AEJC - 30.10.24 combined doc pack
North Ayrshire Council · 30 October 2024
Back to Ayrshire Economic Joint Committee — 30 October 2024 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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County Buildings Wellington Square AYR KA7 1DR Tel No: 01292 612724 29 October 2024 To: Members of the Ayrshire Economic Joint Committee Dear Member AYRSHIRE ECONOMIC JOINT COMMITTEE (SPECIAL) You are requested to participate in the above Panel to be held on Wednesday, 30 October 2024 at 2p.m. for the purpose of considering the undernoted business. This meeting will be held on a hybrid basis in the Prestwick Committee Room, County Buildings, Ayr and by Microsoft Teams. Yours sincerely CATRIONA CAVES Chief Governance Officer B U S I N E S S 1. Sederunt/Declarations of Interest Members are requested to give notice of any declaration of interest in respect of the items of business on the agenda. 2. Great Harbour FBC Coastal Hub – Submit report by North Ayrshire Council (copy enclosed) 3. Scottish Parliament Inquiry Ayrshire Partnership Draft Response – Submit report by the Head of Economic Growth (copy enclosed) 4. AOCB For more information on any of the items on this agenda, please contact Committee Services at 01292 612724, Wellington Square, Ayr or e-mail: arlene.steven@south-ayrshire.gov.uk www.south-ayrshire.gov.uk
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Agenda Item 2 AYRSHIRE ECONOMIC JOINT COMMITTE MEETING – 30 October 2024 REPORT BY NORTH AYRSHIRE COUNCIL SUBJECT: THE GREAT HARBOUR, IRVINE: PHASE 1 – COASTAL HUB FULL BUSINESS CASE PURPOSE 1. To approve the Full Business Case for the Coastal Hub - Phase 1 of the Great Harbour project in Irvine, following its recent noting by the Ayrshire Economic Partnership Board and endorsement by Scottish Government and by North Ayrshire Council’s Cabinet. RECOMMENDATIONS 2. It is recommended that the Committee agrees to: (i) Approve the Full Business Case (FBC) provided at Appendix One for Phase 1 Coastal Hub of the Great Harbour, to enable the award of the related works tender. BACKGROUND 3. The Great Harbour is a transformational project at Irvine Harbourside as part of the Ayrshire Growth Deal Tourism Programme, which seeks to invest £23.5M in the development of tourism infrastructure in North Ayrshire. The Programme includes a £14M allocation towards the Great Harbour from Scottish Government (£9M) and North Ayrshire Council (£5M). 4. The Outline Business Case for the project was approved by the Scottish Government in June 2021. Following significant stakeholder consultation in Spring 2023, the Great Harbour Masterplan was approved by Cabinet on 5 December 2023 and Planning Committee on 24 April 2024. 5. The Great Harbour project will be delivered in three phases of which the Coastal Hub project is the first. The project has been informed by extensive consultation and comprises a major new outdoor play facility at Irvine Beach Park, improved outdoor park facilities and new infrastructure to support major events. This requires an overall estimated investment of approximately £5M from the Ayrshire Growth Deal, including the spend to date on development work, consultancy support, costs towards the tendered works and contingency. The overall programme for Great Harbour has approval through North Ayrshire Council’s 1
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annual Capital Programme. Each of the three phases and their outline budgets have contingency allowances and funds can be reallocated if necessary to Phase 1, should some additional funds be required to enable the award of the Coastal Hub tender. 6. The FBC was endorsed by North Ayrshire Council’s Cabinet on 1 October 2024 and Scottish Government on 25 October 2024. It was also noted by the Ayrshire Regional Economic Partnership Board on 25 October 2024, agreeing to the FBC’s submission to this Committee for approval, in line with the governance arrangements for the Ayrshire Growth Deal and to enable the award of the related works tender. MAIN REPORT 7. The Great Harbour project is a key tourism led socio-economic regeneration, placemaking and destination development project aiming to transform the highly deprived area of the coastal town of Irvine, North Ayrshire. It will create a new national and regional waterfront destination in Irvine, transforming the tourism and visitor potential of Ayrshire and the Clyde Coast, based on enhancing the current assets of the Harbourside and Beach Park areas. It is a key project for the Ayrshire Growth Deal within the Tourism Programme, with planned investment of £14m, consisting of £9m from the Scottish Government and £5m from North Ayrshire Council. 8. Following approval of the Great Harbour’s Outline Business Case in June 2021, the project has been further developed, informed by extensive consultation. This has led to a Masterplan for the wider area of the Harbourside and the Beach Park, which sets out an ambitious vision and provides a framework for the Ayrshire Growth Deal investment and for future development opportunities. The Masterplan was approved by Planning Committee in April 2024 following the endorsement from Cabinet in December 2023. This is now a material consideration in the determination of future planning applications for the area. 9. Proposals are focussed around three hubs of which the Coastal Hub is the first phase: • Coastal Hub (Phase 1) – a new major outdoor play facility for the Beach Park area, improvements to routes to and from the Beach Park, outdoor events infrastructure and initial improvements to the Pilot House. • Maritime Mile including a Marine & Arts Hub (Phase 2) – improvements to public spaces and the river’s edge around the vicinity of the Harbour Arts Centre and Harbour Master’s Office and public realm improvements to the Maritime Mile along Harbour Street. • Maritime Heritage Hub (Phase 3) – expanded facilities for the Scottish Maritime Museum (SMM), led by the SMM and additional outdoor events space adjacent to Harbour Street. 10. The Coastal Hub project aims to meet local needs and aspirations whilst ensuring that the maintenance and upkeep burden is minimised. It encompasses the southern end of the harbourside walkway and the most north-west part of the 2
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Beach Park, stretching from the large-grassed hill to the north, towards the cycle path/service road to the south and the boating pond to the east. It also includes the Pilot House, Boyd’s Automatic Tide Signalling Apparatus, which is a listed building and its surroundings, Beach Drive car park, the roundabout at the most western end of the Beach Drive and the access road to the boating pond car park. 11. The project will provide a destination for play and physical activity that caters for a wide range of age groups and abilities and is free to use. A themed playpark will be the central focus, integrated into the local landscape, with a skate park and pump track. The area between the play hub and the boating pond will remain as green space and will be equipped with some essential infrastructure to accommodate major events, with the potential to generate a source of revenue income for the Council. In addition, free public play activities are expected to increase footfall in the area, benefiting local businesses. As part of the hub, an outdoor gym near the boating pond has already been installed by Neighbourhood Services and the area will be further equipped with picnic benches to encourage longer stays and social interaction. 12. The project will also improve access between the Harbourside and the Beach Park, including active travel improvements to reduce car dominance and to provide better access to facilities and blue and green spaces, helping to improve wellbeing. The approach road and path network will be redesigned to improve pedestrian and cycle connectivity and new street furniture, picnic benches and directional signs will be installed. There will also be a first phase of external improvements to the Pilot House and its surrounding setting. Beach Drive car park will be re-lined and will provide spaces for motorhomes, alongside area-wide landscaping. The site hosting the play hub will be provided with a new drainage system and will require the diversion of some utilities. Digital infrastructure columns will also be installed on the Harbourside as a separate project, funded by UK Government’s SMART Infrastructure Pilot Programme, for which several columns will be within the Coastal Hub area. 13. As the first phase of the Great Harbour proposals, the Coastal Hub has been developed to technical detail and civil works have been tendered as part of a two- stage process. All necessary statutory permissions have been secured. The proposal requires an overall investment of £5M from the Ayrshire Growth Deal, which in addition to the civil works, also includes spend to date for development, work relating the Coastal Hub and from several other funding sources. 14. AGD funding is subject to the Green Book Treasury Business Case process and requires the approval of spend to ensure projects offer value for money. The Coastal Hub project has reached the final approval stage for the drawdown of funds and the Full Business Case (FBC) provided at Appendix One, has been prepared to allow the scrutiny of proposed spend, commercial and economic viability, financial feasibility and robust management of the project. 15. The FBC has progressed through project governance stages and is now available for consideration of approval following completion of key aspects of the 3
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Coastal Hub project set out in this report. Costs related the Coastal Hub are generally affordable, with tender costs received and are within the available capital budget for the Great Harbour Programme. Under the agreed AGD governance, the approval of the FBC has been delegated to the Ayrshire Economic Joint Committee (AEJC), following endorsement from the Scottish Government, endorsement by NAC’s Cabinet and noting by the Ayrshire Economic Partnership Board. 16. The FBC for the Coastal Hub provides a strong and competent case for approval, following the completion of key elements of the project as set out in this Report. The FBC approval is subject to a critical timeline to ensure the award of the works prior to the end of the tender validity period. IMPLICATIONS 17. The following eight implications have been considered in the preparation of this report. Implications Yes No Paragraph number in report 1. Policy Yes 18-20 2. Legal Yes 21 3. Human Resources Yes 22 4. Equality and Fairer Scotland Duty Yes 23-26 5. Financial Yes 27-29 6. Risk Yes 30 7. Community Wealth Building Yes 31-32 8. Net Zero Yes 33-34 ALIGNMENT WITH SUSTAINABLE, INCLUSIVE GROWTH AMBITIONS 18. The Great Harbour Masterplan was advanced in accordance with the adopted Local Development Plan 2 (LDP2). In this, Irvine Harbourside is identified as a Strategic Development Area (Strategic Policy 3) with support stated for its development and complies with the objectives of the LDP2 in relation to scope, land use and environmental quality. The LDP2 acts as the land use expression of ‘A Better Life’ a vision defined within the Single Outcome Agreement. The Council Plan sets out the framework to make North Ayrshire ‘the place to be’ to provide a better life for our residents, businesses and visitors and deliver on our commitments within the North Ayrshire Plan. 19. The project also reflects the Council priorities contained in the North Ayrshire Council Plan 2023 to 2028 of wellbeing, communities and local democracy, climate change and a sustainable Council. In addition, in supports several other North Ayrshire Council plans and strategies, including the Vacant and Derelict Land Strategy, Electric Vehicle Strategy, Sustainable North Ayrshire Strategy, 4
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Open Space Strategy, Local Transport and Active Travel Strategy and Local Biodiversity Action Plan. 20. The project is justified through the strategic planning context set out in Scottish Planning Policy and National Planning Framework 4 and the strategic fit with national, regional and local policy is detailed in Section 2.3 of the Full Business Case. LEGAL IMPLICATIONS 21. All statutory consents have been secured. The project’s geographical scope is within the sole ownership of the Council and has been developed alongside the Great Harbour Masterplan and aligns to its objectives and planning/design guidance. The award of tender now requires to be made within the 120-day period. In addition, the Terrorism (Protection of Premises) Bill, also known as Martyn’s Law, is pending UK wide legislation. This will place a requirement on those responsible for certain publicly accessible locations to consider the threat from terrorism and implement appropriate and proportionate mitigation measures. In this respect, consideration has been given to ensuring that the proposals, where possible, contribute towards compliance with the forthcoming requirements. HUMAN RESOURCE IMPLICATIONS 22. The project is funded by the Ayrshire Growth Deal and will be delivered by North Ayrshire Council’s Growth and Investment Team, with support from other North Ayrshire Council teams and external contractors and consultants. All services required have been procured in line with the Council’s Standing Orders Relating to Contracts. In addition, once the project is delivered, the improved areas will be maintained by the Council’s Streetscene team. EQUALITY AND FAIRER SCOTLAND DUTY IMPLICATIONS 23. As part of the Great Harbour Masterplan, Coastal Hub proposals consider social and economic sustainability through NAC’s Community Wealth Building Strategy 2020-2025. As a regeneration and place- making project, it aims to tackle inequalities derived from the area’s high levels of multiple deprivation, through enhancement and improved connectivity, improving safe public access to and the enjoyment of the waterfront and green spaces and key attractions, preserving local heritage and creating new attractions. 24. The Coastal Hub will provide an activity hub for the Maritime Mile offering free access to play and physical activity for residents and visitors. The play equipment is designed to encourage inclusive play for all ages and abilities. The addition of the skatepark, pump track and outdoor gym aims to diversify the park's offerings and to cater to a broad audience. 25. The improved active travel infrastructure provided by the project, not only will promote sustainable transportation, aligning with environmental goals, but also will enhance connectivity between the harbourside and the Beach Park. This 5
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aims to encourage visitors to explore the entire area for the improved wellness benefits associated with access to blue and green spaces. 26. An Equality Impact Assessment has been undertaken as part of the Full Business Case development and concluded predominantly positive or neutral impact. This forms Appendix S of the business case. FINANCIAL IMPLICATIONS 27. Capital: overall estimated capital investment of £5M is required from AGD for the Great Harbour Phase 1 - Coastal Hub project, towards a construction contract and spend on the development, delivery and management of the project. This is funded by the AGD Great Harbour Programme. The Coastal Hub project is further supported £392,000 of UK Government funding towards 5GIR SMART infrastructure. It is considered that endorsement from the Scottish Government will be a final acknowledgement that Phase 1 can proceed and the Council can then draw down the Scottish Government Grant. 28. Revenue: it is anticipated that there will be revenue costs related to the maintenance and repair of the area and equipment, that are in addition to currently incurred costs. This will follow an initial 12-month maintenance period covered by the contractor which is currently estimated to end by May 2026. The implications will be factored into the appropriate year’s Revenue Budget process and Medium-Term Financial Plan Update. 29. To ensure that future maintenance costs and resource pressures are minimised, the development and design of the project in terms of layout, materials and finishes, has involved consultation with all relevant Council services. As a result, a Coastal Hub Maintenance Plan has been prepared. This plan will be updated during and post-construction, to capture all relevant maintenance and repair regime requirements with identified processes and timescales, to assist relevant services and to ensure adequate revenue allocations are put in place. The process has already been initiated with relevant Council services, and later will involve specialist advice from manufacturers and contractors. North Ayrshire Council’s Streetscene have confirmed costs per annum of approximately £22,000 to undertake grounds maintenance and regular inspections of play equipment. In addition, £20,000 is being made available from the Council’s Regeneration revenue budget for the ongoing maintenance of the SMART columns. RISK IMPLICATIONS 30. The following table summarises the key risk implications: Risk Impact Details Financial risk High Without approval of the FBC the funding of £5M for the first phase cannot be awarded and NAC funds spent on development cannot be claimed Legal/ procurement Medium Without approval of the FBC the construction contract cannot be awarded. Reputational High Without approval of the FBC, NAC risks reputational damage 6
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as stakeholder engagement has raised significant expectation regarding the priority and delivery of the project. COMMUNITY WEALTH BUILDING 31. The Coastal Hub project considers social and economic sustainability through the Community Wealth Building Strategy 2024-2027. The project aligns with the principles of the Community Wealth Building (CWB) to ensure local wealth benefits the community and creates more equitable, inclusive, and sustainable economies, fostering sustainable growth, enhancing local participation, and ensuring long-term benefits for the community. 32. The Coastal Hub project, guided by the principles of CWB, goes beyond economic development. It aims to take a holistic approach that empowers the community, promotes inclusivity, and builds a sustainable and resilient local economy. This approach reflects a commitment to prioritise the well-being of local residents and create a community where prosperity is shared by all. The Coastal Hub contributes to these priorities through reaching and involving a broad spectrum of the community, using local suppliers where possible and creating a lasting community asset. In this respect, early engagement has been undertaken with several local manufacturers, who may be positioned to deliver elements of the proposed improvements. NET ZERO 33. Addressing climate change and carbon management is essential to making the Great Harbour a sustainable place and destination as part of the Ayrshire Growth Deal investment. The overall Masterplan for the area recognises the impact of climate change and considers national and local strategies and actions on environmental sustainability and carbon emissions in line with the Climate Change Act 2019, Scotland’s net zero targets and the Sustainable North Ayrshire Strategy 2024-2027. In particular, the project has been informed by the Place Standard and 20 Minute Neighbourhood principles, with consideration of its whole-life carbon emissions. The overall approach to sustainability is summarised in the table below: Great Harbour: Coastal Hub – Sustainability Community - Providing tourism & leisure opportunities. - Providing access to green and blue spaces to improve wellbeing. - Job opportunities through new investment. Design - Identifying areas needing most improvement. - Retaining existing assets and features. - Applying the Place Standard and 20 Minute. - Neighbourhood design principles. - Flood protection and biodiversity considerations. - Minimising future maintenance requirements. Construction - Adopting Community Wealth Building principles. - Adopting PAS 2080 Carbon Management in Infrastructure. 7
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Transport / Commute - Providing active travel & improving routes and connections. - Prioritising walking, cycling and wheeling. - Better connected and more legible routes across the Coastal Hub area. 34. A Carbon Management Plan has been developed for the Coastal Hub and reviewed regularly throughout the design stages. The construction work will be monitored against this plan to support the identification of further carbon emission reductions. In addition, it will undergo a 12-month performance evaluation post construction. This comprehensive strategy ensures that carbon management remains a central focus, aligning with industry best practice and sustainability objectives. APPENDICES The Great Harbour Phase 1 Coastal Hub – Full Business Case (with appendices) BACKGROUND PAPERS None. Persons to contact: Louise Kirk, Head of Economic Development, Growth & Regeneration Email: lkirk@north-ayrshire.gov.uk Marnie Ritchie, Interim Senior Manager, Growth & Investment North Ayrshire Council Email: marnieritchie@north-ayrshire.gov.uk 8
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Agenda Item 3 AYRSHIRE ECONOMIC JOINT COMMITTEE MEETING – 30 OCTOBER 2024 REPORT BY HEAD OF ECONOMIC GROWTH EAST AYRSHIRE COUNCIL SUBJECT: SCOTTISH PARLIAMENT INQUIRY – AYRSHIRE PARTNERSHIP DRAFT RESPONSE PURPOSE OF REPORT 1. To advise the Ayrshire Economic Joint Committee (AEJC) members on the Scottish Parliament Inquiry into Growth Deals in Scotland and a draft response from Ayrshire Partners. RECOMMENDATIONS 2. Agree the content of the report and recommend approval to: (i) Note the consultation request from the Scottish Parliament Inquiry and the questions posed; and (ii) The draft responses proposed as a reflection of Ayrshire Partners. (iii) Enable final sign off by the Ayrshire Growth Deal Section 95 Accountable Officer. BACKGROUND 3. An Inquiry into the Scottish Growth Deals has been called by the Economic and Fair Work Committee of the Scottish Parliament. The Inquiry will focus on the implementation and effectiveness of the 12 Scottish Deals and as a result have sought the submission of evidence. The closing date for evidence to be submitted is 14 November 2024. MAIN REPORT 4. The Economic and Fair Work Committee have highlighted that they will consider any submissions made earlier this year to the Scottish Affairs Committee (May 2024). The Scottish Affairs Committee Inquiry was proposed to focus on the progress and operation of City Region and Growth Deals, following up on the Committee’s previous work examining them in 2021. This included exploring the lessons learned since the Deals launched to understand what has been delivered so far and barriers to their success. In addition, it sought to examine how satisfied stakeholders are with the level of progress, engagement and transparency on the Deals from the UK 9
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Government. The three Ayrshire Councils coordinated a response and submitted it to the Scottish Affairs Committee, however, the Inquiry did not take place due to the General Election in June 2024. A copy of our submission for reference is included in this paper (Appendix 1). 5. The Economic and Fair Work Committee (EFWC) Inquiry are particularly keen to hear from Scottish businesses, Local authorities involved in Deals, and Community groups. Twelve specific questions have been set which seek to frame the discussion and expected submission responses. Six of the questions are targeted towards Scottish businesses and their experience of the Deals in their respective areas. 6. In response to the Inquiry request and as previously undertaken, the PMO has sought to coordinate an Ayrshire regional response. This has been achieved by engaging with the three Ayrshire Councils in order to gather their views on the questions set. The attached response (Appendix 2) has focused on the first six questions, but also provided a narrative to the remaining six questions that are orientated towards the Scottish business community. 7. Submissions are to be made online, with the draft provided in Appendix 2 acting as the basis for Ayrshire’s response. The closing date for submissions is 14 November 2024. In the meantime an invite has been received to appear in front of the EFWC, in order to provide evidence to the Inquiry. This is schedule to take place at the Scottish Parliament on 11 December 2024. Discussions are underway on who should represent the AGD and Ayrshire at the Inquiry. IMPLICATIONS 8. The implications arising from this report are: Implications Yes No Paragraph number in report 1. Policy/Strategic Planning Yes Para 9-10 2.Governance/Legal Yes Para 12 3. Human Resources Yes Para 13 4. Equality and Fairer Scotland Duty Yes Para 14 5. Financial Yes Para 11 6. Risk Yes Whole paper 7. Community Wealth Building No 8. Net Zero No ALIGNMENT WITH SUSTAINABLE, INCLUSIVE GROWTH AMBITIONS 9. Inclusion is a key driver for the AGD with projects required to demonstrate how they will reduce inequalities and tackle the inclusion challenges specific to Ayrshire. 10
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10. The Risk Register provides the framework for reviewing the challenges the AGD needs to address and sets out the mitigation measures to be undertaken that include meeting the headline Deal objective of delivering inclusive growth. FINANCIAL IMPLICATIONS 11. It is accepted by the Ayrshire Councils and the Government that risks should be managed and mitigated where necessary in order to support the effective delivery of projects and the programme. LEGAL IMPLICATIONS 12. The legal implications arising from this report are covered through the Agreement between the three Ayrshire’s Councils and the revised Governance Document which was approved at the Joint Committee meeting on 8 December 2022. HUMAN RESOURCES IMPLICATIONS 13. There are no immediate human resource implications arising from this report. EQUALITY IMPACT ASSESSMENT 14. There is no direct equalities impact relating to this report. As background inclusion is a key driver for the AGD. Project leads will be required to complete an Equality Impact Assessment for their project and append to the associated business case. Project leads have received Equality Impact Assessment training organised by the Scottish Government. Project Leads are being encouraged by the PMO to link up as soon as possible with their Equalities Officer within their authority who will be able to assist with this matter. APPENDICES Appendix 1: UK Parliament (Scottish Affairs Committee) - Call for views on City Region and Growth Deals - Ayrshire Submission. Appendix 2: Scottish Parliamentary Inquiry into the Growth Deals - Ayrshire DRAFT Submission Background Papers: Heads of Terms, signed by both the UK and Scottish Governments and Ayrshire’s Councils on 8 March 2019 Deal Document, signed by both the UK and Scottish Governments and Ayrshire’s Councils on 19 November 2020 11
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Members requiring further information should contact: Graham Saunders, Ayrshire Growth Deal – Strategic Manager Graham.saunders@east-ayrshire.gov.uk Implementation Officer: Graham Saunders, Ayrshire Growth Deal – Strategic Manager Graham.saunders@east-ayrshire.gov.uk 12
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Appendix 1: UK Parliament (Scottish Affairs Committee) - Call for views on City Region and Growth Deals - Ayrshire Submission. UK PARLIAMENT (SCOTTISH AFFAIRS COMMITTEE) – CALL FOR VIEWS ON CITY REGION AND GROWTH DEALS, APRIL 2024 The Committee would like to hear your views. We welcome written submissions from anyone with answers to any or all of the questions in the call for evidence: What contribution have City Region Deals and Regional Growth Deals made to the development of Scottish Cities and regional economies? The £251.5 million Regional Growth Deal for Ayrshire has already made a significant contribution to our regional economy, and will continue to do so over the next decade as many of the key projects move into their delivery phase. The 2023 Benefits Realisation Plan (BRP) shows that the AGD had supported 861 jobs (at March 2023 and facilitated c.£61 million of private sector investment. Latest projections forecast that over the lifetime of the AGD, 7,479 jobs will be supported and this will facilitate c.£356 million of private sector investment. The BRP will be updated in Spring 2024 and a new Annual Performance Report covering the period from October 2022 – March 2024 will also be published shortly. Our revenue projects have made particularly strong progress, and this was highlighted at the Ayrshire Joint Economic Committee meeting in June 2023 as follows: • Working for Healthy Economy (WfHE) – this £5m, 5 year project has now been extended by an additional year. The project has exceeded expectations in terms of the number of people accessing the service (1,040 clients, against a target of 960). Promotional activity has helped to further increase the uptake of the service by local businesses and individuals. The project has increased health & wellbeing outcomes for individuals as well as supporting employers to retain their workforce, improving their health and reduce absenteeism from the workplace. • Community Wealth Building (CWB) – this £3m, 3 year project has recently been extended by a year in order to maximise its impact on local enterprises, as demonstrated by the table below. Our three local authorities intend to embed this approach in core service delivery as a further sign of the programme’s added value. • Ayrshire Skills Investment Fund – a £3.5m, 3 year project. Following the approval of the Final Business Case in August 2023, funds have been authorised to providers to allow them to support the delivery of training programmes across Ayrshire that meet the skills needs of local businesses. Capital projects remain at a relatively early stage, with some now moving into delivery and others expected to do so over the next 18 months. The first of these is the Digital Process Manufacturing Centre (DPMC) Pilot at i3 in Irvine which has secured the presence of NMIS 13
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and CPI in the local area. The first phase of flexible advanced manufacturing space is on also site at i3 adjacent to the DPMC Pilot site. Beyond the tangible benefits highlighted above, the existence of the Deal has also helped to embed collaborative working arrangements across the three Councils, other public sector stakeholders and the private sector. An example of this joint working has been the recently approved Ayrshire Regional Economic Strategy, which was published in June 2023. Promotion of the Growth Deal has also led to an increase in the number of inward investment enquiries as a result of the region’s heightened profile across Scotland, the UK and on the international stage. What are the key opportunities and challenges for City Region Deals and Regional Growth Deals in the coming years? With the launch of the Regional Economic Strategy and associated Delivery Plans in 2023, AGD projects make up a major component part of this activity and will be vital in terms of achieving the strategy’s long-term ambitious priorities, which are: • Support for Enterprise: A region where businesses can grow both domestically and globally; entrepreneurship and creativity can flourish. • Fair Work: A region which offers all individuals an effective voice, opportunity, security, fulfilment, and respect in work. • Innovation: A region where enterprises and the public sector adopt innovative solutions to address economic problems. • Good Health and Wellbeing: A region where people of all ages have the access to resources to live a healthy, full, and purposeful life. • Stronger Places and Communities: Local economies can sustain thriving communities and deliver good public and private services to residents and visitors. • Enhancing Natural Capital: Preserving and enhancing Ayrshire’s natural capital, meeting Scotland’s commitments to net zero and protection of biodiversity. Tools are being developed to capture the performance of the RES, including a commitment to the development of a Regional Intelligence Hub for Ayrshire. This is expected to be a key resource and a focus for undertaking economic development impact analysis of AGD projects and programmes. However, Scottish Government funding to support a Regional Intelligence Hub has been delayed and alternative models are being considered to meet this gap. Given our local and regional vision of developing a Wellbeing Economy, a shift by the UK Government towards acknowledging a wider range of economic indicators would be helpful in supporting this approach. This would include giving increased weighting to measures beyond GDP/GVA, including broader socio-economic and environmental indicators that support our vision of ensuring our local economy is inclusive to all our residents and operates within safe environmental limits. 14
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In terms of challenges, the past three years have provided many which have impacted on the development of the majority of the projects and their business cases. These have included external factors such as the continued legacy of Brexit and Covid, the impact of the conflict in Ukraine and the cost of living crisis. These factors have adversely affected the availability of resources and caused cost pressures. In addition, since the Deal was agreed, additional requirements have been put in place by both Governments in relation to our projects and programmes; for example, City Region & Growth Deals Carbon Guidance was published in August 2021. Subsidy rules and in particular, the requirement to satisfy that public investment will not distort competition within the marketplace have impacted in terms of rent affordability for potential commercial tenants. Environmental changes, including changes to the way flood risks and likelihood of occurrence are reported have also impacted upon the development potential of targeted sites for growth and this is also resulting in increased costs. From a South Ayrshire perspective, the space industry demonstrates the extent of the changes which have impacted upon the global marketplace. Total investment in this industry in 2021 was £11 billion; current projections indicate this will fall to around £2.7 billion in 2023. Similar trends are taking place in other Growth Deal sectors. Within this wider political and economic landscape projects have also experienced a number of other specific issues that have generated active engagement within the partnership and Government. Specific challenges have included: • Delays in the development and approval of business cases. • Continued cost pressures which have impacted upon the original deliverability of projects e.g. increased construction costs. • Additional aspiration to ensure projects reach net zero which has had an impact upon cost pressures. • Time required to review projects and engage with all, to ensure value for money is still achievable e.g. through value engineering. • Impact of aligning dependencies such as land purchases, regulatory requirements, consents and procurement processes to ensure business cases are fit for delivery. • Promoting and engaging with targeted audiences especially with business community when the commercial environment is unstable. • Managing consistency in delivery on pan-Ayrshire projects where each partner is at different stages, and having unique and differing issues to tackle. Partners have noted concerns in relation to the frequent changes to Government leads and the impact that can have on progress. The business case approval process has also proved to be more challenging than anticipated and feedback generally on businesses cases appears uncertain in terms of timelines. For example, the Ayrshire Skills Investment Fund Final Business Case was subject to 17 iterative drafts prior to approval by Government. In response to these challenges, partners have agreed to review the governance structure to ensure the governance of the Deal it is still fit for purpose and continues to support effective 15
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scrutiny and decision making to support the continued development and delivery of the programme. How have City Region Deals and Regional Growth Deals progressed since the Committee last examined them in 2021? The challenges of the global economy, the war in Ukraine and the legacy of both the Covid pandemic and Brexit have created an environment of uncertainty and revaluation, prompting us to review the viability and deliverability of many of the Growth Deal projects. Despite these difficulties, considerable progress has been made with the programme as a whole moving from a development phase to one where projects are now being delivered. The opening of The HALO Kilmarnock in April 2022 demonstrates how the Deal is contributing to the economic and social development of the local area and beyond. For example the PRA Group, a Nasdaq listed financial management company, has selected the HALO as their European HQ and they now occupy two floors of this innovative operation with the third floor marketed to SME’s. The Community Wealth Building Programme has been successful in raising awareness of a CWB approach to enterprises across the region. It has taken a regional approach to economic development and has been showcased as an example of best practice in this regard by the Scottish Government. The programme is performing well against targets set in the Full Business Case and in some cases, exceeding key outputs assigned. Whilst this has not been without challenges especially in the early stages of delivery due to recruitment issues, real momentum and confidence has been gained, underpinning recommendations within the review for CWB work to continue beyond the 3-year time-frame (supported by Shared Prosperity Funding in year 4) in order to continue strengthening Ayrshire’s local economic realisation. Pan- Ayrshire outputs show that over 900 enterprises have been supported by the programme in CWB. Based on an assured start and progression through Year 3 of the programme, it is likely that this headline target will be exceeded by some distance. Whilst these good news stories are welcome, all three local authorities have reported barriers and highlighted the need to make changes. For example, in East Ayrshire the lack of transport funding to develop the infrastructure constraints at Bellfield Interchange has triggered a review of the site location for the Advanced Manufacturing Investment Corridor to a co-location within the Ayrshire Engineering Park site. This has enabled a number of complex transport challenges to be resolved while managing the construction inflation challenges impacting on all construction projects; however, the Council remains concerned in terms of the lack of progress at Bellfield and is seeking urgent discussions with key stakeholders in an attempt to resolve matters. What steps have different City Region Deals and Regional Growth Deals taken to implement the recommendations of the 2020 Audit Scotland report? 16
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The 2020 Audit Scotland report has been considered by the Ayrshire Economic Joint Committee (the June 2023 progress report was submitted to the Committee on 7 August 2023). The AGD Project Management Office and East Ayrshire Council Audit (acting on behalf of the AGD Auditors) welcomed the opportunity to share current practices with Audit Scotland. The result of our engagement has helped raise the profile of the Ayrshire Growth Deal and its current practices with the national auditors, and this has been endorsed by the Audit Scotland report. For example, the report recommended that Internal Audit colleagues help to ensure the effective operation of governance arrangements. In this regard, it was noted that the AGD specified the role of internal audit within its governance documents. The Chief Auditor was involved at initial deal development stage and summary internal audit reports are regularly presented to the Ayrshire Economic Joint Committee. It should also be noted that a review of governance arrangements, which will include the Growth Deal, is currently taking place at regional level via the Regional Economic Strategy Delivery Plan. Whilst the report shows that the local authority contribution to the Ayrshire Growth Deal is the lowest in Scotland, as a percentage of total programme budget, local Internal Audit observed that in a context where national funds and programme deliverables are both fixed, but inflation is higher than anticipated. This means unless Deal deliverables can be renegotiated (e.g., by scaling back project goals, prior to Full Business Case approval), then councils will be liable to make up the shortfall attributable to inflation for not only their own share, but also for the UK/Scottish Government’s share. In the AGD’s case, this means the Ayrshire councils must cover the cost of unpredicted inflationary impact not only on each £1 they committed to the Deal; but also potentially cover the cost of such impact on £4 of UK/Scottish Government funding. How do the provision and effectiveness of City Region Deals and Regional Growth Deals compare with similar schemes in England and Wales (such as Investment Zones)? We are unable to comment on this as we are not familiar with the schemes operating in England and Wales. How do City Region Deals and Regional Growth Deals align with other ‘Levelling-Up’ funding available to Scotland? Additional funding secured for the region via Levelling Up has been welcome (particularly in the current economic climate) and in many cases, it is being used to complement AGD programmes and projects. However, the timescales for the development and submission of applications to the Fund have proved to be challenging alongside the dynamic nature and timing of the guidance and application processes. The provision of capacity and capability funding under the Levelling Up Fund has been beneficial to both reduce the financial risk of project development and support Business Case development. This has assisted with the submission of successful applications and 17
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early stage development and delivery. The timescales around the review and approval of Business Cases have however been similarly challenging affecting overall programmes, alongside a high level of turnover at the Department for Transport in the case of North Ayrshire Council’s LUF project (round one). Ayrshire Councils have had a fairly positive experience of LUF and the UK Shared Prosperity Fund. The application process has been familiar and the working relationships with UK Government officers has been productive. However, the timescales towards approval have been protracted, pressurising the timeframe for delivery. UKSPF spend to date, particularly on business support, has been compromised by extension to the former ERDF programme to provide additional time to delivery contracted outputs that were compromised by the Covid-19 hiatus. Looking ahead, clarity is urgently needed in relation to funding arrangements for SPF- funded projects beyond 1 April 2025. These projects are an important element of our plans for sustained economic growth and community wealth building against what remains an extremely challenging economic backdrop. The delay in the release of funds at the outset of this programme continues to have a knock- on impact upon project delivery, although this financial year has seen significant progress being made in a number of key projects. The risk is that without SPF or an equivalent, there is no funding to support some of the most vulnerable groups in our society, and the long-term economic impacts of this will impact upon AGD outcomes. Examples of where the impacts would be most keenly felt include training programmes for the economically inactive; recruitment of Modern Apprentices and interns; grants for businesses; support to businesses via the Community Wealth Building programme; and business start-ups. Any break in funding, even for a period of a few months, would also be hugely problematic; these programmes cannot simply be switched back on again and the ‘catch-up’/re- commissioning period would be considerably longer, with the likelihood that many of our clients, particularly in the employability field, would become disengaged from support systems. To what degree do City Region Deals and Regional Growth Deals address the right priorities for Scotland? Is there sufficient flexibility in the schemes to tailor the offer to regional needs? The Ayrshire Growth Deal is broadly aligned with Scotland’s National Strategy for Economic Transformation (NSET) and both share a vision to create a wellbeing economy which is built on the principles of inclusive economic growth. In ensuring that the Deal continues to address the ‘right’ priorities for Scotland, having access to data and intelligence is crucial. The Scottish Government is currently exploring the establishment of Intelligence Hubs across all regions in Scotland. These aim to build 18
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sustained expertise within regions to carry out novel and creative economic analysis, providing a deeper and broader understanding of specific and nuanced regional strengths and challenges. In addition and in response to ensuring the ‘right’ priorities are delivering what is needed in the region, flexibility in the application of the Deal is essential. All of this must based on robust evidence and clear beneficial targets. This includes allowing local decision makers to have a key role in consultation with both Governments as the principal funders. Consideration is also being given to the provision of resource to support RES delivery Actions have therefore been identified to investigate the potential to secure such resource for Ayrshire. What policies should the UK Government adopt to foster the success of City Region Deals and Regional Growth Deals in the coming years? We have noted the ever-increasing complexity of the funding landscape in which local authorities and regional partnerships operate. Unlike core funding programmes, these grants are often very specific, short term and competitively accessed, limiting what can ultimately be delivered. In order to ensure the success of Regional Growth Deals such as our own in Ayrshire, we would welcome the simplification of the system, aiming for a more transparent, simple and accountable approach to funding. In the short-term, and as noted earlier, we are facing an uncertain future beyond March 2025 in terms of the UK Shared Prosperity Fund and clarity is urgently required in order to secure the future of projects and programmes, many of which are complementary to the AGD. 19
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Appendix 2: Scottish Parliamentary Inquiry into the Growth Deals - Ayrshire DRAFT Submission Draft RESPONSE Scottish Parliamentary inquiry into the Growth Deals – Questions (Sept-Nov 24) The Committee is looking for responses to the following questions: 1. How well is devolved decision-making working in practice? To what extent do local stakeholders, businesses and communities feel they have a stake in deals, and do projects selected address local priorities? In general the devolved decision-making works in practice, however there are always opportunities for improvement. Details are provided below in the context of the national devolved decision making process and at the regional/local level. National Level: Devolved Decision-Making with the Scottish and UK Governments At the national level engagement with both the UK Government and the Scottish Government has been generally positive. This includes engagement between the PMO and Partners with the Government, through discussions on the progress of the overall Programme and individual projects. Initially engagement with the Governments and the receiving responses/advice was not as timely as required to support the delivery of the Programme. However through practice and proactive discussions the following improvements have been made during the lifetime of the Ayrshire Deal’s operation: • Both the UK and Scottish Governments now coordinate their feedback more effectively, providing a unified and consistent position on key issues. This enhances clarity and helps streamline decision-making. • The timescales for receiving responses from the Governments have become more efficient, particularly in relation to business case consultations. The PMO has successfully engaged in forward planning with the Governments to ensure timely input, especially when approval or endorsement is required to deliver at pace. However in the case of completing business case process, as a key stage before project delivery, projects need to gain approval (OBC) or endorsement (FBC) from the Governments. This is achieved through consultation with Governments on the robustness of business cases which are reviewed by government policy leads. The level of feedback from policy leads is increasingly becoming more detailed and often costly to meet or achieve. This is to the extent that there is a question of proportionality on the level of detailed now sought at key stages of the business case process. This is adding time and complexity to the business case process and potentially unnecessarily delaying project delivery. 20
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Regional/Local Level: Decision-Making and Stakeholder Engagement in Ayrshire At the regional level, local decision making in relation to the Ayrshire Growth Deal is predominantly guided by agreed Governance arrangements. The membership is made up of the core Partners (UK and Scottish Governments and the three Ayrshire Councils), and regional partners, which include a range of stakeholders such as government agencies, academia, trade agencies (e.g. Chambers of Commerce) and major businesses operating in Ayrshire. Please see details of the Partnership - Partnership | Ayrshire Growth Deal Active engagement with local businesses, communities, and stakeholders is central to the development and delivery of projects. In particular, local authorities have taken the lead in consulting with these groups throughout the development of business cases and the implementation of projects. Good examples are the active engagement and benefits delivered to businesses and communities through the Community Wealth Building, Working for Healthy Economy and Ayrshire Skills Investment Fund projects where revenue projects can be delivered quicker than the capital projects. For example: • Community Wealth Building (CWB): This initiative, led by North Ayrshire Council, has seen significant community engagement in its efforts to retain more wealth within the local economy. Through workshops, consultations, and partnerships with local enterprises, the CWB approach ensures that businesses and residents have a direct role in shaping the economic outcomes in their communities. • Working for a Healthy Economy (WfHE): This project actively involves businesses in discussions on how to improve employee wellbeing and productivity. Local businesses have been instrumental in shaping the project to align with the unique needs of Ayrshire’s workforce, ensuring that the programme directly addresses local concerns. • Ayrshire Skills Investment Fund (ASIF): This project is developed in close consultation with employers and academic institutions to address the skills gap in Ayrshire. The high level of engagement ensures that training programmes are tailored to meet the specific requirements of local industries, reinforcing the connection between the project’s objectives and regional economic priorities. Improvements in Engagement and Communication While there are many examples of effective engagement at the local level, there is recognition that further promotion of the Programme and its benefits remains a priority. Currently, the AGD’s governance structure ensures that regular reporting is undertaken to the Partnership Board and Joint Committee, while active updates are provided to wider stakeholders through project-specific activities and web/media channels. However, stakeholders have identified the need for enhanced communication efforts to increase visibility and awareness of the Deal’s progress. This is being addressed through: • Development of a Communication Strategy: The AGD is refining its communications approach to ensure more comprehensive and regular updates are shared with businesses, communities, and potential investors. This includes reviewing existing 21
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media channels and exploring new methods to foster ongoing dialogue with stakeholders. • PMO support local engagement activity: The PMO, where appropriate is seeking to provide support to partners in the development, delivery and promotion of projects. This allows for the strategic and programme perspective to be understood and considered as a key part of projects success. In conclusion, while devolved decision-making is working effectively both at the national and local levels, there are areas for improvement, particularly in streamlining approval processes and enhancing communication efforts. Local stakeholders, businesses, and communities do have an important stake in the projects, particularly when engagement is actively facilitated by the Councils. Projects like Community Wealth Building, Working for a Healthy Economy, and the Ayrshire Skills Investment Fund have shown how strong local participation can shape outcomes to reflect regional priorities. The Ayrshire Growth Deal partners recognise the need to further promote the Programme and strengthen direct engagement, ensuring the potential benefits of the Deal are understood and fully realised. 2. To what extent have projects been scoped years before funding is allocated? What have the challenges been where this has happened? The projects included in the Ayrshire Growth Deal were scoped well in advance of its signing in November 2020. This work, led by the three Ayrshire Councils, was based on the 2016 Strategic Business Case and accompanying information, which was submitted to the UK and Scottish Governments to secure funding. The primary aim of this pre-work was to identify projects that would drive significant economic growth in Ayrshire while ensuring local communities could participate in that growth. Details of the Strategic Business Case - Objective Connect And details of the Committee decision on the Deal – June 2019 - Objective Connect The pre-work informing the selection and scope of projects involved a comprehensive analysis of Ayrshire’s economic landscape. This included: • Economic and Feasibility Studies: These identified key sectors such as aerospace, manufacturing, and tourism that could drive regional growth. Detailed feasibility studies also assessed project viability and long-term sustainability. • Stakeholder Engagement: Local businesses, communities, and public sector partners were consulted to ensure projects aligned with both local needs and national policies. • Strategic Alignment: The projects were designed to align with broader economic strategies at both the national and regional levels, such as Scotland’s Economic Strategy and the UK Industrial Strategy, ensuring they supported both local and national objectives. 22
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The challenges of long-term project scoping include: Scoping projects years before funding allocation posed several challenges: • Changing Economic and Policy Context: Since many projects were scoped in 2016, some of the original evidence may have become outdated, potentially impacting the relevance of certain project objectives. The introduction of new national policies, such as net-zero carbon targets, has also necessitated revisiting project goals to ensure feasibility and alignment with these priorities. • Political Changes: Shifts in local government administrations following elections leading to changes in priorities for lead authorities, potentially affecting the focus or scope of certain projects. • Rising Costs and Resource Availability: External events during project delivery such as Brexit and the Ukraine conflict have contributed to rising costs and resource constraints, creating challenges for delivering projects within the originally planned budgets and timelines. • External Economic Shocks: The global economic environment has changed significantly since the original scoping, driven by the Covid pandemic which has had further impacts on material costs, supply chains, and labour availability. These unforeseen factors have complicated project delivery. While these challenges have required adaptation, the Ayrshire Growth Deal continues to strive toward delivering on its strategic objectives, with ongoing efforts to update project scopes and align them with current priorities and realities. 3. How do the aims of the deals align with other economic development policy in Scotland? The Ayrshire Growth Deal seeks to align with all relevant economic development policy in Scotland. This work has been undertaken at the following multiple stages: • In the drafting and negotiation of the Deal with both the UK and Scottish Governments. In Ayrshire this was primarily in the early/mid 2010’s before its signing in November 2020. This included ensuring the Deal delivered substantial benefits which uniquely include emphasis upon Community Wealth Building with benefits which reflect not just economic benefits but social, community and environmental outputs, outcomes and impacts. • As part of the business case process where each project is required to comply with the HM Treasury Green Book for business case development. This includes the need to develop a strategic case that takes account of the latest national and Scottish policy in the framing on the project. Projects are only approved by the Governments if they demonstrate clear alignment with current policies. • The three Ayrshire Councils, along with key partner organisations and stakeholders have developed and adopted a Regional Economic Strategy (RES) which reflects national economic development policy through the National Strategy for Economic 23
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Transformation (NSET). The Deal has sought to reflect the content of the RES and NSET in ongoing reporting as well as the development of business cases and as part of the AGD Review process (as below). • The Ayrshire Growth Deal has undertaken a Programme Review in response to challenges including the costs of living crisis, Brexit and Covid pandemic upon the delivery of the Deal. The Review has provided an opportunity for the PMO with partners to reconsider options moving forward and ensure continued alignment with evolving policies. This approach ensures that the Deal remains relevant and aligned with Scotland's national economic development strategies. 4. Since the first deals were signed, there is now an expanded economic development landscape. A climate emergency has been declared and the Scottish National Investment Bank and the South of Scotland Enterprise have been established. How has this impacted on deals? As highlighted in previous responses, the Ayrshire Growth Deal continues to monitor and adapt to significant changes in the economic development landscape. This includes for example the impact of the climate emergency and its changes in Government policy, in the form of needing Deals to incorporate net zero ambitions in the development and delivery of projects. This national policy response, introduced after the Deal was signed and budgets set, has posed challenges for projects, particularly in balancing their original goals with new environmental requirements within limited funding. Ayrshire falls out with the South of Scotland Enterprise area, and work with Scottish Enterprise who are partners of the Ayrshire Growth Deal and Highlands and Islands Enterprise for our island areas. It should be noted that while the Scottish Government has supported the development and implementation of the South of Scotland Enterprise, Ayrshire has had no funding support to develop a Regional Economic Development Service or agency and as noted above, has a stakeholder advisory in Scottish Enterprise without funding support. It is unclear at this time which projects will benefit from the Scottish National Investment Bank input. However it is recognised that the Scottish National Investment Bank has the potential to play an important role, offering potential funding and investment opportunities for projects that align with its missions, particularly those focused on innovation, net-zero, and inclusive economic growth. 5. How is the economic impact of deals being measured? The Ayrshire Growth Deal economic impact is being measured through a comprehensive framework at both the project development and delivery stages. 24
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In line with HM Treasury’s Green Book guidance, economic models are developed as part of each business case to measure projected impacts of projects. These models primarily focus on job creation and Gross Value Added (GVA), quantifying the economic benefits expected from the investment. During project implementation, economic impact is monitored through the Ayrshire Growth Deal Benefit Realisation Plan. This Plan outlines a range of metrics to assess outputs, outcomes, and long-term impacts. While many metrics are focused on economic factors like jobs and GVA, the Plan also includes measurements of community benefits, reflecting the Deal's broader goal of delivering inclusive growth and community wealth building priorities. Details of the Plan - AGD-Benefits-Realisation-Plan-June-2022.pdf (ayrshiregrowthdeal.co.uk) Based on the latest data from the Benefit Realisation Plan, the Ayrshire Growth Deal has made progress towards its economic and social goals, with updates showing substantial job creation, GVA growth, and positive impacts across the region. 6. How are lessons from earlier deals informing newer deals? The Ayrshire Growth Deal PMO is continuing to learn lessons from the operation of the programme and seek opportunities to share best practice in its engagement with the partners, Government and wider PMO Network. As previously mentioned, the AGD has been through a midterm Programme Review process, which has highlighted the challenges and solutions to managing both strategic and operational issues. The lessons learnt from undertaking this Review exercise has included the following: • Increase Engagement across Partners and the Government: The Programme Review has highlighted the need to enhance engagement across partners and the Government, by fostering strategic added value by developing collaborative solutions to shared challenges. For example, the work undertaken through the digital work stream helped enable the successful bid to the 5G Innovation and Research (5GIR) funds and secure an additional £3.7million to the Region. • Delivery that is impactful: The programme review has enhanced the practicality and deliverability of projects, with the view to ensuring that they are both achievable and impactful despite the current economic constraints. The review has helped identify where high levels of impact will be achieved even as financial resources are stretched further. • Strengthen Infrastructure and Connectivity: Increased investment in transport, digital infrastructure, and sustainable energy projects aims to improve regional integration and resilience. The Review identified the need to enhance facilities for business operations, in order to attract new enterprises and investment, and improve residents' quality of life. 25
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• Promote Inclusive and Sustainable Development: A stronger emphasis on skills development and training aims to maximise communities’ benefit from economic growth. The Review has reinforced the need to focus on sustainable practices that will align Ayrshire with Scotland's net-zero emissions goals, promoting long-term environmental and economic sustainability. • Maintain Momentum: It is crucial to sustain and accelerate the momentum built by the Ayrshire Growth Deal. The Review has highlighted the need to continue to build on past successes, ensuring the Deal adapts to changing circumstances and continues to deliver substantial benefits. The Review in short has started to inform how any future Deals could be improved and strengthen so that they deliver robust benefits for local businesses and communities. In addition, Ayrshire have welcomed and benefitted from other sources of funding. As highlighted in our response to the Scottish Affairs Committee, the Ayrshire Councils have had a fairly positive experience of LUF and the UK Shared Prosperity Fund. Please see our response to as per question: How do City Region Deals and Regional Growth Deals align with other ‘Levelling-Up’ funding available to Scotland? Targeted questions for Scottish businesses. While the Ayrshire Growth Deal is not a commercial entity, it functions as a collaborative partnership that engages with a diverse range of businesses across Ayrshire. Additionally, AGD projects like Community Wealth Building and Working for a Healthy Economy are delivering tangible benefits for Scottish Businesses. One key approach through Community Wealth Building, is collaborating with partners to host procurement events, which facilitate connections between businesses and promote local supply chains. The Working for a Healthy Economy project has engaged with 1020 Ayrshire businesses and supported 380 employees to sustain their employment. In partnership with Ayrshire Chamber of Commerce a range of sessions have been delivered to over 125 businesses. The Ayrshire Skills Investment Fund (ASIF) has supported 275 employed individuals from 60 businesses, employers are engaged in the development and identification of appropriate skills training interventions. Employers supported have reported, as a result of ASIF: o 100% of businesses have noted a positive impact since receiving ASIF funding o 92% of businesses have addressed the skills gap o 69% have promoted staff and notices increase in productivity o 23% have created new jobs (may increase in time) o 92% think ASIF will benefit the Ayrshire economy 26
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• Fair Work Ayrshire, part of Community Wealth Building, has engaged with over 350 businesses across Ayrshire with 270 action plans in place many referrals have been made to gain accreditation: o 65 for Real Living Wage o 54 for Disability Confident o 39 referrals to Carer Positive Scotland o 19 started Apprenticeships These initiatives have supported local economic growth by creating job opportunities, enhancing business and community resilience, and supporting organisations strengthen their contributions to the local economy. The Reginal Partnership approach has ensured involvement of the business community in the development and implementation of the Ayrshire Regional Economic Strategy. This collaboration identifies key priorities, including infrastructure development, skills training, innovation, business support, and community wealth building, recognising different business sectors as crucial stakeholders and beneficiaries of the Economic Strategy's actions. For more details, please refer to the Ayrshire Regional Economic Partnership information and strategy online. Looking ahead, the AGD plans to further promote its initiatives through the AGD and North, East and South Ayrshire Council websites, ensuring greater visibility and engagement. Additionally, there will be efforts to further embed the principles of Community Wealth Building within the core delivery of AGD capital projects, aligning local governance with the economic needs of businesses. Continued engagement with the business community will remain a priority as actions from the Deal and accompanying strategies are implemented, ensuring an environment that supports local economic development and prosperity for the whole region. Targeted questions for Scottish businesses: 7. To what extent have you been made aware of projects planned as part of your areas city region deal? 8. To what extent has there been clarity about work opportunities and timelines to allow businesses to be ready to bid for work? 9. What experience does your business have of engaging with the city region deal in your area? 10. If you have not bid for or secured any work as part of the city region deal, can you tell us why not? 11. To what extent have recent pressures on public finances and price inflation impacted any contracts you have secured as part of the city region deal? 27
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12. To what extent is there support to ensure that local businesses are able to bid for and secure work to maximise the local economic impact of public spending through the city region deals? 28