Item 12 - UK Shared Prosperity Fund
West Dunbartonshire Council · 24 August 2022
Back to Housing & Communities Committee — 24 August 2022 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Strategic Lead Housing and Employability - Housing and Communities Committee: August 2022 ___________________________________________________________________ Subject: UK Shared Prosperity Fund 1. Purpose 1.1 To highlight the launch of the UK Shared Prosperity Fund (UKSPF) and to outline a proposed approach for West Dunbartonshire Council input into the Glasgow City Region Investment Plan. 2. Recommendations 2.1 It is recommended that the Committee: a) Note the publication of the UKSPF prospectus including the associated financial allocations b) Note the general approach to the development of the Glasgow City Region Investment Plan c) Note the general approach for the proposed allocation of resources. 3. Background 3.1 The UK Shared Prosperity Fund (UKSPF) is the UK Government’s main funding to replace European Union (EU) Structural Funds. 3.2 Although the concept of the UKSPF was first outlined in 2017, very little substantive information was made available until some ‘pre-launch guidance’ was published in February 2022. This was followed up by the publication of a full prospectus in April 2022 by the UK Government. 3.3 The prospectus for the fund outlines the overarching aims to build pride in place and increase life chances. The three year fund has three core investment priorities that will guide the development of activities and how the funds should be allocated. Core Investment Priorities 3.3 The core investment principles are: • Communities and Place - to enable places to invest to restore their community spaces and relationships and create the foundations for economic development and build resilient and safe neighbourhoods through targeted investment and crime prevention. • Supporting Local Business – to enable places to fund interventions that support local businesses to thrive, innovate and grow. This includes visible improvements to local retail, hospitality and leisure sector facilities and targeted support for small and medium sized businesses to undertake new to firm innovation, adopt productivity ITEM 12
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enhancing energy efficient and low carbon technologies and techniques. • People and Skills – to reduce the barriers some people face to employment and support them to move towards employment; reduce levels of economic inactivity through investment in bespoke intensive life and employment support tailored to local need; and provide skills development through a wider range of routes. 3.5 There is no expectation placed on lead authorities to deliver activity against all of the core investment principle areas. However, there is a clear UK Government expectation that a minimum of 13% of the budget is allocated to a capital project. Our proposal is closer to 30%. In addition to this, funding has been ring-fenced and allocated to ‘Multiply’, the national programme to increase levels of functional numeracy that aims to increase the levels of numeracy in the adult population. 3.6 Each of the core investment priorities and multiply has a set of interventions with associated outputs and outcomes that have to be achieved and reported on. Further information about the UK Shared Prosperity Fund is published in the Prospectus which can be found at: UK Shared Prosperity Fund: prospectus - GOV.UK (www.gov.uk) Process and Timetable DATE ACTIVITY 13 April 2022 Fund Launch April-May 2022 Engagement sessions with local authorities and other local partners to support the investment plan process. April-June/July 2022 Lead local authorities work with stakeholders to develop local investment plans. Summer 2022 Further guidance published including guidance on monitoring benefits and evaluation, assurance, subsidy control, branding and publicity. 1 August 2022 Deadline for submission of investment plans to the UK Government. August -October 2022 Indicative investment plan assessment period for UK government. October 2022 onwards Anticipated date for first investment plans to be approved. October 2022 onwards Anticipated first payment to be made to lead local authorities. 31 March 2025 Three year funding period ends 4. Main Issues 4.1 The UK Government has designed a menu of interventions within each principle investment area that local areas can choose to select from. Alternatively, new options that suit the local area can be designed with the condition that they are consistent with the SPF overarching aims. The funds
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will be made available on the basis of a local investment plan that sets out local priorities and proposals for action. Approach and Funding 4.2 Lead authorities (West Dunbartonshire Council) are strongly encouraged to collaborate with their neighbouring authorities to develop regional investment plans. West Dunbartonshire is working in partnership with Glasgow City Region Partners. 4.3 A Glasgow City Region Head of Shared Prosperity Fund has been appointed and a working group of the UKSPF Officer leads in each local authority established and now meets on a regular basis to take the Regional Investment Plan forward. 4.4 The UK Government has established a notional allocation of funds to the City Region. GLASGOW CITY REGION Year 2022/23 2023/24 2024/25 Total Revenue £6,645,717 £12,979,919 £31,908,645 £51,534,281 Multiply £3,856,889 £4,450,258 £4,450,258 £12,757,405 Capital £771,378 £1,854,274 £6,956,940 £9,582,593 TOTAL £11,273,984 £19,284,451 £43,315,843 £73,874,279 WEST DUNBARTONSHIRE ALLOCATION 4.5 West Dunbartonshire share has been allocated by the UK Government in proportion to the population and level of need. West Dunbartonshire has been awarded a notional allocation up to £3,895,815. 4.6 It is expected that each area will allocate a minimum of approximately 13% of the core funding to capital investment over the three years of the programme. In West Dunbartonshire this equates to approximately £505,345 of the £3,895,815 allocation. The capital funds should be allocated as a proportion of core funds allocated to each year. 4.7 The guidance published by the UK Government suggests programmed spend over three years in West Dunbartonshire. Year £ 2022/23 £ 2023/24 £ 2024/25 £ Total Core 391,146 782,292 2,049,606 3,223,044 Multiply 203,396 234,688 234,688 672,771 Total 594,542 1,016,980 2,284,294 3,895,815 Minimum Capital spend (as % of core) 40,679 97,787 366,879 505,345 Taking UKSPF Forward in West Dunbartonshire 4.8 In West Dunbartonshire we have aimed to develop interventions in all three investment priority areas. We have established a sequential approach for identifying the appropriate mix of priorities that are consistent with the outputs
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and outcomes set out by the UKSPF guidelines. This approach prioritises and builds on existing commitments. This includes: • Reviewing existing activity where continuity beyond European Structural fund end dates is an issue and identify what can be supported through UKSPF. For example the current employability service is delivered with European Structural Funds that end in June 2023; • Review existing plan priorities and consulting with stakeholders and partners to identify eligible activity from those plan priorities that could be delivered within the budget constraints. 4.9 Existing plan priorities that we will draw on in West Dunbartonshire include: • Community Planning Priorities; • Council Economic/Regeneration/Wealth Building Plans; • Local Plan 2; • Business Development Strategy; • Employability Partnership 3-year plan; • Community Learning and Development 3-year Plan; • Community Empowerment Plan. 4.10 We have established a team to develop our proposals for the SPF. The team consists of lead officers from: • Working4U with overall lead and responsibility for People and Skills priority and Multiply; • The Communities Team and Regeneration Services for Communities and Place priority and capital projects; • Business Services for the Supporting Local Business priority. 4.11 Consultation on the input to the Regional Investment Plan will primarily, but not exclusively, be carried out through the existing partnership networks in West Dunbartonshire Community Planning and associated Delivery Improvement Groups. 4.12 This will also include consultation with existing partnerships that are co- ordinating business/regeneration, employability, communities and community learning and development plans and activities. This includes groups such as: • West Dunbartonshire Local Strategic Employability Partnership; • West Dunbartonshire Local Adult Learning Partnership; • West Dunbartonshire Communities Team/ Community Empowerment Networks; • Working4Business Networks. 4.13 Through our approach and taking into account existing commitments and UK Shared Prosperity guidance on eligible activity we are proposing the following investment allocations to the UKSPF priorities.
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Priority £Total % of core Activity (Outcome indicator number) Community and Place 944,222 30% • Shopfront and Small Business Improvement Grants (S1); • Pride in Place – Supporting Community Gardens 4 sites (S3); • Improvement and upgrade of CCTV Infrastructure (S4) • Community Pantry Network (S9), Community Consultation (S9), Community based communication (S9). Business 500,000 16% Grant based initiatives for: • Enhancing West Dunbartonshire’s Tourism Events & Attractions (S14); • Business Recovery & Growth (S15); • Towards Net Zero (S15); • Expert Help for Businesses (S20); • Early Stage Growth (S25); People and Skills 1,728,824 54% • Employment support for economically inactive people (S31); • Employability programmes & advice - No One Left Behind agenda (S35); • Competitive grant fund for specialist employability support and local skills needs (S36); • Case managed support for young people (S39); • Programme management and admin. Multiply 672,771 Ring fenced by UKSPF Guidelines • Courses designed to increase confidence with numbers (S42); • Courses aimed at encouraging people to upskill to access jobs/careers (S45); • Additional relevant maths modules in vocational courses (S46); • Innovative programmes delivered with employers (S47);
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Priority £Total % of core Activity (Outcome indicator number) • Intensive& flexible courses targeted at those without Level 5 maths (S48); • Courses designed to help people use numeracy to manage money (S49); • Provision developed in partnership with community organisations (S51). Total 3,845,817 5. People Implications 5.1 The UK Shared Prosperity Fund (UKSPF) is the UK Government’s main method replacing for EU Structural Funds. In West Dunbartonshire European Social Funds are used to deliver three components; each with specific activities and 35 employees. These are: • European Strategic Intervention – managing the monitoring and reporting of outcomes, approximately 7FTEs; • ESF Pipeline – Employability service case management and employability support provision, approximately 19 FTE’s; • ESF (Poverty and Social Inclusion) – family opportunity hub support focussing on supporting families likely to be affected by child poverty, 9 FTE’s and contracted specialist provision. 5.2 We have developed a range of UKSPF ‘People and Skills’ proposals that, while consistent with UKSPF priorities, centre on maintaining the existing teams and some of the targeted activity. Should these activities be endorsed by UKSPF it will ensure continuity of some of our key employability service provision and family opportunity hub services. 5.3 Within our proposals for ‘Multiply’ we have proposed a range of new activity that will require additional staff (4*specialist Maths Tutors). The maths tutors will ‘take maths to the community’ and, using a ‘social practice’ model, work with individuals, community groups, employers and health and social care/community justice partners. 5.4 There are no significant people implications (staffing) within our Communities and Place proposals or Business Support activities. 6. Financial and Procurement Implications 6.1 The UKSPF provides access to £3.8m of funds to be used over the period from 2022 to March 2025. The funding will be made available after the acceptance/approval of the ‘Regional Investment Plan’ which will be submitted to the UK Government in draft form in August 2022. It is unlikely
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that the approval process will be complete and funds made available before November. Activity is therefore likely to begin in January at the very earliest. 6.2 Funding proposals within Communities and Place includes the provision of grants for the improvement of shop fronts that will require a grant process to be applied. Also included as part of the Communities and Place is the upgrade of CCTV, this will require a procurement process to be implemented. 6.3 The contract strategy for CCTV network upgrade will be produced by the Corporate Procurement Unit in close consultation with the Communities Team. The contract strategy will develop existing feasibility studies to include: contract scope, service forward plan, the market, procurement model, roles and responsibilities, risks, issues and opportunities and ongoing contract management. 6.4 The CCTV Network will contribute to delivery of the Council strategic priorities through empowered communities and Community Planning West Dunbartonshire ‘Safe Communities’ priorities. Further opportunities to maximise the positive social, economic and environmental impact for West Dunbartonshire through the contract will also be explored, through the use of Community Benefit Clauses. 6.5 The Local Business Support centres on the provision of grants to support business development. Existing grant processes for distribution of business development grants will be used to manage these developments. 6.6 People and Skills proposals focus on continuity of existing European funded projects. However, our proposal includes provision for the commissioning of external specialist provision. This will include the provision of access to sector skill development and vocational and non-vocational qualifications. We have an existing competitive grant process that will be used for the purpose. 6.7 Multiply proposals are predicated on the use of existing and new specialist staff. Where relevant, for example to develop specialist interventions to support participants to secure the appropriate level 5 qualifications, we will work with the members of the Adult Learning Partnership, particularly West College Scotland, as a strategic partner. There will be limited requirement, if any, for procurement or acquisition of services through grants. We will use existing grant processes if additional services are required to meet service demands. 7. Risk Analysis 7.1 Risk management is an ongoing process that is considered by the lead officers developing the West Dunbartonshire proposals, as such we have developed our proposals while managing a number of risks, including for example: • Risk: The development of a Regional Investment Plan and UK Government assessment process takes longer than expected and UKSPF grant is not available until after January 2022. Mitigation: We have programmed spend over three years and have negotiated some
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carry forward for 2022 spend. We will not begin any UKSPF activity until we receive the UKSPF grant award, ESF employability services will continue until June 2022, reducing the immediate need for UKSPF grant to meet employability staff costs; • Risk: We have assumed that the business related grants will generate match income from businesses. However, economic circumstances may reduce the attractiveness of grants that require match. Mitigation: We will assess the circumstances when developing the grant process and modify grant award levels to ensure full take-up. • Risk: Multiply activity centres on the recruitment of specialist staff. All local authorities will be utilising Multiply funds, many in a similar way. Recruitment issues may delay the start of the project. – To mitigate this we will develop appropriate recruitment documentation in advance of the grant award. This way we will be able to respond quickly and recruit effectively. 7.2 There are a number of risks being managed at a regional level, these centre on the eligibility and definitions of some activity and target groups for the investments. Mitigation. A senior officer group has been established at a regional level to discuss and clarify any emerging issues prior to the submission of the Regional Investment Plan. 8. Equalities Impact Assessment (EIA) 8.1 Equalities legislation requires that new or significantly changing policies or services and financial decisions should be subject to an assessment of their impact on the wellbeing of certain groups of people. In addition to the equalities categories, the Council needs to have due regard to the reducing inequalities of outcome that result from socio-economic disadvantage. 8.2 We have conducted an equalities screening and found there is a positive equalities impact and an Equalities Impact Assessment (EIA) has been carried out. The EIA, which is listed as a background paper, found there to be a positive impact on the equalities groups. 8.3 The UK Shared Prosperity Fund will support activity that aims to: • Boost productivity, pay, jobs and living • Spread opportunities and improve access to public services • Restore a sense of community safety, pride and belonging • Empower local leaders and communities. 8.4 The approach to the development of the UK Shared Prosperity fund programme in West Dunbartonshire focuses on supporting those that would, under normal circumstances, face obstacles or barriers preventing them from full participation in socio/economic life. This includes specific focus on people with limited qualifications and work experience, people with lived experience of disadvantage, disabled people, those experiencing mental health issues, people from BME backgrounds, parents, those aged 50+ and young people.
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8.5 In addition, we have given due regard to our socio-economic duty by considering the effects of our decisions on inequality particularly where this can address inequalities of outcome, such as poorer skills and attainment; lower quality, less secure and lower paid work; and reducing the chance of being a victim of crime. 8.6 We will address this duty by: • Supporting people to obtain the skills that will help them to seek and secure employment; • Supporting people to obtain the skills that will help them to make informed decisions about their community; • providing access to skills development and maths skills; • work with local business and assist them to develop and provide opportunities as well as encouraging fair work practices; • supporting safe communities by reducing crime through the development of an effective CCTV network. 9. Consultation 9.1 Consultation on the input to the Regional Investment Plan has been carried out through the existing partnership networks in West Dunbartonshire Community Planning and associated Delivery Improvement Groups. 9.2 This includes consultation with existing partnerships that are co-ordinating business/regeneration, employability, communities and community learning and development plans and activities. This includes groups such as: • West Dunbartonshire Local Strategic Employability Partnership; • West Dunbartonshire Local Adult Learning Partnership; • West Dunbartonshire Communities Team/ Community Empowerment Networks; • Working4Business Networks. 9.3 Consultation will be maintained as part of the delivery of West Dunbartonshire UKSPF programme services. This will also form part of the development of our monitoring and reporting framework and design of service provision. 10. Strategic Assessment 10.1 The proposed approach to the use of UK Shared Prosperity Funds is consistent with the aim to develop a strong local economy and improved employment opportunities which features as one of the Council’s five main strategic priorities for 2017 - 2022 are as follows: 10.2 Our proposal within the context of the ‘People and Skills’ and ‘Multiply’ priorities is consistent with this strategic aim as they will support people who face barriers to opportunity to address those barriers obtain access to skills development and learning support and secure employment.
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10.3 This is reinforced by our proposals to support local business creation and growth through the provision of grants that will improve business frontages; assist business to develop ‘Net Zero’ activity; and support efforts to develop tourist attractions. 10.4 Through our communities and place activity we will establish methods for meaningful community engagement with active empowered and informed citizens who feel safe and engaged. Name Stephen Brooks Designation Working4U Manager Date: 07/07/2022 Person to Contact: Stephen Brooks Working4U Manager, 079643950131, Stephen.brooks@west-dunbarton.gov.uk Appendices: There are no appendices. Background Papers: Equalities Impact Assessment number 514. West Dunbartonshire UK Shared Prosperity Fund Wards Affected: The proposals within the report affect all council Wards.