Agenda item

[To receive a presentation on the Levelling Up agenda and investment zones].

 

[Report is marked: To Follow]. 

The Director of Strategy gave a presentation on Levelling Up, a copy of which is attached to the signed minutes.  She remarked that the Levelling Up White Paper had been published in February 2022.  The White Paper set out ambitions for a full system change in how Local Government would work going forward, alongside local Leaders and communities to decentralise power and to close the gap on inequalities.  The White Paper set out five pillars to guide the reform around Levelling Up.  These were better co-ordination, reducing silo working across government, the importance of devolution and local empowerment, data monitoring and evaluation to inform evidence based decision making, the criticality of transparency and accountability and longevity of activity (medium and long-term).  There were 12 mission statements referenced in the White Paper.  These 12 national missions had specific targets for the Government to achieve by 2030.  They covered areas such as productivity, healthy life expectancy and skills. 

 

The Director of Strategy stated that Wolverhampton had been specifically referenced in the White Paper as a place with strong local leadership and ambition.  The Government had committed to work with local leaders, the private sector and across Government departments to increase local prosperity and social mobility.  With reference to Levelling Up in Wolverhampton, the Government had endorsed the Our City: Our Plan as the strategic framework for Levelling Up in Wolverhampton.  The Council’s Cabinet had endorsed the approach in July 2022. 

 

The Director of Strategy explained the five work streams as part of the Levelling Up Wolverhampton aim.  These were: -

 

·       Levelling Up Governance

·       Levelling Up – Key Asks

·       LEP Integration

·       UKSPF

·       Trailblazer Devolution Deal

 

The Director of Strategy commented that Levelling up bids were up to £20 million pounds and had to be sponsored by a Local MP.  Over the Summer, the Council had submitted two further bids for Levelling Up Round 2.  A health, care and wellbeing Hub for Bilston proposal had been submitted, this had been sponsored by Pat McFadden MP.  The second bid that had been submitted was sponsored by Jane Stephenson MP and was for Phase 1 of a Green Innovation Corridor.  It would link Wolverhampton’s key assets at the Springfield Campus with those at the University of Wolverhampton Science Park. 

 

The Director of Strategy stated that Wolverhampton had set out five cluster areas as part of an expression of interest in the Government proposals for Investment Zones.  There had however been a change of direction by the Government following the appointment of a new Prime Minister.  The Green Innovation Corridor remained part of the City’s plans and was set out in the Investment prospectus which set out comprehensive proposals for the City Centre. 

 

The Director of Strategy remarked that the Levelling Up White paper announced significant change for the delivery of economic development functions across the country.  It proposed that Local Enterprise Partnerships should integrate into local democratic structures.  Consequently, as of the 31 March 2023 the economic development functions of the Black Country Local Enterprise Partnership would fold into the West Midlands Combined Authority.  A report would be before Cabinet on 14 December 2022 which set out the process. 

 

The Director of Strategy spoke on the UK Shared Prosperity Fund.  The UK Shared Prosperity Fund (UK SPF) was intended to replace EU funding, in particular the European Regional Development Fund (ERDF) and European Social Fund (ESF).  The UKSPF had three funding themes: -

 

·       Place and Communities

·       Supporting Local Business

·       People and Skills

 

The UK SPF was distributed by the Combined Authority.  Wolverhampton’s £3.7 million allocation was broken down across 2022/23, 2023/24 and 204/25. 

 

2023/2024 - £456,226

2023/24 - £912,452

2024/25 - £2,390,625

 

Total - £3,759,303

 

The Cabinet Resources Panel on 16 November 2022 set up delegations to receive grant funding and set out initial distribution over the next three years as follows:-

 

Place and Communities – C.£2.022 million

Local Business Support - £681K

People and Skills – C. £1.05m

Multiply (Government funding stream supporting numeracy skills) - £316k

 

Wider scrutiny on external funding would take place at the Resources and Equalities Scrutiny Panel on 19 December 2022. 

 

The Director of Strategy spoke on the West Midlands Trailblazer Devolution Deal.  One of the 12 missions in the Levelling Up White Paper was to “Give every part of England that wants it a devolution deal with more regional powers and simplified, long-term funding”.  “Trailblazer” devo deals had been announced for West Midlands and Greater Manchester.  Ongoing discussions were taking place with the region, and they expected further announcements to take place in the New Year. 

 

The Director of Strategy commented on the critical importance of the relationship between local and national government for Levelling Up.  Local Government had emphasised the need for sustainable and sufficient funding in the longer-term and reducing the fragmentation of funding pots.  Bringing budgets together in place and a renewed focus on prevention, backed by Government investment.  It had been a benefit having the DLUHC Headquarters in Wolverhampton, which had opened in September 2021.  The relocation of DLUHC in the City was part of the “Beyond Whitehall Programme”.  DLUHC had advised they now had around 250 people working in the i9 building at Wolverhampton. 

 

A Panel Member asked what businesses could apply for UK Shared Prosperity funding and what support would be available from the Council.  He asked if the Council would be providing training courses for “Multiply” or if it would be for external agencies to offer.  The Director of Strategy responded that funded was delegated to the City for Multiply.  She thought the main source of delivery would be through Adult Education but other providers would be available.  Half of the £88 million awarded by the WMCA was going into the Business Support Model.  This would involve a network of strategic business advisors.  Only small business grants would be available through the fund, but the Council would be able to help businesses in submitting grants. 

 

The Vice-Chair stated that Levelling up had been transformational for Wolverhampton with millions of pounds of funding being brought into the City, since December 2019.  He hoped future funding would also be invested in the smaller communities in Wolverhampton rather than just the City Centre.  He expressed a concern that derelict buildings were sometimes being intentionally burnt down. 

 

A Panel Member asked for Board Members to be notified of the outcome of the latest Levelling Up Bids as early as was possible. 

 

Members asked questions of clarity regarding funding, the LEP, and the Levelling Up Bids.  The Director of Strategy responded accordingly. 

 

A Panel Member commented that the Economy and Growth Scrutiny Panel had requested a report on how the Council’s strategic business intentions impacted at a local Ward level.  The Director of Regeneration had given her an assurance over 12 months ago that a review could take place, but this had not yet happened.  The Director of Strategy responded that she would liaise with colleagues regarding the report.  The Chief Operating Officer added that he would ensure a report would come before the Economy and Growth Scrutiny Panel in the future.

 

A Panel Member asked for a further report to Scrutiny Board in the future considering the amount of Levelling Up funding available and its geographical spread across the City. 

 

A Member of the Panel praised the fact that 1335 extra Police Officers had been recruited in the West Midlands since 2019.  He asked about the transfer of the Town’s Fund Board to the City Levelling Up Board and who had made the decision.  He asked if there were any performance indicators for the Board and how success was measured.  He asked whether the Leader of the Opposition could sit on the Board.   

 

The Director of Strategy responded that Membership decisions for the Levelling Up Board were made by the Board themselves.  It was Chaired by Linda Johal.  New terms of reference would be going to their next meeting in February.  Papers were published on the Invest website, which would provide more information on how it operated. 

 

Members of the Panel expressed opinions on the Leadership in Wolverhampton.