City Deals and sustainable citiesSummer 2012
IntroductionIn this paper we look back at someof the key themes in our SustainableCities report and look forward to thelan...
We identified three key themes                     Governancethat needed to mesh together                       We said th...
If this sounded complex, it was with plenty of existing and emerging rolemodels in mind, such as KfW or Stadtwerk Munchen ...
Public-private collaboration has generally beenexploratory and either remains high level or hasgot stalled as stakeholders...
City DealsCity Deals have thrown wide open the debate about the balance ofpower between central, regional and local govern...
How have cities responded so far?                                      With the exceptions of Manchester, with its innovat...
These two key pillars are critical determinantsof success or failure.However, as well as providing governance, thecity aut...
ConclusionsIt is tempting to say that UK cities are at the beginning of ajourney, but the future is more complex than that...
Birmingham                                                 Manchester                                                     ...
Birmingham                                                 Manchester                                                     ...
Birmingham                                                 Manchester                                                     ...
Birmingham                                                 Manchester                                                     ...
Birmingham                                                 Manchester                                                     ...
Birmingham                                                 Manchester                                                     ...
Birmingham                                                 Manchester                                                     ...
Birmingham                                                 Manchester                                                     ...
Contact us For further information on this report and its findings please contact: Nathan Goode Partner Head of Energy, En...
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UK City deals & sustainable cities report

  1. 1. City Deals and sustainable citiesSummer 2012
  2. 2. IntroductionIn this paper we look back at someof the key themes in our SustainableCities report and look forward to thelandscape starting to be sketched outby cities, as part of the ‘City Deals’agreed by the government.There is a hunger for Sustainable Cities / Smart Citiesconcepts to start to translate into real outcomes – economicgrowth, investment in infrastructure, behavioural change.Twelve months later we are examining the first City Deals,and it feels as if we could be at the start of a journey towardsa future of Sustainable Cities in the UK. City Deals should bea major step along the way to delivering sustainable cities, buthow do the proposals shape up to the vision?ContentsIntroduction 1City Deals 4Conclusions 6What does the City Deal mean to Birmingham? 7What does the City Deal mean to Bristol? 8What does the City Deal mean to Leeds? 9What does the City Deal mean to Liverpool? 11What does the City Deal mean to Manchester? 12What does the City Deal mean to Newcastle? 13What does the City Deal mean to Nottingham? 14What does the City Deal mean to Sheffield? 15
  3. 3. We identified three key themes Governancethat needed to mesh together We said that a key element was the creation of effective relationships between different levelseffectively to deliver the future (global, European, national, regional, city)for cities: and between the different stakeholders. We commented that models for public-private co-• governance – creating the right contractual / operation are in a state of evolution. In talking to collaborative partnerships leading cities, we observed a recognition that city• finance – creating the right funding authorities do not have the capability to deliver mechanisms to make cities investable long term sustainability agendas on their own. We saw the relationship between strategy and• investment appraisal – using appropriate delivery at a city and city region level as key. We frameworks to measure the benefits of argued the case for separation between the two, investment and over the right timescales. with the creation of Infrastructure Investment Boards (IIB), which would be at arm’s length from the city authorities, although the latter would have shaped the vision and remain an influential (but not necessarily controlling) presence on the Board. There is a balancing act here, but achieving this balance, in the multi-stakeholder world that is the modern United Kingdom, is probably vital. In our report, we described this balancing act as follows: ‘The IIB needs to be capable of surviving a change of administration, while fully accountable and democratically responsive in its constitution, and of pursuing its agenda without policy interference while remaining transparent and accountable in its actions.’
  4. 4. If this sounded complex, it was with plenty of existing and emerging rolemodels in mind, such as KfW or Stadtwerk Munchen in Germany, or the GreenInvestment Bank here in the UK.FinanceWe identified the need for a wide mix of funding coming together, although progress has beensources – the need for retail investors as well slow. City authorities are resource-constrainedas global institutions, as well as the need to and have focused their finance raising efforts onavoid the ‘bureaucratisation of finance’ where public pots of money such as ELENA, Nesta andfunding provided through state or supra-national TSB funding.sources such as the EU can end up shaping theinvestment proposition in order to meet the ruleslaid down, so the tail ends up wagging the dog. Programme - scaling the opportunity While public sector finance has a role inpump-priming projects that ultimately will becommercially financed, we see the need to createcommercial development funds (perhaps with Retail Institutioncornerstone public sector investors or wherethe public sector gets a carried equity stake forperforming an enabling role) that approachdevelopment risk in a commercial way – as in, for Capital Portfoliosexample, the onshore wind sector. Markets There is an acute need just now for finance tobridge development risk in order to get projectsto a stage where they are capable of being Infrastructureinvested in by institutions or infrastructure funds Programs Fundsand of being institutionalised to the point wherethey can safely be offered to retail investors. We were fortunate to be involved in Bristol’sground-breaking ‘Building a Better Bristol’ Early Pilots Adoptersproject [Building a Better Bristol] earlier thisyear. As part of this, we sketched out thetrajectory for institutionalizing finance for acity region based finance mechanism, as per thediagram shown. Over the past 12 months, we have startedto see elements of the finance and governancethemes identified in our Sustainable Cities report
  5. 5. Public-private collaboration has generally beenexploratory and either remains high level or hasgot stalled as stakeholders struggle to reconcilecommercial objectives and public vision. The investment appraisal theme we identifiedalongside finance and governance has slowlyevolved within investment communities.Whilst far from being mainstream, a betterunderstanding of the wider benefits in investingin social outcomes and social entrepreneurshipis beginning to permeate – probably helped byobstinately low returns in much mainstreaminvestment which help to narrow the apparentgap between standard investment criteria andthose based on a broader set of outcomes. Credit Suisse, for example, published a report entitled ‘Investing for impact – How social entrepreneurship is redefining the meaning of return’ in January 2012, exploring this developing space that mixes commercial and non-commercial outcomes. All of this is encouraging, but largely untested at scale – and there is no evidence to suggest that in the UK developers and the public sector are taking a consistently longer term view. Payback remains a major challenge for much of the low carbon sector, for example. The City Deals represent an opportunity for English cities to rewrite the rules of the game, and some have seized the opportunity. So how do the first City Deals out of the blocks look? How sustainable (in its broadest sense) is the path mapped out for the cities?
  6. 6. City DealsCity Deals have thrown wide open the debate about the balance ofpower between central, regional and local government.Challenging cities to take charge of theirown destinies, the Coalition said in‘Unlocking Growth in Cities’, publishedin December 2011, that there was adeal to be done – if cities deliver moreeffective, accountable government,central government will transfer morepowers and provide incentives forcities to apply their own solutions.The proposals were definitely pitchedas something transformative – ‘game-changing’, to use a cliché.
  7. 7. How have cities responded so far? With the exceptions of Manchester, with its innovative ‘earnback model’ and Birmingham, with its pitch for the lifeThere will be a tendency for commentators to focus on the sciences sector, a long term, cross-generational vision is notprojects proposed by each of the cities, but in fact what is very much in evidence. Perhaps this takes time to develop. Soprobably most interesting in these proposals is how the far it is unclear how strong the appetite is for meeting withgovernance and delivery mechanisms are articulated, as these tomorrow’s, as well as today’s, challenges and opportunities.will set the pathway for future investment and development. There is considerable variation in how prominent theThese are some of the themes that are starting to emerge: low carbon agenda is in the City Deals. Six cities refer to it, while Manchester, Liverpool, Birmingham and Newcastle• Unsurprisingly, jobs feature high on the agenda of every city. ostensibly place it at the centre of their proposals. In some Faced with today’s growth challenge, every city authority cases it seems like an afterthought, if it’s mentioned at all. has seen a role for itself in addressing this problem. There This suggests that there is a real tension between pitching is a mix of supported programmes, reskilling and training for growth today, using current resource models and initiatives, alongside enterprise initiatives and proposals planning for a radically different paradigm in the future. to develop or build clusters. It is, of course, impossible to The specific projects proposed just now are in most predict how successful these will be; quality and flexibility cases sketched out at a high level, and probably subject to of delivery will have a major impact. It is clear that cities the usual rigorous value for money and benefits analysis perceive a major misalignment in existing skills and training that accompanies public sector projects. This may in itself with the opportunities of the future. present problems later on; there is no guarantee that old-• Every city has presented the balance of city and region style investment appraisals are flexible enough to provide the slightly differently. The clearest city-regional strategies right evaluation framework for long term city strategies. One come from Manchester, Leeds and Bristol, with Greater city was even rash enough to promise to apply the Treasury Manchester having the benefit of building on a number Green Book rules. of years of collaborative working and Bristol’s deal For City Deals policy to be genuinely transformative, establishing ‘enterprise areas’ in places outside the core we believe the powers transferred must be embedded in a city such as Bath, where full retention of business rate robust governance framework, underpinned by access to growth will apply. sustainable finance for investment in projects, as we outline• Alongside ‘traditional’ economic development initiatives above. such as housing and place-based regeneration are initiatives about physical and virtual connectivity, with powers on transport and superfast broadband.• The role of the private sector in developing the City Deals themselves varies from city to city. The Birmingham LEP, for example, seems to have played a significant role, while in Liverpool, with the transition from Council leader to mayor, the Council appears to have a firm grip on the process. However, there are some major corporate players currently involved in the development of Liverpool’s future, so perhaps there is more of a public / private mix than at first appears.
  8. 8. These two key pillars are critical determinantsof success or failure.However, as well as providing governance, thecity authority must also be a catalyst for changeand provide for an effective working relationshipbetween local and national government, businessand communities. Part of the governance challenge Manchester has avoided too much granularityis to allow the ‘white space’ to be created where in its infrastructure proposals, which we thinktrust can be nurtured and the alignment of makes sense. The ‘earnback model’ could offer aobjectives achieved. In some places, LEPs appear genuinely sustainable source of finance throughto be stepping into this role, but without access which Greater Manchester is rewarded for goodto significant financial resources, and they do not investment decisions made locally – being regionappear to be well constituted to adopt a direct wide and non sector specific, it is broader indelivery role. scope and potential than those funding elements In respect of both governance and financing more narrowly defined and tied to specific spatialframeworks, Manchester’s City Deal appears (enterprise zones) or economic policy areas (skills,to capture the spirit of Unlocking Growth apprenticeships etc.), and to that end it marksin Cities. Founded on the long-established a more substantive devolution of powers andgovernance framework of the Association of resource.Greater Manchester Authorities (“AGMA”),their ‘earnback model’, aligns investmentresources and economic development returns forreinvestment in strategic priorities. The model allows retention of additionalbusiness rates over and above those allowed by theforthcoming reform of local government finance,benefiting the city region to the tune of £30m peryear. Not that substantial in isolation, but biggerambitions underpin this and, used effectively asenabling finance, this could unlock substantiallymore private investment.
  9. 9. ConclusionsIt is tempting to say that UK cities are at the beginning of ajourney, but the future is more complex than that. A journeyimplies a route and a destination, and potentially a time-table. Inthis case, none of these are certain. An expedition might be a moreappropriate analogy.Flexibility seems to us to be the first watchword - flexibilityin how the detail of how these City Deals is implementedand how the key delivery partners are engaged. Sustainability is the second watchword - theseprogrammes should not be unduly focused on short termoutcomes or take the current resource model as a consistentbaseline. All of these cities have in recent years started toaddress the difficult and complex question of how citiesshould evolve in the future against a potentially radicalcontextual shift. These City Deals shouldn’t pretend thatnothing has changed. This is an exciting opportunity, butto capitalise on it, cities need to think, plan and governdifferently and for the long term.More comments on each of the City Deals are providedin the pages that follow.
  10. 10. Birmingham Manchester Nottingham Newcastle Liverpool Sheffield Bristol LeedsWhat does the City Deal mean to Birmingham?The Greater Birmingham City Deal is entitled “A city region powered bytechnological innovation” and it sets out a bold agenda for change designedto create the conditions necessary for long term sustainable growth. It reflectsa shared vision of the private and public sector partners that form the LocalEnterprise Partnership (LEP) to become a globally competitive city region.Its City Deal tackles the greatest perceived constraint to The Birmingham City Deal proposes to integrate economic,local economic action, namely the ability to effectively flex, environmental and social objectives that will need a robustprioritise and leverage public funds to its area. It aims to governance model and funding structures to support itsaggregate, manage recycle and invest public funds to deliver development. One area not addressed by the City Deal is itsLEP priorities with an emphasis on local priorities and transport infrastructure, which remains a major challengeprivate sector co-investment to create a more sustainable for the City and the West Midlands. It has shown it isform of public funding. The business-led LEP has selected one of the early adopters of new initiative with its Energyfour other economic themes where specific action can Savers Programme so has a strong appetite for meetingaccelerate its productive capacity to address its toughest tomorrow’s, as well as today’s, challenges and opportunities.economic challenges and to target new growth sectorswhere it has emerging strengths and assets:• skills – tackle the long-standing skills deficit that weakens our economy, by implementing a Skills for Growth Compact• housing – kick start housing and mixed-use development on public land to address the long-term housing and employment site needs by investing council land and creating a new fund to prepare sites• life sciences – capitalise on Birmingham’s leading position in life sciences and launch a match-funded Institute for Translational Medicine, which will co-locate state of the art clinical facilities with a hub for firms to engage with clinicians and academics• low carbon economy – accelerate carbon savings and create green jobs by expanding its landmark green deal programme. Birmingham Energy Savers is currently at the forefront of the domestic energy efficiency agenda and plans to pilot new green deal solutions in the hardest to treat properties
  11. 11. Birmingham Manchester Nottingham Newcastle Liverpool Sheffield Bristol LeedsWhat does the City Deal mean to Bristol?Bristol and the West of England have placed a regional governance frameworkat the heart of their proposals. The four local authorities of Bristol, Bath &NE Somerset, South Gloucestershire and North Somerset, with a legallybinding commitment to pool business rates for investment alongside the formalestablishment of the West of England Local Enterprise Partnership (LEP) in 2011have the potential to enhance existing governance arrangements by developing amodel for effective business engagement.The UK Government’s Unlocking Growth in Cities document, inward investors to help grow their businesses and find thepublished in December 2011, says: “where cities want to right skills locally to match their needstake on significant new powers and funding streams, they 5 The Bristol Public Property Board - to manage up to £1will need to demonstrate strong, accountable leadership, an billion of Bristol City Council assets and an estimated 180ambitious agenda for the economic future of their area, effective land and property assets in the ownership of a range of otherdecision-making structures, and private sector involvement and public sector partnersleadership” Bristol have responded to this challenge by votingfor an elected mayor. This is a programme with a strong project feel to it, focused This City Deal is intended to unlock significant economic around a small number of big ticket activities. There is a stronggrowth for the region and the Bristol City Deal is made up of public sector collaborative feel to it, but less visibility aboutfive main elements: how the private sector will engage just yet. There are some key questions are how all of these projects will be bound together1 Growth Incentive Proposition – allowing the retention into an effective operational structure and how will it integrate of 100% of the growth in business rates raised in the city with the city’s other agendas, such as low carbon energy, which region’s network of Enterprise Areas, over a 25 year period is not explicitly referenced in the City Deal.2 The Transport Devolution Agreement – to allow investment in major transport schemes, the most ambitious being the Greater Bristol Metro, through a 10 year transport funding allocation Other schemes include the delivery of the Bus Rapid Transit network and new powers over rail planning and delivery3 The People & Skills Programme – aiming to give the business community real influence over skills provision in the city region working with Further Education colleges for post-16 provision and the LEP Skills Group4 The City Growth Hub in Temple Quarter Enterprise Zone – providing an enhanced inward investment service for
  12. 12. Birmingham Manchester Nottingham Newcastle Liverpool Sheffield Bristol LeedsWhat does the City Deal mean to Leeds?Leeds are building on the emerging Leeds City Region concept which is alreadya strong part of the region’s identity, by looking at forming a combined WestYorkshire authority. The Leeds City Region LEP is wider than the four Authoritiesnamed in the grouping for this City Deal as it also includes areas of NorthYorkshire including York and Harrogate which are geographically more remote.A combined authority will also need to consider other It aims to create a £1bn ‘West Yorkshire-Plus’ transportregional initiatives such as the active Aire Valley Enterprise fund to unite the Leeds and Manchester City Regions intoZone as well as a Homes and Communities Agency Board. a single functional £100bn economy which is consistentSo it is clear further work will be needed to integrate across with the Northern Way initiative which called for closerthe City region. collaboration along the M62 belt and up to Newcastle. There The City Deal proposal aims to transform the city region’s may be political challenges that come with this approach,job market with progress on two headline objectives: a but different levels of engagement and collaboration seemlong-term ambition to move to a ‘NEET-free’ Leeds City to be the emerging model. It is interesting that there isRegion and to shape the skills investments of Government, not an obvious symmetry of aspiration on both sides ofemployers and individuals to align with the real growth the Pennines, so decisions may need to be made aboutsectors in our economy. This will require close collaboration prioritising internal over external transport links.with higher and further education bodies in the region andmatching skills to demands from the private sector. Leeds has six specific proposals, of which there are four main Finance will be provided by a pool of up to £200m ones:from partners within the city region – if it is matched by • skill and worklessnesscentral government – in a Leeds City Region Investment • transportFund for the benefit of the entire area using a common • investmentappraisal framework. It also aims to deliver a much more • trade and inward planning system with the aim of becomingan exemplar UK low carbon city region in non-domestic There are two ‘Supplementary Proposals’: Planning andretrofit, low carbon business and sustainable, low carbon the Low Carbon Economy, but it is not clear why the Lowdesign. This will need to align to the Green Infrastructure Carbon Economy in particular is thought of as a secondStrategy and the recent launch of the City Region’s mini- order priority.Stern review. Where next? The Combined authority is the governance The focus is on reducing the region’s £6bn imbalance endgame, with a compelling geographical logic underpinningbetween tax revenues and government spend, and using this. However, this doesn’t cover the whole LEP region yet,some of the fiscal benefits arising from the economic growth so is a two-speed integration in prospect for the Region?package to recycle into the Region rather than being paidback to Central Government. On transport the proposal recognises the urgent need forimproved transportation both within the Region and outside.
  13. 13. Birmingham Manchester Nottingham Newcastle Liverpool Sheffield Bristol LeedsWhat does the City Deal mean to Liverpool?Liverpool City Region sees its core economic strengths as: the SuperPort;Advanced Manufacturing; the Low Carbon economy, and Knowledge andVisitor economies.The UK Government’s Unlocking Growth in Cities funding for 2014-2020 to the City Region to deliver againstdocument, published in December 2011, says: “where cities agreed investment priorities and support local decisionwant to take on significant new powers and funding streams, making.they will need to demonstrate strong, accountable leadership, By integrating its economic, environmental and socialan ambitious agenda for the economic future of their area, objectives underpinned by a robust governance model and aeffective decision-making structures, and private sector funding structure to support development, Liverpool aims toinvolvement and leadership” Liverpool have responded to deliver a much more business-friendly planning system withthis challenge by becoming one of the first two cities outside the aim of becoming an exemplar UK sustainable city.London to elect a mayor. Where next? Liverpool has some powerful corporate This City Deal aims to unlock significant economic players who are central to the delivery of the strategy, agrowth for the region and the Liverpool City Region Deal number of whom are already heavily involved. The successincludes the following elements: of the ensuing public-private partnership(s) in delivering the• low carbon investment – a streamlined planning process agenda is key. to accelerate over £100m worth of investment in offshore wind infrastructure in the City Region and create 3,000 jobs• employment – increase employment by combining up to £80m public and private employment and skills investments and empowering businesses to create more jobs, tackle skills gaps and raise productivity; supporting 17,400 people into work and creating 6,000 apprenticeships• transport – creation of a joint investment fund of £800m supporting the creation of 15,000 jobs• technology – utilise existing assets and attract new science investment to increase GVA and generate 2,000 high value jobsSupporting this will be the development of a wider LiverpoolCity Region Investment Framework to bring together publicfunding streams and private sector investments aligned to ourstrategic priorities. As part of this Deal Liverpool are lookingfor Government to devolve the management of European
  14. 14. Birmingham Manchester Nottingham Newcastle Liverpool Sheffield Bristol LeedsWhat does the City Deal mean to Manchester?If a robust governance structure to underpin City Deal is a prerequisite, then fewcities start with a stronger legacy than Greater Manchester. The deal is founded onthe partnership between the ten local authorities of the city region and the standoutfeature is an ‘earnback model’, which seeks to capture the financial returns fromeconomic growth, for reinvestment in key strategic infrastructure projects.It is interesting that Greater Manchester had the confidence A rounded package of interventions is proposed for skills andin its existing governance structures to push back against the employment, which covers:desire expressed by government for an elected mayor, with • creation of an Apprenticeship and Skills hubthe May referendum result subsequently supporting thatviewpoint. This was in large measure due to the city having • support to SMEs, both for recruitment and businesspossibly the most successful Chief Executive / Council growthLeader partnership in the UK as well as a stable city region • a key role for the Skills and Employment partnershipstructure (AGMA). However, while personal leadership isa key ingredient, all successful businesses need succession • a science academy for 11 – 18 year oldsplanning and that may be something Greater Manchester • development of outcome measures and data collection.needs to address in the years to come. Alongside this is a proposed Business Support Hub, which Manchester’s earnback model is based on an enhanced looks to fund a range of mentoring programmes for SMEsbusiness rate retention model, which will see Manchester and a programme of ultra-fast broadband for businesses.retain additional business rates over and above that allowed In the absence of a programme with dates, the assumptionfor by the forthcoming reform of the local government is that Greater Manchester are looking for an early impact,finance regime, and will benefit the city region to the tune particularly on the jobs and growth agenda.of £30m per year. Perhaps not that substantial in isolation, Also noteworthy is the joint venture arrangement withbut bigger ambitions underpin this and, used effectively as UK Green Investments which, along with its successorpump-priming or development finance, this could unlock body the Green Investment Bank, is likely to want a limitedsubstantially more private finance. number of these partnerships to package up and scale up The City Deal proposal only provides high level urban low carbon projects.information about Manchester’s £1.2bn infrastructure plans, The timetable for delivery Given Manchester’s trackalthough it refers to the Metrolink extension to Trafford record in innovation and sheer civic ambition as a key UKPark. We think this is the right approach – to get the and world city, we might expect Manchester to push thegovernance and finance structures established, then think envelope further in the future, and make the case for furtherabout the detail of the key projects the City Deal will deliver. devolution of powers and the retention of resources, but there is no reason why other cities shouldn’t do likewise.
  15. 15. Birmingham Manchester Nottingham Newcastle Liverpool Sheffield Bristol LeedsWhat does the City Deal mean to Newcastle?Newcastle Council sees the need for a regional approach to regeneration. They arelooking to work with the seven authorities across their economic area to take stepstowards forming a North East Combined Authority with the support of the NorthEast Local Enterprise Partnership. Lessons can be learned from combined modelssuch as AGMA for the Manchester city region but there are clear challenges aroundthe role of the metropole in driving growth for the region.The language of the proposal makes it clear that this is a Hub and delivering a NEET Youth Contract Pathfindercollaboration between local and central government. The across Newcastle and GatesheadCity Deal is quite narrowly focused – its cornerstone is a • housing – develop and deliver a Joint Investment Plan incommitment by government to ring-fence business rate partnership with the Homes and Communities Agencyincome in four growth sites in Newcastle and Gateshead, (HCA) to deliver 15,000 homes within Newcastle’sand to retain them locally. This arrangement will allow both urban area, and to improve the functioning of the housingCouncils the financial freedom to deliver private sector-led market in Newcastlegrowth, initiating a £90 million infrastructure programme,and over the next 25 years to secure £1 billion of investment • transport – develop an investment programme to reduceand create around 13,000 additional jobs. Other components congestion on the A1 Western Bypass working with keyof the deal include: public and private sector stakeholders• economic development – creation of a Newcastle/ • connectivity – invest in super-connected broadband Gateshead Accelerated Development Zone (ADZ), infrastructure, through £4-6 million investment from the unlocking city centre growth Urban Broadband Fund, matched by a commitment from Newcastle City Council• marine and offshore skills development – work with UKTI and the Centre for Offshore Renewable In the main, these look like fairly discrete programmes and Engineering to secure a further £500 million in private two key interesting questions are what the strategic narrative sector investment into the marine and offshore sector, with is that binds these together; and how far into the future the the potential to create 8,000 jobs across the North East vision goes. The steps towards a combined authority are in evidence, but highly tentative.• low carbon – establish Newcastle as a low carbon Pioneer City, working in partnership to deliver its smart city ambitions and carbon reduction target of 34% by 2020. The city will demonstrate good practice, and will receive support in accessing national and European funding, including Green Deal and heat network initiatives• employment and apprenticeships – improve opportunities through more integrated working with private and public sectors such as the Newcastle Skills
  16. 16. Birmingham Manchester Nottingham Newcastle Liverpool Sheffield Bristol LeedsWhat does the City Deal mean to Nottingham?The Nottingham City Deal is titled “Connected, Creative, Competitive” and it setsout an agenda for change designed to create the conditions necessary for long termsustainable growth. The City Deal is intended to be the catalyst for change, throughenabling the development of the Nottingham Growth Plan’s flagship project: theCreative Quarter.The Creative Quarter is the focus for a package of business and demand management to minimise congestion anddevelopment activity intended to enable entrepreneurship to enable growthflourish within the heart of Nottingham’s city centre. This is • digital connectivity – develop infrastructure for super-planned through enabling clustering of businesses in bio- fast digital connectivity within the Creative Quarter andsciences and creative industries. Through the City Deal it beyondwill create a package of investment funds to enable businessesin the Creative Quarter to grow. This will be supplemented • energy efficiency – work on the Green Deal, includingby business support structures and connections into extending the city district heating system to enablebespoke apprenticeships. The area will be served by super- businesses to benefit from a Nottingham energy tariff tofast broadband, low carbon energy supply and improved achieve significant savingstransport links and includes the following package of The Nottingham City Deal integrates its economic,measures: environmental and social objectives with a range of funding• enterprise funding – provide financial incentives, models to support development in a number of priority physical assets and business support structures to enable areas. It is interesting that Nottingham’s focus is on its core, emerging sectors to further develop including a Venture reflecting the broader shift towards denser city development Capital Fund to help early stage growth businesses, a that we are seeing globally. At the same time, this programme Generation Y Fund to help young people start in business has less about its City Region. There is a private sector and a Technology Grant Fund to support the exploitation theme and a vision for the growth industries of the future of intellectual property that builds on its core strengths as city with a high quality of life, excellent transport infrastructure, high skills base and• skills development – develop structures to simplify accessible location. The City Deal provides Nottingham with the process of connecting people to jobs by developing the opportunity to address tomorrow’s, as well as today’s, strong relationships with education and training providers challenges across its growth sectors. to ensure that provision and economic need within the Creative Quarter are aligned• transport – a programme of transport infrastructure and public realm improvements to fully connect the Creative Quarter, part-financed by Tax Increment Financing; This will sit alongside possible national transport upgrades (such as MML electrification or the second phase of HS2) and more immediate investments in innovative network
  17. 17. Birmingham Manchester Nottingham Newcastle Liverpool Sheffield Bristol LeedsWhat does the City Deal mean to Sheffield?Sheffield shows a clear commitment to form a combined South Yorkshire authoritythat build on the shared ambition of the public and private sectors in the region asevidenced by the Sheffield City Region LEP model.Key elements of the Sheffield City Region Deal include:• skills – creating a demand-led skills system which provides employers with a workforce able to meet their growth aspirations, and which secures significant new investment and engagement from employers in return• funding – creating a £700m Sheffield City Region Investment Fund to invest in growth, develop infrastructure, create jobs and stimulate inward investment• development – transform the commercial city centre with a £32.8m New Development Deal enabling the city to borrow against projected business rates in order to invest in infrastructure now• transport – enabling the City Region and LEP to invest confidently in local connectivity priorities, including devolution of the Northern Rail franchise and local management of the trams and ensuring reliable access to the new HS2 station• procurement – develop a national centre for procurement based around SCR’s Advanced Manufacturing and Nuclear Research Centres. This will presumably build on the existing regional skills in the nuclear sectorBy integrating its economic, environmental and socialobjectives underpinned by a robust governance model and afunding structure to support development, Sheffield aims todeliver a much more business-friendly planning system withthe aim of becoming an exemplar UK sustainable city. At thesame time, there is a strong theme of central (public-sectorcontrolled?) co-ordination in the funding mechanisms andmanagement of core infrastructure, especially transport.
  18. 18. Contact us For further information on this report and its findings please contact: Nathan Goode Partner Head of Energy, Environment and Sustainability T (Edinburgh) 0131 659 8513 T (London) 020 7728 2513 E Phillip Woolley Partner Government Infrastructure and Advisory T (Manchester) 0161 953 6430 E© 2012 Grant Thornton UK LLP. All rights reserved.‘Grant Thornton’ means Grant Thornton UK LLP, a limited liability partnership. Grant Thornton is a member firm of Grant Thornton International Ltd (Grant Thornton International). References to ‘Grant Thornton’are to the brand under which the Grant Thornton member firms operate and refer to one or more member firms, as the context requires. Grant Thornton International and the member firms are not a worldwidepartnership. Services are delivered independently by member firms, which are not responsible for the services or activities of one another. Grant Thornton International does not provide services to clients. Thispublication has been prepared only as a guide. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material in this