front of a new audience. 89
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5.10. Photography 5.10.1.Work was also commissioned to gather new photography, videography and drone footage across South Lanarkshire. A variety of locations and tourism businesses have been identified to gather content to help promote the area. Content will also be shared with the businesses featured to allow them to further promote their offering and the wider area. 5.11. Expenditure in 2023/2024 5.11.1.The anticipated spend for 2023/2024 is around £200,000 for the activities detailed above. 6. Next Steps During 2024/2025 6.1. One of the keys to supporting the tourism sector is through destination marketing. Campaigns to promote the area as a year-round tourism destination will continue. The sector, however, requires support to develop digital and promotional based projects to bring more visitors into the area. Is also requires funding to enable businesses to accelerate their digital presence, and to increase the quality of the tourism offer across South Lanarkshire. A programme of financial support for 2024/2025 is proposed from the UK Shared Prosperity Fund which will target digital projects such as web bookings and product development. 7. Employee Implications 7.1. The continued development and implementation of the Tourism Strategy will be undertaken the Tourism Officer within Enterprise and Sustainable Development Services, in consultation with colleagues across all other Council resources and external partners and businesses operating in the sector as appropriate. 8. Financial Implications 8.1. The Tourism Strategy is being delivered by existing budgets from Community and Enterprise Resources, including external funding from the UK Governments Shared Prosperity Fund. 9. Climate Change, Sustainability and Environmental Implications 9.1. The Tourism Strategy and all other tourism related work have sustainability at the forefront and projects will be taken forward in line with the Council’s sustainability objectives. 10. Other Implications 10.1. The key risk associated with the delivery and monitoring of the Strategy is the potential for further national and/or international economic shocks or further new regulations being introduced for the sector. This could constrain recovery and economic growth in the tourism sector both locally and nationally. 11. Equality impact assessment and consultation arrangements 11.1. This report does not introduce a new policy, function or strategy or recommend a change to an existing policy, function, or strategy and, therefore, no Impact Assessment is required. 11.2. Consultation is ongoing with external partners and businesses as well as across Council Resources. 90
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David Booth Executive Director (Community and Enterprise Resources) 28 March 2024 Link(s) to Council Values/Priorities/Outcomes Promote economic growth and tackle disadvantage Supporting the local economy by providing the right conditions for inclusive growth Work with communities and partners to promote high quality, thriving and sustainable communities Support our communities by tackling disadvantage and deprivation and supporting aspiration Previous References South Lanarkshire Tourism Strategy – Community and Enterprise Resources Committee – 13 December 2022. List of Background Papers South Lanarkshire Tourism Strategy 2022 to 2025 Contact for Further Information If you would like to inspect the background papers or want further information, please contact:- Iain Ross, Economic Development Manager Enterprise and Sustainable Development E-mail:- Iain.ross@southlanarkshire.gov.uk Laura Sprowl, Economic Development Officer (Tourism) Enterprise and Sustainable Development E-mail:- Laura.Sprowl@southlanarkshire.gov.uk 91
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Report Agenda Item Report to: Community and Enterprise Resources Committee Date of Meeting: 23 April 2024 Report by: Executive Director (Community and Enterprise Resources) Subject: Local Transport Strategy 2024 to 2034 - Update 1. Purpose of Report 1.1. The purpose of the report is to:- [purpose] provide an interim update on the progress of the Local Transport Strategy 2024 to 2034 [1purpose] 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- [recs] (1) that the contents of the report be noted. [1recs] 3. Background 3.1. Our current Local Transport Strategy was published in 2013 and presented a 10-year vision for transport in the local authority area. With the 10-year timeframe of the current Strategy ended we are in the process of developing a new strategy that will cover the period 2024 to 2034. 4. Scope of the Local Transport Strategy 4.1. The new Strategy for South Lanarkshire will set the future direction for our approach to the development and upkeep of the transport infrastructure and policy within the area. Transport policies and actions are being developed, and indicators identified to monitor the progress made on these actions. 4.2. The Strategy will also set out how the Council will contribute to the delivery of the obligations set out in the National and Regional Transport Strategies. 4.3. It will be an ambitious and forward-thinking strategy that sets out a strategic vision and objectives, alongside proposals for a ten-year action plan. The Strategy will be developed in line with the national and regional policy landscape, to develop sustainable, healthy, and innovative transport opportunities in South Lanarkshire over the next 10 years. 4.4. The Strategy will take cognisance of increasing global awareness of climate change, changes in travel patterns and activities, and a rapidly developing market in transport and travel technology. The strategy will also be used to influence the actions of a range of partner organisations who deliver aspects of transport within South Lanarkshire. 14 93
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4.5. Key stages of development include:- consultation and engagement to identify the key problems, issues, and opportunities for transport in South Lanarkshire review of the existing strategy and a review of the policy and strategy context development of a vision statement with associated objectives, actions and indicators required to deliver the vision and monitor progress, ultimately setting the strategic direction for transport investment and policy in South Lanarkshire for the next 10 years. preparation of supporting assessments, including Strategic Environmental Assessment (SEA), Statutory Impact Assessments (SIAs) and Habitat Regulations Appraisal (HRA) further consultation on the draft Strategy 4.6. The final strategy is programmed to be completed and launched in late summer 2024. 5. Progress to Date 5.1. Transport Consultants, Aecom, were appointed in May 2023 to support the Council in developing and producing the new strategy and the project inception meeting was held on 15 May 2023. An ambitious project programme was agreed and work on the Strategy commenced. 5.2. Councillor and key stakeholder engagement was undertaken to identify the problems, issues, and opportunities for transport in South Lanarkshire on 18 July 2023. The engagement included an online survey as well as a series of Councillor and stakeholder workshops. The survey was sent directly to Councillors, key stakeholders, advertised on our website, social media platforms and advertised in local libraries. The consultation closed on 1 September with a total of 1,035 responses. 5.3. The development of the strategy continued throughout the consultation period and included work in the following aspects of the strategy: - Problems and Opportunities, Policy Compliance and Option Generation issues and Progress Paper progressing Statutory Impact Assessments (SIA) which includes Equalities Impact/Childrens Rights and Wellbeing/Health Inequalities Impact/Fairer Scotland Duty Assessments and Habitat Regulations Appraisal (HRA) SEA Scoping Report issued to SEA Gateway Outline Structure and Background Information trends and issues Appendix existing Issues and Progress Paper draft SIA Screening Report development of the strategy chapters collated draft of policies and actions 5.4. Draft chapters which will form the Strategy have also been developed, and are as follows:- 1. Introduction – this sets out the aims for the 10-year strategy. 2. About South Lanarkshire – outlining information about various aspects of South Lanarkshire. 3. Background Information, Trends, and Issues – an overview of key socio- economic and transport statistics and trends for South Lanarkshire. 94
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4. Progress from the Previous Local Transport Strategy - the outcomes and lessons learned from the implementation of the previous South Lanarkshire Local Transport Strategy. 5. The Need for Change - sets out the need for change to the ways in which we travel and how sustainable transport has a large role to play in helping South Lanarkshire meet its legislative requirement to contribute to the national greenhouse gas reduction target of net-zero by 2045. 6. Consultation – the outcome of the Stakeholder consultation 7. Vision Statement, Objectives, and Indicators - this chapter summarises transport related problems, issues, and opportunities across South Lanarkshire. 8. Potential Local Transport Strategy Approaches – Explains the various approaches that have been considered to develop the Strategy. 9. Maintenance and Asset Management – discusses the statutory duty South Lanarkshire Council has to manage and maintain the local public road network. 10. Road Safety – discusses South Lanarkshire’s Council’s responsibility to improve road safety. 11. Economy – the importance of the transport network in encouraging economic growth. 12. Sustainable Transport – the importance of sustainable transport for the environment. 13. Walking, Wheeling, and Cycling - the importance of encouraging more people to walk, wheel and cycle (active travel). 14. Environment – how travel choices can contribute to reducing emissions and improve Air Quality and the Environment. 15. Inclusive Mobility – inclusivity within the transport network 16. Spatial Planning – working to achieve the aims of National Planning Framework 4 and the Local Development Plan 2 to encourage, promote and facilitate developments that prioritise walking, wheeling, cycling and public transport for everyday travel and reduce the need to travel unsustainably. 17. Technology – how technological advances continue to grow at pace and are becoming ever more present in all aspects of society and the influence this has on Transport. 18. Implementation and Monitoring – how the local Transport Strategy objectives and policies will be implemented and monitored. 6. Next Steps 6.1. An internal peer review of the draft chapters is underway and is anticipated to be concluded at the end of May 2024 and, thereafter, the finalised draft Strategy will be shared with elected members and then to wider stakeholder consultation for feedback. 6.2 Any feedback will be reviewed and considered in finalising the Sstrategy, and it is anticipated that this will be presented to the Community and Enterprise Resources Committee after the summer recess for approval prior to publication. 7. Employee Implications 7.1. There are no employee implications at this time. 8. Financial Implications 8.1. There are no significant financial implications associated with this at present. 9. Climate Change, Sustainability and Environmental Implications 9.1. As noted earlier, the new strategy will take cognisance of increasing global awareness of climate change, changes in travel patterns and activities, and a rapidly developing market in transport and travel technology ultimately seeking to provide genuine travel choice for those living, working in and visiting South Lanarkshire. 95
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10. Other Implications 10.1. A Fairer Scotland Duty Assessments is currently being progressed in line with the development of the Local Transport Strategy as part of the Statutory Impact Assessments process. 11. Equality Impact Assessment and Consultation Arrangements 11.1. An EQIA is currently being progressed in line with the development of the Local Transport Strategy as part of the Statutory Impact Assessments process. 11.2. Consultation to date is outlined earlier in this report and further consultation will be undertaken into the summer period. David Booth Executive Director (Community and Enterprise Resources) 28 March 2024 Link(s) to Council Values/Priorities/Outcomes Values Focused on people and their needs Working with and respecting others Accountable, effective, efficient and transparent Ambitious, self-aware and improving Fair, open and sustainable Priorities We will work to put people first and reduce inequality We will work towards a sustainable future in sustainable places We will work to recover, progress and improve Outcomes Our children and young people thrive Good quality, suitable and sustainable places to live Thriving business, fair jobs and vibrant town centres Caring, connected, sustainable communities People live the healthiest lives possible Inspiring learners, transforming learning, strengthening partnerships Previous References Enterprise Services Committee – 19 March 2013 List of Background Papers None Contact for Further Information If you would like to inspect the background papers or want further information, contact: - Colin Park, Head of Roads, Transportation and Fleet Services Ext: 4484, Tel: 07795 090494 Email: colin.park@southlanarkshire.gov.uk 96
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Report Agenda Item Report to: Community and Enterprise Resources Committee Date of Meeting: 23 April 2024 Report by: Executive Director (Community and Enterprise Resources) Subject: Scottish Aggregate Tax - Consultation 1. Purpose of Report 1.1. The purpose of the report is to:- inform the Committee of the Council’s response to the Scottish Government consultation on the Aggregates Tax and Devolved Taxes Administration (Scotland) Bill 2. Recommendation(s) 2.1. The Committee is asked to approve the following recommendation(s):- (1) that the Council’s response to the Scottish Aggregates Tax (SAT) consultation be noted; and (2) that the implications of the introduction of the proposed SAT be noted. [recs] 3. Background 3.1. South Lanarkshire Council, along with other local authorities have received contact from the Scottish Parliament who are seeking consultation responses on a proposed SAT Bill. The Bill and associate documents can be found here: Aggregates Tax and Devolved Taxes Administration (Scotland) Bill. 3.2. The proposed tax would replace the existing UK Aggregates Levy which applies to the use of primary aggregates used in road construction (i.e. it only applies to virgin aggregate and excludes recycled aggregates). The consultation responses can be found here: Call for Views on the Aggregates Tax and Devolved Taxes Administration (Scotland) Bill. 3.3. The tax would be applied at the point of production i.e. at the quarries, however, it is inevitable that consumers would be affected should the level of taxation differ from the UK Aggregates Levy. 3.4. Any difference between the Scottish and UK taxation levels could create competitive advantages/disadvantages to aggregate producers, particularly affecting those closest to the Scotland/England border. 3.5. If the SAT is implemented, then the block grant from the UK Government will be reduced in line with the reduced UK aggregate taxation revenues. 3.6. The SAT would replace the UK Aggregates Levy, with a devolved tax which is similar to the current UK tax in terms of its function and operation. There are, however, 15 97
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substantial costs to set up and administer the SAT estimated at between £3.385 million and £4.320 million until the end of the 2026/2027 financial year. 3.7. The financial memorandum, while setting out that scale of costs, has provided no detail on how these costs would be funded, or what level of additional cost each authority might be expected to bear. 3.8. There was no information contained within the consultation papers regarding what the anticipated benefits would be in Scotland or indeed what the levels of taxation would be set at in comparison with the rest of the UK. 3.9. The consultation was issued on 11 December 2023 and a reply requested by 9 February 2024. The following reply was prepared and considered by officers and discussed with the Chair of the Community and Enterprise Resources Committee prior to submission on 8 February 2024. 4. Consultation Questions and Responses 4.1. The consultation questions are shown below with our submitted responses shown in bold text. 1. Do you agree, in principle, that a tax should be levied on the commercial exploitation of primary aggregates? Yes, there has been a UK aggregates tax in place for many years and it is appropriate that primary aggregates attract taxation to reduce their use and encourage the use of alternative more sustainable products where appropriate. 2. Does the proposed Scottish Aggregates Tax (SAT) align with the Scottish Government’s Framework for Tax 2021, which sets out the principles and strategic objectives that underpin the Scottish Approach to Taxation? In particular, please set out the extent to which you consider that the proposed SAT reflects the principles of good tax policy making, included in the Framework for Tax, namely proportionality, certainty, convenience, engagement, effectiveness, and efficiency. The tax would appear to align with The Framework for Tax 2021; however, care should be taken to avoid unintended impacts on economic activity. If the tax level is set higher than the current UK Aggregate Levy, then this will add further pressure to local government, where added inflationary costs in the construction sector are already having significant impacts on the spending power of already limited budgets. It is assumed that bringing aggregate tax under a devolved arrangement will result in a reduction in the level of UK government grant for Scotland, so it will be important to understand what the net effect on Scottish Government revenues will be. 3. In this Bill, the Scottish Government has chosen to use the same definition of aggregate for the SAT on the basis that “it is compatible with the intended objectives for the tax, is well understood by aggregate producers, and is supported by existing UK Aggregates Levy (UKAL) taxpayers”. Do you agree with this approach of using the same definitions as UKAL for the Scottish Aggregates Tax? Yes, we see no reasons to alter the definition of aggregate for the SAT. 4. Part 1, Chapter 2 of the Bill provides definitions of some terms such as aggregate. It also sets out exemptions to the SAT such as particular types of aggregate and 98
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excepted processes. Are these definitions and exemptions appropriate and will they deliver the strategic and policy objectives which the Scottish Government has set for the Bill? The definition and exceptions would appear to be appropriate. 5. Should the Bill be passed, aggregate moved to Scotland from the rest of the UK will be subject to SAT, while aggregate moved to the rest of the UK from Scotland is expected to be subject to UKAL on the same basis as imports. What are the main benefits and challenges that may arise in relation to the tax treatment of cross-border movement of aggregate? Do you foresee any cross-border issues, behavioural or revenue impacts arising from this proposed approach? It is inevitable that the proposed arrangement will create some complications and additional administrative burden for all parties, including suppliers, the costs for which will be passed on to customers. If there is any variation between the Scottish and UK aggregate taxation levels, this would provide a commercial advantage or disadvantage to some aggregate producers, particularly those close to the Scotland / England border. If a lesser level of taxation were to be applied to English aggregate producers for example, then they would be placed at a commercial advantage over Scottish aggregate producers. 6. Are the arrangements for penalties and appeals as set out in the Bill appropriate? Yes, no further comments to add. 7. Do you consider that the provisions set out in Part 2 of the Bill will support effective and efficient administration of devolved taxes by Revenue Scotland? The provisions set out in part 2 appear to be reasonable and we have no further comments to add. 8. Are there other changes you would like to see included in Part 2 of the Bill to support the effective administration of devolved taxes in Scotland? No further comments to add at this stage. 9. Do you consider that the estimated costs and savings set out in the Financial Memorandum for the Bill are reasonable and accurate? If applicable, are you content that your organisation can meet any financial costs that it might incur because of the Bill? The costs for the introduction of this bill are significant (estimated between £3.385m and £4.320m up until end of financial year 2026/2027). It is stated in the memorandum that the UK government’s block grant will be reduced by an expected equivalent level of the anticipated devolved tax raised, therefore, if a level of taxation equivalent to the UK Aggregate tax levy is applied, there would appear to be no net benefit to Scotland, and between 3.385 and 4.320 million pounds of additional costs up until the end of the 2026/2027 financial year. We are not confident that our organisation could meet any additional costs arising from the proposed arrangement. Local government is already experiencing unprecedented financial pressure, because of inflation, 99
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savings requirements, and restricted budgets, which has already impacted upon service delivery. Any further increase in costs will reduce further the level of investment available for frontline services. The only way that Scottish tax revenues would improve would be if the Scottish levels of aggregate taxation were substantially increased to offset the 3 to 4-million-pound setup and running costs identified. This would place Scottish aggregate producers at a significant economic disadvantage compared to their competitors in the rest of the UK. 10. One policy objective of the Bill is to minimise necessary exploitation of primary aggregates. Therefore, it appears that, similarly to the Scottish Landfill Tax, the policy objective of the Bill is to reduce revenues deriving from this tax power over time. Do you agree with this approach? Yes, discouragement of the use of primary aggregates is a positive step, however, a cautious and limited approach is required. If aggregate levies are set at too high a level, this will force consumers to use potentially excessive levels of recycled materials, in certain sectors where long-term longevity is yet to be proven. An example would be the roads sector, where the use of too high a proportion of recycled materials could result in counter- productive failure rates, poor longevity, and ultimately increased cost. 5. Employee Implications 5.1. There are no employee implications at this time. 6. Financial Implications 6.1. The consultation did not clearly set out how the costs for the implementation of SAT would be funded, or by whom. This will be a clear consideration as the proposed Bill progresses through the next stages. 6.2. As noted in our response, we are not confident that we can fully meet any additional costs arising from the proposed arrangement. Local government is already experiencing unprecedented financial pressure, because of inflation, savings requirements, and restricted budgets, which has already impacted upon service delivery. 7. Climate Change, Sustainability and Environmental Implications 7.1. The intended purpose of the SAT Tax is to encourage greater use of recycled aggregates and to deter the quarrying of virgin aggregates. While the use of recycled aggregates is to be encouraged a degree of caution should be noted as outlined in point 10 above. 7.2. There are no climate change, sustainability, or environmental implications if it is assumed that the SAT will apply taxation levels which are similar to the current UK aggregates levy. 8. Other Implications 8.1. There are no other implications. 9. Equality Impact Assessment and Consultation Arrangements 9.1. This report does not introduce a new policy, function or strategy and, therefore, no impact assessment is required. 100
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9.2 There is also no requirement to undertake any consultation in terms of the information contained in this report. David Booth Executive Director (Community and Enterprise Resources) 28 March 2024 Link(s) to Council Values/Priorities/Outcomes Values Fair, open and sustainable Priorities We will work to put people first and reduce inequality We will work towards a sustainable future in sustainable places Outcomes Good quality, suitable and sustainable places to live Thriving business, fair jobs and vibrant town centres Caring, connected, sustainable communities List of Background Papers None Previous References None Contact for Further Information If you would like to inspect the background papers or want further information, please contact: Colin Park, Head of Roads, Transportation and Fleet Services Ext:- 4484, Tel: 07795 090494 Email:- colin.park@southlanarkshire.gov.uk 101
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