10am, Friday 5th February 2016

Council Chamber, Nottinghamshire County Council, County Hall, West Bridgford

9.30am Political Group Meetings 10.00am General Meeting

1. Apologies 2. Declarations of Interest 3. Minutes of EMC Annual General Meeting held on 17th July 2015 4. EMC Chairman’s Report 5. Questions to Chair or Nominee 6. Motion(s) to East Midlands Councils 7. Presentation by Lord Porter of Spalding CBE, Chairman of the Local Government Association,

‘Current Challenges and Opportunities Facing Local Government’. 8. Regional Infrastructure and Investment Priorities

Midlands Engine Midlands Connect

9. HS2 in the East Midlands 10. East Midlands Housing Review 11. International Migration (Asylum Dispersal and Syrian Resettlement) in the East Midlands 12. Regional Employers’ Board Report 13. East Midlands Improvement and Transformation Board Report

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Minutes of the East Midlands Councils Meeting Friday 17th July 2015,

(Nottinghamshire County Council)

Annual General Meeting

Cllr Jon Collins chaired and welcomed everyone to the meeting 1. Apologies

Cllr Bob Adams, Mayor Kate Allsop, Cllr Tony Ashton, Cllr Ranjit Banwait, Cllr Paul Bell, Cllr Richard Blunt, Cllr Christopher Corbett, Cllr John Hough, Cllr Paul Jones, Cllr Mary Malin, Cllr Ric Metcalfe, Cllr Jewel Miah, Cllr Blake Pain, Cllr Michael Quigley, Cllr Alan Rhodes, Cllr Russell Roberts, Cllr Nick Rushton, Cllr Robert Sharp, Cllr Martin Thacker

2. Declarations of Interest

None.

3. Minutes of EMC meeting held on 13th February 2015

These were agreed as a true and accurate record.

4. Chairman’s Presentation of Annual Report and Accounts 2014/15 Cllr Jon Collins formally presented the Annual Report to Members. He drew members attention to the devolution and training events held. EMC has secured approximately £840,000 worth of savings through its delivery of services to councils in the East Midlands. Cllr Collins commended Members on the unity in relation to the HS2 station location. He confirmed the HS2 Eastern leg will be proceeding and now need to

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maximise the economic benefits. There is a need to make links with Staveley depot, East Midlands Airport and all surrounding areas, not just cities. There was recognition of the five regionally-agreed infrastructure priorities that will form the basis of EMC’s work in securing additional infrastructure investment into the region. EMC’s pension deficit continues to be reduced and there is now more organisational stability and delivery of a balanced budget.

4.1 Questions/Comments

Cllr John Clarke highlighted the need for further engagement with MPs. Cllr Jon Collins agreed stressing the importance of early engagement with new MPs in the region.

4.2 Resolution Members of East Midlands Councils considered and endorsed the annual report 2014/15.

5. Questions to Chair or Nominee No questions were received.

Appointments to EMC 2015-16 Stuart Young, Executive Director East Midlands Councils, took the Chair for this section of the meeting.

6. Appointments of Political Group Leaders The following were appointed as Group Leaders: Conservative Cllr Chris Millar Independent Cllr Alan Walters Labour Cllr Robert Parker Liberal Democrat Cllr David Bill MBE

7. Appointment of Vice Chairs of East Midlands Councils

Cllr Jon Collins (Nottingham City Council) was appointed as Principal Vice Chair of East Midlands Councils and Cllr Neil Clarke MBE (Rushcliffe Borough Council) was appointed as District-Vice Chair.

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8. Appointment of Chair of East Midlands Councils Cllr Martin Hill OBE (Lincolnshire County Council) was appointed as Chair.

The new Chairman of EMC, Cllr Martin Hill, took the chair for the remainder of the meeting. Cllr Martin Hill thanked members for appointing him as Chairman, and Jon Collins for his significant contribution during his time as chairman of EMC. Members were all agreed on the need for continuing the collegiate approach and highlighted the four priorities as building political and organisational relationships, infrastructure investment, health and social care, and devolution/combined authorities. He confirmed that EMC is currently lobbying in relation to the recently announced ‘pause’ to the electrification of Midland Mainline. Cllr Hill informed members that he hoped Cllr Jon Collins would still lead on HS2, Midlands Connect and Midlands Engine for Growth to ensure continuity in these areas.

9. Proposed Changes to Constitution and Supporting Governance Cllr Neil Clarke, Corporate Governance Lead Member introduced this report. He informed members that the changes to the constitution and supporting documents are as a result of the change of accountable body to Nottingham City Council and also deletion of reference to the Chair of the Peak District National Park as a member of the Executive Board (as reflected by prior agreement with PDNPA and since the statutory requirement has been revoked). In relation to members’ allowances, an additional time commitment is required as a result of the increasingly significant infrastructure work, and it was proposed that the scheme is adjusted to reflect this. Stuart Young confirmed there would be no increase in the level of SRA’s paid.

Resolution Members of East Midlands Councils:

Endorsed the changes to EMC’s Constitutional and supporting Governing Documents.

Endorsed the proposed changes to the members’ Allowances Scheme.

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10. Motion(s) to East Midlands Councils Cllr Robert Parker formally submitted a motion to East Midlands Councils. This was seconded by Cllr David Bill MBE.

Cllr Kay Cutts MBE proposed an amendment to this motion which was seconded by Cllr Neil Clarke MBE.

Members discussed this with the following comments:

Midlands Mainline upgrade and electrification is an essential complimentary

scheme to HS2. It is a core component of Government proposals that relate to Midlands

Connect and Midlands Engine. The region needs to galvanise MPs, business and council leaders in support

of this MML electrification investment. There are significant employment, skills and apprenticeship opportunities that

may be lost

Cllr Martin Hill emphasised that a meeting will be organised with the Minister as soon as possible.

Members approved the revised Motion as attached as Appendix 3(a).

11. Reflection on Devolution Proposals and Opportunities for Local

Government Members highlighted the progress of local devolution proposals and the enthusiasm of councils in securing the devolution of roles and responsibilities from central government. The following summaries were provided:

Cllr Anne Western: Derby/Derbyshire. Cllr Robin Brown: Northamptonshire. Cllr Neil Clarke: Nottingham/Nottinghamshire. Cllr Byron Rhodes: Leicestershire. Cllr Hill: Greater Lincolnshire.

Members confirmed the lack of real enthusiasm for directly elected Mayors but were clear on the expectations of Government in this regard.

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11.2 Resolution Members of East Midlands Councils considered and discussed recent developments for devolution and decentralisation.

12. Regional Infrastructure, Investment and Housing Priorities Cllr Jon Collins introduced this report and informed members that currently 60% of infrastructure funding is spent in London and the South East. This is of concern and there is a need to lobby for the next round of funding for 2020-2025. There is an increasing need to look at the bigger picture and in relation to Midlands Connect, the Chancellor committed £5million in the last budget for this project. Progress has been made in relation to HS2, particularly in terms of connectivity and station location, however there is a need to promote HS2 East given its importance to the economy and county as a whole. This has to be integrated with the classic network. In relation to Midland Mainline, there is a need to stress that the ‘pause’ ends within the current planning funding timeframe of 2015-2020 otherwise there is concern that if it gets pushed back further, other priorities will be affected. The following was agreed: Need coordinated lobbying of interested MPs/MEPs over the summer period. In September a session to be held bringing together

LEPs/MPs/Business/Councils to highlight the issues. Work to be commissioned to identify economic impact of this delay.

Cllr Chris Millar introduced the housing review and informed members the availability of housing remains a major concern.

A report will be presented at the next full meeting of East Midlands Councils on the outcomes of the housing review group.

There is concern nationally of the lack of skilled labour and materials. Cllr Lewis Rose expressed concerns of affordable housing in rural areas.

Members also expressed difficulty in engaging with utility companies.

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Cllr Neil Clarke informed he is in discussions with Marcus Jones as DCLG Minister in relation to empty properties, e.g. flats above shops, which current legislation makes it difficult to rent out.

12.1 Resolution Members of East Midlands Councils:

Endorsed actions to expedite the electrification of the Midland Mainline Endorsed the agreement of a regional consensus on HS2 station location. Endorsed the development of Midlands Connect initiative and the

Government’s ‘Midlands Engine for Growth’ concept. Endorsed the development of a review of housing Delivery for publication

later in 2015. 13. International Migration in the East Midlands

Cllr Peter Robinson, Member of Migration Board, introduced this report and highlighted the early progress of the trafficking panel.

For the year ended 31st March 2015 there were 25,020 asylum applications received.

Two meetings have been held in relation to Modern Slavery and the next meeting will be attended by Kevin Hyland (Independent Anti-Slavery Commissioner, formerly head of the London Metropolitan Police Service’s Human Trafficking Unit).

Cllr Kay Cutts expressed concern in relation to the lack of funding received following people moving from one area to another. There is also additional concern relating to the provision of ESOL courses, e.g. lack of accessibility outside normal working hours.

13.1 Resolution

Members of East Midlands Councils: Considered progress against the key themes identified in the impact of

International Migration in the East Midlands report and the ongoing work programme of activity undertaken by the EMSMP Board.

14. Regional Employers’ Board Report

Cllr Tom Beattie, Chair Regional Employers’ Board, formally presented this report. He highlighted to members the new compulsory national living wage

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which is totally separate to the voluntary scheme. It is estimated that authorities will need to find an extra £1billion by 2020.

14.1 Resolution

Members of East Midlands Councils:

Noted the contents of the report. 15. East Midlands Improvement and Transformation Board Report

Cllr Roger Begy, Chair Improvement and Transformation Board, introduced this report. He highlighted the skills and member development programme and encouraged new members to sign up to this.

15.1 Resolution Members of East Midlands Councils noted this report.

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East Midlands Councils Annual General Meeting Friday 17th July 2015

AMENDMENT TO MOTION East Midlands Councils notes the recent announcement by Transport Secretary Patrick McLoughlin that electrification of the Midland Main Line (MML) is to be 'paused', but welcomes other measures to: Increase capacity in the East Midlands. Allow trains to run at higher speed. Make station and track improvements along the length of the line to improve line

journey times for passengers. East Midlands Councils believes that electrification of the existing line will bring significant benefits to our region including construction jobs and long term economic growth. We call on the Government to re-prioritise the electrification of the Midland Mainline ahead of other transport projects across the UK. East Midlands Councils therefore resolves to: Note the letter already sent to Government by Council Leaders and LEP Chairs and

support their call for an urgent meeting with the Secretary of State. Seek an urgent meeting with the Transport Secretary Patrick Mcloughlin and Sir Peter

Hendy, Chairman of Network Rail to discuss how MML electrification can be expedited.

Promote MML electrification as a top priority scheme for this region through the Midlands Connect and Midlands Engine initiatives.

PROPOSED: Cllr Kay Cutts SECONDED: Cllr Neil Clarke

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General Meeting

5th February 2016

Chairman’s Summary Report Summary The following report provides an update on a number of significant areas of work that the Executive Board has focused on since the last meeting of EMC at its AGM in July 2015. Recommendations Members of East Midlands Councils are invited to: Consider those issues that EMC should include within its work programme for 2016/7. Note this report and where matters are specifically considered elsewhere on agenda for

this meeting.

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1. Introduction 1.1 At last summer’s AGM, I gave a commitment to direct the resources of EMC upon on

a limited number of core priorities while at the same time supporting the organisational stability of EMC through clear and collegiate political leadership supported by a small and focused team that minimises the costs for the sector but delivers even greater value added.

1.2 The following policy areas were discussed and I wish to briefly update members on

progress: Infrastructure, HS2; Midlands Connect and Midlands Engine Devolution and Combined Authorities Health, Adult Social Care and the impact on Government funding The way we work.

2. Infrastructure, HS2 and Midlands Engine 2.1 We need to secure a greater proportion of public infrastructure funding for the East

Midlands. 2.2 Included within the agenda for this meeting are reports detailing progress on Midlands

Connect and Midlands Engine, the delivery of the agreed 5 regional investment priorities and how we have made further progress in maximising the benefits from the proposed HS2 investment programme.

2.3 I would like, as part of the subsequent discussion, to explore with Members the

potential for identifying successor schemes as we need to improve how this region develops an infrastructure pipeline – including a mixture of both road and rail.

3. Housing 3.1 Local authorities have identified a need for 400,000 new homes in the East Midlands

over the next 20 years. To achieve this, around 20,000 new homes need to be built every year but in 2014/15 only 12,420 homes were built across the region.

3.2 To understand the important housing pressures in communities in this region, in July

2005 the Executive Board commissioned a review, led by Cllr Chris Millar, into the regional housing market and I am pleased that today we can present the draft report. This fits well with the LGA setting-up a Housing Commission (December 2015) to investigate how to increase housebuilding levels so councils can enable the building of more desperately-needed homes. Councils built nine times more homes between 2010

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and 2015 than between 2000 and 2005 and there is a commitment to dramatically increase the availability of new homes in local areas.

4. Devolution and Combined Authorities 4.1 Devolution is not about local government reorganisation, the imposition of single-tier

local government or similar. It is about greater control over local transport, housing, employment and skills and healthcare – and accountability for this.

4.2 The Government has set out its objectives, and it is clear that Combined Authorities

are the way forward as a way of achieving better collaboration between different councils on major strategic issues such as transport investment, skills and economic development.

a) North Midlands Devolution Agreement

4.3 All 19 Council Leaders in Derbyshire and Nottinghamshire have submitted a joint bid

to Government for the devolution of more economic powers and much greater control over their own affairs.

4.4 Submitted to Ministers in December, and published on 5th January 2016, the deal

proposes the devolution of a range of powers and responsibilities to a new North Midlands Combined Authority which would be led by a new, directly elected Mayor.

4.5 The ‘Deal Document’ sets out devolution benefits that include; 55,000 new private

sector jobs, 77,000 extra homes, a £900m 30-year investment fund, £200m housing investment fund, single ‘Oyster’ style card ticketing, control over DWP employment programmes and responsibility for business support programmes. http://www.derbyshire.gov.uk/images/North%20midlands%20devolution%20agreement_tcm44-275667.PDF

b) Leicester and Leicestershire

4.6 Endorsed by city, county and district councils, Leicester and Leicestershire have

submitted to Government their proposal scheme to form a combined authority. https://leicestershirecombinedauthority.files.wordpress.com/2015/10/combined-authorityschemefinal.pdf

4.7 If the Government accepts the proposals and gives the go-ahead, the

Leicester/Leicestershire combined authority could be in place late next year. The focus of the combined authority will be on guiding key decisions on transport, planning, skills and other key issues affecting the city and county area.

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c) Greater Lincolnshire 4.8 Organisations in the Greater Lincolnshire area submitted their expression of interest

to the Government for establishing a combined authority across Lincolnshire, North and North-East Lincolnshire.

4.9 The expression of interest focuses on the benefits of this approach including;

accelerating economic growth, improving transport links regionally, nationally and internationally, tailoring skills to the needs of local employers to boost employment opportunities in the county, managing flood risk, meeting housing needs and joining up health and care services to improve people’s health and wellbeing. http://www.lincolnshire.gov.uk/home/greater-lincolnshire-proposals-for-devolved-powers-from-government/127203.article

d) Northamptonshire and Transport and Infrastructure Devolution

4.10 Eight upper tier authorities, including Northamptonshire County Council, have

established a strategic transport forum, which, following amendments to the Cities and Local Government Devolution Bill, will enable them to ask Government to transfer powers for transport and infrastructure.

4.11 The strategic transport forum includes council leaders and representatives from LEPs,

as well as the Department for Transport. It will meet for the first time on 12th February 2016.

5. Health, Adult Social Care and the Impact on Government funding 5.1 Members have highlighted the need to collectively make the case about the pressures

facing health and adult social care given the stark financial situation that the sector faces. For example, local councils have made £20bn in savings since 2010, and the recently announced settlement obliges even greater savings to be made while cost pressures will continue; just the ‘national living wage’ proposals alone could cost councils more than £1bn a year by the end of the decade with the bulk of that coming from the care sector.

5.2 In July 2014, East Midlands Councils (EMC) published a report to raise awareness of

the population change across the East Midlands resulting from international migration into the area. The report, ‘The Impact of International Migration on the East Midlands’, highlighted the increasing numbers and proportion of residents of the East Midlands who are born abroad and reiterated the net positive contribution international migrants make to the economy. The report also acknowledged the lack of up to date information on migrant health and recommended the publication of a migrant health profile.

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5.3 In February 2015, East Midlands Councils (EMC) and Public Health England (PHE) East Midlands published a report that examines a number of issues of importance in health and wellbeing across the East Midlands. ‘A healthier future for the East Midlands’ identified four priority areas for consideration: Inequalities in health outcomes Inequalities in funding for healthcare Recruitment and retention of the health workforce The need for collective leadership

5.4 In October 2015, PHE East Midlands, in collaboration with the East Midlands Clinical

Senate, published a report to ignite commitment to improve our leadership and action on preventing ill-health. The report, ‘Meeting the Prevention Challenge in the East Midlands: A Call to Action’, provides practical support to provider and commissioning organisations to enable the required shift towards a prevention-focused health and care system.

5.5 Executive Board members met with Dr Fu-Meng Khaw, Director, Public Health England

(East Midlands) to discuss the need for improved collective leadership on health matters including: Health and prosperity; health and work. Health and regulated activities. Prevention at scale Health care transformation Housing and health. Healthcare implications of international migration

6. The Way We Work 6.1 The 4 pillar approach continues to shape our approach and focus our priorities. A

balanced budget and associated work programme will be considered and agreed by the Executive Board in March.

6.2 In addition to the strategic influencing work and leadership that we have provided on

infrastructure and economic growth programmes, it is also important to highlight EMC’s continued role as the Regional Employers’ body for councils in the region, our member and officer development programme, HR support and organisational low-cost consultancy service.

6.3 Within this context, it is important that Members fully inform the work programme of

EMC to ensure our work reflects the priorities of its membership. Please take this opportunity to highlight the key issues that should be included in EMC’s work programme for 2016/17.

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6.4 Members highlighted that we need to further promote close working with the region’s MPs; MPs, council and business leaders are potentially a powerful collective voice for our local communities and we need to pull together, on a limited set of issues, in order to take advantage of some of the opportunities in front of us.

6.5 It is pleasing that Chris Heaton-Harris MP (Cons, Daventry) and Chris Leslie MP

(Labour, Nottingham East) are confirmed as co-chairs of the East Midlands All-Party Parliamentary Group. By the time of this meeting, 2 meetings would have been held and the proposed basis for their collective work with council leaders will be reported to Members.

7. Recommendations

Members of East Midlands Councils are invited to: 7.1 Consider those issues that EMC should include within its work programme for 2016/7. 7.2 Note this report and where matters are specifically considered elsewhere on agenda

for this meeting.

Cllr Martin Hill OBE Chair, East Midlands Councils

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General Meeting

5th February 2016

Midlands Engine and Midlands Connect Summary This report update members on the development of the Midlands Engine and Midlands Connect initiative, and in particular the first meeting of the Midlands Connect Strategic Board, which took place on the 4th February under the Chairmanship of Sir John Peace. Recommendation Members of East Midlands Councils are invited to: Welcome progress on the Midlands Engine and Midlands Connect initiatives, subject

to any comments from Members.

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1. Background

1.1 This report update members on the development of the Midlands Engine and Midlands Connect initiative, and in particular the first meeting of the Midlands Connect Strategic Board, which took place on the 4th February under the Chairmanship of Sir John Peace.

2. Midlands Engine 2.1 Following the Chancellor’s speech in Derby on the 1st June 2015 announcing the

Midlands Engine concept; LEPs and Councils across the Midlands have worked together to develop an initial proposition that could be launched before Christmas 2015.

2.2 The resulting Midlands Engine prospectus, set out in Appendix 8(a) was launched

on the 4th December in Birmingham by the Business Secretary the Rt Hon Sajid Jarvid MP. The prospectus responds to Government ambitions announced earlier in 2015 that the Midlands economy could grow by £34 billion by 2030, if it matched the predicted growth rate for the UK, and that a further 300,000 jobs could be created by the end of this Parliament in the Midlands region. It is based on enhanced collaboration around five strategic areas: Promotion – to both domestic and foreign investors Transport (through Midlands Connect) Innovation Finance for business Skills

2.3 Following Government feedback on this prospectus, it is proposed that a detailed

implementation plan is developed. The plan will contain the key proposals contained within the prospectus, including the following core elements:

Completing a more comprehensive analysis of the Midlands Engine economy.

This will be used to update the aim and objectives for the Midlands Engine.

Developing a Midlands Engine productivity improvement plan, based on best practice recommendations being developed presently within parts of the region.

Undertaking the first Midlands Engine trade mission and hosting the first

senior Midlands Engine inward investment visit.

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Developing an investment pitch book of investible propositions for use at MIPIM 2016.

Building a regional business visitor and tourism offer.

Developing the vision and strategy for transforming transport connectivity

across the Midlands Engine region through Midlands Connect.

Evolving phase two of the Energy Research Accelerator and a pipeline of further similar propositions, leading with a likely Agri-food sector proposition.

Building a stronger network of regional science parks as well as a higher

education forum.

Developing a ‘fund of funds’ to finance business better together with evolving discussions with the British Business bank regarding further regional finance mechanisms.

Developing a more comprehensive demand led approach for skills

development in the manufacturing and engineering sectors, based on increased provider collaboration and alignment.

Undertaking a review of best practice relating to employment and skills. This

will be used to accelerate the take up of new and innovative ideas. 3. Governance Proposals 3.1 Formal governance has yet to be formally agreed. The initial work to develop the

Midlands Engine prospectus and its presentation to Government has been overseen by a senior Steering Group representing the LEPs and Local Authorities together with a range of stakeholders with knowledge and expertise of the relevant themes.

3.2 Members are invited to give consideration to the framework for Midlands Engine

governance proposals and agree an EMC position. It is suggested that particular consideration is given to the following issues Clear leadership role for local government to provide democratic legitimacy. Balance between East and West Midlands to underpin collaborative working. Strategic oversight through senior political leadership coupled with expert

input on each theme. Effective and appropriately resourced secretariat, enabling good analysis,

communications and underpinning efficient decision making.

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Avoidance of duplication with existing governance bodies. 4. Way Forward 4.1 The Midlands Engine covers 11 LEP areas across the East and West Midlands; it

is therefore important that: Councils and LEPs across the East Midlands secure significant influence with

the Midlands Engine in order to maximise opportunities for economic growth. Local Authorities – with their democratic leadership – play a pivotal role. Local Authorities make a meaningful contribution to the development and

delivery of proposals. Local Authorities play a full role in engaging wider sectors, e.g. the business,

universities and FE sectors. 4.2 Progress is being made, and it is the intent of Government that the Midlands

Engine is a credible vehicle for securing economic growth across the Midlands area. Consequently, there will likely be a ‘Midlands Engine’ component to the Chancellor’s Budget announcement in March 2016, with further resources likely to be forthcoming in addition to the £5m already committed by Government to support the ‘Promotions’ element of the prospectus, and the financial commitment already made by LEPs.

4.3 It is important that the Midlands Engine is an effective joint initiative between

the East and West Midlands and as such LEPs, councils and businesses in this region are fully engaged, and able to fully influence the development and delivery of proposals (including councils in the south-east Midlands, and North and North East Lincolnshire).

4.4 David Sharif has been appointed (via the Greater Birmingham and Solihull LEP)

as Interim Midlands Engine Director, on secondment from KPMG on a three day a week basis for a six month period. His principal role will be to support the Midlands Engine Leadership Group to deliver the Midlands Engine Implementation Plan.

4.5 We need to ensure that MPs are fully briefed on developments – and the role of

the EM APPG is important. 5. Midlands Connect 5.1 Midlands Connect is a key component of the Midlands Engine initiative, although

it pre-dates its inception by 18 months. Initial work funded by LEPs

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demonstrated that the economic potential of improving connectivity between key centres of economic activity across the Midlands.

5.2 Following this, the Chancellor announced in last year’s Summer Budget an

allocation of £5 million to support the development of a strategic transport strategy for the Midlands by March 2017, which will seek to agree key investment priorities that will boost the Midlands economy for delivery by Highways England, Network Rail and HS2 Ltd from 2020 onwards.

5.3 To draw down the Government funding, LEPs and Local Transport Authorities

were required to submit a work programme and revised governance structures (which were discussed and agreed by the EMC Executive Board). The new arrangements were formally launched at a major event at the Derby Roundhouse on the 22nd October 2015, with Transport Minister Robert Goodwill MP and the Executive Chairman of HS2 Ltd Sir David Higgins in attendance. A summary document is contained in Appendix 8(b).

6. Revised Midlands Connect Governance 6.1 The Midlands Connect Partnership brings together local authorities and LEPs from

across the Midlands within the following agreed governance framework.

a) Strategic Board Provides leadership and accountability to the Midlands Connect

Partnership and takes decisions on the overall strategy of the programme. Membership; nominated from the Partnership Advisory Board (see

below): Independent Chair Secretary of State for Transport East Midlands Local Transport Authority Leaders (Cllrs Jon Collins

[alternate Ranjit Banwait], Nick Rushton, Anne Western) 3 West Midlands Local Transport Authority Leaders. 2 East Midlands LEP Chairs (Dr Anne Limb SEMLEP and Richard Wills

GLLEP) 2 West Midlands LEP Chairs HS2 Ltd Network Rail Highways England Steering Group Chair

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b) Partnership Advisory Board Provides strategic guidance to the Strategic Board and to secure a single

voice approach to the Midlands Connect Partnership. Membership; all Local Transport Authorities at Member Level, all LEP

Chairs and key partners of the Midlands Connect Partnership.

c) Steering Group A senior officer group to provide expertise and recommendations to the

Strategic Board.

d) Technical Advisory Group To provide advice and technical support to the Steering Group.

6.2 Following a recruitment process for the Midlands Connect Independent Chair,

Nottingham born businessman Sir John Peace has been appointed. 7. Midlands Connect Work Programme 7.1 The Midlands Connect Work Programme is based on the following elements:

Strategy Development HS2 Readiness Midlands Connect Hubs Midlands Connect Corridors International Gateways and Freight Smart Connectivity Communications

7.2 Further work on scoping out the detail on each of these elements is currently

underway. Andrew Pritchard has been seconded on a part time basis to lead the HS2 Readiness element of Midlands Connect over the next 18 months.

7.3 The first meeting of the Midlands Connect Strategic Board took place on the 4th

February in Birmingham – verbal feedback will be given at the meeting. The Board was asked to agree a forward work programme and the development of an Initial Opportunities Report aimed at informing the Midlands Engine ‘asks’ for the Budget. The report will include evidence on the economic benefits of accelerating the delivery of Midlands’ schemes that are in the forward programmes of Network Rail and Highways England, but for which no development funding has been made available. These schemes include:

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Nottingham/Derby-Birmingham Rail Capacity and Journey Time Enhancements: A programme of interventions to deliver additional capacity on the Birmingham-Burton-Derby/Nottingham corridor and to provide enhanced connectivity, through journey time improvements between the Central Birmingham Hub and the Nottingham- Derby Hub.

M1 Junctions 19 – 23A: Upgrading the M1 to smart motorway between junction 19 (M6 Catthorpe Interchange) and Junction 23A (East Midlands Airport). Coupled with other improvements, this will complete a smart motorway corridor between London and Yorkshire. It also includes an upgrade to Junction 21 to provide better links between the M1 and M69 reducing pressure on the main junction and to improve access to south Leicester.

A46 Newark northern bypass: Widening of the A46 north of Newark to dual carriageway, raising the last section of the A46 between the A1 and M1 to Expressway standard. Improvement of the A46/A1 junction to allow for better traffic movement to Newark and Lincoln.

A45 Stanwick to Thrapston: Upgrading the existing single carriageway

section of the A45 between Stanwick and Thrapston, so the A45 can provide a continuous Expressway between the A14 and the M1.

8. Sub-National Transport Bodies 8.1 A Government amendment to the Cities and Devolution Act enables the

designation of Sub-National Transport Bodies at the request of relevant councils and LEPs. The new power is aimed initially at providing a statutory basis for ‘Transport for the North’, but could be applied to the Midlands is the current phase of Midlands Connect work is considered to be a success.

9. Recommendations Members of East Midlands Councils are: 9.1 Welcome progress on the Midlands Engine and Midlands Connect initiatives,

subject to any comments from Members.

Andrew Pritchard Director of Policy & Infrastructure

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The Midlands Engine for Growth Prospectus

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As a Midlands resident and MP, I know the importance of the region to the country’s economy - the heartland of our manufacturing sector.

The Midlands has an economy of £222 billion each year and is home to over 11.5 million people. The area has played a strong role in the recovery of the UK economy - over the last year, private sector employment in the Midlands grew more than three times faster than London and the South East.

However there is more to do. I am very pleased that local leaders – private, public and educational – have accepted central government’s challenge to boost the economy of the region. I look forward to working with them to achieve this ambition.

This Prospectus sets out a vision for an economy focused on productivity and driven by getting the most out of the Midlands’ workforce, research and transport.

The Midlands is a great place to do business, to learn, to live and to relax and I am delighted to give my support, as the Ministerial Champion, to the Midlands Engine.

Foreword

Rt Hon Sajid Javid MPSecretary of State for Business, Innovation & Skills

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The Midlands Engine for Growth This prospectus brings the Midlands Engine for Growth to life. It signals willingness from all regional stakeholders to work together more closely to achieve greater regional economic growth and productivity improvement. Developing the Midlands Engine brand will allow the region to promote itself to investors and trade partners, delivering more growth, exports and jobs.

The prospectus responds to Government ambitions announced earlier this year that the Midlands economy could grow by £34 billion by 2030, if it matched the predicted growth rate for the UK. A further 300,000 jobs could be created in the Midlands by the end of this parliament.

The Midlands Engine stakeholders, from its business base to its Local Authorities, have come together to discuss how to embrace these aims. The outcomes of these discussions are presented in this prospectus and demonstrate our collective wish to improve productivity, drive economic growth, create jobs and improve quality of life across the region.

Our AmbitionWe will improve the economy of the Midlands and the UK, deliver an enhanced quality of life for our citizens and communities and become a globally recognised driver of the economy.

Improving productivity is crucial. The UK lags behind all but one of its G7 partners in this regard, and productivity in the Midlands Engine region is around 10% below the UK average.

Advanced manufacturing expertise is the bedrock of the Midlands economy and supports a host of other associated

industries and sectors. We will develop a Midlands Engine Productivity Improvement Plan that helps us grow our reputation further as a globally recognised centre of excellence in these sectors.

Working with Government, we will position the Midlands as a major UK and European gateway to unlock the region’s potential and support growth across every sector. In the next year, we will undertake the first Midlands Engine trade mission and host the first senior Midlands Engine inward investment mission.

Connectivity across the Midlands is essential for supporting and attracting businesses as well as highly skilled workers. Midlands Connect will develop the vision for our regional connectivity and set out the long term transport strategy for the Midlands Engine.

The Midlands knowledge base will provide a significant role in supporting our ambitions. Our universities and research translation centres will work closely with businesses to bring forward a pipeline of initiatives to turn our world-class science into new technologies, materials and products, and in doing so create new business opportunities.

We will create a thriving environment for businesses to flourish. This will include improving the financing of businesses investment.

We will develop a more comprehensive, demand-led approach for skills development, initially focused on the manufacturing and engineering sectors. This will be based on increased provider collaboration and alignment as well as a review of best practice relating to employment and skills.

Now is the time to power up the Midlands Engine.

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The Midlands has a strong advanced manufacturing and engineering base which employs 637,400 people and accounts for 19.7% of the UK’s manufacturing output. This is allied to key high-value wealth creating sectors such as: transport technologies; agri- food and drink production; healthcare, life sciences and translational medicine; and energy and low carbon technology. Underpinning much of our wider sectoral excellence is our creative, digital and design sector and strengths in business and professional services.

The Midlands Engine region is well linked internationally. Inward investment projects grew by 130% between 2011 and 2015 based on a compelling Midlands offer of commercial opportunity, affordability, connectivity and quality of life. In the same period, the Midlands Engine region attracted 880 Foreign Direct Investment projects creating over 48,000 new jobs and safeguarding a further 23,000. The region accounted for 16% of the UK’s overall exports in 2013, selling to over 178 countries worldwide. Exports increased by 38% between 2010 and 2013.

The Midlands Engine is home to twenty-five Universities. They deliver excellence in teaching and learning, providing high quality education to almost 500,000 students, and are supported by a network of fifty Further Education colleges. The Universities’ fundamental and applied research base, together with the research translation centres, drive innovation into our priority sectors. Research and Development (R&D) expenditure by businesses within the Midlands grew by 52% from 2010 to 2013.

The Midlands Engine links the UK to the rest of the world through its network of freight and passenger airports, and connects the country through road network and rail

A 21st Century Economy at the Heart of the Nation

We will work together to build on our strengths and grow the economy of the Midlands Engine and the UK

The Midlands Engine for Growth, located in the centre of the United Kingdom, is the heartbeat of the nation’s economy. Built on a strong advanced manufacturing base and enhanced by a range of further sectoral strengths, the Midlands Engine is perfectly positioned to take advantage of the economic growth, productivity and skills opportunities we face as a nation.

The Midlands Engine EconomyThe Midlands Engine stretches from Wales to the North Sea and the northern Home Counties to the Peak District. It includes 11 Local Enterprise Partnerships who together with their Local Authorities, businesses and the wider partners who have come together to respond to the Government economic and productivity challenges.

The Midlands Engine region makes a £222bn (14.6%) annual contribution in GVA to the UK economy and this has grown by 30% in the last decade. The Midlands Engine is home to a population of just over 11.5 million people (17.9%), of which 24% are under 20 years of age, offering a long term, sustainable workforce. Around 4.3 million people (15.7%) in the Midlands Engine region are in employment, with 38.3% judged to be in knowledge intensive sectors. Unemployment rates are 5.3%, marginally lower than the average for the UK.

The Midlands Engine is the place to do business. It is underpinned by a strong private sector base containing globally significant companies such as Jaguar Land Rover, Rolls Royce, and JCB. SMEs and micro-businesses are thriving, with nearly 460,000 SMEs and micro enterprises across the region, 8.7% of the UK total. Many of these are an essential part of the supply and service chains supporting the larger businesses. 26

links. Government has committed an estimated £5.2 billion of investment to the Midlands to create a modern, interconnected transport network.

Further economic opportunitiesThere is still much to do to grow the economy and productivity of the region to ensure that the Midlands Engine meets its full potential as a driver of national economic success. The Midlands accounts for 15.7% of the UK’s employed population but only 14.6% of the total economic output. GVA per worker is £46,310, some £7,000 below the national average.

There are some particular challenges. These are most notably around overall skills levels, the proportion of knowledge intensive business, the level of investment made by SMEs in innovation and aspects of connectivity with a history of underinvestment.

The overall rate of employment in the Midlands Engine is accelerating and some areas enjoy levels of employment that far exceed the national average, such as Worcestershire, Northamptonshire and the South East Midlands. Others, like the Black Country and Greater Birmingham & Solihull, still face the on-going challenge of pockets of entrenched high levels of unemployment.

We aim to seize the spirit of collaboration that is evident from the early Midlands Engine discussions to address these challenges. We will work together to deliver real economic benefit and shape the UK’s future success.

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Powering Up the Midlands EngineIncreasing collaboration and identifying our specific and unique strengths will be key to the success of the Midlands Engine. We will focus on driving the productivity of our existing key sectors, through business investment, research and development, innovation, skills and connectivity improvements. At the same time we will nurture high growth potential sectors and companies, through our growth hubs and in partnership with our universities and colleges.

The work of the Midlands Engine will be drawn from many elements. Much will take place on a day-to-day basis in our towns, cities and rural communities.

Our sectoral strengths and diverse business base are the foundations for successPrivate sector growth and productivity improvement will drive the Midlands Engine. We will focus on both existing and emerging regional strengths. We believe these sectoral strengths give us the best opportunity to meet our ambitions for long term growth.

Our manufacturing output will continue to be driven by global companies like Alstom, Bombardier Jaguar Land Rover, JCB and Rolls-Royce. These companies also contribute strongly to the wider transport technology and engineering sectors, and their supply chains extend across the Midlands. This is a significant economic network.

Our strong supply chain base will be central to the success of the Midlands Engine. In aerospace alone, the supply chain consists of 400 core high-technology manufacturing companies and institutions, contributing over 40,000 largely highly skilled and high value jobs to the economy.

We will continue to be home to exciting, cutting edge high performance technology, and world-leading research translation facilities. For example, in the high performance motorsport sector, companies like Mercedes and Prodrive deliver cutting edge innovation supported by top class testing facilities located at the likes of Silverstone, Millbrook and MIRA.

The Midlands Engine’s food and drink sector will evolve as the UK’s larder. We are home to global brands and the sector is based on a thriving and complementary agricultural and agri-technology sector, contributing greatly to the nation’s food security. Companies like Mondelez, Pepsico, Samworth Brothers, Branston and Weetabix play central roles in this.

The Midlands Engine will continue to rise to the global challenges in the energy sector. We are at the centre of an emerging £100bn offshore wind market, with the potential to create wholly new supply chains. We are home to the second largest chemical cluster in the UK, worth £6bn per annum, and the largest UK refinery cluster, totalling 27% of UK total capacity.

The Midlands Engine is home to the largest number of medical technology and device companies in the country. We have a strong life science pedigree that stretches from Nottingham, with its centre piece BioCity, to Birmingham, with the newly opened Institute for Translational Medicine

The region’s growing Creative, Digital and Design sector will continue to underpin much of our wider growth, supported by world-leading smart technology. Our ambition to be creative leaders will be based on the success of our media centres, and hubs of artistic innovation and excellence. 28

Businesses will flourish with the Midlands Engine’s connectivity, trade and investment links, innovation, financial support and skills pool.

With internationally significant attractions and museum collections and three of the country’s leading contemporary art galleries, our cultural heritage is of global renown. All of this makes the Midlands Engine a magnet for tourists from the UK and overseas.

The region’s business growth needs a joined up professional, scientific and technical services sector. The Midlands Engine region is showing significant growth, on a par with that of London, in these sectors, and we will continue to promote the opportunities available to companies in the region.

This combination of sector strengths and a diverse business base will see the Midlands Engine become the destination of choice for inward investors and visitors alike.

Supported by progressive Local Authorities, dynamic LEPs, and emerging Combined AuthoritiesThe Midlands Engine will embrace the changing public sector landscape and make use of increasingly devolved powers and funding from national government. Our public sector bodies are crucial to the success of the Midlands Engine. Together they will drive forward the skills and innovation agenda, support the growth ambitions of business, and work with Government and private sector partners to deliver the transport ambitions of Midlands Connect. With public bodies as brand ambassadors, the Midlands Engine will be promoted nationally and internationally, and provide a platform for investment attraction.

The emerging Combined Authority models and the devolution deals that come with them provide further opportunities for experience and partnership. For example,

learning from the West Midlands Combined Authority Productivity Commission will support the development of clearly focussed plans to address the productivity gap across the wider Midlands Engine region.

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And partnerships with skills and innovation providers Our universities, translational research centres, further education colleges and other specialist skills and innovation providers are committed to driving the skills and innovation ambitions of the Midlands Engine. Our student base is diverse and our Colleges and Universities play a vital role in their communities.

Schools, Colleges and Universities will increasingly provide students with an experience that is tailored to their needs, linked to work experience and the needs of employers. Further Education providers are already working closely with the employer base to ensure that student skills are matched to the employer needs and to ensure opportunities to re-tune skills of existing employees are provided in a flexible manner. Devolution of adult skills planning and funding will allow the Midlands Engine to focus training even more sharply on the needs of the regional economy.

Our universities will continue to provide enterprise and innovation expertise that supports the needs of large multi-nationals and local SMEs; utilising a world class research and innovation infrastructure including science and technology parks and business incubation facilities, alongside the delivery of knowledge exchang programmes. Our Universities and Colleges will continue to provide specialist business and innovation support alongside higher level skills, whilst supporting communities and social cohesion.

The Midlands has a rich set of research and innovation assets. The 2014 Research Excellence Framework found world-leading research in 281 university departments. Two of our universities rank in the UK top 10 for research

power. Partnerships such as Midlands Innovation, across six universities, and Universities West Midlands, will boost collaboration.

• Collaboration in strategic areasThere are five key themes where Midlands Engine stakeholders have agreed to collaborate formally to achieve our aims more rapidly.

• PromotionThe Midlands Engine will promote the region’s strengths, assets and opportunities actively to key target domestic and overseas audiences. Our work will focus on sectors thatprovide the greatest opportunities for the region for inward investment.

Alongside this, a consumer-focused campaign for the visitor economy will promote the highlights of the region, specifically around areas including heritage, culture, sport and food and drink. An efficient transport infrastructure will be vital for our business and leisure tourism.

• Midlands ConnectThe connectivity of the Midlands Engine will be central to its success. To address this, Midlands Connect will set out a credible long term transport investment strategy for the Midlands Engine. We will identify early investment to improve road and rail networks and explore how new technologies can increase capacity of existing transport networks.

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• InnovationThe Midlands Engine will drive up business innovation, improving business productivity and competitiveness. Our universities and business will work together pan-regionally to bring forward innovations that support our key sectors and drive this through the supply chain. We will work with Government to identify where opportunities exist to further our innovation activity across the Midlands Engine.

• Finance for BusinessSupporting our SMEs to grow will increase employment right across the Midlands and help to diversify our business base. SMEs can be a key source of innovation, and medium sized enterprises are crucial to developing local supply chains that support global brands. High levels of new company formation and survival are indicative of a strong entrepreneurial culture and ethos within the business and wider community.

Access to appropriate sources of finance is essential for businesses to reach their full growth potential and to facilitate the survival of new business start-ups. The Midlands Engine will address this by offering a single and substantial access to finance proposition.

• SkillsThe availability of a strong talent pool is crucial to enable employers to improve their productivity and grow more quickly. In response to this, the Midlands Engine will work to ensure that the employer base links closely with skills providers and skills provision is tailored to employer demand. This also includes helping our future workforce understand the nature of upcoming employment opportunities and the skills levels these demand.

Building on established partnerships and creating new ones, the Midlands Engine will encourage employers and employees to work closely with skills providers. This will enable clearer skills pathways to develop, and we will encourage more people to take up an apprenticeship and more businesses to take on an apprentice. The Midlands Engine will support and promote best practice across the region.

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Promoting the Midlands EngineWe will develop a regional branding proposition based on the Midlands Engine for Growth with the aim of strengthening our reputation across global markets and, in doing so, support UK economic growth prospects within an internationally competitive environment.

The Midlands Engine region is one of the most important economic hubs in the UK. Developing a strong Midlands Engine brand based on our track record of delivering inward investment and trade development will help the UK maintain its overall competitiveness.

Adopting a wide-ranging approach to promotionMidlands Engine partners will work with Government agencies to create joint promotional content and collateral. We will deliver a host of marketing activities targeted at home and abroad to attract visitors, business and investment to the Midlands Engine.

Collectively, we will attend international exhibitions and business tourism events using the Midlands Engine brand. These will generate leads that will drive overseas business footfall and visitor expenditure.

In partnership with Government, we will undertake a series of trade missions to target geographies under the Midlands Engine banner, to send the message that we are good for the UK and good for business. We are ambitious and want this activity to being in April 2016. Overseas markets with the greatest potential include China, India and the USA.

Effective stakeholder management is crucial to the success of these initiatives and we will deliver briefing and thought leadership events hosted by public and private organisations within the region.

Targeting promotion on key markets and industries Complementary branding and promotional activity will be focused on knowledge-based industries where the region already boasts considerable expertise, such as: advanced manufacturing; transport technology; food and drink; healthcare and life sciences; energy; creative, digital and design; as well as business, professional and financial services. Export and investment activity will be aligned clearly on these key sectors.

Working with UKTI RIO to bring investable sites to market We propose to develop a pitch book of investable sites across the Midlands Engine region working with UKTI RIO. This will see a range of sites being brought to market collectively at the global property fair MIPIM in March 2016. This will showcase the scale of activity and highlight our ambition, whilst firmly placing the Midlands Engine on the map.

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The Midlands Engine for Growth will be promoted as an economic driver, at home and overseas, to increase trade, export and investment, and attract increasing numbers of visitors

• Working with Midlands Connect to ensure the needs of investors and visitors to the UK and the region are taken into account with the development of their strategy.

• Exploring how the Drive West Midland programme, a multi-partner initiative supporting the indigenous automotive supply chain to improve competitiveness, can be rolled out across the Midlands Engine region.

• Exploring benefits for out of region visitors via a “one travel pass”, which we anticipate would have significant demand within the business and group tourism sectors.

• Enhancing our market intelligence capabilities across the region will develop our competitive position and inform strategic and tactical efforts. This will support planning and delivery across all themes.

Building a regional business visitor and tourism offer that can deliver increased economic growth The Midlands Engine will develop a more collaborative and competitive approach to business visitor and tourism programmes. The promotional theme will focus on an attract-and-disperse strategy by leading on areas of global appeal. These include the resting place of King Richard III in Leicester, the legend of Robin Hood and a UNESCO World Heritage Site at Ironbridge.

This approach will also evolve a cross-regional profile of the range of world class events and conference venues as well as promoting our international-standard hotels and wider accommodation.

Promoting the Midlands Engine airports as key gateways to the UK Making best use of the Midlands’ airports, and their latent capacity, will be important and we look to work with Government to address this issue. Birmingham Airport could increase its passenger number, including long haul, by eight million with no additional infrastructure costs. East Midlands Airport can deliver growth within the short haul market and support exports by providing additional freight connectivity.

Building new partnerships We will aim to develop greater partnership working at regional, national and international level. Proposals include:

• Working with UKTI and VisitBritain to deliver a powerful pan-regional message to take the Midlands Engine to the world.

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Midlands ConnectMidlands Connect, the transport partnership for the Midlands Engine, will enhance connectivity within, to and from the Midlands. Improving transport links to speed up journey times across the Midlands could potentially boost the regional economy by more than £1 billion per annum, create 300,000 additional jobs and save businesses nearly £500 million.

The Midlands Engine benefits from a central position of strategic importance to the UK transport networkThe Midlands Engine will take advantage of our location at the heart of the UK. It provides unparalleled opportunities for connections to existing and new markets. Our strategic road and rail networks such as the M6, the M1, the West Coast Mainline, the East Coast Mainline and the Midlands Mainline are all of national importance. They are used to transport people and goods across the Midlands as well as across the country.

The Midlands Engine will link the UK to the rest of the world. Birmingham Airport handles more than 10 million passengers and East Midlands Airport is the second largest freight airport in the country. Luton airport is the fastest growing in the UK, and the airport at Cranfield University is favoured by business jets owing to its location north of London and close to the M1.

The Midlands is also served directly by several ports including Grimsby and Immingham and Boston. It is linked to wider national locations including the Haven Gateway, Felixstowe, Southampton, Humber, the Mersey Ports and Holyhead.

Working in Partnership - One Voice for the Midlands to boost the economyMidlands Connect, formed in 2014, is a partnership of twenty-eight local authorities, Network Rail, Highways England, Government and the business community. It operates across the eleven LEP geography of Midlands Engine.

Midlands Connect will operate on a “One Voice” approach which will ensure we reach a unified position on strategic transport investment. It will use an evidenced approach focused on clearly articulating the transport needs, opportunities and investment priorities for the region.

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Midlands Connect – Powering the Midlands Engine for Growth

Midlands Connect will develop the vision and set out the long term Transport Strategy for the Midlands Engine Midlands Connect will use the £5 million it received from Government to develop the vision and strategy for transforming transport connectivity across the Midlands Engine region. It will set out a credible long term transport investment strategy to build the Midlands as an Engine for Growth.

The Midlands Connect Transport Strategy will develop and examine options for:

• Measures that maximise economic growth from HS2• Reduced journey times and improved reliability between

key centres• Addressing the interaction of national, regional and

local movements within key strategic transport hubs in the Midlands

• A long term solution to the congestion and unreliability of movements within and through the region.

• Regional and national interventions that connect the Midlands to international gateways.

The strategy will be launched by March 2017.

Midlands Connect will exploit the opportunities of High Speed 2 Rail (HS2)HS2 will place the Midlands at the centre of a new national high-speed rail network. It will provide much needed rail capacity and enhanced connectivity between Britain’s major cities. Plans will be put in place to ensure that the Midlands Engine capitalises on the economic benefits associated with its transformational connectivity improvements.

Midlands Connect will develop measures for wider strategic connectivity from the Midlands Engine to proposed HS2 Hub Stations serving the Midlands. These include the development of HS2 Phase 2 proposals.

Midlands Connect will set priorities for maximising released capacity from the classic rail network, particularly for areas not served directly by HS2. We will also ensure complete integration with existing and future HS2 Growth Strategies.

Road and rail networks must be prepared for new and on-going transport challengesMidlands Connect will address our wider road and rail networks challenges that impact on the competitiveness of both the Midlands and the wider UK economy. Midlands Connect will address the congestion, slow journey times and unreliability on the Midlands’ rail and road arteries. This impacts on national trade and productivity, through disruptions to North-South connections via the Midlands. A further barrier to further economic agglomeration and passenger/freight movements East-West can potentially be created here.

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InnovationThe Midlands Engine will encourage businesses, Universities and the research translation centres across the region to work more closely together to create propositions for innovative working in our priority sectors. This will be aimed at delivering a pipeline of new products, process and market opportunities as well as stimulate a greater uptake in the innovative practice across the whole business base.

Evolving the key sectors of the Midlands Engine to improve international competitiveness The Midlands Engine’s world-class research and technology base will work closer together to support the drive to increase productivity and competitiveness in our business base. The aim will be to address gaps in national capability, drive business retention and inward investment, safeguard and increase employment, and equip UK businesses to lead globally in response to the rapidly evolving demands of customers.

Work will focus on the following key sectors:

• Manufacturing, Engineering and Transport Technologies – Linking assets such as the four Rolls-Royce University Technology Centres, Warwick Manufacturing Group and the Manufacturing Technology Centre that reside in the region. These and others such as the Advanced Propulsion Centre, MIRA, the National Rail Research Centre, and the National Automotive Innovation Centre will host engagement work with businesses such as Arup, Atkins, Bombardier, GKN Land Systems, Jaguar Land Rover, JCB, Rolls Royce, Siemens, Bombardier and Thales as well as their supply chains.

• Agri-food and drink manufacturing and production – Building university-business consortia to allow the exploitation of opportunities in advanced food manufacturing and farming. The agri-food sector and its production chains integrate strengths in food production technologies, agricultural engineering, nutrition and health outcomes, product development, design and marketing. With research-intensive companies including 2 Sisters, AGCO, Mondelez, PepsiCo, and SAB Miller all located in our region, we are ideally placed to improve productivity across the food cycle, from farm to fork. The Midlands Engine has discussed a substantial project in this area with government to encourage this wider development.

• Healthcare, Life Sciences and Translational Medicine – Building on regional assets such as six Medical Schools and a range of associated Health and Life Science resources, we aim to become the natural test-bed for research exploitation as well as a meeting point between patients, the NHS and our clinical, biomedical, engineering and health expertise. The Midlands Engine will aim to become one of the leading places in Europe to conduct clinical trials and accelerate translation of research from laboratory bench to bedside.

• Energy and Low Carbon Technologies – We will use the University-based Energy Research Accelerator (ERA) to deliver a step change in the impact of energy research in the UK. This will also form the basis of encouraging further collaboration between the likes of the Energy Systems Catapult and the Energy Technologies

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Our excellent universities and research translational centres will work more closely with the regional business base to further stimulate the uptake of innovation.

Enhancing the exploitation of our assets The Midlands Engine values the opportunity to enhance the exploitation of our assets as a result of the Science and Innovation Audits currently proposed by Government. We believe that these will showcase our sector innovation strengths and the link that already exist between business, universities and the translational research centres that operate in our region.

Partners are exploring with Government how best to develop a coordinated model that either revolves around a single Midlands Engine level audit or ensures that the outcomes of multiple audits are aligned to the benefit of the region. This will build a layered and cohesive approach across the Midlands Engine region.

Creating a Higher Education ForumOur Midlands Engine universities have agreed to work together to create regional Higher Education forum. This will allow partners will have regular dialogue with them on regional matters. The forum will also allow increased fore-sighting activity undertaken to support future Midlands Engine proposals.

Institute with regional companies such as GE, Siemens, British Gas, Cofely-GDF Suez, E.On, Intelligent Energy, National Grid, and Worcester-Bosch. Government committed £60 million for the initial first phase of ERA. Further commitment from government will develop the next phase of these important energy research and demonstration assets.

• Creative, Digital and Design Sector - We will look to exploit fully the interplay between the creative, digital and design sector and those sectors above. This will range from design capability linked to prototyping and product design, including using innovate techniques like additive manufacturing, to exploiting initiatives such as the anticipated Centre for Digital Integrated Systems, part of the West Midlands Combined Authority proposals.

Midlands Engine successes will further be underpinned by excellence in professional and financial services as well as in enterprise. The Universities have a strong network of business schools that supply economic intelligence and support businesses. They also provide a rich supply of spin-out companies and our students are some of the most enterprising in the country.

Creating a stronger network of science parks and innovation centresThere are twenty-three science parks operating in the Midlands Engine, with most having incubation facilities. By working closer together, they will multiply the effects of targeted interventions to promote growth. Future activities under consideration include a targeted innovation voucher scheme and use of the latest communication technology to increase engagement of our knowledge base by supporting SMEs more efficiently.

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Finance for BusinessWe recognise that the range of business types, the sectoral strengths of the region and its economic growth ambitions will call for a broad and sophisticated range of financial support mechanisms. Midlands Engine partners will work together to simplify and streamline the funding landscape, integrating recyclable funds across the debt, equity and mezzanine spectrum.

Midlands Engine will develop a comprehensive fund-of-funds To support business growth and survival, Midlands Engine partners will develop a £180 million region-wide fund-of-funds utilising the EU Joint European Resource for Micro to Medium Enterprises (JEREMIE) programme. This fund will combine ERDF funding with matched lending from the European Investment Bank (EIB) and legacy returns from previous programmes. This will establish a comprehensive range of sub-funds designed to support the SME growth ambitions of the region. The funds will deliver access to finance solutions on a scale and ambition that has until now been unknown in the Midlands Engine region.

Government has been invited to be to be a formal partner in this pan-regional fund-of-funds programme and the Midlands Engine is already working with the British Business Bank to facilitate this.

The £180 million JEREMIE fund-of-funds represents just the start of our plans. By working in partnership, we have identified a need for greater scale, coordination and cooperation in the work we do across the region; a need for greater integration with other aspects of the business support environment; and greater devolvement of national support initiatives.

Midlands Engine has the ambition, scale and flexibility to support a range of new financial mechanisms vital to supporting business growth, job creation and productivityThe Midlands Engine partners aim to use the governance infrastructure that will be built to deliver this fund-of-funds to help deliver additional financial supports.

These additional financial instruments will be designed to complement national offerings, collaborate with and leverage funding from national providers or schemes, and deliver flexibility and responsiveness to local markets, growth plans, conditions and demands. For example:

• An Urban Development Fund will enable sustainable investment in infrastructure projects, heritage or cultural sites and brownfield sites. It will enable the creation of new commercial floor space, which would otherwise not be affordable due to cash flow issues.

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The business base in the Midlands Engine is a vital component of our economic success and needs access to appropriate finance to flourish.

the right blend of funding is deployed in all cases.

Devolving financial instruments to the Midlands Engine will help align them with the business base they are targetingThe Midlands Engine will work with Government and the British Business Bank to review devolving some of the national access to finance programmes such as the Start-Up Loans scheme. This will allow regional providers to focus these schemes on local priorities and needs. It will also ensure that such schemes become embedded in an integrated and collaborative escalator of finance products capable of supporting at every stage of their development.

• A Regional Digital Media and Content Fund will attract TV and film makers into the region, promote the visitor economy, support growth in the creative sector, create jobs and generate a recyclable legacy return.

• A Regional Loan Guarantee scheme will underpin the region’s manufacturing export growth ambitions by encouraging loans from new entrants into the SME loan marketplace, including peer-to-peer lenders. The regional scheme will complement the national Enterprise Finance Guarantee scheme by focussing upon SMEs and sectors that are not typically covered by that scheme.

• A structure at this spatial scale allows greater flexibility and responsiveness to changes in local economic needs. This will also enable the Midlands Engine to work effectively with Government and respond quickly to address any future economic ‘shocks’ that may be experienced.

Finance for Business as part of an integrated Business Support offer The Midlands Engine finance for business offer will include a database of national and regional fund managers and financial products. This will be used to train and inform local Growth Hubs and their supporting partners as well as inform local web portals and other signposting services.

The regional access to finance offer will also integrate regional grant programmes. In doing so, this will help to ensure that: research and development projects have access to commercialisation funding; start-ups and early stage businesses have access to an escalator of finance products; recyclable funds are deployed alongside grant offers; and

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SkillsBusinesses need talented people to enable growth and productivity improvement. In the manufacturing and engineering sectors there are concerns regarding an aging workforce and insufficient skilled people. Government has suggested that the Midlands should undertake work to address these issues. The Midlands Engine will drive action to respond to this challenge.

Skills Development is not keeping pace with demand in key sectors such as manufacturingMidlands Engine skills partners recognise that there is substantial strength in the education and skills provision across the Midlands in disciplines that support our key sectors, particularly advanced manufacturing and engineering. However, current delivery models and infrastructure do not provide sufficient numbers of appropriately qualified people to keep pace with demand from these sectors as the economy grows. In 2013, there were around 25,000 vacancies in the Midlands that were hard to fill due to a lack of suitably skilled applicants. This represents around a fifth of all such skills shortages in England. Our future competitiveness is at risk.

The Midlands Engine presents an opportunity to join up Central Government departmental funding with local provision and services, build on freedoms and flexibilities agreed in local Growth and Devolution Deals, and improve knowledge of new educational approaches. This will support individuals along a clear pathway to get into work and progress as well as local businesses to grow more quickly.

Producing a supply of newly trained and re-tuned employees with advanced manufacturing skills to meet growth needsMidlands Engine partners will work closely to address these issues, particularly within the manufacturing and engineering sectors. This will build on progress that has been made in bringing education providers and businesses closer together through our universities, colleges and our STEM-based University Technology Colleges. These are supported by Catapult Centres, private sector training providers and others.

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Employer-led skills pathways will be developed to support learners into and through employment via apprenticeships and other qualifications at all levels.

Developing high-level technical and engineering skills for the advanced manufacturing sectorThe Midlands Engine partners are also committed to developing a comprehensive provision of Degree and Higher Level Apprenticeships. This will provide a combination of academic and vocational learning in a progressive framework, from school through to postgraduate level.

This employer-led, advanced manufacturing skills pathway will in time give breadth and depth to our labour pool and will build on the excellent practice which already exists in many of our universities in collaboration with the private sector.

Sharing Best PracticeMuch work to improve skills levels and employment rates has taken place locally across the Midlands, whether pre-employment, or in-work up-skilling to match changing employer needs. The Midlands Engine is committed to evolving and sharing best practice in this field in order to accelerate addressing these issues, and we have invited Government to work with us to facilitate this and to build on existing excellent joint work such as the industrial partnerships

Our Midlands network of Further Education colleges will initiate a unique partnership of institutions to deliver a step change in our approach to skills, by being focussed on employer needs and engagement. The Midlands Engine partners will pool resources and delivery around our major manufacturing companies where the colleges already have a strong provider role. They also have the ability to make a big impact on the supply chain base, by offering coordinated collective capacity and expertise to address some of the known training needs. A bespoke delivery plan will set out how colleges will work together to deliver a single solution to these businesses and their supply chains.

A Midlands Engine region network of Specialist Advanced Manufacturing Hubs, based on the concept of Institutes of Technology, will be formed to deliver feeder routes from the wider body of colleges into the new Hubs. In parallel, there will be more employer-led technical curriculum development, including virtual learning, teacher exchange, mentoring and professional development.

A high profile employer-led apprenticeship marketing programme will be built around academic and vocational education linked to employment opportunities in the sector. This will deliver better quality training and an increased supply of recruits into advanced manufacturing jobs. Our activity will ensure the Midlands Engine supports the Government’s core economic target of delivering an additional three million apprenticeships.

This apprenticeship marketing programme will be supported by the development of a comprehensive careers education initiative which will integrate every element of the journey, providing a pathway through further education, higher education, apprenticeships and workforce development.

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The Midlands Engine for Growth - Next StepsThe initial work to develop this Midlands Engine prospectus and present it to Government has been overseen by a senior Steering Group. This has comprised LEPs and Local Authorities working together alongside experts in the themes identified for initial collaboration. Significant momentum has been generated by the process of delivering the prospectus.

It is crucial that we continue this momentum and implement the proposals contained within this prospectus. This will be achieved by the Midlands Engine stakeholder base working closely with Government. Both parties must promote the use of the Midlands Engine to its fullest in order to start to deliver the economic and productivity gains anticipated.

Midlands Engine Implementation PlanningA detailed Midlands Engine implementation plan will be developed to take forward the key proposals contained within this prospectus. This will include the following core elements:

• Completing a more comprehensive analysis of the Midlands Engine economy. This will be used to update the aim and objectives for the Midlands Engine.

• Developing a Midlands Engine Productivity Improvement Plan, based on best practice recommendations currently in development within parts of the region.

• Undertaking the first Midlands Engine trade mission and hosting the first senior Midlands Engine inward investment visit.

• Developing an investment pitch book of investible propositions for use at MIPIM 2016.

• Building a regional business visitor and tourism offer.

• Developing the vision and strategy for transforming transport connectivity across the Midlands Engine region through Midlands Connect.

• Evolving phase two of the Midlands Innovation led Energy Research Accelerator and a pipeline of further similar propositions, including a likely Agri-food sector proposition.

• Building a stronger network of regional science parks as well as a higher education forum.

• Developing a JEREMIE based fund of funds to finance business better together with evolving discussions with the British Business Bank regarding further regional finance mechanisms.

• Developing a more comprehensive demand led approach for skills development in the manufacturing and engineering sectors, based on increased provider collaboration and alignment.

• Undertaking a review of best practice relating to employment and skills. This will be used to accelerate the take up of new and innovative ideas.

Oversight of the Implementation Plan will be provided by a permanent senior leadership group that will hold the Midlands Engine partners to account for its delivery. It is proposed that the group has strong engagement with a senior Government minister, who will also be the Government champion for the Midlands Engine, including leading trade missions and other relevant activity.

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It is likely that a number of sub-groups will be formed to support the senior leadership, where they do not exist already. These are likely to be linked to the five themes that have emerged in the prospectus. A separate economic intelligence sub-group may also be formed.

The private sector has shown interest in developing a business advisory group to support the wider leadership group. This will encourage wider business participation in Midlands Engine activity and be on hand to promote its work.

Resourcing of delivery of the implementation plan should be reviewed. Midlands Engine partners will work with Government to facilitate this.

Spending Review and Autumn Statement 2015Regional partners welcome the support for the Midlands Engine for Growth contained within the recent Spending Review and Autumn Statement. The specific references to the creation of a new Midlands Connect Strategic Board, the recognition of the new Energy Research Accelerator and new round of European financing for smaller businesses across the Midlands, and the £5 million provided for a Midlands Engine Trade and Investment Plan all match closely with the contents of this prospectus. We look forward to working with Government to deliver these proposals.

Communicating successThis prospectus will be made available to all stakeholders in the Midlands Engine region. In time, it will be supported by a dedicated web platform to allow update on the progress of the implementation plan and promote Midlands Engine activities and success.

We also propose that regular summits are held regarding the progress of the Midlands Engine. This would allow wider involvement and participation from Midlands’ stakeholders.

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Sources of DataEconomy and Business BaseBIS, 2015 Growth Dashboard 22 January 2015

BIS, The Size and Performance of the UK Low Carbon Economy March 2015.

Centre for Cities Cities Outlook 2015

EEF: The Manufacturers’ Organisation Manifesto 2015

EEF: The Manufacturers’ Organisation Regional Manufacturing Outlook, July 2015

HMRC UK Trade Info https://www.uktradeinfo.com/ 2015

Midlands Aerospace Alliance, 2015

Midlands Engine Regional Observatory

NOMIS 2015, ONS Mid-year Population Estimates 2005 & 2014

NOMIS 2015, ONS Annual Population Survey January-December 2014 data

NOMIS 2015. ONS, Annual Survey of Hours and Earnings, 2014

NOMIS 2015. ONS, BRES, 2013

NOMIS 2015. ONS, Business Counts – Local Units.

ONS Labour productivity Q3 2014

ONS, Regional, Sub-Regional and Local Gross Value Added, 2015

ONS, Sub-Regional productivity, February 2015

ONS, The economic performance of the UK’s motor vehicle manufacturing industry, 2015

Innovation and SkillsBIS, Mapping Local Comparative Advantages in Innovation: Framework and Indicators, July 2015

Higher Education Statistics Agency, 2013/14

ONS, 2015. Research and Development in UK Businesses, 2013 Datasets

Research Excellence Framework results, 2014

UK Commission Employer Skills Survey (UKCESS), 2013

HEFCE, Collaboration between SMEs and universities – local population, growth and innovation metrics, May 2015.

Transport Midlands HS2 Growth Strategy, 2015

Network Rail market study, 2013

Local Enterprise Partnership Strategic Economic PlansBlack Country LEP

Coventry and Warwickshire LEP

D2N2 (Derby & Derbyshire, Nottingham & Nottinghamshire) LEP

Greater Birmingham and Solihull LEP

Greater Lincolnshire LEP

Leicester and Leicestershire LEP

The Marches LEP

Northamptonshire LEP

South East Midlands LEP

Stoke-on-Trent and Staffordshire LEP

Worcestershire LEP

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AcknowledgementsThis prospectus has been produced in conjunction with a wide cross section of stakeholders from the Midlands Engine region. Their cooperation and support has been invaluable and their initial work will provide the foundation for the delivery of the aims contained within this document.

We would also like to acknowledge the work of those who have led on the production of this prospectus, namely:

Senior Steering GroupDavid Frost CBE – Chair Stoke-on-Trent & Staffordshire LEP

Cllr Sir Albert Bore – Leader Birmingham City Council

Tony Bray – Area Director BIS West Midlands

Andrew Cleaves – Chief Executive and Principal Birmingham Metropolitan College

Cllr Jon Collins – Leader Nottingham City Council

Professor Sir David Greenaway – Vice Chancellor University of Nottingham

Professor Michael Gunn – Vice Chancellor Staffordshire University

Dr Richard Hutchins – Director University of Warwick

Rowena Limb – Area Director BIS East and South East Midlands

Professor Ian Oakes – Deputy Vice Chancellor University of Wolverhampton

Norman Price – Chair West Midlands Cross LEP Finance Group

Nick Pulley – Chair Leicester & Leicestershire LEP

Peter Richardson – Chair D2N2 LEP

Paul Thandi – Chief Executive NEC Group

Cllr Anne Western – Leader Derbyshire County Council

Operational GroupMike Carr GBS LEP

David Ralph D2N2 LEP

Peter Davenport Stoke-on-Trent & Staffordshire LEP

Rachel Egan Solihull Metropolitan Borough Council

Paul Heaven Blue Sky Corporate Finance

Chris Henning Nottingham City Council

Johanna Howarth Cities and Local Growth Unit

Kelvin Lees BIS East Midlands

Maria Machancoses West Midlands Integrated Transport Authority

Andrew Pritchard East Midlands Councils

Neil Rami Marketing Birmingham

Kim Rowlands BIS West Midlands

Tony Smith Birmingham City Council

Lewis Stringer Nottingham City Council

Ed Thomas University of Birmingham

Alison Torrens Aston University

Helen Turner Midlands Innovation

Gary Woodman Worcestershire LEP

SecretariatThomas Carnegie PA Consulting

Shona McAllister PA Consulting

Daniel West GBS LEP

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46

Midlands ConnectPowering the Midlands Engine

Delivering a Transport Strategy for The Midlands

47

£5m Investment From Government to Develop the Midlands Connect Transport Strategy

The Midlands Connect Programme has received a real boost from government with £5m allocated by the Department for Transport during 2015/16 and 2016/17. The headline aims of the funding are:

• To help develop the vision and strategy for transforming transport connectivity across the region in order to drive economic growth

• To set out a credible long term transport investment strategy to support the building of the Midlands as an Engine for growth.

Working in Partnership - One Voice for the MidlandsThe Midlands Connect Partnership was formed in 2014. It is a collaboration of 11 Local Enterprise Partnerships, Network Rail, Highways England, central government, 26 local authorities and the business community.

The Midlands Connect Partnership is underpinned by two main principles:

• Investing in the “One Voice” approach to ensure the Midlands reaches a unified position on strategic transport investment

• An evidenced approach focused on clearly articulating the transport needs, opportunities and investment priorities for the region.

Why a Midlands Transport Strategy?The location of the Midlands, at the heart of the UK’s road and rail networks, is central to its success. High Speed 2 (HS2) will strengthen the Midlands’ pivotal role with Phase 1 connecting to London open in 2026.

The Midlands contains the UK’s manufacturing heartland and it has the UK’s largest cluster of logistics activity. High-growth technology businesses are located around world class universities and there are strong concentrations of professional services in the major cities.

However, there are significant transport challenges impacting on the competitiveness of both the Midlands and the wider UK economy.

Tackling these transport constraints and maximising the benefits of HS2 has the potential to unlock large economic benefits to both the Midlands and the whole UK.

Midlands Connect has already made great steps towards getting the Midlands Engine for Growth in motion. This is a fantastic opportunity and I look forward to working with you. ”

Rt Hon Patrick McLoughlin MP Secretary of State for Transport

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The Journey So Far... Unrivalled Potential for Growth In 2036, if journey times were cut by 20%

across all of the intensive growth corridors in The MidlandsThe Midlands has a strong mix of high-growth

industries, including logistics, advanced manufacturing, and professional services.

• The economy generates almost £200 billion GVA per annum

• Total exports totalled £50 billion in 2013, 16% of the UK total.

Our Economic Impact Analysis undertaken in 2015 shows that there will be large economic benefits from improving road and rail connectivity unlocking job creation in our growth areas.

Based on work to date the Midlands Connect Transport Strategy will develop and examine options for:

• Measures that maximise economic growth from HS2

• Reduced journey times and improved reliability between key centres

• Addressing the interaction of national, regional and local movements within key strategic transport hubs in the Midlands

• A long term solution to the congestion and unreliability of movements within and through the region

• Regional and national interventions that connect the Midlands to international gateways.

Developing the Strategy and Outline Business Case for Future Investment

We will launch our strategy by March 2017. The work programme will follow these core objectives:

• The work will be fully integrated into the wider programme to create the Midlands Engine

• The Midlands will maximise the economic impact of existing transformational investment commitments, including HS2

• The Midlands will articulate the case for further transformational investment in the region

• Midlands Connect will continue to add value to the work of Highways England, Network Rail and HS2

• The Midlands will continue to deliver consensus on matters of strategic transport infrastructure

• Midlands partners will continue working together and with Government to develop appropriate models of devolved governance.

BUSINESS JOURNEY TIME SAVINGS £460 million

PER YEAR

AGGLOMERATION BENEFITS £1.1 billion

PER YEAR

LABOUR MARKET IMPACTS £33 million

PER YEAR

additional jobsEMPLOYMENT IMPACT 306,000

From July 15 Economic Impacts Report Executive Summary

Through Midlands Connect local civic and business leaders are working strategically to get the region HS2 ready and maximise its economic growth. ”

David Higgins Chairman of HS2

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Contact

The Midlands is worth

a year to UK PLCB I L L I O N£178

CONNECTED 90% of all UK

business within 4 hours

MANUFACTURING 1/3 of all UK

manufacturing jobs

AIR FREIGHT East Midlands is second largest

freight airport nationally

AIR TRAVEL Birmingham is 1 of just 7 airports in the

UK to serve over 10 million passengers a year

INNOVATION The 20 Universities

are increasing links to emerging sectors

EXPORTS 16% of all UK exports

worth £50 billion

POPULATION Will grow by more than

10% in next 20 years

January 2014Midlands Connect

Partnership Formed

Summer 2014Baseline Report

Summer 2015Economic

Impacts Study

Autumn 2015Launch of Strategy

Development

Spring 2016Emerging Priorities

Report

Autumn 2016Emerging Strategy

Spring 2017Midlands Connect

Strategy

midlandsconnect@wmita.org.uk @MidsConnect50

General Meeting 5th February 2016

An Update on HS2 in the East Midlands

Summary This report updates Members on the work of the East Midlands HS2 Strategic Board and the securing of £1.25m of Government funding to develop an East Midlands HS2 Growth Strategy. Recommendation Members of East Midlands Councils are invited to: Welcome the work of the East Midlands HS2 Strategic Board and the announcement

of £1.25 million of Government funding to deliver an East Midlands HS2 Growth Strategy.

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1. Background 1.1 The Government published its latest HS2 command paper on HS2 on the 30th

November 2015, available on the DfT Web-site

1.2 The Command Paper confirms the Government to intention to advance construction of the line to Crewe, and sets out the Governments vision for the Eastern Leg of HS2 between Birmingham, the East Midlands, South Yorkshire and Leeds.

1.3 A formal route announcement for the Eastern Leg will not be made until late 2016 after further detailed work on key sections of the proposed line is completed. However, the Government has confirmed its support for a Hub Station serving the East Midlands located Toton, and strongly welcomed the work of councils and business leaders to secure a regional consensus on station location.

1.4 As a result the Government has made available £1.25 million to support the

development of an HS2 Growth Strategy for the East Midlands which will address connectivity and economic development issues related to both the Hub Station at Toton and the maintenance depot at Staveley. It is worth noting that similar support has not yet been made available to South Yorkshire (where there is no consensus on station location), or Leeds (where further technical work is required on the revised station proposal). The announcement therefore represents a vote of confidence in the East Midlands, and in particular the work on the East Midlands HS2 Strategic Board.

2. East Midlands HS2 Strategic Board 2.1 The East Midlands HS2 Strategic Board is chaired Cllr Jon Collins with Cllr Anne

Western as Vice Chair, has continued to meet on a regular basis to develop the evidence and analysis required to maximise the economic benefits of HS2 for the East Midlands. East Midlands Councils provides the Secretariat. Strategic Board papers and minutes are available on the EMC Website.

2.2 The meeting on the 25th November 2015 endorsed a report setting out design

principles for the Hub Station which agreed aspirations for connectivity and economic development, including an initial concept design. The report is intended to be a constructive input into early design work led by HS2 Ltd, and is available on the EMC Website.

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2.3 The meeting on the 15th January 2016 agreed proposals for the HS2 Growth Strategy work programme and the governance arrangements necessary to access the first tranche of financial support from the Department for Transport. The submission is set out in Appendix 1 for information. Andrew Pritchard has been seconded to lead the Growth Strategy work programme on a part time basis in combination with the HS2 Readiness element of Midlands Connect.

3. Recommendation Members of East Midlands Councils are invited to: 3.1 Welcome the work of the East Midlands HS2 Strategic Board and the

announcement of £1.25 million of Government funding to deliver an East Midlands HS2 Growth Strategy.

Andrew Pritchard Director of Policy & Infrastructure

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Delivery of an East Midlands HS2 Growth Strategy

Submission to Government For the Release of Funding

28th January 2016

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Contents

1. Realising the economic potential of HS2 in the East Midlands 3 2. Progress to Date 4 3. Governance 5 4. Proposed Work Programme 6

5. Links to Midlands Connect 10 6. Appendices 12

a) Strategic Vision & Principles b) Board Terms of Reference & Membership c) Delivery Gant Chart

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1. Realising the Economic Potential HS2 in the East Midlands 1.1 The development of an HS2 Hub Station at Toton serving the East Midlands has huge

economic potential. Independent research commission by HS2 Ltd from KPMG in September 2013 suggested the economic benefits could be anywhere between £1.1 and £2.2 billion GVA per year – the greatest proportionate uplift of any of the proposed HS2 stations. This reflects the potential of the Hub Station to radically improve connectivity between the local economies of the East Midlands and those of the West Midlands and the North of England, as well as with London and the South East.

1.2 Although the Government will not make a final route announcement on Phase 2 of

HS2 until late 2016, Ministers have recently set out a clear policy direction:

“The Government continues to support Toton as the location for the HS2 East Midlands Hub.” “Today, the Government is announcing funding for the development of an HS2 Growth Strategy for the East Midlands Hub. This funding will enable the region, led by the local LEP, to develop their strategy for maximising the benefits that HS2 will bring to the East Midlands. The strategy will clearly identify the opportunities, plans and required support to deliver growth, building on the transformational benefits of HS2.” ‘High Speed Two: East and West’ Published by the Department of Transport, November 2015.

1.3 This document sets out proposals for the delivery of an HS2 Growth Strategy for the

East Midlands which will realise the potential of both the Hub Station at Toton and the Maintenance Deport at Staveley. It includes a detailed work programme and budget for the first phase of this work up to December 2016 reflecting the scale of initial funding to be made available by the Department for Transport (set out below), and indicative proposals for 2017. Initial Funding: £625,000 Funding post Route Announcement: (expected late 2016) £625,000

1.4 It has been developed in consultation with local partners and has been endorsed by the East Midlands HS2 Strategic Board on the 15th January 2016 and the D2N2 Board on the 18th January 2016. The Growth Strategy is designed complement the Midlands Connect HS2 Ready Work Package, which together will set out measures to maximise the economic benefits of HS2 investment locally, regionally and nationally, and also contribute to the delivery of the Government’s Midlands Engine initiative.

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2. Progress to Date 2.1 Since the establishment of the East Midlands HS2 Strategic Board in July 2014, local

partners have made a significant progress towards the delivery of HS2 in the East Midlands. In particular by:

• Agreement of a strong local consensus to support Toton as the location for the

HS2 Hub Station serving the East Midlands; • Agreement of a clear strategic vision and objectives for the delivery of HS2 in the

East Midlands (set out in Appendix a); • Undertaking initial work to identify key economic opportunities in the local and

wider area that would benefit from HS2 connectivity; • Scoping of options for connectivity to the Hub Station by road, heavy rail, light

rail, bus/BRT, cycling and walking; • Commissioning technical work on the technical feasibility of classic compatible

connections at and around Toton; • Agreement of design principles for the Hub Station serving the East Midlands to

enable multimodal connectivity, including a preferred concept design; • Agreement of the scope for the development of a multi-modal transport model

for the area around the Hub Station; • Commissioning of initial feasibility work on options for tram connectivity; • Commissioning of initial feasibility work on options for ‘classic compatible’

connectivity; and • Agreement of framework for the delivery of an East Midlands Growth Strategy.

2.2 The East Midlands HS2 Growth Strategy will therefore be built on strong technical

and political foundations. Financial support from the Department of Transport will allow the necessary further work to proceed more quickly and to a greater level of detail than would otherwise be the case.

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3. Governance

3.1 The Funding for this East Midlands wide work has been made available through D2N2 LEP and as such Derbyshire County Council will act as the accountable body the Growth Strategy funding on behalf of D2N2. Expenditure will be certified jointly by the D2N2 Chief Executive and the Derbyshire County Council S151 officer in line with existing arrangements for the Local Growth Fund.

3.2 The HS2 Strategic Board will continue meet on a monthly basis and includes

representation from across the wider East Midlands Region and it will make regular reports to the D2N2 Board. The Strategic Board membership reflects the complex geography of the area and the range of legitimate interests involved and has proved successful in securing consensus on key issues to date, not least station location. The Strategic Board will supported by two Delivery Boards focussed on the Hub Station and the Staveley maintenance depot respectively, which will play a more prominent role as the Growth Strategy develops and moves towards implementation.

3.3 The only new structure proposed is Growth Strategy Officer Group which will support all three Boards and replace the existing Connectivity Group. This will be chaired by a Growth Strategy Manager reporting to the HS2 Strategic Board, who will be seconded part time from East Midlands Councils. The Growth Strategy Manager will also manage the delivery of the Growth Strategy on day to day basis and be co-located with the D2N2 LEP Secretariat for these purposes.

3.4 The Proposed Governance arrangements for the delivery of the Growth Strategy are set out below. Membership and terms of reference for the structures below the D2N2 Board are set out in Appendix b, but will be kept under review.

D2N2 Board

East Midlands HS2 Strategic Board

Hub Station Delivery Board

Staveley Depot Delivery Board

Growth Strategy Officer Group

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4. Proposed Work Programme 4.1 The outline of work programme to deliver an HS2 East Midlands Growth Strategy

was discussed an agreed by the EM HS2 Strategic Board on the 14th October 2015, and is summarised below:

4.2 It is proposed to use this framework for the development East Midlands HS2 Growth

Strategy. The work will be split into two tranches reflecting the DfT funding profile. The first tranche will comprise all of Stage 1 (to be completed by September 2016) and the first two elements of Stage 2 (to be completed by December 2016). The last element of Stage 2 and the whole of Stage 3 will be completed in mid-2017 (assuming further DfT funding is released), with the publication of a Final Report and Executive Summary Report which together will:

• Articulate a clear narrative for the delivery of HS2 in the East Midlands; • Identify key additional interventions that will add value to the HS2 baseline in

terms of land value uplift, productivity, GVA, housing and jobs; • Prioritise those interventions and determine the optimum phasing for delivery; • Set out land use and mobility masterplans that provide a clear spatial context for

investment; and • Set out a costed and viable delivery plan which include proposals for partnership

funding, risk management and procurement, and a preferred model of local delivery.

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4.3 Further detail of the on the elements of work to be delivered by the end of December 2016 is set out in the table below. Each element will be managed through the Growth Strategy Officer Group and be informed by input from wider stakeholders to help secure a robust consensus. Timely input from HS2 Ltd, Highways England and Network Rail will be critical to success.

Stage 1a: Confirm HS2 Baseline Total Cost: tbc Work to Date Work to Complete Current understanding based on 2013 consultation proposals.

A common understanding of the core HS2 proposition (including any passive provision) for the East Midlands at the ‘route steer stage’ (January 2016), and an assessment of likely resulting economic impact.

Stage 1b: Identify Economic Opportunities Total Cost: £105,000 Work to Date Work to Complete Some initial work has been carried out by Voltera on behalf of LTAs in the D2N2 Area (available here ) but this was strategic in nature and did not cover Leicester and Leicestershire. Further work has been carried out by Broxtowe and Erewash Councils to inform the development of local planning policies. D2N2 LEP has made available funding to support master-planning around the Staveley Depot. The SEPs developed by D2N2 and L&LLEP provided a strategic economic context.

A comprehensive study informed by the market and the emerging Midlands Engine initiative to identify short and long term economic growth opportunities across the D2N2 and L&L LEP areas (including EMA, the EM Gateway developments and the former Stanton Ironworks site) that could benefit from HS2 investment. To include estimates of potential benefits in terms of land value and GVA uplift, job growth and development potential. The study will also support the delivery of local strategies developed by local councils.

Stage 1c: Identify Connectivity Opportunities Total Cost: £20,000 Work to Date Work to Complete Initial Scoping work has been undertaken by LTA officers to identify main opportunities for multimodal connectivity, and was reported to the EM HS2 Strategic Board in July 2015.

Initial scoping work will need to be reviewed against the outcomes of the Economic Opportunities work carried out under 1b, and consolidated into a single document setting out a high level assessment of risks, costs and benefits.

Stage 1d: Identify Potential funding and Delivery Mechanisms Total Cost: £60,000 Work to Date Work to Complete There has been some initial discussion with the HS2 Growth Partnership on funding and delivery options. A draft brief for some initial work has been developed, but this is limited in scope and will need to be reviewed.

A comprehensive study to identify funding streams that can be used to support infrastructure interventions in addition to the HS2 baseline (including through local revenue such as Tax Increment Financing) and delivery mechanisms for associated development (including the option of a ‘Mayoral Development Corporation’ under a Combined Authority for specific locations). Funding options will include fully worked examples which demonstrate the financial implications for local people and businesses, local authorities, and Government.

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Stage 1e: Identify Skills Opportunities Total Cost: £60,000 Work to Date Work to Complete No substantive work has been undertaken.

An assessment of the workforce skills required to secure the economic opportunities identified under 1b and proposals for training local people accordingly. The assessment will add value to the West Midlands HS2 Growth Strategy and the High Speed Rail College, and link to the potential of the Staveley Depot and the delivery of the wider Midlands Engine initiative

Stage 1f: Agree Station Design Principles Total Cost: £50,000 Work to Date Work to Complete An initial study has been undertaken setting out core design principles and 2 concept Hub Station designs, which was signed off by the Strategic Board in November 2015, available here

Further work is required to develop the preferred concept design to higher level of detail in partnership with HS2 Ltd, taking into account the outcome of work on connectivity and economic development opportunities

Stage 2a: Develop Prioritisation Methodology Total Cost: £15,000 Work to Date Work to Complete No substantive work has been completed, although work on developing a prioritisation methodology is a key out-put for the initial phase of the Midlands Connect work

Reviewing the Midlands Connect prioritisation methodology and making any necessary adjustments to enable it to be applied to more local interventions in the Growth Strategy Area.

Stage 2b: Assess and Prioritise Interventions Total Cost: £615,000 Work to Date Work to Complete Based on initial scoping completed under 1c, more detailed work has commenced to consider: • Tram connectivity west of the station (Net

Project Team) • Heavy Rail connectivity (Network Rail) • Trunk Road access (Highways England) • Scoping of multi-modal transport model

(Highways England & LTAs) The emerging Leicester and Leicestershire rail strategy was reported to the EM HS2 Strategic Board in Oct 2015 & identified significant additional economic benefit of a classic compatible connection to Leicester & the Thames Valley.

Completion of existing studies is a priority and is likely to require additional resources. In addition, investment will be required for: • Completion of multi-modal transport modelling • assessment of connectivity options from Derby • assessment of options for local road connectivity,

including in Long Eaton & Toton • assessment of options for cycling and walking

routes • assessment of wider economic benefits of classic

compatible connection serving Derby, Leicester and Nottingham

All proposed interventions will been to be assessed using the prioritisation methodology developed under 2b before progressing to full business case development.

Programme Management 2016 Total Cost: £60,000 A senior officer from East Midlands Councils has been seconded to manage the delivery of the Growth Strategy on a part time basis from January 2015, in combination with managing the Midlands Connect HS2 Ready Work Package.

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4.4 A Summary financial table is set out below.

Description DfT Contribution Secured Partner Contributions

Total Cost

1a) Confirm HS2 Baseline Nil tbc tbc 1b) Identify Economic Opportunities 60,000 45,000 105,000 1c) Identify Connectivity Opportunities 20,000 Tbc 20,000 1d) Identify Potential Funding and Delivery

Mechanisms 60,000 60,000

1e) Identify Skills Opportunities 60,000 60,000 1f) Agree Station Design Principles 30,000 20,000 50,000 2a) Develop Prioritisation Methodology 15,000 15,000 2b) Assess & Prioritise Interventions 320,000 295,000 615,000 Programme Management 60,000 60,000 Total £625,000 £360,000 £985,000

4.5 The second phase of work will depend on a further release of DfT funding following the route announcement in late 2016, but will comprise the following elements:

2c) Develop full Business Cases for Prioritised Schemes Interventions that have been assessed and successfully prioritised under 2b will be developed to a full business case in accordance with Treasury Green Book requirements, with identified funding streams. 3a) Prepare Implementation Plan The Growth Strategy implementation Plan will identify the key delivery partners for each element of the Strategy, including timescales, decision points and milestones, key risks, and financing/funding constraints, along with an assessment of benefits. 3b) Identify & Promote Investment Opportunities The Growth Strategy will identify projects or groups of projects which form potentially attractive propositions for both Government and private sector investors, making use of innovative funding and delivery mechanisms identified under 1d. 3c) Agree Final Station Design Once the Strategy has been developed there will be further issues which need to be taken into account in the final design of the Hub Station. This may also require an assessment of additional costs and benefits of the final design over and above the HS2 Baseline, and how these should divided between funding partners. Project Management Existing project management arrangement will continue until the completions of the Growth Strategy and the submission to Government of the final documentation.

4.6 Following completion of this work, the final Growth Strategy Report and Executive Summary Report will be submitted to Government in Mid-2017.

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5. Links to Midlands Connect

5.1 The East Midlands Hub Station at Toton, along with Birmingham Curzon Street, UK Central and Crewe Hub will be one of four HS2 stations serving the Midlands. The Midlands Connect initiative offers an opportunity to maximise the collective economic benefits of HS2 connectivity across the Midlands. The allocation of £5 million from the Department for Transport will enable the development of a Strategic Transport Strategy for the Midlands setting clear investment priorities by March 2017.

5.2 All the East Midland LEP’s and East Midlands Councils have been heavily involved in the development of Midlands Connect to date. Regular reports on Midlands Connect have been made to the East Midlands HS2 Strategic Board.

5.3 A key element of the Midlands Connect work programme will be ensuring that the Midlands is ‘HS2 Ready’ The East Midlands Growth Strategy Manager for the East Midlands will also work part time as part of the Midlands Connect Project Team to manage the delivery of the ‘HS2 Ready Work Package’. This will ensure maximum complementarity between the East Midlands HS2 Growth Strategy and the Midlands Connect Transport Strategy

5.4 There are four key components of the Midlands Connect HS2 Ready Work Package:

Component A: Baseline & Gap Analysis This will examine the four existing and emerging growth strategies for the four Midlands Stations to understand the likely collective impact of HS2 investment, to inform the development of a high level narrative, and to highlight any additional or enhanced growth opportunities that could be taken forward either collectively, or through the emerging growth strategies for Crewe Hub and East Midlands Hub. It will also highlight where additional work may be required maximise the synergies between all four stations.

Component B: Priorities for Accelerating Investment

This component will examine the economic case for accelerating elements of planned infrastructure investment to maximise the economic impact of HS2 on the Midlands economy. This might include classic rail infrastructure, road or public transport work, or HS2 investment itself (e.g. the link between Birmingham and East Midlands Hub).

Component C: Priorities for Classic Rail Released Capacity

Using the Network Rail route strategies as a starting point, this component will examine to the economic case for using capacity released by the implementation of

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each phase of HS2 to improve connectivity between the economic hubs previously identified by the Midlands Connect Economic Impacts Study.

Component D: Priorities for Network Integration

The component will consider ways to maximise the cumulative economic impact of the four HS2 Stations serving the Midlands, which together will form the hub of the nation’s high speed rail network. This will include priorities for linkages between the stations and their integration into their strategic (as opposed to more local) transport networks.

5.5 The outcome of Component A is likely to have an impact on the content of the East

Midlands HS2 Growth Strategy, and this is programmed to be completed by the end of April 2016. The remaining components will be completed by the end of December 2016. The development of the Midlands Connect Appraisal Tool (under Midlands Connect Work Package 1) will also be of direct relevance.

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6. Appendices 6a) Strategic Vision & Principles

Councils, LEPs, universities and colleges will work in partnership with the Government to ensure that high speed rail in the East Midlands delivers unique and sustainable places that are well connected by high quality infrastructure, for people who will benefit from enhanced employment prospects resulting from targeted investment in skills and business support. ‘…unique and sustainable places…’ 1. High quality design that achieves an inspiring 21st Century Gateway to the towns and

cities of the East Midlands:

• an iconic yet highly functional Hub Station with provision for business meeting space and surrounded by excellent public realm and accessible green infrastructure;

• viaducts and bridges which have architectural merit but that are designed to minimise the impact of noise;

• cuttings and embankments which are well integrated into the natural environment and provide opportunities to improve biodiversity.

2. Planned development that uses the locational advantages of the Hub Station to

strengthen and re-enforce the roles of existing settlements across the East Midlands: • establishment of a major new high tech research/HQ institution adjacent to the

Hub Station which adds value to the existing East Midlands offer; • well integrated high quality mixed tenure housing and employment development

(including provision for relocated businesses),which makes best use of the land around the Hub Station and reflects the recently agreed Joint Core Strategy;

• avoiding major retail development that would undermine the roles of existing centres;

• maintaining the integrity of the Derby-Nottingham Greenbelt west of the M1; • continuing to invest in infrastructure elsewhere that supports the roles of existing

settlements.

3. Making use of innovative and effective engineering solutions that avoid or mitigate the severance of communities and businesses in Long Eaton, Mansfield/Ashfield, Worksop and Chesterfield.

4. Using land value/business rate uplift and increased investor confidence around the Hub Station to address local regeneration priorities and to improve areas of low quality housing stock.

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‘…that are well connected by high quality infrastructure…’ 5. Ensuring that HS2 is additional to current levels of classic service provision and using

released classic rail capacity to significantly improve connectivity:

• post HS2 MML services should be re-orientated around even ‘clock face’ service pattern that would benefit Leicester and other stations along the line;

• capacity released from the Midland Main Line must enable further improvements to connectivity between Derby, Leicester and Nottingham and the northern ‘core cities’, and enhanced services for Chesterfield, Loughborough, Market Harborough, Corby, Kettering and Wellingborough;

• capacity released from the East Coast Main line must enable enhanced services for Retford, Newark, Grantham and Lincoln;

• capacity released from the West Coast Main Line must enable enhanced services for Northampton to both Birmingham and London.

6. Constructing direct links between HS2 and the Midland Main Line to allow some trains

to run on both lines, increasing connectivity to Birmingham, the north of England and Scotland:

• a link at the Hub Station to allow for direct services from Derby, Leicester and

Nottingham to Leeds, Newcastle and Scotland via HS2; • provision for direct services from Nottingham to Birmingham via HS2.

7. Ensuring effective local multi-modal accessibility to the Hub Station:

• regular and reliable heavy rail services from Derby, Leicester and Nottingham that

do not compromise existing levels of connectivity between the three cities, and also from Mansfield/Ashfield & Worksop (via the Robin Hood Line) and local stations on the west of Nottingham and beyond;

• extending NET to serve areas west of the proposed Hub station at Toton; • provision for direct access from Long Eaton, Toton and Stapleford for pedestrians,

cyclists, buses, taxis and local car pick-up/drop off facilities, and effective public transport connectivity to the rest of the Greater Nottingham area;

• access from the strategic road network which does not result in additional traffic congestion and associated environmental problems;

• providing appropriate levels of well designed station car parking, whilst avoiding the development of a ‘parkway station’;

• ensuring that communities in northern Derbyshire and Nottinghamshire also have effective access to HS2 stations in Sheffield and Manchester.

8. Using innovative technology such as Integrated flexible ticketing to allow people to

undertake ‘seamless’ multi-modal journeys via HS2, classic rail and other forms of public transport at reasonable prices and without booking on a specific service – reducing reliance on the private car.

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‘…for people who will benefit from enhanced employment prospects resulting from targeted investment in skills and business support.’ 9. Rebuilding pride and excellence in the construction and manufacturing sectors

through the development of a highly skilled local workforce:

• working with established centres of excellence to train the next generation of engineers, working with the High Speed Skills college

• establishing apprenticeships for HS2 construction and engineering jobs • focusing on STEM subjects in schools to help local children access such

opportunities. 10. Maximising the economic potential of the Staveley Maintenance Depot, building on

the established strengths of the local rail supply sector to create and maintain high value manufacturing and engineering jobs across the East Midlands.

11. Increasing connectivity to new and existing major employment opportunities,

including:

• East Midlands Airport; • East Midlands Gateway (Freight Interchange); • the former Stanton Iron Works site

12. Ensuring that local companies have a fair chance to win contracts to design and build

HS2 and the required rolling stock:

• establishing a dedicated rail engineering support initiative to further boost the competitiveness of the sector;

• encouraging local participation at HS2 procurement events.

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6b) Board Terms of Reference & Membership

East Midlands HS2 Strategic Board

Terms of Reference

• to provide leadership and direction on strategic issues relating to HS2; • to act as the ‘place to go’ for business leaders and local authorities on matters

relating to HS2; • to liaise at a strategic level with HS2 Ltd, the proposed national regeneration

company and other government agencies; • to receive and consider reports from the Station and Maintenance Depot Delivery

Boards; • to develop close links with local authorities and organisations outside the East

Midlands to build support for the eastern arm; • to consider and provide a co-ordinated response to initiatives and proposals from

HS2 Ltd, DfT and other relevant organisations; • to work with Network Rail and the rail industry to achieve closer integration of the

high speed and ‘classic’ rail networks, ensure effective use of released capacity for passenger and freight services, and to protect and promote the interests of existing rail users;

• to secure the resources necessary to support the work of the Strategic Board and the two Delivery Boards;

• to provide a focus for media enquiries and develop a strategy to promote the interests of the region and the Board’s constituent members.

Membership

• Derby City Council • Nottingham City Council (Chair) • Leicester City Council • Derbyshire County Council (Vice

Chair) • Leicestershire County Council • Nottinghamshire County Council • Northamptonshire County Council • Ashfield District Council • Chesterfield Borough Council • Broxtowe Borough Council • Erewash Borough Council • NW Leicestershire District Council • East Midlands Airport • East Midlands Further Education

Colleges

• D2N2 LEP • Leicester & Leicestershire LEP • East Midlands Chamber • Rail Forum East Midlands • East Midlands TUC • Institution of Civil Engineers • NET • HS2 Ltd • Department for Transport • Network Rail • Highways England • HMG Cities & Local Growth Unit • Roxhill EM Gateway (to be invited) • East Midlands Councils (Secretariat)

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Hub Station Delivery Board

Terms of Reference

• to develop a master plan for the long term development of the hub station and

surrounding area in consultation with the Joint Planning Advisory Board; • to work with the LEP and business leaders to maximise the growth potential of the

site whilst protecting and enhancing the economic well-being of town and city centres;

• to develop plans to provide effective links to town and city centres in co-operation with the Highways England, Network Rail, highway authorities and other transport providers;

• to ensure compatibility with the statutory planning process in consultation with the Joint Planning Advisory Board;

• to identify a work programme, infrastructure requirements and the resources needed to deliver an effective growth strategy;

• to agree and oversee the commissioning of specialist technical studies; • to make recommendations to the Strategic Board.

Membership

• Broxtowe Borough Council (Chair & Secretariat) • Erewash Borough Council • Nottingham City Council • Derby City Council • Nottinghamshire County Council • Derbyshire County Council • HS2 Ltd • Highways England • Network Rail • East Midlands Councils

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Staveley Maintenance Depot Delivery Board

Terms of Reference • to develop an overall plan for the provision of an HS2 Infrastructure Maintenance

Depot at Staveley consistent with economic development, planning and highway aspirations for the area;

• to work with HS2 Ltd, the LEP, business leaders, local authorities, land owners and local/community organisations to develop the growth potential of the site and the wider Staveley area;

• to consider and, if appropriate, make provision for a satellite facility for the proposed high speed rail college;

• to ensure compatibility with the statutory planning process and planned infrastructure proposals in consultation with the relevant local authorities;

• to identify a work programme, infrastructure requirements and the resources needed to maximise the economic potential of the maintenance depot and associated developments;

• to agree and oversee the commissioning of specialist technical studies; and • to make recommendations to the Strategic Board.

Membership

• Chesterfield Borough Council (Chair) • Derbyshire County Council (Secretariat) • HS2 Ltd • Further Education representative • East Midlands Councils

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Growth Strategy Officer Group

Terms of Reference • to oversee delivery of the East Midlands HS2 Growth Strategy in accordance

framework agreed by the HS2 Strategic Board; • to advise the HS2 Strategic Board and Delivery Boards on relevant matters relating

to the delivery of the Growth Strategy; • to advise on the scope of technical studies necessary to deliver the Growth

Strategy, provide technical oversight and sign off reports to the Strategic Board as appropriate;

• To provide oversight to the Growth Strategy Budget, advising the D2N2 Chief Executive and Section 151 Officer as appropriate;

Membership

• Derby City Council • Nottingham City Council • Leicester City Council • Derbyshire County Council • Leicestershire County Council • Nottinghamshire County Council • Ashfield District Council • Chesterfield Borough Council • Broxtowe Borough Council • Erewash Borough Council • NW Leicestershire District Council

• East Midlands Airport • D2N2 LEP • Leicester & Leicestershire LEP • HS2 Ltd • Department for Transport • Network Rail • Highways England • HMG Cities & Local Growth Unit • Homes & Communities Agency • Growth Strategy Manager (Chair)

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6c) Delivery Gant Chart

Element

Jan-16Feb-16

Mar-16

Apr-16M

ay-16Jun-16

Jul-16Aug-16

Sep-16O

ct-16N

ov-16Dec-16

1a1b 1c1d1e1fStage 1 Report2a2bStage 2a Report

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General Meeting 5th February 2016

East Midlands Housing Review

Summary The report presents the final draft of the EMC Housing Review (set out on Appendix 1) for endorsement for publication in its own right, but also as EMCs submission to the LGA Housing Commission’s call for evidence. Recommendations Members of East Midlands Councils are invited to: Endorse to the Housing Review document set out in appendix 1 for publication,

subject to any amendments agreed by Members; and Endorse the final Housing Review document as EMC’s submission to the LGA

Housing Commission’s call for evidence.

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1. Background 1.1 In March 2015 the Executive Board agreed to take forward a review of housing

delivery in the East Midlands to be led by Cllr Chris Millar and supported by a small expert group drawn from councils and the National Housing Federation. The Review would look at all forms of housing delivery, highlight areas of good practice, and set out a limited set of recommendations aimed at Government, councils, and housing providers.

1.2 The period following last year’s General Election has seen a plethora of wide ranging Government announcements on housing policy which have significantly changed the context within which private developers, housing associations and councils operate. As a result, the basis upon which the review has been undertaken has been constantly shifting.

1.3 In addition, there have been a number of national reviews and reports from a variety of different perspectives which have sought to influence housing policy, most recently the launch of the LGA Housing Commission

1.4 As a result, the decision was taken to extend the review timescales to take

account of new information and to produce a shorter, focussed piece of work that could be published in its own right, but also act as an EMC submission to the LGA Housing Commission’s ‘call for evidence’ - which closes on the 26th February 2016.

2. Draft East Midlands Housing Review 2.1 The Draft review document set out in Appendix 1 has been informed by a

number of discussions at the EMC Executive Board and at an EMC Councillor Low Cost CPD event which took place in 23rd September 2015. All councils in EMC membership were invited to submit case study material.

2.2 The Review has been drafted by John Conway, Head of Housing at Kettering

Borough Council, with support from officers at East Midlands Councils. The review is split in to four main sections: An analysis of the housing market across the East Midlands and current

challenges; An analysis of the Government’s housing agenda; An analysis of the changing role of councils as local housing authorities –

including examples of best practice from across he East Midlands; and Recommendations for change that will enable local housing needs to be

more effectively met.

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2.3 The East Midlands Branch of the National Housing Federation and East Midlands

Housing Group have made available financial support that will enable the final document to be published to a high standard and disseminated. As a result, both organisation’s logos will be added to the final document.

3. Recommendations Members of East Midlands Councils are invited to: 3.1 Endorse to the Housing Review document set out in appendix 1 for publication,

subject to any amendments agreed by Members; and 3.2 Endorse the final Housing Review document as EMC’s submission to the LGA

Housing Commission’s call for evidence.

Cllr Chris Millar EMC Executive Board Member Chair of EMC Housing Review

John Conway

Head of Housing Kettering Borough Council

Andrew Pritchard

Director of Policy & Infrastructure East Midlands Councils

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HOUSING REVIEW

DRAFT REPORT – 28 January 2016 CONTENTS

1. Foreword Cllr Chris Millar – Leader, Daventry District Council

2. Executive Summary

3. The Changing Housing Market in the East Midlands

4. The Government’s Agenda for Housing

5. The Way Forward for Local Authorities and their Partners

6. Recommendations

Version: 280116 - 3

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1. FOREWORD

Cllr Chris Millar – Leader, Daventry District Council

A good home is a fundamental building block of our society. It underpins our health and wellbeing, helps young people to fulfil their potential, and provides a safe and secure environment for the frail and vulnerable people in our communities. A vibrant and functioning housing sector also plays a wider role in supporting a growing economy and a thriving urban scene.

There is no doubt, though, that we are currently facing a national housing crisis with the need for housing far exceeding the supply of decent, affordable homes. As a result, many people are unable to fulfil their dreams to buy their own home and households on low and average incomes are finding, increasingly, that renting from private landlords is unaffordable. The only option is to rent from the council or a local housing association and, here too, the supply of affordable rented housing falls well short of demand.

In undertaking this review, East Midlands Councils is seeking to set out the key challenges facing local authorities in the region and to identify those areas where we need to do better at both local and national levels. The review also highlights some innovative and exciting projects which are being developed by councils, housing associations and other partners to help people who are looking for a home of their own.

Councillor Chris Millar

Leader, Daventry District Council

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2. EXECUTIVE SUMMARY

The East Midlands faces huge challenges in meeting the changing housing needs of its many, diverse communities.

Not enough homes are being built

Local authorities have identified a need for 400,000 new homes in the East Midlands over the next 20 years. To achieve this, around 20,000 new homes need to be built every year but in 2014/15 only 12,420 were built across the region.

Buying a home is no longer a realistic option for many people

House prices across the East Midlands have been climbing sharply and outstripping growth in earnings. In the twelve months to November 2015, house prices across the region increased by 6.2%. Over the same period, earnings decreased by 2.9%.

In national terms, the East Midlands does offer good value for money and areas in the south of the region with good transport links are seeing people relocating from London and the South East. However, this is helping to drive up prices and making it more difficult for local people who want to buy.

With the average house price for the East Midlands now at £199,000 and more than eight times the average earnings for the region, it is clear that home ownership is not a realistic option for many people on low and average incomes.

Renting from private landlords is expensive

Many households are turning to private landlords but supply is not keeping pace with demand despite massive growth in this sector over the past decade. This is resulting in soaring rents, with the average rent for the East Midlands now at £537 per month; up from £323 a year ago. Private rent levels are increasingly out of reach for people on low incomes and benefits and this trend will accelerate as Local Housing Allowance limits are being frozen for the next four years. As a result, private landlords are increasingly reluctant to take tenants on benefits and there has been an increase in homelessness applications as a result of assured shorthold tenancies being terminated.

Councils have the potential to do more

With home ownership and renting privately beyond the reach of many people, there is growing demand for affordable rented housing. Housing associations and local authorities provided 3,340 new homes for rent in 2014/15 but this falls significantly short of what is required. As a result, 86,000 households are on housing waiting lists in the East Midlands and the number of homelessness applications has increased by 6.6% in the last year compared to a decrease of 3.3% a year earlier.

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The Government’s decision to double investment in new affordable homes is welcome but the emphasis on Starter Homes is concerning as essentially this is a niche product catering for a relatively small part of local housing markets.

The focus on home ownership also means that little of the increased investment will fund new affordable rented housing.

The Housing and Planning Bill contains a range of measures, such as mandatory fixed term tenancies, the sale of high-value vacant council homes and pay-to-stay for high income tenants, which will add to the administrative burden for stock-retaining councils without helping them to meet housing need in their areas. Similarly, the 1% per annum rent reduction will hamper local authority and housing association plans for investing in the long term viability of their existing homes and to build badly-needed new housing.

In short, the number of new homes being built across all sectors falls well short of what is required and this is helping to drive up house prices and rents, and making it increasingly difficult for people in our region to find a home of their own. Councils are in a pivotal position to work with Government and other partners both as direct providers of affordable homes and as strategic housing authorities. This report describes some of the projects that are being developed by councils in the East Midlands to help people in housing need find and maintain a place to call home.

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3. THE CHANGING HOUSING MARKET IN THE EAST MIDLANDS

Housing markets across the East Midlands are changing rapidly and fundamentally. The changing demography of our communities and far-reaching structural changes in the wider housing market are combining to make it more difficult for families and individuals to find a home of their own.

A Growing and Changing Population

The East Midlands is growing fast – over 4.5 million people are living in the region with the population increasing by 8.2 % between 2002 and 2012. This compares with population growth of 7.7 % for the UK as a whole over the same period. Nottingham is the ninth fastest growing city in the country with an annual growth rate of 1.2% and an increase in population of 24,800 between 2004 and 2014.

Whilst the number of people living in the East Midlands is increasing, the make-up of the community is also changing. In line with national trends, average household sizes are getting smaller with a growing proportion of households comprising childless couples and single and elderly people living alone. People aged 65 and over accounted for 17.1 per cent of the population in 2012, compared to 16.1% for the country as a whole. Between 2012 and 2022, the number of people over 65 in the East Midlands is projected to increase by a quarter. In contrast, people aged between 16 and 64 will increase by only 0.6%.

The number of households in the region is expected to increase from 1.961 million in 2015 to 2.303 million by 2037; an increase of 17.4%.

Immigration has had an impact too with 448,200 people living in the East Midlands born overseas. This equates to 9.9% of the region’s population and compares to 6.6% in 2001. The number of asylum seekers, both regionally and nationally, is continuing to rise. In order to reduce pressure on the existing dispersal areas (Derby, Leicester and Nottingham), the Immigration Minister is seeking to widen dispersal of asylum seekers beyond the existing areas. At a regional level, two new dispersal areas have been identified.

The changes in the composition of the population as well as the growth in numbers will have significant implications for local authorities across the East Midlands. The demand for housing is increasing but the pattern of that demand is also changing with a requirement for more, smaller homes.

Homelessness and Housing Need

86,000 households in the East Midlands are on housing waiting lists. In addition, local authorities across the region are experiencing a steep increase in homelessness applications. In the second quarter of 2015, councils across the East Midlands accepted applications from 939 households in priority need compared to 881 a year earlier.

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In recent years, the proportion of homeless applications from vulnerable single people with multiple and complex needs has increased. This has partly reflected the winding down of the Supporting People programme and the consequent withdrawal of housing-related support services in many localities.

Families with children are now featuring more strongly amongst homeless households with 651 accepted as homeless by local authorities in the East Midlands during quarter two of 2015; an increase of 23.8% on the figure of 526 households for same period in 2014.

The main reason for this increase appears to be the termination of private rentals by landlords perhaps due to landlords’ desire to capitalise on rapidly rising rent levels. What is also becoming clear is that the recent tax changes affecting private landlords are prompting some landlords to sell up and leave the market.

From 1 February 2016, private landlords will have to check that prospective tenants have the right to be in the UK before renting out their property. Concerns have been expressed that this too could lead to landlords withdrawing from the market with resultant additional pressures on homelessness services.

A side effect of the booming private rental market is that households on benefit will effectively be barred from the sector as local housing allowance rates have been frozen for the next four years whilst private rents are increasing rapidly. This is significant in that, since the Localism Act 2011, local authorities have increasingly sought to work with private landlords in order to prevent homelessness or discharge their duty to homeless households.

The Home Office provide accommodation to destitute asylum seekers through a contract with a regional provider who procures properties in the private rented sector. This can lead to direct competition with a local authority discharging its homelessness duty in the private rented sector. Inevitably, pressure on scarce social housing will increase.

With a rise in homelessness, there is more pressure on temporary accommodation. In the second quarter of 2015, local authorities across the region had placed 770 households in temporary accommodation compared to 685 at the same time in 2013. Some councils in the south of the region report that temporary accommodation is increasingly hard to source due to competition from local authorities in London and the south east.

It is clear that housing pressures in and around London are causing a ripple effect with homeless households being placed in towns around the capital. In turn, those areas are looking further afield for temporary accommodation and using accommodation in towns such as Northampton. Inevitably, this adds to the pressure on education, health and social services in the East Midlands.

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Home Ownership and Soaring House Prices

House prices in the East Midlands are well below the national average although there are some hotspots such as South Northamptonshire, Rutland, Derbyshire Dales and Harborough.

Nevertheless, across a large part of the region, house prices have been climbing sharply and are easily outstripping increases in earnings.

In the twelve months up to November 2015, house prices in the East Midlands have increased by 6.2% with the average house price now at £199,000. However, this covers a disparity within the region with the southern part of the East Midlands being affected to some extent by London and the south east. The average house price in Northamptonshire of £155,876 is 13.1% higher than Lincolnshire where the average is £134,532.

Throughout the East Midlands, the ratio of incomes to house prices has increased well above traditional levels as the affordability ratios for 2015 show:

Affordability Ratio 2015 (Ratio of annual wages to average house prices)

Derby 6.2 Leicester 7.4 Mansfield 6.2 Northampton 7.4 Nottingham 6.2 Source: Land Registry 2015 Market Trend Data. ONS 2015 Annual Survey of Hours and Earnings

House prices in areas like Charnwood and South Northamptonshire have risen by nearly a quarter in five years but average salary increases have been well below 5%. House Building

The supply of new homes, in both the market and social housing sectors, has not kept pace with demand. Last year, there was a requirement for 20,500 new homes across the East Midlands but only 12,420 were built. At present house building rates, this will lead to a shortfall of 81,000 homes over the next decade.

Housing completions have fallen from a peak of 17,990 new homes in 2006/07 to 9,910 in 2012/13. Although completions have now recovered somewhat to just over 12,000 dwellings in 2014/15, including 10,310 built by private developers, the supply of new homes is still well below the numbers needed to meet demand.

The reasons for this shortfall are complex and hotly-debated as evidenced by the controversy resulting from the Local Government Association’s recent revelation that

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private developers are holding planning consents for 476,000 properties that have yet to be built. Shortages in the supply chain for building materials and the availability of skilled construction personnel are also likely to be factors. It is clear, in any case that the demand for new homes cannot be met solely by the private sector.

With home ownership out of reach for many households in the East Midlands, the need for social and affordable rented housing remains high. The number of new homes built in 2014/15 by housing associations and local authorities is broadly at the same level as 2010/11 but the number of properties for social rent has plummeted from 3,300 in 2010/11 to only 730 last year. As affordable rents are up to 80% of market rent in comparison to social rents which typically are 50% of market rent, it is apparent that many affordable rent properties may actually be unaffordable for households on low and average incomes.

Rural housing delivery

Much of the East Midlands is characterised by its rural nature but the challenge of delivering affordable homes is particularly acute in smaller settlements. Inevitably, the development of new homes in rural areas is constrained by higher development costs, infrastructure issues and, often, resistance from existing residents to new developments. Demand from people on higher incomes looking for a rural lifestyle in a market characterised by limited new development results in high house prices. Average house prices in Rutland (£277,196) and South Northamptonshire (£285,722) exceed the average for England (£265,888) despite house prices in the East Midlands being well below the national average.

A consequence of this is that large parts of the East Midlands countryside are no longer affordable to the people who live and work within them. A lot of rural development tends to be focused on larger and more expensive homes which, when coupled with limited supply, requires a greater policy emphasis on providing smaller market and affordable homes. Despite the constraints, local authorities and housing associations who have collaborated on a strategic and needs based approach to rural housing have achieved significant development programmes in rural areas.

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4. THE GOVERNMENT’S AGENDA FOR HOUSING

Following the General Election in May 2015, the Government is changing the housing landscape in a very fundamental way. The focus is now firmly on home ownership: helping people towards owning a home of their own and encouraging developers to increase housing supply. The main features of the Government’s housing agenda have emerged in the Summer Budget, the Spending Review and the Housing and Planning Bill, which is currently going through parliament.

Boosting Home Ownership

In November‘s Spending Review, the Chancellor of the Exchequer announced that funding for new affordable homes would be doubled and refocused on low cost home ownership. A total of £2 billion per annum has been allocated to deliver 400,000 new homes by 2020/21.

• Starter Homes - 200,000 homes aimed at first time buyers under 40 who will get a 20% discount on prices up to £250,000 (£450,000 in London).

Planning authorities will have a new duty to promote the supply of starter homes and Government will have the power to set regulations for starter homes to be included on residential sites as a condition of securing planning permission. The Department for Communities and Local Government is currently consulting on national planning policy for starter homes to be classed as affordable homes

• Help to Buy Shared Ownership - 135,000 homes for households earning less than £80,000 (£90,000 in London).

• 10,000 new homes where tenants can live for five years at reduced rents while they save for a deposit.

• 8,000 homes for elderly and disabled people.

Analysis by Shelter shows that families in the East Midlands on average and higher incomes will be able to buy Starter Homes but households on lower incomes will generally be excluded. Whilst Starter Homes will clearly help some prospective home owners, they are essentially a niche product aimed at one small part of the housing market. There are therefore clear concerns that the promotion of Starter Homes at the expense of other options such as affordable rent will only exacerbate the housing crisis.

Extending the Right to Buy to housing association tenants

The Right to Buy is to be extended to housing associations following a deal between the Secretary of State for Communities and Local Government and the National Housing Federation in October 2015.

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• Every housing association tenant will have the right to buy although housing associations will have the freedom to offer an alternative property in certain circumstances.

• Housing associations will be fully compensated by the Government, using proceeds from the sale of high-value council housing, that they receive the full market value for every home sold.

• At a national level, housing associations will commit to replacing every home sold with at least one new home. If they are not provided within three years, sales income will have to be returned to Government.

• Housing associations will have discretion to determine the location and tenure of replacement homes – they may be starter homes or other form of low cost home ownership as well as rented housing.

Changing the Role of Affordable Rented Housing

The Government is also introducing far-reaching changes affecting affordable rented housing owned by councils and housing associations.

• Lower rents for social housing - All social landlords will be required to reduce their rents by 1% every year for the next four years rather than increasing them by CPI plus 1%.

• Sale of high-value vacant council housing – Local authorities will be required to pay a levy to HM Treasury which will be based on an estimate of potential income from sales. Some of these receipts will be used to fund the extension of the Right to Buy for housing associations.

• Pay to Stay – Social tenants with a total household income of more than £30,000 per annum (£40,000 in London) will be required to pay higher rents. This will be mandatory for council tenants but optional for housing associations. Councils, but not housing associations, will be required to return additional income to HM Treasury.

• Fixed Term Tenancies – All new secure tenancies will be for a fixed term of between two and four years. Successions to secure tenancies, other than to a spouse or civil partner, will result in a new five year tenancy. Again, this measure will be mandatory for council tenants but at the discretion of housing associations.

The thrust of Government policy appears to be to ensure that scarce social housing is available in the short term to help households get back on their feet rather than to be a home for life. Whilst accepting that one of the functions of social housing is to act as a safety net, such a policy can have unintended consequences. For example, Pay to Stay will be administratively complex, may well increase the risk of tenancy fraud and discourage tenants from finding work or improving their life chances. Ultimately, it will make it more difficult to create and maintain sustainable communities. Similarly, the proposal to sell high-

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value vacant council housing will have a disproportionate impact on rural areas as this is where the most expensive homes are located.

Raising Standards in the Private Rented Sector

The private rented sector has expanded massively in the past decade and, in response, the Government is introducing a series of measures to improve the standard of management:

• Banning orders – These will be introduced to prevent landlords operating when they have been convicted of particular offences.

• National Database - A national database of rogue landlords and letting agents will be created.

• Rent Repayment Orders - Tenants (and councils where the tenant is on Housing Benefit) will be able to apply for a rent repayment order when a landlord has committed certain offences.

In addition to these measures, there will be a 3% increase in stamp duty in April 2016 for people purchasing a buy to let property and further taxation changes which will have a direct impact on the viability of buying to let.

Welfare Reform

As well as its housing reforms, the Government is also implementing a wide-ranging welfare reform agenda with the aim of incentivising work for people on benefits. Measures which will particularly affect tenants of councils and housing associations are:

• The overall benefit cap will be reduced from £500 per week (£26,000 per year) to £385 per week (£20,000 per annum).

• Housing Benefit and Local Housing Allowance will be frozen for four years from April 2016 together with a range of other working age benefits.

• Housing benefit in the social housing sector will be capped at local housing allowance rates for new tenants.

Most people want to own a home of their own and, for that reason, the Government’s emphasis on helping people into home ownership is welcome. However, local housing markets need a balance of homes both for sale and rent at different price points to meet the diversity of needs in our communities. A robust supply of truly affordable rented housing, such as that provided by local authorities and housing associations is an essential part of the mix. There is a continuing need to build new affordable rented homes for the 25% to 30% of our community who will never be home owners. This needs to be reflected more in the Government’s programme to invest £2 billion per annum in delivering 400,000 new homes by 2020/21. In essence, the Government needs to make sure that we are building a range of new homes which are affordable to people on all incomes including those who cannot afford to buy.

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As well as building new homes for affordable rent, we need to ensure that the existing stock owned by councils and housing associations remains viable and able to meet housing needs across the East Midlands. The Housing and Planning Bill contains a range of measures, such as mandatory fixed term tenancies, the sale of high-value vacant council homes and pay-to-stay for high income tenants, which will add to the administrative burden for stock-retaining councils without helping them to meet housing need in their areas. Equally, the 1% per annum rent reduction will hamper local authority and housing association plans for investing in the long term viability of their existing homes as well as building badly-needed new housing.

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5. THE WAY FORWARD FOR LOCAL AUTHORITIES AND THEIR PARTNERS

Within the East Midlands, local authorities take a variety of approaches when intervening in their local housing markets. Over the past thirty years or so, councils have moved from only being direct providers of housing to assume more of a strategic and enabling role also. Across the region, 15 councils have transferred their housing stock to housing associations whilst another seven have set up arm’s length management organisations to manage their council housing. The remaining 18 local authorities continue to own and manage their own housing stock as well as operating as strategic housing authorities.

The strategic and enabling approach has worked well for councils as it has enabled them to utilise the capacity and resources of partners across the public and private sectors in support of their Housing Strategy objectives. However, shrinking budgets, soaring needs and a radical Government agenda for housing are resulting in fundamental challenges for all local authorities. Local housing markets across the East Midlands are changing out of recognition and well-established solutions are no longer working as well as they once did.

Housing associations have been successful in providing social rented housing whilst Section 106 agreements with private developers were relatively effective in producing new affordable homes. However, viability issues and the recent thrust of Government policy mean that Section 106 agreements are less likely to produce a large volume of affordable rented housing in future. Similarly, housing associations are being encouraged to forge a new role as developers of home ownership products rather than landlords of social rented housing.

Councils are having to re-think their role as local housing authorities. Specifically, they need to explore ways of utilising their assets, increasing capacity and generating sustainable income flows in order to meet local needs. This may require the adoption of a hybrid business model which combines the strategic and enabling role with direct intervention in local housing markets.

This part of the review highlights some of the ways that local authorities and their partners can help to bridge the growing gap between housing supply and demand despite the challenging environment.

Building New Council Housing

The supply of new homes across all sectors of the East Midlands housing market is not keeping pace with demand and this is being reflected in rising house prices and private sector rents. Without a significant boost in house building, rents and house prices will continue to rise, pushing a decent home beyond the reach of even more local people.

With home ownership out of reach for many households in the East Midlands, the need for social and affordable rented housing is increasing.

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During the 1950’s and 1960’s, local authorities throughout the country implemented major housing construction programmes. The contribution of local authorities was immense as this was the only period since World War Two when house building across all tenures exceeded 250,000 new homes per annum.

Although council house building stopped during the 1980’s there has been a renaissance since Housing Revenue Account (HRA) self-financing made it possible for councils to build once again utilising borrowing ‘headroom’. In the East Midlands, most stock-retaining councils have commenced house building programmes. These programmes enable local authorities to re-balance their housing stock and ensure that it meets current needs, mitigate the loss of stock through the Right to Buy, increase rental income and bring derelict and redundant sites back into use. The more ambitious programmes aim to use new council housing as a catalyst for wider urban regeneration.

Crucially, new, well-designed housing in attractive neighbourhoods helps to improve the ‘brand’ of council housing and reduce stigmatisation.

The merits of building new council housing are such that local authorities that have previously transferred their housing stock to housing associations through large scale voluntary transfer may wish to become landlords again. However, the Government would need to permit such authorities to re-open their Housing Revenue Accounts to do so.

The construction of new homes also provides an opportunity for local authorities to make a significant contribution towards tackling the skills shortage in the construction industry. New build housing projects can provide valuable on-site experience for apprentices in the building trades.

CASE STUDY: Council House New Build Programme North Kesteven District Council

North Kesteven District Council manages 3,850 council homes within a self-financing HRA. There are over 1,600 households registered with Lincs Homefinder who have specifically requested housing within the district.

After a break of many years, the Council started building new affordable homes in 2010 with an aspiration to deliver 500 homes over 10 years. After a gradual start while expertise and capacity were developed, delivery accelerated and 134 homes over 26 sites were completed by the close of 2015. A further 46 homes are programmed for completion by March 2017. Through its new build programme, the Council has been able to replace homes disposed of through Right to Buy at a rate of 168% since 2012.

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Initially construction of new homes took place on Council owned land such as garage sites and underused HRA land. Increasingly the Council has been involved in the purchase of land for development, and has also entered into turnkey arrangements and the purchase of s106 affordable housing commitments.

The Council builds to its better than building regulations Fabric First Plus standard which delivers thermally efficient, affordable to live in, well designed homes.

Contact: Barry Kirk, North Kesteven District Council, barry_kirk@n-kesteven.gov.uk

CASE STUDY: Changing Lenton Nottingham City Council and Nottingham City Homes

Changing Lenton takes a partnership approach to transforming the Lenton area of Nottingham, which is currently dominated by a very high proportion of privately-owned houses in multiple occupation. As a result the neighbourhood is highly transient, and suffers from significant problems associated with this property type (physical condition, noise nuisance, environmental and amenity issues) as well as being difficult to afford for those seeking routes into owner occupation.

The partnership vision is for Lenton to be “an ‘up and coming’ area with a strong sense of identity. A destination that people want to visit and live in that provides excellent facilities for a diverse and vibrant community.”

Part of Changing Lenton involves the redevelopment of five unpopular and out-moded blocks of high rise flats, and an associated low demand retail precinct. These will be replaced by new high quality social rented homes. The scheme, which is being undertaken by Nottingham City Homes (the City Council’s Arm’s Length Management Organisation), is delivering a 54 home older people’s complex, almost 100 houses and bungalows, and a small number of flats. A former school site is being sold to the private sector for residential redevelopment, and the objective is that these two sites can serve as a catalyst for addressing the wider housing issues the area faces.

Working with the local community, the Changing Lenton proposals seek to rebalance the housing market in the locality and to improve the mix of tenure and occupancy. This will help to create a more stable and less transient housing market, in line with the City Council’s wider ambitions to boost the provision of family housing across the City.

Contact: Matt Gregory, Nottingham City Council, matt.gregory@nottinghamcity.gov.uk

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Local Housing Companies

Local housing companies are another way forward and they are already being explored by l councils in the East Midlands. Typically, local housing companies operate outside the HRA and are 100% owned subsidiaries of the local authority or a company limited by shares with council officers acting as directors and company secretaries. Properties are rented on assured shorthold tenancies.

As well as enabling councils to provide rented housing across a number of price points in the local housing market, local housing companies can generate income over the long term for the General Fund. Housing built through this route can be exempt from the Right to Buy and local housing companies can be a useful way forward for councils that lack ‘headroom’ within the HRA.

Local housing companies can help councils to think creatively about how they use their assets and develop housing that is commercially viable and responsive to specific local needs.

CASE STUDY: The Daventry Estate Company Limited Daventry District Council

Daventry District Council promotes new housing through a range of mechanisms. In 2012 the Council built a new estate of 32 homes for private rent, alongside 13 for affordable rent. The affordable rent properties are managed by Emh group, but the private rental stock is operated by the Council’s trading company, The Daventry Estate Company Limited. The houses were built to a high standard, achieving, among other things, Building for Life and Secured by Design. The company is now in its third year of operation.

The Council is now taking forward a scheme of 50 homes, of which 25% will be affordable and the rest will be for market sale. In the current housing market it is considered that this is the best way of delivering housing and making a good financial return for the Council.

Contact: Simon Bowers, Daventry District Council, sbowers@daventrydc.gov.uk

Utilising Local Authority Land Holdings

Councils across the East Midlands have significant land holdings which can be utilised to meet community needs. Indeed, many local authorities have redeveloped redundant operational buildings and disused garage sites for affordable housing. A variety of different approaches have been taken including the construction of new housing by councils,

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partnership projects with housing associations and private developers, and schemes with wider regeneration and economic development goals.

Investing in the Existing Housing Stock

Across the country, 20% of the council housing stock was built before 1945 and the oldest homes are now approaching 100 years old. It is essential that, over the long term, our older council housing stock continues to meet local housing needs, remains easy-to-let, energy efficient and generates an income stream for the Housing Revenue Account. As well as working to provide new homes, councils will need to invest in their existing homes so that they continue to play a valuable role within the local housing market over the years to come. In addition to improving the physical fabric of the properties, this investment can also involve re-configuring housing to meet changing demands and improving the physical environment of the community.

CASE STUDY: Homes for the Future Kettering Borough Council

Around 30% of the council housing stock in Kettering was built before World War Two. Although refurbished over the years, much of this older housing no longer meets contemporary housing needs in terms of bedroom size and internal layouts. Accordingly, the Homes for the Future project aims to remodel and refurbish these properties, improve energy efficiency enhance home security and make a positive contribution to the street scene.

Homes for the Future will ensure that older council housing will continue to play a valuable role within the local housing market over the years to come.

Tenants were consulted about the design on a one-to-one basis before works started to their homes and offered a full support package whilst work is underway, including temporary relocation to a decant house. Feedback from tenants has been overwhelmingly positive and shows that the project has helped to enhance the council house ‘brand’. Tenants have told the Council:

“It’s been so nice to have what feels like a brand new home, I feel very lucky. I was kept involved and love the work that has been done. I noticed a big saving in my energy bills straight away and the house feels much warmer!”

“It’s lovely. It’s great to have shower installed. The heating’s a lot better; it’s dramatically warmer, and my fuel bills have come down a lot. It feels very modern”

Contact: Darren Ibell, Kettering Borough Council, darrenibell@kettering.gov.uk

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Councils and Housing Associations Working in Partnership

The thrust of recent policy initiative such as the proposal to dispose high-value vacant council properties in order to fund the Right to Buy for housing associations has the potential to drive a wedge between local authorities and their housing association partners. It is essential that councils maintain a constructive partnership with housing associations so that their resources can continue to be harnessed to meet local housing needs. Equally, housing associations need to take account of local housing strategies in formulating their housing developments and work closely with councils to ensure that choice based lettings schemes match customers to vacant properties in the most cost effective way possible.

CASE STUDY: Extra Care Housing with Independent Living Emh Group, Blaby District Council, Leicestershire County Council

Oak Court, situated on Winchester Road, Blaby, Leicestershire, is a flagship extra care scheme comprising 50 high quality, modern, attractive and contemporary self-contained apartments for people aged 55 and over. Facilities include a library/music room, cinema/entertainment lounge, arts and crafts room, hairdressers, micro-shop, assisted bathroom and sensory garden. Oak Court sits within a larger mixed tenure affordable housing development comprising family homes and bungalows and is designed to be part of the surrounding community.

The scheme incorporates a pilot re-ablement service which aims to place older people, who have been in hospital, into the extra care scheme as part of their recovery – enabling assessment of when or if they can return home and whether adaptations or additional therapies are required.

Although there was a commitment to provide much needed care homes in Blaby to meet growing needs, Emh group together with its partners had a vision of creating a modern high quality scheme that residents and their families would be proud of and one that the community within Blaby could be part of.

The development is the product of a partnership involving Emh group, Blaby District Council, Leicestershire County Council, the Homes and Communities Agency, Westleigh and the Clinical Commissioning Group.

Contact: Purnima Wilkinson, Emh group, Purnima.Wilkinson@emhgroup.org.uk

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Collaborating on Housing Market Intelligence

With the fall in home ownership and the dramatic growth of the private rent sector in recent years, it is clear that this is a period of rapid change in local housing markets. Often, local housing markets cross council boundaries and the challenges facing one local authority are also being faced by their neighbours. There is, therefore, a clear benefit for councils within particular housing market areas to collaborate with each other and pool their research capacity so that they can keep abreast of emerging trends in their local housing markets and develop relevant strategies and interventions.

CASE STUDY: Identifying Rural Housing Needs and Delivering Solutions in Leicestershire Leicestershire Rural Housing Group

The Leicestershire Rural Housing Group, which seeks to assess and meet the housing needs of people in the rural areas of Leicestershire, is a partnership between the County Council, district councils and three housing associations – Emh group, Nottingham Community Housing Association and Waterloo Housing. The Group provides funding to investigate housing need and bring forward suitable sites for development whilst Midlands Rural Housing (MRH) takes the lead on implementation. Where a local housing need is established, the partners work together to develop a housing solution for that location

A five year Housing Needs Survey Plan provides a framework for MRH’s engagement with parish councils and local communities.

Priorities for the Group are to improve community engagement, share knowledge on rural housing issues with councillors through briefings and training, and to develop new funding models and delivery mechanisms.

The partnership ethos of the Leicestershire Rural Housing Group has been successful as is evidenced by the fact that 120 affordable homes for local people have been delivered in more than 15 villages over the past five years.

Contact: www.midlandsrural.org.uk

Managing the Impact of Welfare Reform

The welfare reform agenda is having a far-reaching impact on many of the most vulnerable and disadvantaged people within our community with social housing tenants being particularly affected.

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With Housing Benefit and Local Housing Allowance frozen for four years from April 2016 and the overall benefit cap reduced from £500 per week (£26,000 per year) to £385 per week (£20,000 per annum), local authorities have an important role to play in minimising the impact of welfare reform on their most vulnerable tenants and helping them to develop valuable life skills. There are a variety of strategies which social landlords, in particular, can deploy to support their tenants. These are often relatively inexpensive but can have huge benefits in terms of their impact on the lives of their tenants.

At the most basic level, social landlords can identify households that are likely to be affected by particular welfare reforms and provide tailored support. They can also work intensively with new tenants by offering induction programmes, personal financial assessments and advice, and carrying out home visits throughout the period of the introductory tenancy. Such initiatives can help vulnerable people to sustain their tenancies into the long term.

Support for tenants affected by welfare reform can go well beyond measures such as these and help tenants develop their life skills and go on to live full and productive lives. Life skills training programmes are provided by many councils and housing associations in the East Midlands. Focusing on issues such as household budgeting, healthy cooking, personal health and how to sustain a tenancy, these courses do more than impart knowledge. They also help participants to develop their self-confidence and build a real sense of achievement.

CASE STUDY: Derbyshire Dales Debt Project Derbyshire Districts CAB and Derbyshire Dales District Council

Derbyshire Districts Citizens Advice Bureau runs a debt management project in partnership with Derbyshire Dales District Council.

A thorough financial assessment is completed by a specialist money advice worker for all customers contacting the bureau for debt advice. This includes an assessment of income, expenditure and debts as well as the customer’s capacity to manage the debt advice process.

The Project is currently working to expand referral routes so that housing associations operating within the District are able to refer their tenants quickly.

During 2014/15, the Project helped to manage over £1.4 million of debt across the Derbyshire Dales. A total of 37 households who were threatened with homelessness were helped to keep their homes and another 50 households with rent arrears were also supported.

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Health and quality of life

There are very clear links between housing and health which often go unrecognised both by local government and the National Health Service. The interdependence between local housing authorities and the NHS in terms of commonality of customers and their draw on resources in both sectors can be considerable. For instance, identifying vulnerable tenants and providing low-level support or helping them move to more appropriate accommodation can result in a better quality of life for those tenants and reduce spending at a later stage on acute services. Similarly, some degree of co-ordination between local authorities and hospitals on discharge arrangements can reduce bed blocking and help people to live independently in the community.

CASE STUDY: Kettering’s Health and Housing Partnership Kettering Borough Council and Kettering General Hospital

Kettering Borough Council has forged an innovative new partnership with Kettering General Hospital NHS Foundation Trust and Northamptonshire Healthcare NHS Foundation Trust in order to integrate health and housing locally so that public resources are used more effectively and to improve the health and wellbeing of local residents.

Following a workshop involving local health and housing professionals, three objectives for the partnership were agreed:

• Through the home and community, support residents to improve their health and wellbeing

• Identify and support residents at risk of poor health and wellbeing within our community

• Facilitate discharge from hospital, community and mental health services into safe and suitable home environments

A number of projects have been identified for delivery by the health and housing partnership which meet these focused outcomes, including:

• Facilitating timely discharge from acute, community, and mental health hospitals – exploring how housing can help: This project is examining how housing can offer solutions to health providers experiencing delays in discharge, such as providing temporary housing with support for patients unable to return home.

• Data sharing between health and housing: A data sharing agreement will enable the lawful sharing of data between health and housing professionals.

• Making Every Contact Count – up-skilling front-line housing professionals to deliver health messages to tenants and residents: Front-line housing professionals are

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being trained to deliver health messages to tenants to encourage more healthy behaviours and lifestyle.

Contact: Charlotte Smith, Kettering Borough Council, charlottesmith@kettering.gov.uk

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6. RECOMMENDATIONS

For Government

The Government should recognise that a robust supply of truly affordable rented housing, such as that provided by local authorities and housing associations is an essential part of a balanced local housing market.

The Government’s programme to invest £2 billion per annum in delivering 400,000 new homes by 2020/21 needs to have a much greater focus on the building of affordable rented homes, including new council housing.

The Government should review the proposals within the Housing and Planning Bill and ensure that local authority landlords have the same flexibilities and freedoms to manage council housing as those enjoyed by housing associations in managing their rented housing.

The Government should give councils which have undertaken large scale voluntary transfer the option to build new council housing and re-open their Housing Revenue Accounts.

The Government should consider how best to facilitate higher levels of house building by private developers with existing unused planning consents.

For Councils

In the light of a rapidly changing local housing market and a radical Government agenda for housing, councils should consider the scope for a hybrid operational model combining the strategic and enabling role with direct provision of housing both within and outside the HRA.

Councils need to ensure that the Department for Communities and Local Government is briefed about the likely impact of the Housing and Planning bill on their local areas.

Councils which have retained their housing stock should examine the scope for building new council housing on redundant or disused sites in local authority ownership.

Local authorities should consider providing opportunities for on-site training in construction skills as part of their new build and refurbishment projects.

Councils should explore the feasibility of setting up local housing companies in their areas as a means of meeting the need for affordable homes, helping to shape the private rented market and generating income for the General Fund.

Stock-retaining councils should ensure that they invest in their older housing stock so that it remains easy to let, viable and fulfils a useful role in the local housing market over the long term.

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Local authorities should review their choice based lettings schemes in partnership with housing association partners to ensure they are cost effective and customer focused.

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General Meeting

5th February 2016

Asylum Seekers, Refugees and Migration

Summary This report sets out the key challenges and emerging policy issues that face the East Midlands in respect of migration. Recommendations Members of East Midlands Councils are invited to: Note position on widening asylum dispersal in the East Midlands and the need for

councils to consider any potential engagement with this programme. Agree the proposal for a regional coordination and resource model for phase 2 of

Syrian refugee dispersal. Note the emerging position on unaccompanied children and the provisions of the

Immigration Bill. Note progress on the development of the East Midlands Anti-Human Trafficking

Partnership. Support a letter to the Immigration Minister and Minister for Syrian Resettlement

highlighting the cumulative impact of current policy on local government in the region.

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1. Introduction

1.1 The East Midlands Strategic Migration Partnership (EMSMP) has played an integral role in working with Councils in the region to identify issues and challenge central Government on the impact of migration at a local level.

1.2 The 2014 report on the Impact of International Migration in the East Midlands

highlighted the need to consider the impact of all aspects of migration http://www.emcouncils.gov.uk/write/ImpactOfMigration-6-A4-AW.pdf. This is as critical in 2016 as it was then. The flow of migrants into Europe in the past year has been unprecedented and local government is at the frontline of responding to the impact of government policy on migration, while at the same time facing massive financial pressures.

1.3 This report highlights a number of existing and emerging pressures on local

authorities in respect of asylum seekers, refugees and migration which cannot be managed in isolation from each other: Asylum Dispersal: The need for councils to engage in discussions about the

potential to become a new dispersal area Syrian resettlement: Working towards a regional coordination model and

establishing the regional capacity for Phase 2 of the programme. Impact of amendments to the Immigration Bill: This is the first time that

there will be a specific statutory provision setting out a local authority's responsibilities for providing support to migrant families and care leavers who have NRPF; the amendments to the Bill also seek to confer powers for the Secretary of State to compel local authorities to accept the transfer of children from other areas, with no clarity as to how their long-term support needs will be funded;

Unaccompanied Children: Concerns regarding rising numbers of unaccompanied minors and the recent ministerial announcement on unaccompanied refugee children; a sustainable solution is required.

Modern Slavery: Responding to the new duty and working in partnership Enabling Grant: Resource support for councils to coordinate and manage

their response to migration and Government policy expectations.

2. Dispersal of Asylum Seekers 2.1 In July 2015 there were 2500 supported asylum seekers in the East Midlands, by

December 2015 the number has risen to just over 2700 and the trend continues to be upwards.

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2.2 The East Midlands has put the case for a fairer distribution of asylum seekers across the UK for some time. This was a key issue in the 2014 report on the Impact of International Migration in the East Midlands.

2.3 In order to reduce pressure on existing dispersal areas (Derby, Leicester,

Nottingham) and the COMPASS contract accommodation providers (G4S in the East Midlands), the Immigration Minister is seeking to widen dispersal beyond the existing dispersal areas.

2.4 To support this, a letter was sent from the Director General of UK Visas and

Immigration to chief executives of local authorities in the East Midlands at the end of August 2015. To date two new dispersal areas have been identified; Broxtowe and Gedling Borough Councils in Nottinghamshire. G4S were asked to identify a priority list of local authorities they wish to approach regarding asylum dispersal based on their analysis of the private rented sector housing market. G4S have given an initial response to this request but a more detailed analysis by the Home Office and G4S is required.

2.5 The Asylum and Immigration Act 1999, and its provisions, were implemented

with the intention and purpose of ensuring that asylum seekers were dispersed across the UK, and that no one local authority, area, or region became overloaded with those seeking support through the asylum system. Members are advised that the Act makes direct provision for the Secretary of State to provide support for those claiming asylum and to instruct the cooperation and support of local authorities in doing so.

2.6 The position remains that unless sufficient numbers of local authorities consent to becoming an asylum dispersal area, the power to impose asylum dispersal may need to be invoked. The Home Office has indicated they wish to arrange meetings via the Strategic Migration Partnership will all local authorities in the region as soon as possible to discuss the potential to participate in asylum dispersal.

3. Syrian Refugee Resettlement 3.1 The Government has commenced the expansion of the existing Syrian Vulnerable

Persons Resettlement Scheme and intends to resettle 20,000 Syrians in need of protection during this Parliament. Phase 1 of the Scheme operated until 31st December 2015 and roughly 100 Syrian refugees were resettled in the East Midlands during phase 1 in Nottingham, Nottinghamshire and Leicester.

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3.2 The Home Office is now considering the approach to a more sustained programme in phase 2. The Home Office, in conjunction with the EMSMP, are currently seeking to identify those local authorities who wish to participate in phase 2 and the numbers that those authorities anticipate they can support. Mapping exercises are underway in a number of areas to identify capacity in phase 2. Some authorities however remain concerned about funding for the scheme and the interplay with other migration pressures specifically unaccompanied minors and asylum seeker dispersal.

3.3 The EMSMP supports the LGA position that in order to ensure a sustainable

scheme can be delivered at pace and scale; a local government-led, regional coordination model building on existing structures and partnership arrangements would support delivery local and regional knowledge and expertise.

3.4 There will need to be some additional resourcing (from Government) to increase

capacity in order to provide adequate support. EMSMP will continue to provide support to those local authorities who have not yet committed specific figures within their pledges.

3.5 EMSMP has also worked with the LGA to identify a lead Chief Executive for the

East Midlands on Syrian resettlement. 3.6 The EMSMP is hosting a ministerial event on ‘Resettling Syrian Refugees:

delivering a multi-agency resettlement programme in the East Midlands’ on 11th February at BioCity in Nottingham. The Minister for Syrian Resettlement, Richard Harrington MP is speaking at this event and has requested a closed session with leaders and Executive members to discuss participation in the scheme. Details of the conference can be found here: http://www.emcouncils.gov.uk/Events-Training-and-Development/Delivering-the-Syrian-Vulnerable-Persons-Resettlement-Programme/31580

4. Unaccompanied Children 4.1 As reported to the Executive Board in December 2015, a meeting with council

leaders and ministers was convened by government in December to look at how to support the increased numbers of unaccompanied minors in Kent. The Government’s position then and now was to continue with a voluntary scheme to help Kent, based on enhanced rates of support. A letter was sent to council leaders in November outlining the terms of the voluntary scheme.

4.2 Numbers of unaccompanied minors in the East Midlands have also risen over the last six month period reflecting a national trend and whilst we recognise the

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significant pressures in Kent and other port authorities, the enhanced funding only applies to children from Kent and is only in place for a limited period of time, up to the end of this financial year. The scheme relies on councils to proactively volunteer to take on additional responsibilities and a funding scheme that may not cover all costs at a time when many areas are struggling to find sufficient placements for their existing cohort of children in care and have increases in their own Unaccompanied Asylum Seeking Children (UASC) population.

4.3 The Immigration Bill will introduce a new process for transferring legal

responsibility for unaccompanied asylum seeking children between local authorities. Under current legislation, unaccompanied children arriving in the UK remain the legal responsibility of the local authority at which they first present. This has historically placed an unfair burden on a small number of councils, primarily port authorities but also a number of local authorities in the East Midlands due to the road network.

4.4 These authorities retain legal and financial responsibility for children even if they

are placed in another local authority area. The existing system also introduces additional costs to the entry authority, which is required to monitor the quality of these distant placements, and additional risk in terms of the distance between the young person and their legal guardians.

4.5 However there are concerns that the Immigration Bill also seeks to confer

powers for the Secretary of State to compel local authorities to accept the transfer of children from other areas, with no clarity as to how their long-term support needs will be funded. The current system of funding for unaccompanied minors is insufficient to cover council costs, and the Home Office has subsequently agreed to increase the rates paid to councils taking responsibility for children from Kent County Council if they accept them before the end of this financial year.

4.6 If these current arrangements for the dispersal of children from Kent are to be

expanded into a national scheme, it must be fully funded to enable councils who have experienced a reduction in their resources to offer support to these children. If the scheme is to be statutory and based on reserve powers outlined in the Bill, then it is a new burden which must be fully funded as such.

4.7 The Home Office confirmed on 28th January that the UK will offer sanctuary to unaccompanied refugee children from conflict regions. The UK is to work with UNHCR on a new initiative to resettle unaccompanied refugee children from conflict regions such as Syria to the UK and in addition the Department for

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International Development is to create a new fund of up to £10 million to support the needs of vulnerable refugee and migrant children in Europe with new measures to complement existing substantial UK aid and resettlement programmes.

4.8 The EMSMP supports the response made by Cllr David Simmons, Chair of the LGA Asylum, Refugee and Migration Task Group who said “It is vital that any increased resettlement programme is phased over time and planned in full partnership with councils across the country to ensure that services are able to cope with this additional demand. Any scheme would also need to provide sufficient funding and be aligned to existing schemes for resettling refugees and asylum seeking children to ensure there is sufficient capacity to support vulnerable children. In particular, we need to ensure local areas can recruit and train enough foster carers to provide the support and care needed by this particularly vulnerable group.”

5. No Recourse to Public Funds 5.1 Local authorities in the East Midlands are continuing to support significant

numbers of families with No Recourse to Public Funds. Two councils have successfully implemented the NRPF Connect database which has afforded them better access to information on their supported cases and quicker resolution of the cases that are in receipt of support.

5.2 The Immigration Bill introduced provisions to amend the support for destitute migrant families and care leavers. The amendments will make changes to the provision of local authority accommodation and financial support for destitute migrant families with no immigration status and adult care leavers (former looked after children) who have no immigration status. There will be no change for other migrants with No Recourse to Public Funds (NRPF) who are supported by local authorities, and these proposals will only apply in England.

5.3 If the Bill is passed to include the amendments, then regulations and guidance will be made to set out further detail. The Home Office have consulted with the No Recourse to Public Funds Network, the Department for Education, Local Government Association and Association of Directors of Children's Services, on the proposed changes and the EMSMP provided a detailed response to the Government consultation on the Bill in August 2015.

5.4 The current position allows local authorities to provide accommodation and/or financial assistance to families who have NRPF when there is a destitute child. This assistance is provided because the child is in need under section 17 Children

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Act 1989. Exclusions to such assistance are set out in Schedule 3 Nationality, Immigration and Asylum Act 2002, and apply when parents' have no immigration status. However, assistance under section 17 Children Act 1989 can be provided if this is necessary to prevent a breach of the family's human rights or rights under EU treaties.

5.5 In respect of care leavers, local authorities may provide accommodation and financial assistance if they have NRPF at the time they reach 18, as part of the wider leaving care responsibilities that are set out in the Children Act 1989 and apply until the age of 21 (or until 25 if the care leaver is undertaking a programme of education or training). If the care leaver has no immigration status then they will not qualify for this assistance, although support can be provided if the local authority determines this is necessary to prevent a breach of the care leaver's human rights or rights under EU treaties.

5.6 The new scheme will mean that destitute migrant families, where the parents require leave to enter or remain but do not have it, will no longer be eligible for accommodation and/or financial assistance under section 17 Children Act 1989. Such assistance can only be provided by the local authority under paragraph 10A of Schedule 3 Nationality Immigration and Asylum Act 2002, so an assessment under set criteria would need to be undertaken. Children will continue to be eligible for support under section 17 Children Act 1989 if they have needs other than accommodation and financial assistance, for example, needs relating to a disability. A child in need assessment can be undertaken to determine this.

5.7 The proposed changes for former looked after children, who have no immigration

status when they turn 18, will be excluded from receiving: accommodation, financial support, contact, a personal adviser, a pathway plan, funding for education or training, 'staying put' with foster carers and any other assistance under the Children Act 1989 (leaving care provisions). Care leavers with no immigration status will be able to access accommodation and/or financial assistance from the Home Office if they meet certain set criteria.

5.8 The impact of the changes will mean that this is the first time that there will be a specific statutory provision setting out a local authority's responsibilities for providing support to migrant families and care leavers who have NRPF, although this will be limited to those who have no immigration status. This will address concerns about variations in local authority practice both regionally and nationally. The scheme should, if appropriate regulations and guidance is provided, provide a more straightforward assessment process; and local authorities will be able to undertake a robust line in refusing support to families who could avoid destitution in the UK by returning to their country of origin.

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5.9 However the scheme must be supported by the Home Office giving priority to

processing the immigration applications and asylum support applications that are made by migrants receiving local authority assistance. Local authorities do not want to see a rise in homelessness within their communities, so it is also essential that the Home Office works with the local authority when a family or care leaver can return to their country of origin.

5.10 It will be all the more important that local authorities, in their role as corporate parents, take steps to resolve any outstanding immigration issues well in advance of a looked after migrant child becoming 18. For example, by ensuring that UASCs have explored the possibility of challenging their asylum refusal when UASC leave is granted, or making sure that migrant children, who are not pursuing asylum claims, regularise their stay.

5.11 The Government has committed to undertaking a new burdens assessment to establish what the impact of the changes will be on local authorities. However, there is some tension between local and central government with regards to the understanding of what constitutes a 'new burden'. Although this scheme may reduce the assessment burden for local authorities, there are a number of other policy changes that are highly likely to give rise to an increased number of referrals into social services, resulting in greater costs to local authorities, including:

The withdrawal of asylum support for refused asylum seeking families. Provisions of the Immigration Bill intended to disrupt the ability of

migrants with no status to live and work in the UK. The 'right to rent' landlord checks that will apply to England as of 1

February 2016.

5.12 Local authorities are encouraged to provide feedback to the EMSMP on the proposals which will inform our discussions with the Government.

6. Immigration Bill 6.1 As highlighted under sections 4 and 5 above there are significant implications of

the provisions of the Immigration Bill for local government. In addition to the issues above the following should also be noted.

6.2 The Bill requires public authority staff in a customer-facing role to speak fluent

English will have legal, employment and financial implications for local authorities given the diverse range of services provided by councils and the diverse workforce they employ, which reflect the communities’ councils serve. East

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Midlands Councils hosted a consultation meeting for local authorities in November.

6.3 Although councils make every effort to ensure their staff have an adequate

standard of English to communicate with residents, councils will need to review their HR practices and policies, revise selection and appointment practices as well as employment contracts so they are compliant with the code and ensure consistency when advertising for similar types of customer-facing roles.

6.4 The Immigration Bill also introduces amendments to the Licensing Act 2003

which require licensing authorities to make additional checks on applicants for personal and premises licences. While illegal working does occur in some licensed premises, it more commonly involves sales staff or auxiliary workers and almost never involves someone licensed to run the premises. The LGA has held constructive discussions with the Home Office to refine these proposals and target them more effectively. Councils already work closely with Immigration Enforcement and the new powers of entry and closure will simplify this work, which is to be welcomed.

6.5 Proposals were also brought forward at Committee Stage to introduce

comparable checks into the taxi and private hire vehicle licensing regime. Licensing authorities have reported to the LGA that there are more instances of illegal working discovered when checking applicants to be a taxi driver. A National Fraud Initiative during the last year revealed 330 applicants with no right to work. The additional checks set out in the Bill should provide an additional tool for councils in ensuring that applicants are ‘fit and proper’ people to be driving licensed vehicles.

7. Modern Slavery 7.1 The East Midlands established an anti-human trafficking partnership in 2014. The

group has worked across police and local government to establish local anti-modern slavery partnerships across the East Midlands. The Partnership supports the principles of the national Modern Slavery Strategy and in particular, the ‘four p’ approach ‘Prepare, Prevent, Protect and Pursue’.

7.2 The Modern Slavery Act 2015 gives public authorities a duty to notify the Home

Secretary about suspected victims of Modern Slavery. From 1st November 2015, specified public authorities have a duty to notify the Secretary of State of any individual identified in England and Wales as a suspected victim of slavery or human trafficking.

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7.3 It is estimated that there were 10-13,000 victims of modern slavery in the UK in 2013, with only 1746 potential victims referred to the National Referral Mechanism in the same period. 167 victims were identified in the East Midlands with the vast majority of these subject to labour exploitation. The new duty is intended to improve the identification of victims and help build a more comprehensive picture of the nature and scale of modern slavery, to improve victim identification and the law enforcement response.

7.4 Public sector staff are a huge resource and can play an important role in

identifying signs of slavery. Consistent, effective reporting of potential slavery is vital to help the police clamp down on criminals who are making immense profits from exploiting their victims.

8. Enabling Grant 8.1 The work of the East Midlands Strategic Migration Partnership is funded by an

enabling grant from the Home Office. This was reduced in 2015/16 from £105,000 to £76,439. The role of the EMSMP has been instrumental in coordinating the responses of Councils in the region in relation to both the widening of asylum seeker dispersal and to Syrian resettlement. East Midlands Councils are currently awaiting the outcome of discussions with the LGA in respect of the enabling grant for 2016/17 and funding for regional arrangements to support Syrian Resettlement as outlined in 3.4 above.

9. Recommendations

Members of East Midlands Councils are invited to: 9.1 Note position on widening asylum dispersal in the East Midlands and the need for

councils to consider any potential engagement with this programme. 9.2 Agree the proposal for a regional coordination and resource model for phase 2 of

Syrian refugee dispersal. 9.3 Note the emerging position on unaccompanied children and the provisions of the

Immigration Bill. 9.4 Note progress on the development of the East Midlands Anti-Human Trafficking

Partnership.

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9.5 Support a letter to the Immigration Minister and Minister for Syrian Resettlement highlighting the cumulative impact of current policy on local government in the region.

Cllr Peter Robinson Chair Strategic Migration Partnership Board

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East Midlands Councils 5th February 2016

Regional Employers’ Board Report

Summary This report sets out key developments on issues related to local government as employers, and updates Members on the recent work of East Midlands Councils’ Regional Employers’ Board and the Regional Joint Council. Recommendations Members of East Midlands Councils are invited to: Provide comments and feedback on the key employment issues identified within the

report to inform EMC’s input to future Employers’ meetings at Regional, National and European level.

Note this report.

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1. Introduction 1.1 The Regional Employers’ Board leads the development of employment issues and

it forms the Employer’s side of the Regional Joint Council. East Midlands Councils (EMC) through its role as the region’s Employers Organisation, has the responsibility of supporting employment relations through the operation of the Regional Joint Council. This report updates members on progress and work of the Board to date.

2. Background 2.1 At East Midlands Councils’ AGM in 2015, Cllr Tom Beattie from Corby Borough

Council was re-elected as Chair of the Employers’ Board with Cllr Ian Fleetwood from Lincolnshire County Council as Vice-Chair.

3. Employers’ Board Meetings 3.1 Work areas agreed by the Board are:-

Implementation of the Living Wage Zero-hour contracts Relationship with CEEP UK/Europe Creating jobs and youth employment Working together on terms and conditions, with specific reference to: Integration of the workforce within health and social care sectors. Demonstrating the value placed in the workforce within the context of

austerity. The public sector worker of the future. Benchmarking chief officer pay levels.

3.2 The Employers’ Board met on 11th September 2015 and received an update on

implementation of the Living Wage across the region. Currently 22 councils have implemented the Living Wage (at the rate defined by the Living Wage Foundation) and 3 councils are accredited by the Living Wage Foundation. The Board discussed the implications of the National Living Wage which the Government has announced it will introduce in April 2016, particularly in relation to costs and pay negotiations within local government.

3.3 At its meeting of 30th November 2015, the Board received a report on sickness

absence levels across the region, showing that on average 8.6 working days were lost per full-time equivalent employee and that rates varied significantly

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between authorities from 3.5 to 14 days. Further research will be conducted to identify particular approaches that have reduced absence to share as good practice. Board Members discussed recruitment and retention difficulties within functions such as planning. These occupations will be the focus of pay benchmarking nationally to provide information for authorities who are facing the challenges of recruiting and retaining staff in these professions.

4. Regional Joint Council Meetings 4.1 A Regional Joint Council meeting took place on 11th September 2015 and focused

on the joint trade unions’ pay claim for 2016. It was agreed to put forward a joint statement about the impact on service delivery in the context of significant reductions in funding and staff. The joint trade unions also raised concerns about the proposals in the Trade Union Bill, particularly in relation to removal of “check off” facilities. It was agreed to put forward a joint letter on the issue, given the benefits to employers as well as unions of this facility. The Minister has since provided a response.

4.2 The Bill has additional financial implications for East Midlands Councils in its role

as an employers’ organisation. It is proposing to levy Employers’ Organisations and trades unions in order to fund the Certification Office, the relevant regulatory body.

4.3 At the Regional Joint Council meeting held on 30th November 2015, a

presentation was providing by Unison on Functional Skills and the good examples from councils outside and within the region to address poor literacy, numeracy and IT skills. It was agreed that this issue would be taken forward on a regional basis. The Joint Council also agreed to send a joint letter to the Executive of the NJC for Local Government Services ahead of their pay negotiation meeting held on 3rd December 2015 encouraging an early agreement to be reached.

4.4 The next meeting of the Regional Joint Council taking place on 22nd February

2016 will focus on apprenticeships. 5. European Developments 5.1 A priority has been to maximise the benefits of EMC’s membership of CEEP UK,

which represents the interests of public sector bodies at European level negotiations through its role in CEEP, which is a social dialogue partner. My appointment as President of CEEP UK and Vice-President of CEEP has been particularly helpful in increasing the opportunities to influence developments at European level.

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5.2 The AGM of CEEP UK took place on 25th November 2015 which received

presentations on the Social Partners’ Joint Work Programme 2015/17, the European Commission Work Programme 2016, and the Framework Agreement on Active Ageing, with a case study from Belgium.

6. National Employment Developments 6.1 National Association of Regional Employers (NARE) 6.1.1 NARE brings together all of the regional employers’ organisations across the

country to meet quarterly with national officers to inform developments relating to the local government workforce and to share practice, initiatives and maximise resources. At its AGM in October 2015, I was formally appointed the role of Chair of NARE and the East Midlands region has taken the lead role in NARE for 2015/16.

6.1.2 The integration of the health and social care workforce is a significant issue for

many authorities and this was the focus of the October NARE meeting. The following work on this issue has been jointly commissioned by the LGA and National Health Employers:- The Chartered Institute of Personnel & Development will identify the practical

HR challenges of integrated health/care workforce and good practice; The King’s Fund will identify future workforce skills.

6.1.3 The impact of key legal and policy changes relating to employment are the focus

of discussion at the next NARE meeting, taking place on 4th February 2016. 6.2 National Bargaining & Pay 6.2.1 EMC hosted the regional pay briefing in September 2015 to enable authorities to

input their views on national pay and to inform national negotiations. 6.2.2 A final offer has been made for employees for a pay award for 2016 and the

outcome is awaited on the consultation exercise that trade unions are holding with their members. The offers have been bottom-loaded in order to ensure that the sector will be compliant with the National Living Wage that comes into effect on 1st April 2016.

6.2.3 EMC has circulated advice to authorities on the implementation of the National

Living Wage, given that an agreement is unlikely to have been reached in

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sufficient time. (The bottom three points of the national pay spine for local government services employees will fall below the National Living Wage.)

7. Regional Programme of Support 7.1 EMC has co-ordinated consultation responses to key legal developments, such as

the proposals to cap exit pay and to require repayment of exit pay for higher earners returning to the public sector.

7.2 EMC met with HR Directors in the region to share information and identify

opportunities for joint working on key issues. Themes identified from the meeting included:- Pay and grading, including addressing the implications of the National Living

Wage proposals for 2020 Commercialisation Leadership Recruitment/retention in some professions New ways of working and managing remote working

7.3 Support has been provided for local authorities on a consultancy basis for a

range of issues, eg:- Restructuring Job evaluation Interim HR Management Psychometric testing Pay benchmarking Coaching Employee survey Development of an in-house Councillor induction programme Development of a Learning and development strategy Senior management job evaluation/pay and grading review (working with the

LGA) Disciplinary investigation In-house recruitment and selection training In-house workshop on managing a remote workforce

7.4 A wide range of events have been delivered in the region on themes such as:-

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ILM 5 Leadership Programme ILM 5 Coaching Unaccompanied Asylum Seeking Children – Age Assessment Training Team Secretarial Skills Executive PA Skills

8. Recommendations Members of EMC are invited to: 8.1 Note the contents of the report. 8.2 Provide comments and feedback on the key employment issues identified above

to inform EMC’s input to future Employers’ meetings at regional, national and European level.

Cllr Tom Beattie Chairman Regional Employers’ Board

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General Meeting

5th February 2016

Regional Improvement and Transformation Board Summary The following reports provides Members of East Midlands Councils with an update on the work of Improvement and Transformation Board, with particular focus on: Health, Regional Chairs Networks and EMC’s Councillor Development Programme. Recommendations Members of East Midlands Councils are invited to note the report of the Improvement and Transformation Board.

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1. Health 1.1 In February 2015, East Midlands Councils (EMC) and Public Health England (PHE) East

Midlands published a report that examines a number of issues of importance in health and wellbeing across the East Midlands. ‘A healthier future for the East Midlands’ identified four priority areas for consideration: Inequalities in health outcomes Inequalities in funding for healthcare Recruitment and retention of the health workforce The need for collective leadership

1.2 EMC has been working with the East Midlands Partnership Organisations, a network of

NHS and wider health organisations, to establish a more effective platform for collective leadership on health. Alongside tis, we are working with Directors of Public Health. There are a number of opportunities that the health sector, through focus and coordinating effort, not just in terms of adult social care and integration, bit also importantly in relation to Midlands Engine that recognises the importance of the sector and associated research in the ‘innovation stream’.

2. Regional Chairs Networks 2.1 In recently agreed arrangements with the LGA, EMC has responsibility for providing

support for a number of lead member/chair networks on matters of key responsibility for the sector, specifically Health and Wellbeing, Children’s Services, Scrutiny and Adult Social Care.

2.2 The Portfolio Holders for Adult Social Care, Children’s and Health and Wellbeing Boards

held a joint meeting on Monday 9th November 2015. The session was based on ‘All age approaches to disability, including transition’ and its purpose was to support political/leadership thinking about the changing policy landscape and to consider some of the issues that arise when SEND is considered from all age perspective and options that might be under consideration.

2.3 Aside from specific issues relating to disability and transition, the following was agreed

as a basis for moving forward: a) As a region, we will have greater influence if we articulate the identified blocks,

barriers and issues in a joint communication to central government b) Case studies that reference improved outcomes and/or cost savings would be

beneficial. c) There is a range of practice across the region that we should learn from and

councils should jointly develop a regional statement of ‘good outcomes for disabled people’.

d) Undertake regional data collection showing:

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The use of out of county placements into specialist units, e.g. St Andrews in Northants.

The number of young people going through transition for each LA over a period of 5 years.

Develop compelling arguments to support and challenge in-region and central policy makers.

2.4 In order to further support the progress made by members at their recent joint

meeting, lead officers from East Midlands children’s and adult’s improvement programme will develop a programme of work with EMC for consideration by respective boards.

2.5 A subsequent meeting was held by Chairs of Health and Wellbeing Boards. In agreeing

its programme of work, the following 3 issues were agreed as priority areas for consideration: a) Integration of health services b) Workforce challenges (recruitment and retention) c) Reconfiguration of NHS healthcare services.

3. Councillor Development Programme 2015/16 a) Background 3.1 EMC launched its 2015/16 Councillor Development programme in May 2015, the

programme has been designed to support local authorities and Councillors in the post-election period, supporting both new and existing Councillors with changes in Government and associated policy developments. In addition, the programme offers a broad range of skills development sessions, designed to complement in house induction programmes for Councillors.

b) Events and Attendance Update 3.2 EMC has delivered eighteen Councillor Development events this financial year, nine

skills sessions and nine policy events:

Policy events East Midlands APPG Annual General Meeting, 5 January. East Midlands Infrastructure Summit, 8 December. Delivering Services in the Age of Devolution, 6 November. EU and Energy and Environmental policy event, 2 October. Key Issues for Local Government, Housing, Planning, Welfare Reform and

Devolution, 23 September 2015. EU and Employment legislation event, 11 September.

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EU Free movement event, 9 September. Midland Mainline APPG event. The Future of Local Government and Public Services Event.

Skills sessions

New Role as a Councillor. Raising the Bar in Scrutiny. Scrutiny and Effective Challenge. Chairing and Facilitation Skills (x2). New Councillor Event (x2). Mentoring Skills for Councillors. Civic Head and the Civic Team.

3.3 In total 331 Councillors from across 42 authorities in the East Midlands have attended

the 18 events held by EMC the first three quarters of this year. 4. Comparative Analysis of Attendance and Engagement 4.1 To provide context and comparative analysis of the attendance and engagement

figures above, the figures have been compared against the same period in 2014/15. The below table provides the comparative figures.

2014/15 2015/16

April to January Number of Events held in period 25 18 Numbers of Councillors attended during period 389 331 Number of authorities that have participated during period 43 42

4.2 The total number of events in the 2015/16 period is less than the same period in

2014/15, and the number of councillors participating is less. In 2014/15 the Councillor Development programme concluded earlier in the year to acknowledge the Local and National elections taking place in May 2015. At present there are only two authorities in membership that haven’t participated in one of the Councillor events and there are six events left in the programme.

5. Future Skills Events for Councillors 5.1 The remaining skills sessions in the programme include:

Influencing Skills for Councillors, 4 February 2016 Speed Reading, 10 February 2016 Making Progress on Problems, 26 February 2016 Conflict Resolution and Mediation, 11 March 2016

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6. Regional Programme of Policy Briefing Events 2015-16 6.1 The 2015-16 Regional Programme of Policy Briefing events for Councillors has been

designed specifically to support local authorities in the post General Election period. The first event in the programme took place on Monday 22nd June and provided analysis of what the outcomes of the General Election mean for policy affecting local government and the public sector.

6.2 Four events in this programme have now been delivered, with an underlying theme of

devolution featuring in all of the events. To date 177 Councillors have attended the four sessions, from across 40 authorities. At present there are 21 authorities signed up to the programme, therefore an additional 19 authorities have participated.

6.3 Informed by previous discussions by Members, future events in the programme are

proposed to include: 2nd February 2016 – Community Leadership in the East Midlands 9th March 2016 – Innovations in Health and Social Care; or Local Government

Finance/the Impact of Spending Review Settlement on Councils in the East Midlands.

6.5 There are currently 21 authorities subscribed to the programme. The current list of

subscribing authorities are:

1. Ashfield District Council 2. Bassetlaw District Council 3. Blaby District Council 4. Bolsover District Council 5. Charnwood Borough Council 6. Chesterfield Borough Council 7. Corby Borough Council 8. Derby City Council 9. Erewash Borough Council 10. East Lindsey District Council 11. Gedling Borough Council 12. Kettering Borough Council 13. Mansfield District Council 14. Melton Borough Council 15. Newark & Sherwood District Council 16. North East Derbyshire District Council 17. North Kesteven District Council 18. North West Leicestershire District Council 19. Rutland County Council 20. South Holland District Council

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21. Wellingborough Borough Council 6.6 EMC remains keen to encourage additional authorities to subscribe to the programme,

which offers value for money, with participating authorities offered 12 free places across all events in the programme.

7. In-House Member Development 7.1 A key area of support that East Midland Councils provides, is to support authorities

with their own in house member development programmes. Through the regional perspective and extensive experience of working with Councillor Development, East Midlands Councils is able to support authorities to identify development providers to meet their internal needs. Since May 2015 East Midlands Councils has supported the below authorities with in house development sessions: Ashfield District Council with Chairing skills, Scrutiny, Community Leadership and

Mentoring Skills South Kesteven District Council with Scrutiny training and Chairing skills Boston Borough Council with Chairing skills Nottingham City Council with ‘Being an Effective Councillor’ Rushcliffe Borough Council with Community Leadership and Chairing skills

8. Member Development Charter 8.1 There are currently 14 local authorities in the East Midlands region that have the

Member Development Charter. EMC are keen to grow this number and are currently supporting a County Council in the region with development work in advance of applying for the charter.

9. Recommendation 9.1 Members of East Midlands Councils are invited to note the report of the Improvement

and Transformation Board.

Cllr John Boyce Vice-Chairman Improvement and Transformation Board

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