AGENDA - East Midlands Councils · Northampton BC to see if they will reconsider membership. Stuart Young highlighted the proposal to stand down the Regional Improvement and Transformation

Executive Board Meeting

10am, Friday 30th September 2016

Pera Business Park, Melton Mowbray

AGENDA

1. Apologies

2. Declarations of Interest

3. Minutes of the Executive Board Meeting 17th June 2016

4. Challenges Facing Local Health and Care Systems

5. Infrastructure and Growth: HS2 Midlands Engine Midlands Connect Regional Infrastructure Priorities

6. Asylum and Refugee Resettlement in the East Midlands

7. Employment Issues for Local Government – the Regional Employers’ Board

8. Report of Management Group

a) EMC Budget (2016/17) b) Corporate Governance c) KPIs/Performance

9. Any Other Business

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EAST MIDLANDS COUNCILS EXECUTIVE BOARD MINUTES OF THE MEETING HELD ON 17TH JUNE 2016

AT PERA BUSINESS PARK, MELTON MOWBRAY

Present: Cllr Martin Hill OBE (Chair) – Lincolnshire County Council Cllr Jon Collins (Vice-Chair) – Nottingham City Council Cllr Neil Clarke MBE (Vice Chair) – Rushcliffe Borough Council Cllr David Bill MBE – (EMC Lib Dem Group) – Hinckley & Bosworth Borough Council Cllr John Boyce – Oadby & Wigston Borough Council Cllr Terry King – Rutland County Council Cllr Craig Leyland – East Lindsey District Council Cllr Chris Millar – Daventry District Council Cllr Robert Parker (EMC Labour Group) – Lincolnshire County Council Cllr Alan Rhodes – Nottinghamshire County Council Cllr Peter Robinson – Lincolnshire County Council Cllr Lewis Rose OBE – Derbyshire Dales District Council Cllr Heather Smith – Northamptonshire County Council Cllr David Slater – Charnwood Borough Council Chris Henning – Nottingham City Council Bev Smith – Mansfield District Council Stuart Young – East Midlands Councils Sam Maher – East Midlands Councils Andrew Pritchard – East Midlands Councils Sarah Short – East Midlands Councils Lisa Hopkins – East Midlands Councils (Minutes) Apologies: Cllr Ranjit Banwait – Derby City Cllr Tom Beattie – Corby Borough Council Cllr Rory Palmer – Leicester City Council Cllr Nick Rushton – Leicestershire County Council Cllr Alan Walters – (EMC Ind Group), Rutland County Council Cllr Anne Western – Derbyshire County Council

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ACTION 1. Apologies

1.1

Apologies were received as noted above.

2. Declarations of Interest

2.1

None declared.

3. Minutes of Executive Board Meeting held on 11th December 2015

3.1 3.2 3.3

The minutes were agreed as a true and accurate record and all actions have been completed and are reported in the papers. Cllr Chris Millar reported on the Housing Review summit which was held on 20th June 2016. Positive feedback has been received from this event and members agreed a further event should be held later in the year. Stuart Young suggested that any future event could also involve the private sector. In relation to apprenticeships, Sam Maher confirmed that she has arranged for representatives from BIS to visit the region to discuss this with authorities in particular, to advise on how to access funding and maximise the levy’s impact.

4. Infrastructure and Growth

4.1 4.2 4.3 4.4 4.5

Cllr Jon Collins, Vice Chair East Midlands Councils introduced this report. In relation to HS2, discussions are ongoing on how to maximise development and growth opportunities associated with Hub station and maintenance depot. An official announcement on the route is expected late 2016. Concerns were expressed in relation to the location of the Sheffield station which is still to be finalised. Members highlighted the importance of a HS2 station in South Yorkshire and the need for agreement between councils on its location. Members discussed the APPG scheduled for 13th July 2016, the likely benefits of this and also what the lobbying points would be. It is important that MPs understand the issues. There is also a launch event on 22nd July 2016 for an updated Eastern Leg prospectus.

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ACTION 4.6 4.7 4.8 4.9 4.10 4.11 4.12

Midlands Engine/Midlands Connect Cllr Martin Hill confirmed that Sir John Peace has agreed to chair both Midlands Connect and Midlands Engine. The four main key objectives are: Midlands Connect, Midlands Innovation, Skills and Promotion and Marketing. The geographical boundaries are still to be confirmed, however preference is for using the old RDA boundaries. Sir John Peace has been invited to the EMC AGM to discuss this. Cllr Hill confirmed that upper tier authorities and LEPs have agreed to financial support to develop a Strategic Transport Strategy for the Midlands. Andrew Pritchard highlighted the infrastructure priorities and members discussed whether this is still appropriate as this pre-dates Midlands Connect. Andrew confirmed that the emerging strategy should be available in September/October 2016 and a final strategy for March 2017. It was agreed that can take of view of what schemes to pursue in the Autumn when further information is available. East Midlands Rail Franchise Andrew Pritchard reported good feedback from this event. Additional support will be needed to support this work as this is a real opportunity to shape the rail franchise. Cllr Robert Parker informed members that the East Midlands receives £34 per head funding whereas London received £353 per head. The region is seriously underfunded and this point needs to be highlighted. Resolution Members of the Executive Board: Noted the progress on the Midlands Engine and Midlands Connect initiatives and

highlighted issues for the relevant Executive Board members and officers to address.

Noted the emergence of ‘England’s Economic Heartland’ and its potential implications for future sub-national governance.

Welcomed progress on HS2 in the East Midlands and noted the importance of the impending Phase 2 Route Announcement.

Supported joint working on the East Midlands Rail franchise under the EMC banner.

SY AP

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ACTION Agreed to further consider infrastructure priorities as part of the Midlands

Connect draft strategy proposals in Autumn 2016.

5. An update on Migration including Asylum and Resettlement – East Midlands Strategic Migration Partnership Board Report

5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9

Cllr Peter Robinson, Chair Regional Migration Partnership Board introduced this report and confirmed to members the enabling grant of £76,000 has been received and are expecting a further £60,000 in relation to funding for Syrian refugees. Cllr Robinson informed members that are now looking for a more formal Board structure as many authorities are not represented on the board, although they deal with housing migrants. Sarah Short informed members that the three main issues of the Migration Partnership Board are:

Widening asylum dispersal Syrian resettlement Transfer of Unaccompanied Asylum seeking children

The Home Office are in the process of meeting with all local authorities to discuss widening asylum dispersal. The East Midlands has three new asylum dispersal areas:

Gedling Broxtowe Oadby & Wigston

The regional model is now in place for Syrian resettlement. It is hoped that funding will now be released. A secondment opportunity is being advertised for the role of Syrian Resettlement Policy Officer to support the programme moving forward. Sarah reported that 40 refugees are scheduled to arrive at the end of June, followed by a further flight end-August. 22 authorities have now agreed to participate in this programme and discussions are continuing with other authorities. Sarah Short reported on the recent event in relation to the proposed national transfer scheme of unaccompanied asylum seeking children, within the framework

SS SY

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ACTION 5.10 5.11 5.12

that no one region or local authority will be expected to accommodate greater UASC numbers than 0.07% of its total child population. This regional approach will be developed in consultation with Directors of Children’s Services and will need to go through local decision making processes. Concerns were raised in relation to funding levels for the asylum an refugee resettlement schemes and the likely additional resource pressures for participating local authorities. Confirmation of funding and cost pressures need to be confirmed in the further consideration of the schemes. Stuart Young commented that in relation to the Board structure, this needs to involve authorities who have an interest in this and also take into account the political balance. Resolution Members of the Executive Board: Noted the emerging position on emerging migration policy and progress on the

issues in the East Midlands. Supported the principle of new revised governance arrangements for the

EMSMP Board to reflect national and regional priorities.

SY

6. Local Government Employment Developments

6.1 6.2 6.3

Sam Maher, Director HR and Councillor Development East Midlands Councils introduced this report on behalf of Cllr Tom Beattie, Chairman of the Regional Employers’ Board. She reported on the challenges for authorities arising from proposals for a levy and targets for apprenticeships, given reducing resources, uncertainty over new standards, and difficulties in attracting young people to become apprentices. EMC is providing information and guidance to authorities and will be supporting authorities who wish to work together on apprenticeships. A pay increase has been agreed nationally for Local Government Services employees which is bottom-loaded for lower paid workers and at 1% for others. Sam reported on the national pay spine, which most authorities use and which is being reviewed to take into account the Government’s target for the national living wage at 2020. Sam, along with an officer from Leicester City Council, will be representing the region at a national level on this issue and will liaise fully with councils across the region. Resolution

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ACTION

Members of the Executive Board: Noted the report. Provided comments and feedback on the employment issues identified within the

report to inform EMC’s input to future Employers’ meetings at Regional, National and European level.

7. Report of Management Group

7.1 7.2 7.3

Cllr Martin Hill introduced this report and highlighted that two authorities out of membership are now back in. Cllr Chris Millar agreed to contact the leader of Northampton BC to see if they will reconsider membership. Stuart Young highlighted the proposal to stand down the Regional Improvement and Transformation Board. Members agreed to this and alternatives were discussed. Members suggested setting up a network where ‘good practice’ can be shared. Resolution Members of the Executive Board: Noted the outcomes of the local government, and the police and crime

commissioner elections across the region. Agreed to the development of revised governance arrangements for the

Regional Migration Partnership and consideration of the future role of the Regional Improvement and Transformation Board.

Noted the financial position as part of the budget monitoring ending 31st March 2016 and associated outturn to 31st March 2017.

Noted the agreed key performance indicators. Noted the considerations and resolution on corporate governance matters,

including meeting our statutory audit requirements.

SY

9. Any Other Business

9.1 Cllr Heather Smith highlighted the letter received from Ofsted regarding education performance in the East Midlands. EMC has issued a press release in response to this. Cllr Robert Parker suggested inviting the Ofsted Regional Commissioner to a future meeting of EMC to consider regional educational performance.

SY

10. Date of Next Meeting 30th September 2016, 10.00am - Pera Business Park, Melton Mowbray.

Item 3, Appendix (a)


Item 3, Appendix (b)



Item 4

Executive Board Meeting 30th September 2016

Challenges Facing Local Health and Care Systems

Summary The following report summarises some of the key challenges facing the health (and care) system in England. The discussion at Executive Board will be supported by Glen Garrod, Executive Director of Adult Social Services at Lincolnshire County Council to highlight specific concerns in the region and implications for local government. Glen is also the Regional ADASS Chair and hopes to bring an analysis that incorporates the regional dimension. Recommendation Members of the Executive Board are invited to: Consider the challenges the health and care systems in the East Midlands. Consider any potential response.

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1. Introduction 1.1 NHS England ‘Midlands and East’ is one of four regional teams that support the

commissioning of health services and directly commission primary care and specialised services at a local level across England. Geographically, the Midlands and East regional team covers the East and West Midlands, North Midlands and Central Midlands.

1.2 In 2013 the NHS underwent a fundamental restructure. Under the old NHS system

there was a wide range of NHS trusts – such as acute trusts, ambulance trusts, and mental health trusts – that managed NHS hospital care in England, including community care and mental health services. Today most of these services are provided through NHS foundation trusts and NHS trusts providing ambulance services, emergency care services, or mental health services.

1.3 Within the East Midlands there are 16 NHS Trust/Foundation Trusts and 20 Clinical

Commissioning Groups (CCGS). 1.4 Recent performance data, both operational and financial, has led to concerns regarding

the sustainability and future effectiveness of healthcare systems and the implications this has for local government and social care.

2. Key Points 2.1 Local health and social care systems are experiencing similar pressures at a time of

severe financial constraints. Sustained operational and financial challenges have continued to adversely affect the performance of the NHS provider sector in 2015/16. Providers faced record high demand and increased cost pressures.

2.2 The sector as a whole continued to underperform against a number of national

healthcare standards, and the year-end deficit was almost three times larger than the position reported in 2014/15. The East Midlands is one of the most challenged systems in the country with respect to finances and performance. The NHS now has its worst ever performance with respect to non-elective admissions and delayed transfers of care alongside 4 hour waiting times; these are all exacerbated by long term workforce pressures.

3. Financial Pressures 3.1 Overall, 65% of the 240 trusts were in deficit for 2015/16 with the full year deficit at

or around £2.8bn, in part caused by: Rising demand from the growing and ageing population, patient’s rising

expectations and increased prevalence of long-term conditions.

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The amount paid for treatments being cut at a faster rate than that of Trusts being able to cut their costs.

High usage of contract and agency staff. The cost of unplanned agency staff contributed £1.4 billion to the full year adverse variance despite agency controls.

Delayed transfers of care. Providers have estimated that such delays have cost £145 million this year.

Financial sanctions. Financial pressures were further exacerbated by £498 million of fines and readmission penalties.

Some Trusts are disproportionately exposed to increased costs from private finance initiative (PFI) schemes.

Despite delivering £2.9bn of 'savings', the NHS fell short of the anticipated target by £316m.

3.2 Executive Board Members are reminded that hospitals and other health services do

not go bust – historically all national Governments increase funding to offset deficits, but the financial problems do matter as the Department of Health has made it clear the overspends will not simply be written off. Instead, hospitals will have to use any extra money they receive to pay off their deficits with the inevitable consequences to include recruitment freezes, capital projects delayed or cancelled and services scaled back. Hospital chiefs have warned that this will likely lead to longer waiting times, poorer care and/or an increasingly 'targeted' NHS (i.e. not universal).

3.3 The scale of the aggregate deficit highlights that the NHS model is not fit for the

population of the 21st century, and signifies a health system under acute strain from both financial and operational pressures.

3.4 It is not all about spending. While an extra £3.8bn above inflation has been allocated

to the NHS for 2016-17 as well as the promised higher funding in 2020, there is widespread concern regarding the feasibility of the planned annual £22bn of efficiency savings that NHS England says must be achieved by 2020 to allow patient growth to be satisfied (with the Commons Public Accounts Committee report saying there is ‘not yet a convincing plan’).

3.5 'NHS Improvement' has set about cutting the combined provider deficit to around

£250m in 2016/17 and has agreed 'financial control totals' with individual trusts and CCGs, which represent the minimum level of financial performance, against which their boards, governing bodies and chief executives must deliver, and for which they will be held directly accountable.

3.6 The level of planned surpluses/deficits for the 16 Trusts in the East Midlands for

2016/17 are as follows (figures include Sustainable Transformation Fund payments):

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Chesterfield Royal Hospital NHS Foundation Trust £ 7.7m Derby Teaching Hospitals NHS Foundation Trust -£ 11.22m Derbyshire Community Health Services NHS Foundation Trust £ 4.60m Derbyshire Healthcare NHS Foundation Trust £ 2.53m East Midlands Ambulance Service NHS Trust* -£ 11.72m Kettering General Hospital NHS Foundation Trust -£ 5.97m Leicestershire Partnership NHS Trust £ 1.64m Lincolnshire Community Health Services NHS Trust £ 3.19m Lincolnshire Partnership NHS Foundation Trust £ 0.73m Northampton General Hospital NHS Trust -£ 15.13m Northamptonshire Healthcare NHS Foundation Trust £ 1.34m Nottingham University Hospitals NHS Trust -£ 21.99m Nottinghamshire Healthcare NHS Foundation Trust £ 8.13m Sherwood Forest Hospitals NHS Foundation Trust -£ 57.02m United Lincolnshire Hospitals NHS Trust -£ 47.90m University Hospitals of Leicester NHS Trust -£ 8.30m Total -£157.09m

* Note - EMAS has not agreed with NHS Improvement its financial controls for 2016/17.

4. Operational performance 4.1 The NHS in England is already missing a series of key waiting time targets, including

A&E, cancer care and the ambulance service. There are also a record number of people on waiting lists for routine operations.

a) There were 20.7 million A&E attendances in 2015/16 which is an increase of 2.9%

over the previous year. In March 2016 alone, providers saw 1.9m patients in A&E, the highest number ever seen in a month, an increase of 7.5% more than in March 2015.

b) The increase in demand impacted on performance and many Trusts struggled to

meet the four-hour waiting time target; only 91.1% of A&E patients were seen or admitted within four hours in 2015/16, which is below the 95% target.

c) The number of patients who waited longer than 4 hours on a trolley for a bed in

2015/16 increased by 26.3% to 387,809, compared to 2014/15. This rise is due largely to sustained high levels of emergency admissions and lack of beds to meet demand.

d) Ambulance services had difficulty responding to urgent and emergency calls; failing

to meet all key response time targets.

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e) Demand pressures were not confined to emergency services. The number of patients waiting to start their elective treatment reached a record high of 3.3 million at the end of 2015/16, 15% more than a year ago. The average waiting time was almost a week longer than in 2014/15.

f) Providers failed to meet the 85% national target for the 62-day urgent cancer

referral to treatment in each quarter of 2015/16. 5. The Response? 5.1 The financial pressures are a more recent phenomenon in the health sector than in

local government that has been managing a significant reduction in finances since 2010.

5.2 There are already early signs of a change in the relationship between the state and

the individual on health – and the direction of travel is likely to be similar to what has occurred in adult social care, with increasingly evidence of retrenchment and targeting of health provision, e.g. rationing of cosmetic and bariatric care services, and greater use of ‘over-the-counter’ rather than prescription (and particularly free) medication.

5.3 However, time will be needed to enable a cultural shift; clinicians tend to act with more

autonomy than the ‘paid-service’ of other sectors, and health care systems appear less open to influence and control than local government, where lines of local government appear much clearer and the power of professional bodies is much less.

5.4 With financial and operational sustainability certainly questioned, and performance

levels falling significantly short of targets, the health care system is at a crossroads and a decision on the direction of travel will be required soon; the choice being ‘hold the line’ and implement substantial change across the health care sector, or bale the NHS out and increase the money available.

5.5 In all likelihood, this change will require bold decisions; Sir Bruce Keogh in 2010

suggested that England should have 75 'major' hospitals; currently there are over 140 hospitals with a number of community hospitals being expensive and not well-run. With change likely involving hospital closures, new models of health, and potentially a closer look at other systems in other parts of the world, such as the New Zealand model1 - politically, this will likely entail firmer policy direction in the run-up to the 2017 local authority elections.

1 New Zealand went from an essentially fully public system to including more market and health insurance elements primarily in the last three decades, creating a mixed public-private system for delivering healthcare.

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5.6 The story underpinning the future direction for the NHS is told in the '5 Year Forward View'. However, headline programmes such as the Better Care Fund, Sustainable Transformation Plans and Integration Plans all sit within a similar time frame but without a clear and consistent narrative. While the BCF and Integration plans sit better alongside each other, STPs are part of a NHS England policy driven agenda and have been developed and delivered over a very tight timeframe with limited local government engagement.

5.7 In real terms, the NHS budget is expected to increase from £118.83bn in 2015/16 to

£120.15bn by 2019/20. However, the NHS operating model and culture needs to significantly change if it is to deliver the anticipated reform of health care in England. There is a growing risk that work to transform care is crowded out by day-to-day firefighting and a focus on short-term fixes to address operational and financial pressures. This is exemplified by the bulk of the Sustainability and Transformation Fund being used to tackle deficits in the acute sector rather than supporting ambitions to move more care into the community and achieve parity of esteem between mental and physical health. For example, In 2016/17, £1.8bn of sustainability funding (from the £2.1bn sustainability and transformation fund) will be distributed to providers with the aim of eliminating the net provider deficit. The ‘general element’ of the fund - £1.6bn – will go to providers of acute emergency care, where deficits are most widespread.

5.8 The health changes do pose questions for social care as there are potential knock-on

effects of NHS reform; for example, quicker discharge would place greater reliance upon adult social care provision; reduction in demand for A&E services could lead to greater demand for community based services.

6. Recommendations

Members of the Executive Board are invited to: 6.1 Consider the challenges the health and care systems in the East Midlands. 6.2 Consider any potential response.

Stuart Young Executive Director East Midlands Councils

Item 5


Infrastructure & Growth

Summary This report updates Members on EMC’s infrastructure and economic growth programme, specifically: a) The Midlands Engine and Midlands Connect initiatives. b) The latest developments on HS2 in the East Midlands. c) Joint working with the Department for Transport on the forthcoming East Midlands

Rail Franchise competition. d) Progress on the upgrade and electrification of the Midland Main Line Recommendations Members of Executive Board are invited to: Note progress on the Midlands Engine and Midlands Connect initiatives and planned

activity at the Party Conferences. Welcome progress on the East Midlands HS2 Growth Strategy and note the

importance of the impending Phase 2 Route Announcement. Support joint working on the East Midlands Rail franchise under the EMC banner,

and agree a lead member of the EMC Executive to oversee this work. Note progress on Midland Mainline Upgrade and Electrification, and to continue to

lobby for full completion of the project by 2023 and an appropriate rolling stock solution.

Item 5 1. Background

1.1 This report updates Members on EMC’s infrastructure and economic growth

programme, specifically: a) The Midlands Engine and Midlands Connect initiatives. b) The latest developments on HS2 in the East Midlands. c) Joint working with the Department for Transport on the forthcoming East

Midlands Rail Franchise competition. d) Progress on the upgrade and electrification of the Midland Main Line

2. Midlands Engine 2.1 Since becoming Chair of the Midlands Engine, Sir John Peace has focused activity

around 4 themes:

Midlands Connect Promotion and Trade Missions Innovation Skills

2.2 A successful Midlands Engine ‘Summit’ took place on the 4th July 2016 at

Nottingham Trent University, with speakers including Sir John Peace and the then Business Minister Anna Soubry MP. Over the summer the new Prime Minister publicly reaffirmed the Government’s commitment to the Midland Engine initiative.

2.3 Sir John Peace will be holding a high profile Midlands Engine Reception on the

Conservative Party Conference in Birmingham (sponsored by EON), and there will be a Midlands Engine stand at the conference venue.

2.4 A joint East and West Midlands APPG event was held on 12th September 2016,

where Sir John Peace updated MPs on the Midlands Engine proposals. A further meeting that will focus on specific Treasury ‘asks’ will be held in October to which council leaders will be invited.

2.5 The focus over the coming weeks will be to develop a coherent Midlands Engine

‘ask’ for the forthcoming Autumn Statement (23rd November 2016), and to the position the Midlands Engine as a key component of the Government’s emerging ‘Industrial Strategy’.

Item 5 3. Midlands Connect 3.1 Midlands Connect is a partnership of 28 Local Transport Authorities and 11 Local

Enterprise Partnership that have come together to develop a Strategic Transport Strategy for the Midlands by March 2017, with financial support from the Department for Transport.

3.2 The last meeting of the Midland Connect Strategic Board took place on the 7th

July in Derby, with the new Secretary of State Chris Grayling MP making his first speech since his appointment. The Strategic Board agreed the ‘Picking up the Pace’ report, attached as appendix 5(a), which is the first interim output of the Midlands Connect programme.

3.3 The next meeting of the Strategic Board will take place on the 13th October 2016

in Coventry and will consider the Midland Connect Emerging Strategy Submission, which will set out the main elements of the strategy and emerging investment priorities. The final strategy will be published in March 2017 and will include Outline Business Cases for proposed early interventions.

3.4 There will be a Midland Connect fringe event and stand at the Labour Party

Conference (sponsored by East Midlands Airport), and Midland Connect will form a key element of the Midlands Engine presence at the Conservative Party Conference.

3.5 It will be necessary to review EMCs five existing infrastructure priorities against

the final Midlands Connect Strategy published in March 2017, and to use the July AGM as a basis for refreshing priorities for 2017/8.

4. HS2 4.1 The Hybrid Bill for Phase 1 of HS2 remains on course to receive Royal Assent by

the end of 2016, with construction starting in early 2017. As a result, by 2026 both Birmingham city centre and Birmingham International Airport will be within 45 minutes of the centre of London – equivalent to Zone 5 of the capital’s public transport system. This is likely to result in a significant boost to the West Midlands economy.

4.2 The Secretary of State is expected make a formal Route Announcement on Phase

2 of HS2, including the Eastern Leg through the East Midlands, in November 2016. The announcement will confirm the route and station locations. Where there has been a substantive change to what was originally proposed in 2013,

Item 5

limited follow-on public consultations will be necessary. There are a number of areas where this appears to be likely.

4.3 In the run up to the Route Announcement, and particularly given spending

decision in the run-up to the Chancellor’s Autumn Statement, it is important that efforts are made to bolster political support for the Eastern Leg of HS2. As a result the following activities have been undertaken:

An APPG session for East Midlands MPs on HS2, facilitated and chaired by

Chris Leslie MP, took place on the afternoon of the 13th July 2016 at the House of Commons.

A revamped Eastern Leg prospectus (available on the HS2 East web-site),

setting out the economic benefits for the North East of England and Scotland, was launched by the HS2 East Partnership on the 22nd July 2016 in Newcastle with speakers including Cllr Jon Collins, Cllr Nick Forbes and Sir David Higgins.

Joint letters from members of the HS2 Partnership to the Chancellor and

Secretary of States for Transport, DCLG and BEIS, urging the Government to press ahead with the Route Announcement as planned were sent on the 16th September 2016 (set out in appendix 5(b))

A press release setting out the economic benefits of HS2 in the East

Midlands in the context of the Eastern Leg as a whole was issued on the 14th September 2016 (available on the EMC web-site)

4.4 Assuming the Route Announcement is made as planned, the remainder of the

process for Phase 2b is likely to be as follows:

Development of more detailed plans, further engagement and consultation: 2017-19

Deposit of Hybrid Bill: 2019 Royal Assent for Hybrid Bill: 2022 Start of construction: 2023 Phase 2 opens: 2033

4.5 In the meantime, the East Midlands HS2 Programme Board chaired by Cllr Jon

Collins is continuing to drive forward the development of the East Midlands HS2 Growth Strategy, with financial support from the Department for Transport.

http://www.hs2east.co.uk/data/ckeditor/brochure/HS2-East-connecting-potential-driving-growth-4pp-July-2016.pdf

http://www.emcouncils.gov.uk/Press-releases/hs2-taking-the-fast-track-to-growth

Item 5 4.6 An Emerging Strategy Submission will be made to Government by the end of

September setting out initial proposals to maximise the economic benefits of HS2 in the East Midlands, including:

The Hub Station at Toton. The Infrastructure Maintenance Depot at Staveley. The provision for classic compatible services serving Chesterfield recently

proposed by HS2 Ltd as part of revised plans for serving Sheffield. 4.7 A summary of the Emerging Growth Strategy is enclosed in appendix 5(c). The

full version should be available at the meeting (an electronic version will be sent upon receipt, prior to the meeting). The final East Midlands HS2 Growth Strategy will be published in July 2017.

5. East Midlands Rail Franchise 5.1 EMC is working in partnership with the Department for Transport on the on the

forthcoming East Midlands Rail Franchise competition to maximise the benefits for the East Midlands. The revised timescales for the competition are set out below:

Issue of Expressions of Interest Document (Prospectus): December 2016 Invitation to Tender: April 2017 Contract Award: March 2018 Start of New Franchise Agreement: July 2018

5.2 To support this work EMC has secured financial contributions Local Transport

Authorities to procure a joint resource to work with DfT throughout the process. A verbal update on procurement process will be given at the meeting. EMC has also secured a part time secondment (equivalent to 1 day a week) from Lincolnshire County Council.

5.3 In the meantime DfT have requested that EMC submit a two page inset into the Franchise prospectus to be issued in December 2016. A draft of this is enclosed in appendix 5(d).

5.4 Given the sale of work that will be required on this issue over the coming months, it is suggested that that the Executive Board nominates a lead Board Member to provide political oversight in between meetings and to make regular reports on progress to the Executive Board.

6. Midland Mainline Upgrade and Electrification

Item 5 6.1 At the Rail Forum East Midlands Conference (RFEM) in Derby on the 16th

September 2016 the Rail Minister Paul Maynard MP reaffirmed Government support the upgrade and electrification of the Midland Main Line, and a senior representative of Network Rail confirmed the work was currently on target to be completed by 2023.

6.2 However, it is clear that whilst the upgrade measures and electrification to Corby

is secure, electrification to Sheffield is not yet fully committed ‘past the point of no return’. In addition, the Government has yet to make a definitive statement on new rolling stock.

6.3 The Rail Minister was appraised of the importance of completing the whole

scheme in discussions around the RFEM Conference. It will be important to continue lobbying almost up the point at which the scheme has been implemented. In the short term, EMC and East Midlands Chamber of Commerce will issue a joint press release in the run up to the Conservative Party Conference.

7. Recommendations Members of the Executive Board are invited to: 7.1 Note progress on the Midlands Engine and Midlands Connect initiatives and

planned activity at the Party Conferences. 7.2 Welcome progress on the East Midlands HS2 Growth Strategy and note the

importance of the impending Phase 2 Route Announcement. 7.3 Support joint working on the East Midlands Rail franchise under the EMC banner,

and agree a lead member of the EMC Executive to oversee this work. 7.4 Note progress on Midland Mainline Upgrade and Electrification, and to continue

to lobby for full completion of the project by 2023 and an appropriate rolling stock solution.

Andrew Pritchard Director of Policy & Infrastructure East Midlands Councils

Midlands ConnectPowering the Midlands Engine

Picking up the PaceJuly 2016


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Contents

Foreword

Purpose of this reportConnecting places better – powering the Midlands as the UK’s Engine for Growth

Headline Findings from our Business Research

Where do we need to join up?

Moving to a Sub-National Transport Body

BackgroundWorking in Partnership – One Voice for the Midlands

The Midlands Connect Journey So Far

Developing the Midlands Connect Transport Strategy

Picking up the Pace - getting growth planned Demonstrating Our Commitment to Partnerships

Influencing programmes early in their development

Picking up the Pace - getting growth started The Importance of Early Scheme Development

Constraints on Existing Development Funding

Potential Areas for Development Funding

Capacity to Support Growth - Midlands Rail Hub

The Midlands Motorway Hub – Critical to the National Economy

Confirming our Immediate Priorities - Emerging Strategy October 2016

Picking up the Pace - getting growth deliveredUnderstanding the Opportunity

The Potential for Financial Freedom

Outline Programme

ConclusionGetting Growth Planned – A new approach to planning strategic transport

Getting Growth Started – Picking up the Pace up the Pace on developing key infrastructure

Getting Growth Delivered – Picking up the Pace on becoming a Sub-National Transport Body

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Foreword

Picking up the Pace - Activating the Midlands Connect Strategy We are in a global economic race. The Midlands is incredibly important to the UK’s position in that race and we are determined to play our part to grow and rebalance the national economy. Within our region we need to increase competitiveness and productivity by building and supporting the Midlands Engine.

Midlands Connect is working with the Midlands Engine and beyond to make the case for delivering nationally important transport investment in our region. To do this we need an affordable, fast and direct network, delivering our people and goods where they need to be.

This report outlines the early stages of the transport strategy delivery planned for March 2017, showing how we are Picking up the Pace across these key areas in our programme:

• Getting growth planned

• Getting growth started

• Getting growth delivered

Midlands Connect is a team effort from both those working passionately on the project and our partners, and we therefore look to Government for their continued support to turn our ambitions into reality.

There is now real momentum building behind the Midlands Engine. Within that Midlands Connect has generated a united recognition that there is a need to transform our transport infrastructure. Never before has there been a better time to Pick up the Pace to realise our economic potential.

Sir John PeaceChairman of Midlands Engine and Midlands Connect


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Purpose of this report

Midlands Connect is powering the Midlands Engine for Growth. The Midland’s transport infrastructure, including our airports and HS2 proposals, sit at the heart of the UK’s strategic transport network. We are working in partnership with Highways England, HS2 Ltd and Network Rail to focus future infrastructure needs on delivering economic growth and ensuring we maximise the opportunities that HS2 brings.

A common theme from the recent reviews, such as those undertaken by Sir Peter Hendy and Nicola Shaw, is the need to plan better for our future. With this in mind this report identifies a number of areas where development work should start now to really power the Engine….AND to be HS2 ready, maximising the economic growth opportunities that it brings.

We will further build the case for investment as we develop the Emerging and final Midlands Connect Strategy for October 2016 and March 2017 respectively. We will continue to work with Government beyond March 2017 and set out our proposals to maximise opportunities presented to us through the devolution agenda.


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The MidlandsCritical to national freight movements

4/5 main UK rail freight routes serve the Midlands

33% of British heavy road freight goes to/from/through the Midlands

1 Midlands Engine for Growth team 2 Midlands Connect, Economic Impacts Study (2015)

3 Midlands Connect Business Research (2016)

Connecting places better – powering the Midlands as the UK’s Engine for GrowthThe Midlands is crucial to the UK and the export economy. We have an economy of over £240bn each year and are home to over 11.5 million people. Our 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 .1

The Partnership’s work so far has shown that transport investment could create 300,000 new jobs, improve productivity by £1.1bn per annum and save businesses £0.5bn per annum.2

The Midlands is determined to keep pace with the global economic race; as such we need to increase competitiveness and productivity and play a leading role in rebalancing the UK economy by building and supporting the Midlands Engine.

The Strategic Economic Plans of Local Enterprise Partnerships (LEPs) in the Midlands suggest that three business sectors in particular will continue to play a critical role in the Midlands’ economy, with large numbers of new jobs forecast to be created. They are:

• Business and Professional Services. These tend to be located in city or town centres, with good access to deep labour markets. There is a particularly strong representation of business and professional services in Birmingham and Nottingham, which are the largest urban centres and act as regional hubs for business, legal, financial and technical services.

• Manufacturing. The Midlands has a very strong manufacturing base. Employment data shows the strong representation of manufacturing in a number of the Midlands’ towns and cities. Manufacturing activities tend to be on the edges of towns or cities, but there are also important clusters close to urban centres.

• Logistics. The central location of the Midlands means that the area is home to a large number of logistics companies, which tend to locate close to the strategic road network. There are also a number of intermodal terminals, where inbound containerised goods are transferred to road haulage for onwards distribution. East Midlands Airport is a strategic location for air freight and is home to the air express logistics cluster (including DHL, UPS, TNT and Royal Mail).

These all have diverse transport needs: efficient, reliable connections on the road network for all sectors, fast, frequent rail connections between key centres for the growing business services sector, and sufficient rail capacity for commuting into our largest cities.

Our recent business research of around 1,000 businesses has confirmed that access to rail and road networks was the most important factor influencing decisions on business expansion. Proximity to suppliers, clients and labour force are also in the top seven factors confirming the importance of transport in future business growth decisions.

The importance of transport is not just within the Midlands. National networks are critical to the Midlands Economy – half of the suppliers to Midlands businesses and the majority of customers are situated elsewhere in the UK and worldwide.3

International gateways play a critical role in connecting the Midlands (and wider UK) into the global economy. Within the UK, key centres across the Midlands create the foundation of the Midlands Engine as one of Europe’s most important markets, and fast, reliable connections to other major UK cities will drive growth in the wider UK economy.

The evidence is clear, the transport system that binds our economy together is not reliable and unable to meet our needs. We need to plan for tomorrow, tackling both the problems of today and unlocking future growth. ”

Andrew Cleaves Chair of Midlands Connect Steering Group


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The four drivers of competitiveness in Figure 2 (access to markets, innovation networks, supply chains, labour markets) are all directly dependent on the connectivity factors.

With HS2 already under development Midlands Connect can build this into a wider connectivity strategy that will enable the Midlands Engine to promote our region in terms of access to national and international markets.

As the Midlands continues to evolve to a knowledge-based economy, developing connections with and between R&D institutions will become ever more important. Our universities, other research institutions and R&D activity within key sectors are a major economic asset, and facilitating effective connections between this activity and businesses will be critical to future competitiveness.

The Midlands benefits from deep and diverse supply chains and enabling effective connections will both improve the competitiveness of the overall economy and maximise the multiplier effects across the whole Midlands.

The Midlands is home to a workforce of almost 4.3 million.4 We have the opportunity to become a major global economic player. However, in order to achieve our potential there is a need to improve skills and reduce worklessness in many areas, which means tackling the barriers caused by the transport network, and improving connections to growing areas. Through working closely with the Midlands Engine we can ensure we align transport investment with the supply of skilled labour.

Headline Findings from our Business ResearchAs already demonstrated our business research has shown the importance of transport within the Midlands Engine for Growth. Key headlines are:

• 30% of businesses selected their location on the basis of accessibility to the road or rail networks;

• Around one in three businesses may consider moving location if transport issues continue or get worse, rising to approaching one in two in the professional services sector;

• Over half of suppliers for Midlands businesses are located elsewhere in the UK: effective linkages to the Midlands are critical for the health of the wider UK economy;

• 59% of customers for Midlands businesses are located elsewhere in the UK, 10% are in Europe and 13% are located elsewhere globally: the Midlands is an export-oriented economy;

• Two thirds consider the road network to be critical or very important to their linkages with suppliers and customers; and

• 15% consider the rail network to be critical or very important to their linkages with suppliers and customers – reflecting the focus of the rail network in connecting businesses in key centres.

Figure 2 Midlands Engine and the Role of Improved Connectivity

International Gateways - Ports, Airports (Midlands, UK-wide)

Connections to Key UK Markets - Major Cities (Midlands, UK-wide)

Connections to R&D - Universities (Major Cities, Midlands, UK-wide)

Connections to Suppliers - Midlands and UK-wide

Connections to Labour Markets - Local / Sub-regional

Improved Highway Journey Time Reliability

Faster Rail Journey Times

Sucient Rail Capacity

Connectivity

Faster Highway Journey Times

Transport Improvements

Access to Markets - inwardinvestors require easy access

Innovation Networks - connections enabling R&D

Access to Supply Chains - networks of collaborators

Access to Labour Market - access to skilled talent

Drivers of Competitiveness

4 Midlands Engine for Growth Prospectus (2015)


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Where do we need to join up?From our work so far we have identified six priority corridors and four economic hubs5 that we can use to drive economic growth of existing business and support the development of the key growth sites identified across the Midlands. In doing so we will be:

• Strengthening the economic performance of our four hubs by bringing economic activity closer together, widening access to labour markets, supply chains and customers; and

• Connecting the Midlands to national and international markets to help drive the competitiveness of the Midlands and wider UK economy.

Moving to a Sub-National Transport BodyAlongside the development of our Final Strategy for March 2017 we will see the development of our proposition to become a Sub-National Transport Body. This will offer new powers and the governance required to see through the delivery of our transformational strategy. Through this body we will be able to explore the potential for new mechanisms for financing our strategy, recognising the constraints on national funding. We expect this to complement on the devolution deals already announced adding strategic value and opportunities to really transform our strategic networks to best benefit our economy. Further information on the STB will be made available as it emerges.

Figure 3 - Our Corridors, Hubs National and International Gateways

A National Transport Hub A better connected Midlands means a better connected, economically stronger, UK

Stoke-on-Trent and Staordshire

Nottingham and Derby

Leicester and Coventry

Birmingham, Solihull and Black Country

Humber Ports

Haven Ports

Southampton

Holyhead

Liverpool

Manchester

Leeds /She�eld

Bristol

London &South East

A B

CD

A

B

C

D

5 Midlands Connect, Economic Impacts Study (2015)


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Background

The Midlands is Critical to the UK’s Economy• The Midlands has an economy of over £240bn per year and accounts for 17% of all UK exports selling to over 178

countries worldwide.6

• The Midlands has a strong advanced manufacturing and engineering base which employs over 600,000 people and accounts for 22.5% of the UK’s manufacturing output.7

• One in three businesses may re-locate if transport issues continue or get worse. This rises to almost one in two in the professional services sector.8

• Our work so far has shown that transport investment could create 300,000 new jobs, improve productivity by £1.1bn per annum and save businesses £0.5bn per annum.9

• The Midlands Connect Strategy will set out a programme of transformational transport investment to power the Midlands Engine, addressing this and opening up new opportunities for sustained economic growth.

• We are embedding Midlands Connect in the development of future investment programmes by both Highways England and Network Rail ensuring the potential to unlock economic growth is at the heart of decision making.

• Making the case to Government for targeted development funding will enable us to continue to advance business case and feasibility work on our key priorities from April 2017.. This will send a clear message to the market as part of the Midlands Engine for Growth offer. In doing so the UK will reap the economic rewards earlier next decade.

• The Government is committed to supporting us in creating our Sub-National Transport Body by 2018. Through this we can add value, explore new funding opportunities and truly power the Midlands Engine for Growth. The emerging Sub-National Transport Body will make delivery of our strategy happen turning our potential into national economic success.

Working in Partnership – One Voice for the MidlandsThe Midlands Connect Partnership (‘the Partnership’) was formed in 2014 and represents 28 local authorities, 11 Local Enterprise Partnerships, Network Rail, Highways England, airports, central government, and the business community.

Midlands Connect will identify transport connectivity improvements to maximise long-term economic growth in the Midlands and is underpinned by two main principles:

• Investing in the ‘One Voice’ approach to ensure the Midlands reaches a unified position on strategic transport investment; and

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

6 Midlands Engine for Growth team 7 Midlands Engine for Growth team

8 Midlands Connect business research (2016) 9 Midlands Connect, Economic Impacts Study (2015)


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The Midlands Connect Journey So Far The Economic Impacts Study (May 2015) demonstrated the potential for transformational transport investment to create over 300,000 new jobs and save businesses £0.5bn per annum.10 The report recommended focussing transport investment across six corridors and four economic hubs.

With the £5 million allocated by the Department for Transport (DfT) Midlands Connect is now developing a transport strategy that can realise this potential through a programme of investment up to 2043 and beyond, truly powering the Midlands Engine.

Developing the Midlands Connect Transport StrategyThe Midlands Connect Strategy will:

• Develop the vision and strategy for transforming transport connectivity across the region in order to drive economic growth in the Midlands and the UK as a whole; and

• Set out a credible long-term transport investment strategy to support the building of the Midlands as an engine for growth.

Figure 4 sets the high level timescale for Midlands Connect. Our Strategy will be additional to and complement the Strategic Economic Plans with the combined impact being greater than the sum of the parts.

Recognising the strain on national resources our final strategy will look beyond this to explore the potential for new funding mechanisms to increase the size of the funding pot available.

In this first report we focus on the opportunities of Midlands Connect as an emerging Sub-National Transport Body to become embedded in decision making for strategic rail and road investment for the next decade.

Figure 4 Strategy Development Timeline

July 2016Picking up the Pace

October 2015Launch of

Current Phase

October 2016Emerging Strategy

March 2017Midlands Connect

Strategy

Evidence Options Priorities

10 Midlands Connect, Economic Impacts Study (2015)


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Picking up the Pace - getting growth planned A new approach to planning strategic transport in the Midlands

Maximising economic growth across the Midlands will drive future strategic transport investment• Future investment programmes will be formed over the next 2-3 years.

• We are working in partnership with Highways England, HS2 Ltd and Network Rail to ensure that wider economic benefits are fully captured and positively influence investment decisions.

• HS2 is coming - we can enhance strategic connections and make its economic impact even stronger.

• Our final strategy in March 2017 will contain our wider programme of transformational investment required to power the Midlands.

• This programme will form the basis of strategic rail and road investment across the Midlands supporting the UK economy as a whole.

Demonstrating Our Commitment to PartnershipsHighways England, HS2 Ltd and Network Rail recognise the importance of Midlands Connect as an emerging Sub-National Transport Body and are proactively working with us. We have developed Memoranda of Understanding with these organisations and have all committed additional resources to work as part of “one team”.

Working in partnership is key to identifying and promoting the initiatives that will transform the heart of the country’s Strategic Road Network for local users and to connect the whole country, north, south, east and west. ”

Jim O’Sullivan Chief Executive, Highways England

HS2 has the potential to transform transport connectivity in this country. Midlands Connect are showing how to turn that ambition into reality. ”

David Higgins Chairman of HS2

Network Rail is committed to working as part of the Midlands Connect partnership to develop a strategy reflecting the importance of transport to the regional economy.

Our analysis demonstrates how rail can help the Midlands realise its full growth potential, including improving access to jobs and providing good connections between towns and cities across the region. ”

Graham Botham Strategy & Planning Director, Network Rail


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Influencing programmes early in their development Over the next 2-3 years Highways England and Network Rail will be formulating their programmes of investment commencing in 2019 (rail) and 2020 (strategic roads). Midlands Connect will inform and shape their work – adding value and not duplicating.

We need to capitalise on synergies with HS2 Phase 1 opening in 2026 and planning ahead to link in with HS2 Phase 2, with the link to Crewe opening in 2027 and to Leeds via East Midlands Hub opening in 2033 (at the latest).

There is a critical window over the next 12-18 months for Midlands Connect to influence these programmes before they are agreed with the government. Early engagement is therefore crucial.

As we embark on this together we can ensure consistent evidence, opportunities and strategic interventions that are backed by the Midlands as a whole. This will maximise the potential of seeing our priorities developed and delivered in the period up to 2024/25 and beyond.

For Midlands Connect to be truly beneficial we can’t just stop when we complete our strategy. There will need to be further work from April 2017 to deepen understanding of the business cases and support making informed investment decisions for the next decade. However, at this stage we have no funding

post March 2017 to take our transport strategy forward and deliver on its objectives.

Figure 6 shows how our work programmes align and how Midlands Connect can ensure that we prioritise schemes that will deliver the biggest economic benefits for the Midlands and the UK as a whole. The diagram highlights that a lack of funding from 2017 to 2019 for Midlands Connect to develop schemes could result in a hiatus in delivery at the start of the next funding periods.

Figure 6 Highways England, Midlands Connect and Network Rail - Integrated Development Programme

CURRENTLY UNFUNDED

Highways England

Midlands Connect

Network Rail

Spring 2017Route Strategies

April 2020Road Period

2 Starts

Winter 2017Strategic Road Network

Initial Plan

Winter 2017Network RailBusiness Plan

Date to be confirmedRoad Investment

Strategy Published

Spring 2017Midlands Connect

Final StrategyCONFIRMSPRIORITIES

Autumn 2018Rail Strategic

Business Cases

FurtherFeasibility Work

Informs and supportsdevelopment plans by

Highways Englandand Network Rail

Autumn 2019Road StrategicBusiness Cases

Spring 2017ORR Advice to

Government

April 2019Control Period

6 Starts

Date to be confirmedDetermination ofRail Programme

Figure 5 Integrated Route Strategy Development (Source Highways England)

Share evidence and emerging priorities

Encourage stakeholders to submit additional evidence relating to SRN

View emerging priority locations and group study areas; and reflect with emerging Midlands Connect schemes

Ensure Midlands Connect schemes are referenced and reviewed in Option Assessment Reports

Support development of options, including consideration of multi-modal and local options

Collate Evidence

Analyse Evidence

Prepare OARs


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Picking up the Pace - getting growth started Developing Key Infrastructure

There is a compelling case to get on with developing our priorities• The economy will be stronger if targeted feasibility work is undertaken this decade – as part of the wider

Midlands Engine offer it will stimulate the market, growing our businesses and unlocking key development sites.

• Upfront work is where we can ensure options are fully considered and the best value for money and deliverable schemes are taken forward.

• The Midlands Rail and Road Hubs are two such examples where feasibility work could enhance our understanding and deliverability of transformational investment.

• Our final strategy will set out our priorities for further feasibility work and a conveyor belt of schemes being developed and delivered over the next 30 years.

The Importance of early Scheme DevelopmentThe single most challenging factor in determining the scale of strategic rail and road infrastructure delivery over next decade will be the availability of funding and capacity in the industry to undertake scheme development work during the next 3 to 4 years.

Building on outputs from the Hendy Review, accelerating development work will lead to a more robust understanding of costs and timescales, as well as an identification of risks and opportunities.

If schemes are taken through the early stages of development, particularly in the case of larger, more complex schemes, they are likely to commence delivery in the first half of the next decade – capitalising on the opportunities for economic growth.

The commitment to start taking forward the development of schemes within the context of the wider offer of the Midlands Engine for Growth will support investment decisions through the progression of planning consents and construction at key development sites.

Constraints on Existing Development FundingIn its current Road Investment Strategy (published December 2014), Highways England identified four schemes in the Midlands for development during this Road Period (2015 – 2020) and delivery within the next Road Period (expected to be 2020 – 2025).

These schemes are:

• M1 Junctions 19-23A Smart Motorway

• M5/M42 Birmingham Box Smart Motorway Phase 4

• A45 Stanwick to Thrapston

• A46 Newark Northern Bypass

Midlands Connect welcomes the Government’s reaffirmed commitment to these schemes in the March 2016 Budget. We look forward to working with Highways England and seeing their detailed programmes for development and delivery for these four schemes.

Midlands Connect is concerned that Highways England has no funding available to develop any other schemes required to meet our medium-long term needs until the commencement of the next Road Period (i.e. April 2020) at the earliest.


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Similarly, there is no identified development funding to progress the proposals identified in the rail industry’s Route Studies until April 2019 at the earliest. We believe there are huge advantages for us as a region and for the UK as a whole if we are able to maximise the opportunities derived from the arrival of HS2 in 2026, 2027 and 2033. In order to meet these key dates and realise the economic potential of the Midlands Engine, we require a immediate flow of development and implementation funding to really pick up the pace in the further development of our Midlands Connect strategy.

Potential Areas for Development Funding Our Emerging Strategy in October 2016 will set out our immediate priorities for work from April 2017 where we will look at a much wider range of important schemes and interventions. Our Final Strategy will demonstrate how the Midlands Connect programme complements both the investment by HS2 and the local investment programmes in the SEPs – so that the whole will be greater than the sum of the parts.

Our view is that there is a risk to the delivery of sustained economic growth because of a lack of scheme development funding to keep a ‘conveyor belt’ of investment continually fed. In order to demonstrate this we have identified two specific examples that are of regional and national significance. Neither of these have any allocated development funding, nor a known timetable for when they might get such funding.

Capacity to Support Growth - Midlands Rail HubThe Midlands Rail hub is at the heart of the regional and national network but the ability to provide future growth is constrained by capacity both within and on the approaches to the hub.

Rail capacity and reliability plays a critical role in our economic strategy ensuring we use our classic network and HS2 rail stations as a catalyst for growth. Growth sites around HS2 stations will ultimately be constrained if the classic network cannot connect people to the sites and HS2.

The current rail network is under strain. Almost a quarter of all the professional services sector in our research have said they would be “likely” or “highly likely” to move location if transport connections are not improved. The Route Studies acknowledge that whilst longer trains may provide short term relief significant overcrowding will occur from 2023 demonstrating the need to act now.

Figure 7 demonstrates the increase in peak hour demand that we expect in the Midlands Rail Hub up to 2043. It is clear that it is only through increasing frequencies and faster journey times that we can provide for this passenger growth. Without this we will struggle to get people where they need to be from the middle of next decade.

The need for improved east-west connectivity was originally highlighted through the East Midlands Route Study process. Developing potential solutions has formed part of the West Midlands and Chilterns Route Study (2016). Fundamental to enhancing this is the need to address capacity constraints and an emerging package to enhance the Midlands Rail Hub has been identified. It now needs funding to develop the business case for investment.

Figure 7

Extra carriages needed to meet Birmingham commuter demand

2024

20 40 60 80 100 120 140

2043


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The Midlands Rail Hub will provide the infrastructure to release capacity and journey time improvements across the Midlands as a whole. Put simply, it will open up the opportunity to transform east-west connectivity across the Midlands and lock in a wider geography of Midlands businesses and people to HS2. From our initial work the benefits of agglomeration to existing businesses alone are estimated to be in the region of £200m per year and there are potentially 250,000 new jobs within 2 miles of the rail network that this package could unlock.

This package truly benefits the whole of our region unlocking an additional 10 train services each hour across our growth corridors linking our four economic hubs.

Our final strategy will confirm where these additional 10 trains should connect to maximise the economic benefits across the Midlands and UK as a whole.

There is the potential for joint development, and potentially possession with HS2. The wider benefits of the scheme build further on those of HS2 maximising the return to the UK economy of this transformational investment.

Whilst there is huge potential this package is only at a concept stage of design. We recognise the lessons from the Hendy Review and the need to define early on a much tighter scope, funding envelope and outcomes. The next stage of work will challenge whether higher value for money could be achieved through reduced spending and phasing of implementation.

Based on our work so far we believe there is a compelling case to provide development funding to support thorough option development work from April 2017 for the Midlands to be ready to deliver economic growth from April 2019 onwards.

The Midlands Motorway Hub – Critical to the National EconomyThe Midlands Motorway Hub lies at the heart of the regional and national network meaning congestion affects the economy not only of the Midlands, but also the rest of the UK. It spans from the M42/M5/M6 box in the west across to the M1 in the east and M40 connecting to the south coast and south east.

Our business research has identified the importance of national connections with 49% of the suppliers and 59% of customers to our businesses being located outside the Midlands. 62% of our businesses see the road network as critical or very important.

The most common problems on the road network identified by businesses were congestion and delays at key junctions such as M6/M5, M6/M42 and M6/M54 and congestion around the Midlands Motorway Hub as a whole.

Figure 8 is an example of the critical role of the Midlands Motorway Hub for national freight movements. The cost of congestion for road freight will increase three fold from 2016 to 2040 if action is not taken.11

11 West Midlands Freight Movement Study (2015)


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The Motorway Hub does not currently provide the level of service that our businesses need. The network is fragile and lacking resilience. It suffers from huge variations in traffic flow and, as result, journey speeds are often slow and extremely variable. For example:

• There were over 6 million hours of delay across the Midlands Motorway Hub in 2014/15.12

• This delay is an economic cost of over £80m in lost time alone to the UK economy.

• On the worst section only 28% of all journeys were at “acceptable speeds” 13 with peak hour speeds lower than 30mph.

This situation is predicted to deteriorate further due to significant growth in demand, particularly on the eastern side from the new HS2 station, UK Central development, strong passenger growth at Birmingham Airport and growth at Jaguar Land Rover.

Planned Investment Is Welcomed

During Road Period 1 development work has been announced for the M5/M6 junction and Smart Motorways for the southern and western sides of the Hub, for Road Period 2 delivery. This will complete Smart Motorways around the Hub. Upgrading the M40/M42 Interchange to Smart Motorway All Lane Running is also scheduled to commence delivery in Road Period 1. This investment is needed and welcomed by the Midlands Connect Partnership.

12 Highways England HATRIS data 2014/15 13 Highways England HATRIS data 2014/15. Acceptable Journeys

- Official Highways England KPI in performance specification. If a journey is faster than 3/4 of free flow speed it is defined acceptable.

M42 J5-J6Annual HGVs, thousands

<1010...2020...50

50...100100...200200...500

500...10001000...20002000...5000

>5000

Figure 8 Freight Routes Using the M42 Junction 5-6


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We need to Plan for the Future of the Midlands Motorway Hub

Whilst the planned investment is critically important it is clear that it is not sufficient to support longer term national economic growth. Given the scale of the Midlands Motorway Hub, its current and future congestion and the importance to the regional, national and international economy there is the need to start feasibility work on the long term options. This will also be important to inform future maintenance programmes.

There will be considerable investment in delivering the pre announced improvements and a wider view into the longer term needs of the Motorway Hub is required to ensure they are designed with the future in mind. Solutions to improving the M5/M6 junction are likely to be complex and very expensive, being on viaduct and possibly involving changes to M6 J9 due to its close proximity. A major improvement is needed as the approaches to the junction remain some of the most heavily trafficked and least reliable in the country. Smart Motorway provision on the western side of the Hub has significant issues to overcome with multiple structures requiring replacement (they already cause discontinuous hard shoulder on the M5 J3-J4).

The construction of HS2, with multiple crossings over the motorway network creates challenges and potential significant opportunities for synergies and efficiencies. The Birmingham Interchange station and associated UK Central development will significantly increase demand on an already heavily congested M42. Opportunities to work with HS2 to deliver extra capacity during the HS2 construction period need to be explored urgently.

A feasibility study would need to consider the mix of through traffic vs local/sub-regional movements, the potential role of enhanced east-west links and whether changes to existing routes could assist e.g A5, A46 or indeed if any new routes are needed. The 21km of elevated viaducts carrying the M6 and M5 motorways on the North and Western sides of the Hub are over 40 years old and will require regular heavy maintenance investment going forward, reducing network resilience.

There is the potential to deliver over 200,000 new jobs within 10 miles of the Motorway Hub itself and a wider network of strategic sites on our six priority growth corridors feeding in and out of the Hub.

Whilst Midlands Connect can take the work so far the scale and complexity of the Motorway Hub merits its own investigation if we are to understand the potential options which should be taken forward to the next stage of development.

Through our partnership working we are ensuring that the evidence, options and the potential economic benefits of this work are fully captured

within the Route Strategies. We anticipate that the route strategies process will require more detailed analysis of the Midlands Motorway Hub to fully inform the development of the Strategic Road Network Initial Report later in 2017.

Midlands Connect is currently seeking support from government to be able to undertake a technical study to inform the development of the Initial Strategic Road Network Report. Through our current programme, however, we will commence the technical work and set out the scope of what needs to happen next.

We will build on the work of the current Highways England strategic studies to ensure there is a holistic view of the Midlands in the national context that can feed into the next Road Investment Strategy.

With Highways England’s Midlands Regional Transport Model becoming available later during 2016 the strategic planning capabilities will be in place to support such a study.

Confirming our Immediate Priorities - Emerging Strategy October 2016

The Midlands Rail and Road hubs examples in this report are strong examples of where we need to be “Picking up the Pace” and getting on with the option development and business case work. They have been identified in light of work already undertaken by Highways England and Network Rail. It is important that we undertake early planning work to increase the understanding of the business case and improve certainty of costs.

Ultimately we want to make sure that our Midlands strategic networks really power the Engine and are truly ready for HS2. We want our approach to become HS2 ready to be celebrated and be mirrored in the rest of the UK as HS2’s delivery continues to the north.

We want our work to be an exemplar for the world… showing the UK is really leading on the development and delivery of national infrastructure and is open for business.

With this in mind, by October we will have produced our Emerging Strategy by which point we will be clear on the immediate work required from April 2017 to capitalise on the economic potential across the Midlands.

The Emerging Strategy will effectively set out our ‘ask’ to government to continue to take forward the development of our priorities. Recognising the constraints on funding we will set out a clear proposition for each such case and why accelerating development work is in the interest of the Midlands and the UK as a whole.


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Picking up the Pace - getting growth delivered Becoming a New Sub-National Transport Body

The creation of a Sub-National Transport Body will make delivery of our strategy happen, transforming our potential into a national economic success story• It is a significant opportunity for securing further devolution of powers and funding from central government.

• It is ideally placed to provide the governance and oversight of the implementation of Midlands Connect.

• It could have the financial freedom to develop new forms of financing – increasing the size of the funding envelope available.

• A proposal will be developed in tandem with Midlands Connect for submission in Spring 2017.

Understanding the OpportunityMidlands Connect has an ambition to become the Sub-National Transport Body (STB) for the Midlands. Indeed, this was announced by the Chancellor in this year’s budget that we would become an STB in 2018. However, there are many decisions and processes to be followed before the scale, composition and powers of a future STB for the Midlands can be presented to Government.

Three broad topic areas are being considered as part of the process of developing a formal proposal to put to Government:

1. Re-affirming the Midlands’ consensus to become an STB;

2. Setting out clear constitutional arrangements for a Midlands STB;

3. Understanding the opportunities for self-governance over funding generation and spending.

Becoming an STB could also include powers or functions (with their associated funding) which currently sit under the Secretary of State (SoS) for Transport being devolved. In the context of strategic transport this could include functions such as agreeing the Roads Investment Strategy (RIS) for the area with Highways England or setting the goals and overseeing delivery of rail franchising and rail network capital investment.

Given the strategic nature of Midlands Connect there is a clear ‘fit’ with the outcome that we wish to achieve through our Strategy.

Establishing an STB is a significant opportunity to devolve powers from central government. We believe there is the potential for the Midlands STB complement and add value to the local authorities, combined authorities and LEPs providing the strategic oversight that is important to an economic area as diverse and vast as the Midlands.


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The Potential for Financial FreedomAs part of the process of developing the Midlands Connect Strategy we will be exploring the potential to increase the size of the funding envelope that we have to deliver our investment programme thus powering the Midlands Engine. An STB would be ideally placed to take ownership of developing and securing new forms of financing. Such a body can be fully accountable for the investment decisions being made and the implementation of Midlands Connect as a whole.

Outline ProgrammeThe Chancellor set out a desire to see the Midlands establish an STB by spring 2018. The Department for Transport’s own suggested timescale is that an STB may take between 9 and 12 months of working through statutory processes, from receipt of a proposal to a formal devolution of powers.

The goal therefore is for Midlands Connect to establish a formal proposal to government, provided the desire to become an STB is agreed upon, in March 2017; at the same time the final transport strategy is submitted.

Source: Department for Transport

1Developing

proposals to form STB consulting

with stakeholders

3 - 4months

1 - 2months

2 - 3months

4 - 5months

2 - 3months

1month

2Proposal receivedand reviewed by DFT, cleared by

Minister & consent from STB

3Statutory instrument

prepared by Legaland cleared

4Regulatory Policy/impact assessment

clearance

5Parliamentary

Scrutiny viaa�rmative resolution,

JCSI SLSC

6Ministerial sign

o� of order toestablish STB


19

Conclusion

Since the Launch of our current phase of work in October 2015, Midlands Connect has been strengthening the case for transformational transport investment to deliver economic growth.

This report identifies the potential economic benefits we can deliver if we can get on and develop our key priorities for the next decade - powering the Midlands Engine.

Our unique position as a national transport hub means the economic benefits will flow beyond the Midlands Engine to the country as a whole.

Our purpose is clear. To turn economic potential into real growth.

Through this report we are seeking continued support from government in “picking up the pace” - in the following key areas:

Getting Growth Planned - Picking up the Pace with a new approach in the Midlands We are embedding Midlands Connect in the development of future investment programmes by both Highways England and Network Rail ensuring the potential to unlock economic growth is at the heart of decision making.

Getting Growth Started - Picking up the Pace on developing key infrastructureMaking the case to Government for targeted development funding will enable us to continue to advance the business case and feasibility work on our key priorities from April 2017. This will send a clear message to the market as part of the Midlands Engine for Growth offer. In doing so the UK will reap the economic rewards earlier next decade.

Getting Growth Delivered - Picking up the Pace on becoming a Sub-National Transport BodyThe Government is committed to supporting us in creating our Sub-National Transport Body by 2018. Through this we can add value, explore new funding opportunities and truly power the Midlands Engine for Growth. The emerging Sub-National Transport Body will make delivery of our strategy happen, turning our potential into national economic success.

Getting Growth Planned – A new approach to planning strategic transportMidlands Connect as an emerging Sub-National Transport Body has the full support of Highways England, HS2 Ltd and Network Rail to work in partnership. Midlands Connect is now embedded within the process of developing road and rail investment programmes as set out in this report.

As a full partner in the process we can ensure that our strategic priorities are fully aligned to provide one clear voice on what is needed to realise the economic potential of the Midlands.

In this report we have set out how we intend to do this and we welcome the support of Highways England, HS2 Ltd and Network Rail and their commitment to partnership working.

Getting Growth Started – Picking up the Pace on developing key infrastructureOur strategy will set out the need for complex, transformational investment that power the Midlands Engine for Growth. It will capitalise on the opportunity presented by HS2, further maximising the benefits to the UK as whole. This investment will help rebalance the UK economy and draw in additional investment to the UK as a whole – both in the Midlands and through the capacity it can release in the South East.

Critical to supporting the Midlands Engine will be the commitment to take forward the early stages of business case and feasibility work on the schemes that unlock key development sites and boost business growth.


20

We are clear that development of such schemes should not be rushed. We are clear that development of such schemes should not be rushed. We need to learn from the Hendy Review ensuring sufficient upfront effort to understand options, deliverability and costs.

Recognising constraints on national funding we will carefully prioritise to ensure only what is critical is being promoted over the next 2-3 years. The two examples set out in this report would require around £5-6m development funding across a partnership area of 28 local authorities – so only around 50p per head of population. However, these are just two examples of where we believe there are regionally and nationally important interventions which have no funding allocated to move them through the process of: investigation, business case, detailed design and delivery. We need the funding to ensure that we have a continual conveyor belt of schemes moving through this process; or run the risk of significant delays in our infrastructure delivery. This in turn will harm our economic growth prospects.

Our Emerging Strategy will identify our priorities for development funding from April 2017. We are working closely with the Department for Transport to ensure we provide a robust justification and business case work for all our immediate priorities.

We will explore between now and the autumn if we can identify and draw in match funding to support these priorities.

Getting Growth Delivered – Picking up the Pace on becoming a Sub-National Transport BodyThe government is committed to supporting the creation of a Sub-National Transport Body by 2018.

Such a body for the Midlands could provide the strategic powers and financial flexibility to deliver the right solutions to support our economy. This body would complement the Local Enterprise Partnerships and the local authorities, including the newly created combined authorities focussing on the regional and national strategic networks. Such a body could be given the financial flexibility to develop new funding mechanisms to increase the intensity and speed of delivery and the associated economic benefits.

Whilst we are at an early stage of developing a Sub-National Transport Body its potential importance with devolved powers and strategic focus to deliver our strategy is recognised across the Partnership. Our proposal next year will demonstrate how this body, if approved, could form a crucial part of the future economic growth story in the Midlands.

Midlands Connect16 Summer Lane, Birmingham, B19 3SD

[email protected] @MidsConnectwww.midlandsconnect.uk



To: Chancellor of the Exchequer Secretary of State for Transport Secretary of State for Business, Enterprise & Industrial Strategy Secretary of State for Communities & Local Government Dear HS2 EAST: THE CASE FOR DELIVERING THE EASTERN LEG OF HS2 We represent the Councils, Local Enterprise Partnerships and Chambers of Commerce from across England and Scotland that have come together to promote the delivery of the Eastern Leg of HS2. HS2’s Eastern Leg will link Birmingham, the East Midlands, Sheffield and Leeds. Through the planned link to the East Coast Main Line, it will also boost connectivity to York, Newcastle and Edinburgh. As a result, HS2s Eastern Leg will serve over 15 million people, including six of the UKs top ten cities, and an economy worth over £320 billion. HS2’s Eastern Leg will have massive positive benefits for the communities we are proud to serve. It will unlock new markets, create new jobs, boost skills and help to re-balance the economic geography of the UK. Work commissioned through the HS2 East partnership has demonstrated that the Eastern Leg will be the best performing part of the Government’s proposed high speed network - with a benefit to cost ratio of over 5 to 1 when both transport and wider economic benefits are considered. Local stakeholders in key locations along the route are actively making plans to maximise the local economic benefits of HS2 investment for their communities. But local people and investors need certainty. That is why we urge you to make the Phase 2b Route Announcement in November 2016 in line with previous Government commitments and to move rapidly to the Hybrid Bill process. The Eastern Leg of HS2 is a massive opportunity for our communities, your Government and the UK as a whole. It is an opportunity we cannot afford to let slip. We would be delighted to meet with you to discuss further how we can work together to deliver the Eastern Leg of HS2 in full. Yours sincerely

Cllr Jon Collins and Cllr Keith Wakefield Co-Chairs of HS2 East


Cllr Anne Western Leader, Derbyshire County Council

Cllr Ranjit Banwait Leader, Derby City Council

Cllr Alan Rhodes Leader, Nottinghamshire County Council

Cllr Julie Dore Leader, Sheffield City Council

Cllr Judith Blake Leader, Leeds City Council

Cllr Bill Dixon Chair of Transport Committee, Tees Valley Combined Authority

Sir Nigel Knowles Chair, Sheffield City Region LEP

David Ralph Chief Executive, D2N2 LEP

Peter Richardson Chairman, D2N2 LEP

Dr Dave Smith Interim Executive Director, Sheffield City Region Cllr Nick Forbes Leader, Newcastle City Council

Cllr Roger Lawrence Transport Lead, West Midlands Combined Authority

Martin Reeves Chief Executive, West Midlands Combined Authority Scott Knowles Chief Executive, East Midlands Chamber

Martin McKervey Sheffield City Council Regional LEP Board

SCOTLAND

LONDON & EUROPE

LEEDS

BIRMINGHAM

CREWEHS2 HUB

YORK & NEWCASTLE

LINCOLN

MANSFIELD

SHEFFIELDHS2

SOUTHYORKSHIRE

WORKSOP

NOTTINGHAM

LOUGHBOROUGH

LEICESTER

BEESTONDERBY

CHESTERFIELD

STOKE

EAST MIDLANDS

HUB

EAST MIDLANDS HS2 GROWTH STRATEGYEMERGING STRATEGY:FAST TRACK TO GROWTH

Derby & Nottingham Metropolitan Strategy 2030

Item 5, Appendix (c)

For local people and businesses across the East Midlands, HS2 will deliver the following transport benefits:

• More trains, less over-crowding and much quickerjourney times to key destinations;

• Better local transport connections for both work andleisure

Journey times from the East Midlands HS2 hub

Journey times from key centres*

HS2 EAST: AN ESSENTIAL ECONOMIC BOOST

74,000 jobs

BIRMINGHAM

19LONDON

51

29 36

106

LEEDS

YORK

NEWCASTLE

NOTTINGHAM TO LONDON

HS2 CURRENT

10468

LEICESTER TO NEWCASTLE

HS2 CURRENT

205142

DERBY TO LEEDS

HS2 CURRENT

7750

LEICESTER TO YORK

HS2 CURRENT

14573

NOTTINGHAM TO BIRMINGHAM

HS2 CURRENT

36 73

CHESTERFIELD TO LONDON

HS2 CURRENT

71 143

EAST MIDLANDS

HUB

£4 bn GVA by 2042

BIRMINGHAM

19LONDON

51

29 36

106

LEEDS

YORK

NEWCASTLE


HS2 CURRENT

10468


HS2 CURRENT

205142

DERBY TO LEEDS

HS2 CURRENT

7750

LEICESTER TO YORK

HS2 CURRENT

14573


HS2 CURRENT

36 73


HS2 CURRENT

71 143

EAST MIDLANDS

HUB

links 6 of the UK’s 10biggest city regions

BIRMINGHAM

19LONDON

51

29 36

106

LEEDS

YORK

NEWCASTLE


HS2 CURRENT

10468


HS2 CURRENT

205142

DERBY TO LEEDS

HS2 CURRENT

7750

LEICESTER TO YORK

HS2 CURRENT

14573


HS2 CURRENT

36 73


HS2 CURRENT

71 143

EAST MIDLANDS

HUB

2/3 of the total GDPuplift will be seen by HS2 East regions.

BIRMINGHAM

19LONDON

51

29 36

106

LEEDS

YORK

NEWCASTLE


HS2 CURRENT

10468


HS2 CURRENT

205142

DERBY TO LEEDS

HS2 CURRENT

7750

LEICESTER TO YORK

HS2 CURRENT

14573


HS2 CURRENT

36 73


HS2 CURRENT

71 143

EAST MIDLANDS

HUB

BIRMINGHAM

19LONDON

51

29 36

106

LEEDS

YORK

NEWCASTLE


HS2 CURRENT

10468


HS2 CURRENT

205142

DERBY TO LEEDS

HS2 CURRENT

7750

LEICESTER TO YORK

HS2 CURRENT

14573


HS2 CURRENT

36 73


HS2 CURRENT

71 143

EAST MIDLANDS

HUBBIRMINGHAM

19LONDON

51

29 36

106

LEEDS

YORK

NEWCASTLE


HS2 CURRENT

10468


HS2 CURRENT

205142

DERBY TO LEEDS

HS2 CURRENT

7750

LEICESTER TO YORK

HS2 CURRENT

14573


HS2 CURRENT

36 73


HS2 CURRENT

71 143

EAST MIDLANDS

HUB

HS2’s Eastern leg from Birmingham to Leeds will link together towns and cities to forge a step-change in connectivity. It will unlock new markets, catalyse jobs, boost skills, and present new opportunities for our communities to reshape the economic geography of the UK.

HS2 in the East Midlands can deliver more economic growth for UK plc than any other proposed location.

As currently planned, it promises a £604m prize, year on year. Every HS2 East Region will benefit.

The benefits for the UK

The benefits for the East Midlands

THE EAST MIDLANDS HS2 HUB:ENHANCED CONNECTIVITY, TRANSFORMED JOURNEY TIMES

SCOTLAND

EAST MIDLANDS

HUB

NORTHEAST

WEST MIDLANDS

SHEFFIELD CITY REGION

LEEDSCITY REGION

LONDON

BIRMINGHAM

19LONDON

51

29 36

106

LEEDS

YORK

NEWCASTLE


HS2 CURRENT

10468


HS2 CURRENT

205142

DERBY TO LEEDS

HS2 CURRENT

7750

LEICESTER TO YORK

HS2 CURRENT

14573


HS2 CURRENT

36 73


HS2 CURRENT

71 143

EAST MIDLANDS

HUB

Direct journey time in minutes

For local people and businesses across the East Midlands, HS2 will mean:

• More housing opportunities;• More trade and investment; and• More job and training opportunities• and the chance to earn higher wages

* Direct journey time in minutes


Fast Track to Growth

HS2 is a once in a generation opportunity for the communities and businesses we serve.

HS2 will transform connectivity between our local economies and those of the West Midlands, the North and Scotland, as well as with London, the South East and Europe. It will release rail capacity for more local services, open up new development opportunities, and new markets to our world class rail engineering sector and for firms working in the construction industry.

The East Midlands HS2 Hub Station at Toton will be the most connected station on the high speed network outside of London - a 21st century gateway to the East Midlands – and a destination in its own right.

Our work to date demonstrates we can use HS2 to boost employment growth from just below to above the projected UK trend - equivalent to an additional local 74,000 jobs and an extra £4 billion to the UK economy.

But this potential will not be realised without strong and consistent local leadership and a clear vision for what success looks like. That is why we have come together through the East Midlands HS2 Strategic Board to develop a comprehensive HS2 Growth Strategy, which will sit within the emerging Midlands Connect Strategy and the Midlands Engine initiative.

This summary is a snapshot of our progressive work on our economic strategy, connectivity, skills, investment and governance. There is more to do before we finalise the Growth Strategy in 2017. However, it shows the scale of our ambition and the commitment of local leaders to make the most of this fantastic opportunity.

East Midlands HS2 Growth Strategy: Emerging Strategy Submission Read the report in full at www.emcouncils.gov.co.uk/hs2September 2016

Our Potential Growth Locations

GROWTH CORRIDORS

EXISTING EMPLOYMENT SITES / DEVELOPMENT PRIORITIES

ENTERPRISE ZONE SITES

HS2 STATION


Item 5, Appendix (d)

Growth and Opportunity - be part of our winning team! East Midlands Councils (EMC) is the representative body for local government in the East Midlands - covering the cities and towns of Derbyshire, Leicestershire, Lincolnshire, Northamptonshire and Nottinghamshire. EMC takes an active interest in rail issues, lobbying successfully for the £2 billion upgrade and electrification of the Midland Main Line and taking a leading role in the development of an HS2 proposition for the East Midlands. EMC is now working in partnership with the Department for Transport on the East Midlands Franchise competition. We believe that the competition is a massive opportunity for the people and businesses in the East Midlands - and for the rail industry. We want to work with the winning bidder to accelerate our recent history of rapid growth, and transform rail services across the East Midlands. Come, join us. Become part of our winning team! A Growing East Midlands: jobs, people and homes The East Midlands has helped to lead the UK out of recession, with particularly strong private sector job growth over the last five years. The East Midlands has huge potential for export-led growth (already accounting for 20% of GVA) and is well placed to thrive in a post-Brexit economy. We also have a strong academic network, with a number of high performing universities and colleges that can support the development of a strong knowledge based economy.

“The East Midlands is a ‘bellwether for the UK’s economy” Mark Carney, Governor of the Bank of England.

Latest projections from the Office of National Statistics suggest the population of the East Midlands will rise by half a million people to 5.1 million by 2030 – the fastest growth outside London and the wider south east. Key hot spots include the cities of Derby, Leicester, Nottingham and Lincoln which all have young, dynamic and well educated populations. But it is the town of Corby that has the highest projected population growth outside of London – a 16.7% increase over the next 10 years. The East Midlands has consistently delivered a higher proportionate share of the nation’s housing supply. Councils remain committed to the delivery of new housing to meet local needs and future economic prospects, with plans to deliver an additional 400,000 new homes over the next 20 years. A Growing East Midlands: rail patronage The Midland Main Line has been a huge success story. Carrying 13 million passengers per year, patronage has grown by 130% over the last 15 years and projected to grow a further 30% over the next 10 years. Station patronage across the East Midlands has also grown significantly:

Year Derby Leicester Nottingham Lincoln Loughborough Newark* Grantham 2000/01 2,216,240 3,708,580 4,729,290 1,113,257 923,841 773,987 699,772 2013/14 3,498,476 4,853,908 6,105,684 1,585,386 1,241,246 1,434,555 1,198,197

*Newark Castle & Newark Northgate combined


The £2 billion upgrade and electrification of the Midland Main Line represents a strong vote of confidence by the Government and the rail industry in region’s future growth prospects. Similarly, the Government plans to connect the East Midlands to the HS2 network through the development of an East Midlands Hub Station at Toton with both HS2 and classic rail connectivity by 2033. Midlands Engine & Midlands Connect EMC and the region’s Local Transport Authority and LEPs are key partners in Midlands Connect and the Midlands Engine initiatives. The Midlands Connect Strategy will be published in March 2017 and will provide the wider strategic context for the next franchise. Midlands Connect is working towards becoming a statutory ‘Sub-National Transport Body’ to provide ongoing strategic advice on major road and rail investment.

Our Vision for the Future EMC has already undertaken an initial stakeholder consultation exercise to determine key outcomes for the franchise, which has been endorsed by the EMC Executive Board. The strategic objective for the new franchise must be to drive economic growth in the East Midlands by increasing connectivity, consistent with both the Midlands Engine and Midlands Connect initiatives. Improved connectivity to London remains a key priority. In particular securing regular journey times from Nottingham in less than 90 minutes and from Leicester in less than 60 minutes. We want to see high quality modern rolling stock that can make the most of the massive investment in infrastructure that will see the MML to Corby electrified by 2019 and to Sheffield by 2023. The addition of a ‘sixth train path’ is an opportunity to meet both commuter and long distance demand more effectively. However, there is also major potential to develop a ‘Regional Express Network’ in the East Midlands based around four ‘hubs’: Derby, Leicester, Lincoln and Nottingham. This should not only drive improved connectivity and agglomeration between these cites, but with key economic centres elsewhere such as Birmingham, Cambridge, Leeds, Liverpool and Manchester. We think there is an opportunity to re-map or code share some Cross Country services that link Birmingham with the East Midlands to help deliver this. The franchise needs to recognise that we are increasingly moving towards a 7-day economy – and that improving weekend services will be important to both the consumers and providers of goods and services. Finally, we recognise that things will change over time in ways that will be difficult to predict. We are there looking for provision for incremental service improvements and station enhancements during the lifetime of the franchise. For further information on our ideas, please visit: http://www.emcouncils.gov.uk/Infrastructure

http://www.emcouncils.gov.uk/Infrastructure

Item 7


Employment Issues for Local Government – the Regional Employers’ Board

Summary This paper updates Members on significant issues relating to local authorities as employers. Recommendations Members of the Executive Board are invited to: Note this report. To provide comments and feedback on the employment issues identified within the

report to inform EMC’s input to future Employers’ meetings at Regional, National and European level.

Item 7

1. Introduction

1.1 The Regional Employers’ Board provides political leadership on employment issues and 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.

1.2 This report provides information for members on significant issues for Councils currently as employers, focusing in particular on updates to the Government’s proposals relating to apprenticeships, taxation changes to salary sacrifice schemes and latest developments in local government pay.

2. Update on the Introduction of an Apprenticeship Levy and Targets

2.1 It is estimated that the Government’s proposals to introduce a levy and a target

number of apprenticeships from April 2017 will impact on the region’s councils by costing £15m in levy charges and requiring over 3000 new apprenticeships.

2.2 It is therefore key that councils maximise the levy and EMC is supporting this by ensuring that councils are informed, actively responding to consultation and collaborating to work together to identify opportunities and ensuring that new apprenticeship standards reflect skills needs in the sector.

2.3 Over the summer, further consultation on proposals for funding of

apprenticeships has been launched. EMC has offered to co-ordinate and submit a regional response. Full details of the proposals and a link to respond to the consultation are here. A summary of the issues, questions and the LGA’s proposed response is available at the following link. Other useful links for the new apprenticeship regime are:- - The proposals and how you can feed in views directly: Government

Proposals - An indicative tool that government has created for employers to estimate

how much the government will contribute towards the cost of training.

2.4 Government have not yet published their response to their consultation on the Public Sector Apprenticeship Targets.

2.5 In November, a national event will be hosted by EMC on apprenticeships, timed

to be at a point where the new arrangements are confirmed. As well as an information briefing to brief officers on the new requirements, the event will also be used as an opportunity to bring councils together to identify the common priorities and concerns, and opportunities of collective work on these issues.

https://www.gov.uk/government/publications/apprenticeships-proposals-for-funding-from-may-2017

https://www.gov.uk/government/publications/apprenticeships-proposals-for-funding-from-may-2017

https://estimate-my-apprenticeship-funding.sfa.bis.gov.uk/

Item 7

Feedback from councils so far indicates a desire to work regionally to develop standards for skills needed within the sector, e.g. planning services. EMC has been exploring funding opportunities to support this work.

2.6 A priority for the Employers’ Board has been to improve employment

opportunities for young people and apprenticeships play a key part in this. The Board will therefore be working with joint trade unions through the Regional Joint Council on apprenticeships.

3. Pay & Rewards

a) Consultation on Changes to Tax for Salary Sacrifice Schemes 3.1 A number of councils in the region have put in place pay and rewards policies

which include salary sacrifice schemes. These have been popular in providing flexibility and choice for employees, and have included benefits in kind that attract tax and national insurance advantages when provided through a salary sacrifice scheme.

3.2 Such councils may need to review their rewards packages if the Government

goes ahead with proposed changes to tax and NI arrangements for benefits in kind provided through salary sacrifice schemes.

3.3 The Government is consulting on the proposals which will mean that where a

benefit is provided through salary sacrifice, it will be chargeable to tax and national insurance contributions. It is proposed to exclude the following benefits in kind from the changes, so that these will maintain their tax/NI advantage: childcare vouchers/workplace nursery provision cycle to work schemes employer pension contributions employer-provided pensions advice based on recommendations of the

Financial Advice Market Review annual leave purchase schemes

b) Review of the National Pay Spine

3.4 Terms of reference have been agreed with trade unions on a review of the

national pay spine that covers the majority of local government workers. A circular has been issued to all councils providing details.

3.5 The pay spine is being reviewed with the aim of addressing the impact of the

National Living Wage (NLW) and the Government’s target for the NLW level for

http://www.emcouncils.gov.uk/write/NJC_Circ_Pay_Spine_Review_TORs_22Aug16.pdf

Item 7

2020, which has been estimated as wiping out the bottom half of the current national pay spine.

3.6 EMC is providing support on this initiative by representing the interests of

authorities in the region on a national employers’ steering group. Councils in the region are keen to see an outcome from this, as they are seeing the need to review their pay structures due to the NLW and the erosion of differentials between workers. In some councils, supervisors are being paid the same rate as those they supervise.

c) Proposals on ‘Intermediaries’ (Off-Payroll Workers) in the Public

Sector 3.7 During the summer, the Government consulted on proposals to change the tax

and NI arrangements for Intermediaries or off-payroll workers in the public sector, including shifting the responsibility for assessing whether the worker is within scope of the legislation and the responsibility for calculating, reporting and paying the relevant taxes where a worker is within scope.

4. Recommendations Members of the Executive Board are invited to: 4.1 Note the contents of the report. 4.2 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

Item 8


Report of Management Group

Summary EMC Management Group met on 9th September 2016. The following report summarises the main issues considered and agreed by Management Group, specifically: a) Budget Monitoring. b) Corporate Governance, including both internal and external audit. c) Performance Management. All papers are available on the EMC website or on request to the Executive Director. Recommendations The Executive Board is invited by the Management Group to: Note the actual financial position for the period ended 31st August 2016 and the associated

forecast outturn to 31st March 2017. Note the agreed key performance indicators. Note the considerations and resolution on corporate governance matters, including

meeting our statutory external audit requirements.

Item 8

1. Introduction 1.1 This following summary report provides Members of the Executive Board with an

update of the key issues considered by Management Group at its meeting on 9th September 2016.

1.2 All papers are available on request to the Executive Director or on the following link to

EMC’s website: http://www.emcouncils.gov.uk/write/9th_September_Agenda_and_Papers.pdf

2. Budget Monitoring (April to August 2016) 2.1 A balanced budget has been set for 2016/17. This is expected to be achieved as there

is less reliance on Government Grants, a staffing review was completed in 2015/16 which significantly reduced employee costs and additional sources of income have been found.

2.2 This report shows the progress made so far for each of these targets. The deficit

forecast to March 2017 includes only ‘banked’ or ‘committed’ savings and/or additional income at this stage, work continues in identifying and achieving further savings. Each subsequent budget monitoring report should show either a reducing projected deficit, or a growing surplus. In this way, Management Group has the information to monitor the progress made in achieving the targets and make timely contingency arrangements if necessary.

a) Staffing

2.3 The staffing budget has reduced by almost 22% since 2014/15 as a response to the

reduction in the number and value of grants. 2.4 Included in the budget were assumptions for the national pay award, employers’

pension contributions and a National Insurance employers’ contribution increase. These increases have occurred but the pay award was slightly lower than budgeted which has resulted in a projected underspend in staffing costs of around £2,800.

b) Financial Report Year Period Ending 31st August 2016

2.5 The financial statement, attached as Appendices 8 (a-f), details the summarised

financial position for the period ended 31st August 2016 in total and for each of the cost centres. It also provides a forecast outturn as at 31st March 2017.

2.6 The staffing budgets are allocated to each cost centre on the basis of an estimate of

the time spent by staff on each activity. Corporate staff and other costs are allocated

http://www.emcouncils.gov.uk/write/9th_September_Agenda_and_Papers.pdf

Item 8

on an agreed percentage basis across all the 5 key areas of work. The corporate staff costs have been assimilated into the staffing costs for each cost centre and the other corporate costs (rent, service level agreements, etc.) and are shown as overhead costs.

c) Core Services – appendix 8(b)

2.7 This includes all activity funded by member subscriptions including lobbying and policy. 2.8 All subscription invoices have been sent out and are accounted for within the total

income. Since the budget was set, South Holland DC have decided to continue in membership and Leicester City Council and South Northamptonshire Council have also re-joined and therefore income from subscriptions are showing a surplus of £18,700 against the budget.

2.9 Premises rental costs have reduced from £30,000 per annum to £22,000 with effect

from 1st August 2016. All other expenditure is being actively managed.

d) Contract and Grants – appendix 8(c) 2.10 This includes the migration contract, funded by government grant, together with

income from contracts for Midlands Connect and HS2 work. 2.11 This area of work is forecast to deliver a surplus of £16,250 within the balanced budget.

There is, however, a requirement to secure additional grants to the net value of £10,000. A grant will be forthcoming in relation to work relating to the Syrian Refugee and UASC Resettlement programmes, but this work has not been included in the budget figures until the grant and its official start date is confirmed.

e) Members’ Learning and Development – appendix 8(d)

2.12 This includes the low cost CPD for members, member development charter and

member development events together with the member development skills programme.

2.13 The total income target of £38,550 includes £10,000 for sponsorship. We will look to

re-apportion the sponsorship budget across other cost centres.

f) Consultancy - appendix 8(e) 2.14 This includes all Learning and Development, HR and planning consultancy work

undertaken on behalf of members.

Item 8

2.15 This area of work is forecast to deliver a surplus of £4,550. A challenging income target of £156,150 includes £36,300 income from secondments.

2.16 Other consultancy income totals £119,850 and though the income achieved so far is only £23,945, this is because not all invoices for consultancy work have been raised covering the period up to the end of June 2016.

g) Fee paying events and services – appendix 8(f)

2.17 This includes the CPD programmes for officers in Environmental health and Planning

together with HR and learning and development and planning and policy events. 2.18 This area of work is forecast to deliver a surplus of £38,950. Whilst income achieved

so far of £83,557 is greater than anticipated by the profiled budget, which is encouraging but, like all budget areas, this will continue to be monitored closely. Additional income from sponsorship has been raised. The budget for this is likely to be re-allocated accordingly.

h) Reserves and Liabilities

2.19 As at the beginning of the financial year 2016/2017 our current level of reserve was

£635,465 allocated as below: £200,000 to an earmarked reserve for staffing liabilities (except pension

liabilities). £60,000 to an earmarked reserve for renewals. £375,465 to an unallocated reserve to manage unforeseen financial events

2.20 EMC is committed to reduce the pension deficit which was left with Leicestershire

County Council following the transfer of accountable body to Nottingham City. The level of the 2016/17 contribution will be determined following the actuarial valuation expected in late Autumn 2016. Reserves are likely to be re-allocated to cover this liability.

3. External Audit 3.1 In order to meet our statutory responsibilities as an Regional Employers’, an external

audit is being undertaken of our 2015/16 accounts to support submission to the Certification Office.

4. Performance Management – Key Performance Indicators 4.1 Management Group continues to monitor EMC’s performance and delivery against the

Business Plan. For information, it is attached as Appendix 8(g) to this report.

Item 8

5. Recommendations The Executive Board is invited by the Management Group to: 6.1 Note the financial position as part of the budget monitoring ending 31st August 2016

and the associated outturn to 31st March 2017. 6.2 Note the consideration of performance management and external audit in meeting our

statutory external audit requirements.

Cllr Jon Collins Chairman EMC Management Group


EMC

Approved Budget 2016/17

Profiled Budget 2016/17

Actual to August 2016

Forecast to March 2017 Variance

£ £ £ £ £ Income Subscriptions 249,700 249,700 268,400 268,400 18,700 Grants – On-going 76,450 31,854 19,125

76,450 0

Grants - New 130,000 54,167 15,000

120,000 -10,000 Earned Income 288,000 120,000 115,842

288,000 0

Secondments 36,300 15,125 35,800

36,300 0 Sponsorship 15,000 6,250 2,949 2,949 -12,051 Total 795,450 477,096 457,116 792,099 -3,351 Staffing 559,500 233,125 231,277 556,700 -2,800 Members Allowances 23,350 9,729 9,680 23,350 0 Premises 27,000 11,250 11,833 24,666 -2,334 Service Level Agreements 21,500 8,958 8,957 21,500 0 Other Direct Costs 164,100 68,375 52,239 164,100 0

Total 795,450 331,438 350,316 790,316 -5,134 Surplus/-Deficit 0 145,658 106,588 1,783 1,783


Corporate and Core Services



Actual to End of August 2016


£ £ £ £ £ Income Subscriptions 249,700 249,700 268,400 268,400 18,700 Sponsorship 5,000 2,083 1,899

1,899 -3,101

Interest 3,000 1,250 0 3,000 0 Total 257,700 253,033 270,299 273,299 15,599 Staffing 206,700 86,125 85,894 203,900 -2,800 Members Allowances 23,350 9,729 9,680 23,350 0 Premises 27,000 11,250 11,833 24,666 -2,334 Service Level Agreements 21,500 8,958 8,597 21,500 0 Other Direct Costs 61,900 25,792 12,248 61,900 0 Overhead Costs 28,400 11,833 11,833 28,400 0 Recharged to Cost Centres -87,700

-87,700

Total 281,150 153,688 140,445 276,016 -5,134

Surplus/-Deficit -23,450 99,346 129,854 -2,717 20,733


Contracts & Grants



Actual spend to August 2016


£ £ £ £ £ Income On-going Grant

- Migration 76,450 31,854 19125 76,450 0 New Grants

- Midlands Connect - HS2

60,000 60,000 50,000 15,000 120,000 0

- Uncommitted 10,000 4,167 0 0 -10,000 Total 206,450 155,429 34,125 196,450 -10,000 Expenditure Staffing 159,800 66,583 65,882 159,800 0 Direct costs 7,600 3,167 933 7,600 0 Overhead costs 22,800 9,500 9,500 22,800 0

Total 190,200 79,250 76,315 190,200 0 Surplus/-Deficit 16,250 6,771 -42,190 6,250 -10,000


Member Development



Actual to August

2016 Forecast to March 2017 Variance

£ £ £ £ £ Income Development 28,550 11,896 8,340 28,550 0 Sponsorship 4,000 2,333 0

0 -4,000

Total 32,550 16,063 8,340 28,550 -4,000 Expenditure Staffing 52,600 21,917 21,386 52,600 0 Direct costs 18,050 7,521 5,385 18,050 0 Overhead costs 4,200 1,750 1,750 4,200 0

Total 74,850 31,188 28,521 74,850 0

Surplus/-Deficit -42,300 -15,125 -20,181 -46,300 -4,000

Item 8, Appendix (e)

Consultancy





£ £ £ £ £ Income Earned Income 119,850 49,938 23,945 119,850 0 Secondments Sponsorship

36,300 5,000 15,125 35,800 36,300 0

Total 161,150 65,063 59,745 156,150 0 Expenditure Staffing 119,000 49,583 49,224 119,000 0 Direct costs 15,400 6,417 6,156 15,400 0 Overhead costs 17,200 7,167 7,167 17,200 0

Total 151,600 63,167 62,547 151,600 0 Surplus/-Deficit 4,550 1,896 -2,802 4,550 0

Item 8, Appendix (f)

Fee Paying Events/Services





£ £ £ £ £ Earned Income

136,600 56,917 84,607 137,650 1,050

Total 136,600 56,917 84,607 137,650 1,050 Expenditure Staffing 21,400 8,917 8,891 21,400 0

Direct costs 61,150 25,479 27,517 61,150 0 Overhead costs 15,100 6,292 6,292 15,100 0

Total 97,650 40,688 42,700 97,650 0 Surplus/-Deficit 38,950 16,229 41,907 40,000 1,050

Item 8, Appendix (g) Proposed Key Organisational Performance Indicators (2016/2017)

1. Pillar 1: All-Member Organisation

Key Performance Indicators 2016/2017

Progress - Financial Year 2016/17

a) To increase attendance at

formal meetings of East Midlands Councils, Regional Employers’ Board, Strategic Migration Board, The Improvement and Transformation Board and HS2 Strategic Leadership Board from 2015/16 levels.

b) To secure at least 80%

attendance at EMC Executive Board and Management Group

Percentage Attendance

Financial Year

2012/ 2013

Financial Year

2013/ 2014

Financial Year

2014/ 2015

Financial Year

2015/ 2016

Financial Year

2016/ 2017

Progress

East Midlands Councils 58% 57% 55% 57% 51%

Executive Board 74% 65% 63% 71% 71%

Management Group 75% 79% 68% 78% 71%

Regional Employers’ Board 55% 67% 60% 51%

No meetings

held

Strategic Migration Partnership Board 63% 81% 64% 61% 33%

Regional Improvement and Transformation Board

46% 57% 50% 70% N/A1

HS2 Strategic Leadership Board 52% 60% 55%

1 Improvement and Transformation Board ended July 2016.

Progress in Achieving Objective

Activity successfully completed

Activity on target for completion Activity not on target for completion Activity subject to review


c) To maintain levels of council

membership of EMC (44 councils, as at 1st April 2016).

Northamptonshire County Councils and South Holland District Council have rolled-over their notice to leave membership in March 2016. The position of each council to be confirmed. Leicester City Council returned to EMC membership (confirmed May 2016).

d) To undertake an annual satisfaction survey of member councils on the provision of direct support services.

e) Provide direct membership benefits to councils through increasing by 10% the number of councillors participating in:

Regional Programme of

Briefing Events

Member Development Skills Workshop

Baseline 2015/2016

[* ¼ly data]

Quarter 1 Quarter 2 (Cumulative)

Quarter 3 (Cumulative)

Quarter 4 (Cumulative)

303

139

69 [65*]

19 [26*]

69 [65*]

19 [37*]





f) Provide direct membership

benefits to councils through increasing by 10% the number of officers participating in EMC supported continuous professional development.

Baseline 2015/2016

[* ¼ly data]

Quarter 1 Quarter 2 (cumulative)

Quarter 3 (cumulative)


1411

238 [277]

347 [422]





2. Pillar 2: Policy Development



Progress

a) Establish an effective relationship and joint approach between councillors, MPs, MEPs and other partners, through: Holding at least 3 joint events

and/or summits. The agreement of joint priorities as

the basis for collective work.

A joint programme of work has been agreed with Co-Chairs of EM APPG: Two meetings have been held: BBC regional coverage. Hs2 Further meetings of the APPG are planned to consider: Health Public Investment and Expenditure (including National Lottery

funding) Midlands Engine and Midlands Connect Devolution

b) Develop a portfolio of agreed policy positions on issues as identified in the Business Plan, e.g. Migration, Health, Economic Growth and Infrastructure.

Housing Summit held in June 2016 with launch of housing report. Migration Summit planned for November 2016 to focus on asylum

dispersal, Syrian resettlement and unaccompanied children. Midlands Engine consultative events (bi-annual, July and

November 2016). Work on HS2 Growth Strategy Interim Submission commenced to

be finalised in September 2016.





c) To make demonstrable progress in delivering the recommendations of agreed regional reviews: Migration Health Housing

Migration A migrant health conference is planned for September 2016. Establish a fairer distribution of asylum seeker dispersal within

the East Midlands. Establish and deliver a regional co-ordination model for the

Syrian resettlement programme. Ensure local councils are supported in managing the

consideration and implementation of national migration policy, i.e. asylum dispersal, Syrian resettlement and UASC.

Health Meetings held with Directors of Public Health and the development

of follow-up proposals to support collective leadership. Wider progress made against health review recommendations, i.e.

collective leadership and marketing work as part of drives to improve the recruitment & retention of health workforce.

Housing EMC housing review has been submitted to the LGA to inform the

national housing commission review. Housing summit held on June 2016 to inform further collective

work, to be led by housing partner colleagues.





3. Pillar 3: Collective Work and Lobbying



Progress

a) Working with LEPs and local councils to: Secure the implementation of the five

agreed infrastructure priorities. Develop a shared long term approach

through ‘Midlands Connect’. Make progress in the development

and delivery of Midlands Engine proposals.

Draft of Midlands Connect ‘Picking up the Pace’ Report produced – finalised July 2016.

Midland Connect Emerging Strategy Report planned for September 2016.

Midlands Connect Strategy planned for March 2017. National investment support made available through the

Chancellor’s Autumn Statement 2016 and/or Budget 2017.

b) Provide strategic political leadership for the implementation of HS2 through support for: The EM HS2 Strategic Board and

associated groups; and The HS2 East Partnership

Work on HS2 Growth Strategy Interim Submission to be finalised for September 2016.

HS2 East meeting and event held in Newcastle June 2016 to highlight the opportunities for connecting the Eastern Leg to Scotland.

c) Secure Parliamentary debate on securing additional investment into the East Midlands.

Initial meeting held between Co-Chairs of APPG and Lord O’Neill (Commercial Secretary to the Treasury), 26th April 2016.





4. Pillar 4: Improve Communication Key Performance Indicators 2016/2017 Progress - Financial Year 2016/17

Progress

a) To provide EMC Councillors with a weekly policy brief and monitor feedback on a 3 month basis.

Monitoring to be undertaken alongside the 16th September 2016 edition.

b) To provide monthly MP and MEP policy brief and monitor feedback on a 3 month basis.

To be provided in conjunction with East Midlands Chambers of Commerce.

c) To improve the effectiveness of the EMC website as measured by (from 2015/16 levels): 10% increase in website ‘hits’. 10% increase in pages per visit 10% increase in average time on site 10% reduction in the bounce rate

Baseline 2015/2016

Quarter 1




35,059 2.18

1min, 33 secs 29.98%

7,978 2.22

1min, 25 secs 34.59%

11,218 2.20

1min, 27secs 34.30%





d) To increase by 50% the number of

followers of EMC Twitter account [Baseline 465 on 31st March 2016; target 698 followers].

489 followers as at 31st July 2016.





5. People Management



Progress

a) Maintain staff sickness rate at

less that 6 days per full time equivalent (public sector average 9.6 days, local government average 10.3 days; EMC baseline [2015/6]; 7.9 days with L/T sick, 1.81, days without LT sick).

Q1

Q2

(cumulative) Q3

(cumulative) Q4

(cumulative) With L/T* Sick 0 0 Without L/T* Sick 0 0

* L/T = long term.

b) Wherever possible, to meet all staff

learning and development needs, as identified by annual Staff Development Interviews (SDIs).

All staff development interviews completed by the end of the June 2016.





6. Membership Service Standards



Progress

a) To respond and fully answer 95% of advice requests from member councils within 2 working days.

19 requests received – 16 responded within 2 working days. Total 84%




Documents

AGENDA - East Midlands Councils · Northampton BC to see if they will reconsider membership. Stuart Young highlighted the proposal to stand down the Regional Improvement and Transformation