Agenda item

The Leader introduced the first agenda report on the Shared Prosperity Fund.

In April 2022, the UK Government published details of the new £2.6bn Shared Prosperity Fund which sought to support the Government’s Levelling Up objectives.

These objectives aimed to:

Boost productivity, pay, jobs and living standards by growing the private sector

Create opportunities and improve public services

Restore a sense of community, local pride and belonging, and

Empower local leaders and communities, especially in those places lacking local agency.

To achieve this, the Shared Prosperity Fund focussed on three investment priorities, namely:

o   Communities and Place

o   Supporting Local Business; and

o   People and Skills

o   There was also a fund called Multiply, which focused on improving adult numeracy skills.

The Shared Prosperity Funding was allocated across the UK on a needs-assessed basis and the 10 Local Authorities in the Cardiff Capital Region received a combined allocation of over £230m, and a further £48m for Multiply.  Newport was allocated just over £27m for core spend and a further £5.6m for Multiply, for the period April 2022 until the end of March 2025.

To draw down this funding, all local authorities within the Cardiff Capital Region were required to develop a single collaborative regional investment plan. At July’s Cabinet in 2022, Cabinet agreed to endorse the submission of the regional investment plan by the Lead Authority.

Whilst the decision was taken in July last year, there were significant delays from UK Government in the approval of the regional investment plans and the development of formal agreements for governance arrangements.

The Leader reported that these issues had been resolved, but some 10 months of delivery from Year 1 of the programme has been lost. Nonetheless, there had been some SPF spend in 2022/23.  The report noted that nearly £700,000 was being claimed for Year 1 for several projects and Cabinet were asked to endorse this spend.

Whilst it was noted that the significant delays experienced to date meant the spend was below the total Year 1 allocation, UK Government had recognised this and confirmed that underspend would be carried over into Year 2.  The Lead Authority is required to submit a credible plan which demonstrates how the rolled over funding will be spent in the current financial year. Further details of this are contained within the report.

A significant amount of work has gone into ensuring that the fund was managed and monitored in an appropriate way through robust internal governance arrangements,

Given the need to proceed at pace with the delivery of the Local Investment Plan, Cabinet was asked to agree a range of delegated functions to specific Officers and the creation of an internal board which comprised relevant senior officers from across the Council. Agreement relating to specific projects would be undertaken in consultation with the Leader, as the Cabinet Member for Economic Growth and Strategic Investment and respective Cabinet Members would be kept up to date through briefings with relevant Service Area leads.

The Leader drew colleagues attention to the proposed Local Investment Plan contained in Appendix 1. This plan lists the projects under each priority which will deliver the objectives outlined by UK Government.  SPF Funding is mainly for revenue funding with capital spend limited to a maximum of 44% of the total allocation. Newport’s local investment plan does not currently propose more than 40% spend on capital projects.

Alongside a number of projects being delivered at the local level, the UK Government prospectus also encouraged collaboration with external partners for both local and regional projects. The Local Investment Plan includes projects which will be delivered by external partners, as well as an allocation to projects which will be delivered at a regional level. This included regional employability commissioning and business innovation, Research and Development Growth, and tourism.

Cabinet has listened to the views of residents and stakeholders and acknowledged that people wish to see investment in communities and places. The Local Investment Plan proposes investment in spaces such as Tredegar Park and the Monmouthshire Brecon Canal, as well as support for partners wanting to invest in improvements to some important sports facilities, including Rodney Parade and the Newport County Cricket ground.  Significant investment is also proposed in People and Skills to support young people, help residents into employment and upskill the existing workforce to ensure that residents have access to good quality jobs and businesses have access to a suitably skilled and resilient workforce. 

Supporting Local Businesses is a separate priority with a proposal to expand and build upon the support offered by the City of Newport Business Development Grants. Additionally, supporting businesses with embedding circular economy principles, and bolstering the retrofit supply chains supports the Council to deliver on climate change commitments.

Colleagues noted the significant outcomes which were expected to be derived from the various projects.  These included planting 750 new trees planted, creating 66 new jobs in the arts/culture/heritage sector, creating 50 new businesses, and supporting at least 400 existing businesses. Other examples commented upon included supporting over 950 people into employment and supporting over 1000 people in gaining qualifications, licences, and skills. Cabinet commented that these are incredible numbers and remarked that this funding has the potential to make a significant difference to the places residents live in, the resilience of businesses and the lives of residents.  There are also a number of funding pots which would empower local groups to host events and expand their activities.

Comments of Cabinet Members:

§  Councillor Davies considered that it was excellent news that the funding was going to be invested in the city and consultation with residents was being undertaken to see what they wanted rather than making assumptions. Councillor Davis stated that Newport’s wellbeing objectives prioritised the economy, wellbeing, jobs, education and sustainability.  The Cabinet Member for Education and Early Years went on to remark that it was great to see that these objectives could be delivered with an investment in green spaces, local businesses and jobs. 

§  Councillor Harvey mentioned that the local investment plan currently had 47 projects, not including those under Multiply, which is raising maths grades through 900 interventions. Councillor Harvey reflected that this was what residents had asked for and the SPF covered so many different aspects from a pop-up park to a feasibility study on where to house the Newport Ship.  Communities would see £30M of investment over the next three years, which Cabinet was grateful to receive.

§  Councillor Hughes felt that it was important that the funding was aligned to the Newport Local Investment Plan, and this was informed by local residents and stake holders. Councillor Hughes perceived that this is reflected in the variety of projects supported that strengthen communities in Newport.  Councillor Hughes highlighted the support given to local businesses was also important. Councillor Hughes also noted that this would have a positive impact by enabling the Council to improve its facilities and the general environment of the city, supporting the principles of the Wellbeing of Future Generations Act.  The Cabinet Member for Social Services therefore fully endorsed the report.

§  Councillor Forsey also supported the SPF allocation. Councillor Forsey considered that these are great projects that demonstrated what the council could do, given the investment.  Councillor Forsey went on to say that the development of work on the Mon and Brecon Canal, including measures to improve the water supply, the biodiversity, disabled access and upgrading of the visitor centre would be appreciated by the residents of Rogerstone. Councillor Forsey went on to state that there were many projects that were pleasing, including the development at Tredegar Park which will make a big difference for those residents who visited and used the park.  The Cabinet Member for Climate Change and Biodiversity therefore supported all the projects and welcomed the report.

§  Councillor Marshall added that the report was positive and was happy to see it going forward.  Councillor Marshall considered that it showed what could be done with the right investment.  Councillor Marshall noted that the plans boosted the number of jobs in the city and helped incomes which would be especially helpful given the cost-of-living crisis, and 400 existing businesses would benefit from the SPF. Councillor Marshall considered that the big focus here was listening to residents, who would now see the difference that these additions would bring to the city, including the Youth Academy, Tredegar Park and furthering the culture of the city, including the Newport Ship and tourism.

§  The Leader thanked colleagues for their comments whilst noting that the scale of the challenge and the need to deliver at pace could not be underestimated and remarked that there were potential on-going revenue implications once the SPF funding ended. As already mentioned, robust governance and administration arrangements are required to ensure funding is properly managed and monitored and that ongoing risks are identified and mitigated.

Alternatively, it could be decided that the scale of this challenge is too great and agree not to deliver any of the projects listed in the Local Investment Plan. However, this would be a lost opportunity for investment in local areas, local communities, and local businesses.

The Leader therefore proposed that Cabinet endorsed the recommendations of the report and asked officers to press on with the delivery of the proposed Local Investment Plan without further delay.

Decision

Cabinet:

1.      Endorsed the delivery to date in the first year of SPF solely relating to 2022/2023,

2.      Approved the proposed administration and governance arrangements.

3.      Endorsed the proposed Newport Local Investment Plan comprising a comprehensive range of SPF-funded projects for years 2 and 3; Noting expected outputs and outcomes for the City and authorising the Head of Regeneration and Economic Development and Head of Finance to claim relevant funding from the Lead Authority. 

4.      Delegated authority to the internal SPF Board, chaired by the Head of Regeneration and Economic Development, in consultation with the Cabinet Member for Economic Growth and Strategic Investment, to agree specific projects under each of the three SPF priorities and multiply, recalibrate and realign as necessary in order to achieve outputs and outcomes against SPF interventions.

5.      Delegated authority to the Head of Law and Standards to prepare, complete and execute the required legal documentation to enable third party suppliers/providers to be appointed for internal and externally commissioned projects, and to provide grants to third party applicants.

6.      Authorised the SPF Board to operate within the suggested financial framework in order to manage the financial risk associated with the SPF programme.